Innovation and Commercialisation Strategies: Analysis and Application

Desklib provides past papers and solved assignments for students. This report analyzes innovation and commercialization strategies.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................2
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................4
M1 Analyze different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation........................................................................................6
LO2..................................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of innovation funnel to examine and
shape innovative ideas.................................................................................................................7
M2 Analyze and apply the innovation funnel in an organisational context................................9
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context................................................................................................................11
M3 Evaluate the role of frugal innovation in an organisational context...................................12
D1 Critically analyse how innovation is developed, embedded and measured in an
organisational context................................................................................................................13
LO3................................................................................................................................................14
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation......................................14
P6 Build an innovation business case for an organisation, including ways to access funding..16
M4 Build a detailed innovation business case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve....................18
LO4................................................................................................................................................19
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................19

M5 Present supported evidence based evaluation of these different tools in the context of the
wider business environment......................................................................................................21
D2 Critically evaluate the nature of innovation and the context in which it is developed,
providing evidence based judgements on how organisations can overcome challenges to
develop successful innovations..................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

LIST OF FIGURES
Figure 1: Functions of innovation....................................................................................................2
Figure 2: Innovation significance for new product..........................................................................4
Figure 3: 4p's of Innovation.............................................................................................................7
Figure 4: Innovation funnel.............................................................................................................9
Figure 5: Essentials of NPD..........................................................................................................14
Figure 6: Tools of intellectual property.........................................................................................19

LIST OF TABLES
Table 1: Comparison within invention and innovation...................................................................3

Introduction
Commercialisation refers to method of launching fresh products or goods in general market that
includes distribution, production, and buyer support, sales and marketing by achieving growth
with innovative products. The current report will explain innovation with its importance for
developing new product in context to Virgin Group by comparing from invention. It will discuss
teamwork, vision, culture and leadership role in shaping innovation and commercialisation. The
study will explain 4p’s of innovation by discussing funnel for using innovative ideas and it will
provide various developments that are occurred in frugal innovation. Further, the report will aim
at explaining new product development and commercial funnel by developing business case for
new product that requires funds by Virgin Group. At last, various tools will be listed that helps in
protecting, retaining and developing intellectual property.
1

LO1
P1 Explain innovation and determine its importance to organisations in comparison with
invention
Virgin Group is located in UK and owned and developed by Richard Branson. It has various
areas of business that includes travel, finance, entertainment and life style. It has achieved huge
growth from just publishing venture that comprises of Virgin Blue, Virgin Express, Virgin Bride,
Virgin Atlantic etc. The regular growth of business has boosted Branson’s entrepreneurial style
through aggressiveness and curiosity that provided opportunity for exploring fresh horizons for
business. Virgin Group has gained huge success from better and tough support by senior staffs
which are identified as innovation divers and enabler in organisation (Jensen, et.al, 2016).
Figure 1: Functions of innovation
(Source: Ross Dawson, 2014)
The term innovation is known as translation process of idea or invention on products that aids in
developing specific value that is paid by customers. The innovation in business plays meaningful
role as it satisfies particular needs of customers that provide reliable results and helps in gaining
economic cost. It determines creativeness that collaborates various ideas for initiating sensible
association. The Virgin Group has successfully understood need of innovation and change that
2

has satisfied global stakeholders. It aims to change dynamic environments of business. It brings
risk in situation of failure to employees, community and customers. Innovation and invention are
separate terms as innovation initiates change in present product using fresh methods and ideas
and invention develops new product or service (Carr, 2019). It has following differences:
Table 1: Comparison within invention and innovation
Innovation Invention
It helps in adding value to current product. It specifically generates fresh product.
It practises practical planning. It has concept for original matters.
It is scattered in the firm. It is limited only in R&D department.
3

P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
The mindset of top leader is based on innovation and commercialisation that helps to draw best
ideas and conclusions for developing new product. For example – The leader Richard Branson is
carrying visionary and focused intentions for obtaining business growth by targeting possibilities
and opportunities that are present around business. The positive customer experiences will be
gained if leader has engaged nature in team by dispensing positive motivation and listening in
staff. The innovation technique has played crucial importance in listening needs of clients using
systematic approach and appreciation. The expected results can be obtained by resolving issues
and motivating staff members (Dincer, 2017).
Figure 2: Innovation significance for new product
(Source: Gotzone Barandika, 2014)
Commercialisation refers to action of integrated procedure that is mentioned in innovation cycle
for developing value pint. Thus, it is important that organisational leaders dispense some sort of
value point for listing solutions for satisfying consumers. The sustained success is essential for
Virgin Group for which team guidance by leaders for commercialisation is important. The leader
requires having surety that team selected for task holds adaptive and skills variety for acquiring
4

expected growth. The success of business can be obtained by hiring team from various culture
and backgrounds, providing time for experiments for new product and listens team mates that
will initiate best practises in organisation (Pynnönen, et.al, 2019).
The diversified culture in business will give huge list of ideas from which innovative ideas can
be easily selected. It helps in giving correct direction from which ideas will be converted into
vision and then into finished product without expecting appreciation applause. Thus, the nature
of adaptability is essential for initiating innovativeness.
5

M1 Analyze different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
The creativity and innovation attributes of employee brings success and growth to business. The
leaders support innovation that shapes firm environments by being follower of major guidelines.
There are key points that will provide best assistance for developing new product by the Virgin
Group with innovative culture that includes:
Developing Flexible and Forgiving Culture – The tough and strict working practises minimizes
innovation. It is essential for employees and managers to take risk in which encouraging staff for
giving better suggestions beyond their thinking capacity helps in gaining competitive edge with
quality products (Ali Taha, et.al, 201.) The flexible condition should not carry punishment
provision in case ideas for new product gets failed as it will decrease morale and might nor
provide further growth ideas.
Brainstorming Programs – The Virgin Group for developing new product must aim on creating
meetings at end of week in which all employees will express ideas and creativity related to goods
that will develop opportunity to know employee engagement in business activities. Even best
idea selection must be voted by staff members that will drive positive motivation and faith for
organisation.
6

LO2
P3 Explain the 4Ps of innovation and explain the use of innovation funnel to examine and shape
innovative ideas
The model of innovation mix aids in discovering process of innovation that gives changes to the
business activities for Virgin Group. It consists of 4ps named paradigm, process, position and
product which are described below:
Process Innovation – It states method of forming new product that describes way of availing
products to potential consumers. It is essential to initiate innovative process of preparing and
delivering product that will impact positively on firm’s success (Akgun, et.al, 2017).
Product Innovation – It mentions that existing or new product requires innovation by managing
essential changes that directly add value to product. The technology perspective needs to use for
practising change to current product of Virgin Group.
Figure 3: 4p's of Innovation
(Source: Ian Murray, 2015)
7