Innovation and Commercialisation Report for Business Students

This report delves into the concepts of innovation and commercialization, crucial elements for business growth and profitability, using TESCO as a case study. It explores the value of innovation compared to invention, and how leadership, organizational culture, vision, and teamwork shape commercialization. The report examines various sources of innovation, the 4 Ps of innovation (product, process, position, and paradigm), and the application of the innovation funnel. Furthermore, it discusses frugal innovation, its significance, and the importance of the commercial funnel and new product development processes. A detailed innovation business case for TESCO is presented, along with an analysis of tools for knowledge retention, development, and intellectual property protection. The report concludes with an evaluation of different intellectual property tools in an organizational context.

Innovation and Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
P1- Value of innovation to companies as compare with invention........................................2
P2- Leadership, organizational culture, vision and teamwork shape commercialization &
innovation...............................................................................................................................3
M1- Different sources of innovation and ways through which organizations can develop
innovative culture...................................................................................................................4
P3- 4 Ps of innovation and use of innovation funnel..............................................................5
P4. Development in frugal innovation and providing examples............................................6
M2- Application of innovation funnel in context of TESCO.................................................7
M3- Role of frugal innovation in business context................................................................8
P5- Importance of commercial funnel and application of new product development processing
for innovation & commercialization......................................................................................8
P6- Development of innovation business case in regard to TESCO......................................9
M4- Detailed innovation business case................................................................................11
P7- Different tools that companies could use to retain, develop and protect knowledge as well
as intellectual property.........................................................................................................11
M5- Evaluation of different intellectual property tools in organizational context...............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Innovation and commercialization are two different valuable elements that help to boost
productivity and profits of a company. These components are quite essential for every firm, as it
supports in providing new and quality items in market. The current assignment will be based on
TESCO, which falls under list of leading supermarket chains in the United Kingdom. This study
will explain innovation concept and its importance for companies as compare with invention. It
will define manner through which organizational vision, culture, teamwork and leadership could
shape commercialization & innovation. This report will describe 4Ps of innovation and usage of
innovation funnel to shape & examine creative ideas. It will justify development in frugal
innovation, significance of commercial funnel, implication of new product development and will
also clarify innovation business case for chosen brand. Furthermore, this assignment will explain
varied tools that companies could utilize to retain, develop and protect intellectual property &
knowledge.
MAIN BODY
P1- Value of innovation to companies as compare with invention
Innovation can define as creating new value or capturing it in a different style, which
provide benefits to creator of this concept and users who use it (Buheji and Ahmed, 2018). It can
be considered as idea that could transform into realistic reality. For example, innovation in a
venture is a product, service, procedure or concept that can activate in market and introduce new
growth and success for a company.
While invention is referring to unique device, approach or composition within entire
product development procedure, it may define as improvement upon goods or new act for
developing a desire outcome (Ray, 2019).
Importance of innovation-
In recent time, due to high competitive environment companies in the world of business
are facing several challenges in order to be competitive and sustain their ventures for longer
period of time. In that case, innovation is one and only source that play vital role in term of
differentiating firms within its sector. It is actually very important for any organization like
TESCO in term of gaining competitive advantages, retaining potential buyers and attracting
more new one, which in return increase sales level (7 Reasons Why Innovation is Important,
2020). Innovation is essential in several terms for example, it can help to bring new idea and
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improve existing products and service category to target market as well as increase operational
efficiency in excellent manner.
Comparison-
It can be analysed that innovation as compare to invention provides organizational
sustainability when its management is making continual improvements within existing items or
plans. While invention consumes a lot of time and money in term of producing overall new thing
like a product which may be customers prefer to purchase because buyers could not make trust
easily in context of totally new items. For example, when TESCO adopt innovation concept it
need to make changes or add value in current item that its customer already love a lot and feel
existing to purchase prefer product with new features, which is not possible when invention term
could use. It gives fully new product in front of or sells to consumer that could lead risk in form
of gaining less attention. Innovation does not require creation of new process, good or ideas,
while invention needs are all these things that are actually a time and money consuming.
P2- Leadership, organizational culture, vision and teamwork shape commercialization &
innovation
Organizational vision-
This factor shape innovation in term of driving a company like TESCO and its
management as well as workers towards achieving current and further aims of business such as
increase customer base (Sprong and et.al., 2020). This goal can be achieved by introducing new
or unique items that customer can consider as value added product. Vision statement could
define what organizations would become in the future and what it wants to achieve which is
possible when management adopt new tactic, procedure, approach or concept and innovation is
one of it. This element also shapes commercialization in term of bringing new item offer by
TESCO.
Leadership-
It is an ability of an individual or a leader to influence and direct all workers of an
organization such as TESCO. It can play vital role in context of shaping innovation for example,
by using effective leadership style leader can shape innovation by providing appropriate
guidance and conducting group activities through which they can drive workers towards creating
innovative ideas (Naqshbandi, Tabche and Choudhary, 2019). It could also shape
commercialization when supervisor in chosen company set clear aim to manage employees
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around them at workplace. Furthermore, it also shapes this term by permitting different staff
members to take lead on task that helps to produce innovative product.
Organizational culture-
It could define appropriate manner to behave and act within TESCO. The culture within
company consists of shared values and beliefs that can establish by manager or leader and then
communicated through different sources. The culture of firm can help in regard to shape
innovation and commercialization because when workers belief that innovation attract customers
it drives all of them towards adding more attractive and valuable features within existing
products (Srisathan, Ketkaew and Naruetharadhol, 2020). Furthermore, organizational culture
define that in what way goods could going to be created and in what manner its
commercialization gets impacted.
Teamwork-
Just like above forces, group work also shape commercialization and innovation in
several terms, for example, when employees perform together they can develop innovative ideas
which turn into commercialization in regard to TESCO. It contributes in this term of innovated
goods. This force brings new and creative ideas and engages more applicants in innovation
concept which is quite beneficial in term of increasing customer satisfaction level (Hameed, von
Staden and Kwon, 2019). When workers are performing in a group, they have a common aim
and attempt to achieve it by thinking creatively that definitely shape innovation.
M1- Different sources of innovation and ways through which organizations can develop
innovative culture
7 sources of innovation-
Unexpected occurrences-
Difficult and complex situations drive an individual towards conduct unpredicted things
such as decision making, idea creation etc. which in return make them able to be innovative in
simple words (Schuhmacher and et.al., 2018).
Incongruities-
Incongruity within rhythm and logic of a procedure like food production within TESCO
is only one possibility out of which innovation chances could arise.
Process needs-
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When TESCO want to be competitive and improve its production process it drives
attention and focus of its management towards creativity in short innovation within existing
items.
Industry and market changes-
Sector or market changes put high pressure on workers and drive them towards
innovation concept which make firm able to sustain for longer period of time.
Demographic changes-
These types of changes could make TESCO and its administration capable to decide what
product needs innovate and where in the market which in return increases customer satisfaction
and profits margin even better.
Changes in perception-
When perception of customer gets change; then organization should thoughts to use
innovation tools.
New knowledge-
New understanding about market needs and consumer preferences could definitely gives
idea about creativeness in form of innovation.
Organizations such as TESCO and Sainsbury could develop and foster innovative culture
& environment by motivating and supporting workers at workplace which drive each employee
towards creating innovative idea and then implementing in form of unique product.
P3- 4 Ps of innovation and use of innovation funnel
As discussed above the innovation is very important for the better working and development of
the company. For this it is very important for the company Tesco to make effective use of the 4
Ps of innovation which is Product, process, Position and paradigm.
 Process- this involves making or bringing the innovation in the process of the company or
the process through which the company makes the innovation in the whole series of steps
followed.
 Product innovation- this is another major P of innovation in which the company tries to
make the innovation in the product which they offer to the company (Akgun and et.al.,
2017).
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 Position- this is another major P which deals with the changes in the position of the
product or the service which the company is having within the market and among the
target groups.
 Paradigm- this is the last P of the 4Ps of the innovation in which the change underlying
any mental disorder or the alternate which the company is thinking to have is being
highlighted.
Along with these 4 Ps it is very important for Tesco to have the effective use of
innovation Funnel as well. The innovation funnel is a concept which involves the use of constant
streaming of the new ideas and tries to develop the idea into the business.
(Source: Six major stages of innovation funnel management. 2020)
The innovation funnel is a method which need to be widely used as this provides for a
effective base for developing the idea and further this idea is being managed and tries to develop
that whether the idea generated will be successful or not. Further in the next stage the company
will try to develop the product further and evaluate the fact that whether the product will get
successful in the market or not.
P4. Development in frugal innovation and providing examples
The frugal innovation is defined as the process through which the company reduces the
complexity and the cost of goods and production (Weyrauch and Herstatt, 2017). This refers to
as the removal of the non- essential thing from the durable goods which are assistive for the
company in order to improve the working of the company. The use of frugal innovation is very
important because of the reason that when the company makes the effective use of the removal
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of the non- essential thing will be helpful in attracting the consumer attention in order to manage
the performance of the company. There are many different types of changes in working
environment and it is not possible that the company makes the use of all the different types of
changes in the business. Thus, for this it is essential for the company to have an effective
management of the innovation so that the consumers are getting better working of the company.
This innovation frugal is very much important and common for all the companies to have access
to the working of the company. The major reason is that if the company will not focus over the
innovation frugal then this will have an impact over the working of the company and operations
of the company.
For instance, the major example of the frugal innovation is of TATA nano car which
solved the problem of small car in India. But this has created the image of the very cheap car and
because of this the company stopped the car manufacturing and updated its production system
and again re- launched the car in the market again to gain a market share. Another major
example is of the 3 D printer from the E- Waste being created in Togo. This is an innovative lab
which created the first Made in Africa 3D printer by using the e- waste being created by the
community of tech hub (Frugal innovation around the world, 2016).
Thus, with these innovation frugal examples it can be seen that any problem or the
difficulty can also lead in the development of any new idea or any modification in the existing
product or the service. Hence, when the company will be using the process of frugal innovation
then this will assist Tesco in managing the business in effective an efficient manner and this will
increase the profitability and profession of the company to a great extent. In the end it is said that
when the company tries to innovate continuously then this will surely provide a competitive
advantage to the company and this will attract the consumer in managing the business and
increasing the proficiency to a great extent.
M2- Application of innovation funnel in context of TESCO
Chosen supermarket could apply innovation funnel concept at workplace in effective and
systematic manner by following overall stages. This concept comprises discovery, scoping, build
business case, development, validation & testing and launch, which management could adopt
and implement for introducing innovation in style of producing and offering unique item.
Furthermore, it can be analysed that innovation funnel implication at workplace strengthen brand
an increase its ability to innovate effectively and successfully.
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M3- Role of frugal innovation in business context
The most important role that frugal innovation could play is delivering more valuable
things such as low costs and appropriate quality to customers of TESCO, which is very
beneficial in term of gaining attention of new buyers. It urges company to respond to limitations
in assets; whether material, financial and workers and turn these resources constraints into
creative ideas which bring a lot of benefits.
P5- Importance of commercial funnel and application of new product development processing
for innovation & commercialization
Commercial funnel-
It is one of the best marketing tools through which a firm like TESCO can find, qualify
and trade its business direct to customers. It is also known as sales funnel which breaks down
journey of buyers from awareness to buy phase.
Importance of above term-
Commercial funnel is essential for business in term of generating more profits and
increasing productivity in effective manner through varied forms of acts from marketing to
selling (Yu and et.al., 2019). The best thing about this concept is that it leads to
commercialization which means that company through this term can make change in existing
items that help to gain attention of new buyers and retain exiting one successfully.
New product development-
It is a complete procedure of bringing a new item to new or current marketplace. It
comprises few stages that could implicate in regard to TESCO.
Idea generation-
Before conducting any practice or taking action this stage comes first during that workers
and management needs to generate innovative ideas like introduce plant based vegan items and
ready meals for current and new group of consumers.
Idea screening-
After passing above phase, managers, leader and workers could come to next stage where
ranges of ideas can screen out and then chosen by management the best one among it.
Concept development and testing-
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With chosen idea, manufacturing department within TESCO take further step in form of
transforming innovative idea into practical reality by manufacturing new vegan products, which
they could test after it.
Marketing strategy development-
After passing development and testing stage, marketing department drive innovative idea
or new product towards promotion act. It could be done by creating influencing and attractive
marketing content.
Product development-
Entire concept of innovation and procedure goes under product development which is
quite beneficial in form of consumer satisfaction, for which manager can create physical version
of items.
Commercialization-
This stage of new product development ends at commercialization form where marketing
team efforts to launch and introduce plant based vegan goods in chosen market.
Post launches review-
After promoting innovative product TESCO marketing team can monitor and review
success of its promotion plan by recognizing like, comments and reviews given by customers on
product ads pages or websites.
P6- Development of innovation business case in regard to TESCO
Executive summary-
TESCO is a leading supermarket brand in the whole world; it known for selling quality
products and excellent services. In order to satisfy current and new customers, firm decide to
introduce innovation concept in form of producing and providing own branded range of plant
base vegan goods. Company has protected this innovative idea by using relevant IP tools.
Analysis-
The main purpose of environment and business analysis it to determine factors which put
impact on current idea or product. It can be analysed that, technology factor is one of the most
profitable element that put positive impact on sales and success of innovative business case in
form of giving firm chance to promote new concept by using the latest digital marketing
platforms like Instagram, Video marketing etc.
Description of the problem of the company-
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TESCO just like other supermarket brands is facing problems or challenges because of
intense competition within retain industry. Because of that problem its management could drive
towards developing innovative idea.
Reason behind innovative solution-
To gain competitive advantages and increase profitability are the most important reasons
behind adopting innovation concept as it bring a lot of benefits in several forms. TESCO by
producing and introducing new concept would gain attention of new buyer.
Use of NDP model-
TESCO along with different techniques and approaches will use and implement stages of
new produce development which make them able to gain desire outcomes and increase sales
level.
Possible options or sources of funding-
Bank loans and Angel investors are two different ways of funding among which TESCO
management will chosen appropriate one. For example, Bank loan is one of the sources through
which company will take loan in form of specific amount require according to innovation
business case. Furthermore, angel investors are those who are able to invest money in profitable
and successful projects.
Financial analysis-
Basis Cost £
Market analysis 1000
Idea creation and implementation 1800
Hiring 1200
Training 1100
Raw material and other resources 1300
Marketing 20,000
Total 26400
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M4- Detailed innovation business case
As discussed above, in order to achieve set objectives and goals, TESCO has taken
different measures or use tools which make them able to test and improve its productivity and
performance. Furthermore, by using right funding sources they have gained different benefits in
term of gaining competitive advantages.
P7- Different tools that companies could use to retain, develop and protect knowledge as well as
intellectual property
Tools used to develop intellectual property and knowledge-
Design thinking-
It is one of the techniques that could help TESCO to design and develop new idea which
allow management to gain profits and generate revenues.
Brainstorming-
It is an idea generation method that collects different concepts or innovative ideas from
varied members through group discussion.
Approaches of protecting and retaining IP or innovative ideas-
Trademarks-
TESCO can utilize this IP tool which makes its brand capable to distinguish its new
product from its business rivals which is really very essential to do because it allow customers to
identify their brand and recognize in positive manner. When firm use this tool it can develop a
good relation with its target market and permit them to retain for longer period of time. It
requires filing legal registration.
Patents-
This tool is also useful and beneficial when TESCO use it in context of new above
innovative idea. For example, when firm patent plant based vegan items it give them rights to
protect it from other brands and restrict them to not adopt their idea (Tavor and et.al., 2019).
Patent can help venture to remain in competitive edge position and allow satisfying consumers
without making mistakes. It is the best form of intellectual property.
Copyrights-
It creates complete restriction in such manner that other ventures could not imitate or
copy original products of TESCO for doing own business. With copyright tool organization can
be in safety position which is quite beneficial for company in form of be competitive in recent
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