Unit 8: Innovation and Commercialisation Report - Business Management

This report examines the critical role of innovation in contemporary business environments, focusing on its significance for organizations and differentiating it from invention. It analyzes the influence of organizational vision, culture, teamwork, and leadership on fostering innovation and commercialization. The report delves into various sources of innovation, including unexpected events, incongruities, process needs, and demographic shifts, and discusses how organizations can cultivate an innovative environment. It covers the 4Ps of innovation, the use of the innovation funnel to shape ideas, and the application of frugal innovation strategies, providing examples of their practical use within organizations. Furthermore, it explores the scope, development, and growth of entrepreneurial ventures and the impact of economic levels on small businesses, culminating in a comprehensive understanding of innovation's role in driving business success.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Innovation and its importance in organisation comparison to invention................................3
P2 Role of organisational vision, culture, team work and leadership in innovation...................5
M1 Different sources of innovation and its assistance in foster and development of innovation
.....................................................................................................................................................6
D1 Scope, development and growth of entrepreneurial ventures...............................................6
TASK 2............................................................................................................................................7
P3 4Ps of innovation and use of innovation funnel (Covered in PPT).......................................7
P4 Development in frugal innovation and how it can be in used in organisation ( Covered in
PPT).............................................................................................................................................7
M2 Application of innovation funnel in organisation.................................................................7
M3 Role of frugal innovation in organisation.............................................................................7
D2 Impact of levels of economy on small businesses.................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is important in current scenario. It is important to make changes in routine task, this
impacts their business in positive manner. It is important to give emphasis on innovation , it is
important that there will be positive results but in case that change is acceptable by consumer
then it will be followed by various competitive firms (Aarikka-Stenroos and Lehtimäki, 2013) .
This report is based on innovative activities of ALCATEL established in 2004, which is a French
based organisation of telecommunication devices. This company is owned by Finnish consumer
electronics company Nokia and Chinese organisation TCL Corporation under license. In this
report, innovation , its importance with regard to organisation and how it differs from invention
is discussed. Apart from this role of organisational culture, mission, vision impacts on
innovation, 4Ps of innovation and use of innovation funnel and development in frugal
innovation.
TASK 1
P1Innovation and its importance in organisation comparison to invention
Definition of innovation
Innovation means new idea which can be used by organisation to operate its business. It
is important to analysis all the pros and cons of ideas. Innovation can be done to reduce cost of
production or delivery cost by management of ALCATEL. This aims at providing better services
to consumer. There are many changes taking places in society this is because of innovating ideas.
There are chances that in initial days of innovation people may not accept it and ALCATEL has
regularly make efforts to analyse market and try to grab opportunities by thinking what next.
Importance of innovation in ALCATEL
ALCATEL is an company which operates in smartphones. This is the industry where
changes takes place very frequently. It is important to see how they can make their product more
modified and updated. To update software, changes in models, these days there are phones in
market with slim body and inbuilt battery. So it demand must be fulfilled otherwise run will be
out of in competition. To make more innovation in digital line ALCATEL has collaborated with
Partech Shaker who are first in digital technology (Collet, Hine and du Plessis, 2015).
This will make company's growth and development in positive. This will help in change
in working style and more customer satisfaction to consumer. Goodwill of organisation increase
as they adapt new ideas which public like. There is diversity in cultures of different countries so

it is important to analyse that place where innovation is launched does not mean same will apply
at other location also. Nokia is brand which is famous of its durability and battery back up,but in
case of innovation it does not organisation forget about its core quality.
Importance of innovation in ALCATEL's employees
Employees of organisation also feel motivated that their personal skill improves. There is
requirement of training in case of change in technology used by ALCATEL, this increase their
efficiency and reduces defects, this will ultimately improves image of organisation (Fiedler and
Welpe, 2010). Employees also feel important part of company hence they also perform their
best.
Comparison between innovation and invention
The term innovation is similar tom invention but it differs. Invention means generating
something new which is not happened earlier. While innovation is value addition in existing
product and services.
Difference in invention and innovation are-
Innovation Invention
Meaning Innovation is created new
product , services or
technology up gradation of
related goods.
Invention is discovering new
product and services.
Effect Innovation will definitely
impact performance of
organisation ad employees.
In case of invention there are
chances that it does not affect
majorly.
Activities involved This changes working style of
whole organisation.
There is main role of R&D
department and after proper
checking it affects other
sectors.

Role There are main role of
marketing, consumer
preference as that change is
because of change in taste.
Invention is done by research
department but there is
requirement of scientific skills.
P2 Role of organisational vision, culture, team work and leadership in innovation
ALCATEL has its own vision, mission and objective for which organisation is
established. As time passes achieving one objective will help in setting other objectives, this
shows how company grow. ALCATEL has an environment of changeability. This can only be
happen if manager provides guidance to employees and there must be proper communication
channel. This will help in knowing who is accountable for what. To accept innovation there
might be change happen in working style of employees (Karo, 2010). It is is not necessary that
every employees accept those change but it is the responsibility of team leader to make them
convince. There are chances that due to personal conflicts employees does not ready to work
under teams. Vision- Vision is long term goal which is setted by management of company. There are
plans and strategies formed by company to achieve that. It is important to communicate
vision of organisation so that employees came to know about why they are performing
particular task. There is important role of vision in making changes in working style. It
provides assistance and ease the working style for employees of Alastel. Culture-Culture means environment of company. This plays very vital role to accept and
appreciate innovation taking palace. It is not compulsory that all changes are successful
but it is important to know that reasons of failure and take corrective actions. This can
only be possible with the help of manager motivation and environment of Alastel. If
manager of company fails in one attempt atht employees also does not give more
emphasis on improving actions. Team work- In case of changes in working style or technology it is important that there
must be team work so that task can be performed in best way. There are many
departments in ALCATEL like purchase, store, stock verification, sales, etc. whose
activities are interrelated. Top level management has to deliver duties as per skills of

employees so they perform them in best way. This will influence innovation nad
commercialisation in positive manner (Kim and Park, 2010).
 Leadership- If any change happened in organisation, that can be implemented in best
manner only if they are guide by manger. Leadership is providing assistance to lower
level personnel that how one can achieve task. This not only improves performance of
workers but also shows good image in industry. With leadership employees feel
motivated that they get guidance at time of requirement and there is some higher
authority which keeps eyes on their activities.
M1 Different sources of innovation and its assistance in foster and development of innovation
There are different sources of innovation provided by Drucker's which impact on
ALCATEL growth. Unexpected events- There are sometimes cause of failure of cell phone due to launch of
new phone in market which is not expected by management of ALCATEL. Incongruities- ALCATEL make changes in their cell phones and create promotional
programmes. This will help to educate public about their new product and services (Lee
and et. al., 2010). Process need- This model emphasis on knowing what is the market requirement and then
make changes in features of existing phones. Change of industry structure- As change take place in features then it definitely impact
structure of industry. Demographics- It is important that ALCATEL has to consider demographical
background of consumer and then apply modifications in product. Change of mood- There is change in taste of consumer hence it is important to give that
while analysing market that change has to taken place in specified time which help in
increment of sales.
 New knowledge- Innovation spread new knowledge in personnel and it will help in doing
things in most appropriate manner.
D1 Scope, development and growth of entrepreneurial ventures
Entrepreneurs are the person who has an idea and starts business to make that dream
become true. These days there is wide scope of entrepreneur . They can operate by merely sitting
and online business. According to Smyth and Gray, 2011 innovation is basic element which

makes entrepreneur to run business. It is important to make change in entrepreneurial business as
per need of environment. If person does not modify its plans and policies then it will be out of
run. So it is said to provide business heights it is important to analyse market and act
accordingly. This will provide more satisfaction to customers as well.
TASK 2
P3 4Ps of innovation and use of innovation funnel (Covered in PPT)
P4 Development in frugal innovation and how it can be in used in organisation ( Covered in
PPT)
M2 Application of innovation funnel in organisation
There is important role of innovation funnel in ALCATEL. There are changes taking
place very frequently but every change can not applied in business, so relevance that to be check
whether that change will help in accomplishment of task or not. It is important to analyse all the
factor and then screening has been done where it is analysed that which approach is suitable and
which is not. In case approach is not suitable then it is rejected. After sorting among chosen
alternatives best is selected and then deliver to employees and proper direction is provided. At
this stage there is important role of leadership (Mazzarol, Reboud and Volery, 2010).
M3 Role of frugal innovation in organisation
Frugal innovation is beneficial of business as well as economy. There is different image
in the mind of consumer regarding ALCATEL. There are chances that company can launch
something new with limited edition and for specific age group. These days there are demand
arises of more storage and camera quality. So ALCATEL to get edge over other firms they can
provide this feature in less budget and in reach of general consumer (Romero and Molina,
2011). This will make company's name famous in public and increases goodwill in market.
D2 Impact of levels of economy on small businesses
Change in market affects every business. It is important for small business man also to
alter its strategies so that they can achieve its goals and objectives. ALCATEL is a brand which
operates at various places, hence one change happened does not mean there will be change at
every place. According to Smith and et. al., 2014 small business helps in generation of
employment, roving poverty, create awareness in society, increases living of standards of people.
There can be negative or positive impact on economy. This promotes employees to polish their
skills and promote traditional work which become fame in all over the world.

CONCLUSION
This report concluded that innovation is important for every organisation. There are many
changes takes place in industry it is not compulsory to accept all but there must be some change
this will help in competing with external world and have same image in market. From the above
discussion it is concluded that innovation is different from invention and important as well. To
make innovation happened it is important to provide guidance to employees so it helps in
achieving vision, mission of company. It is important that manger has to create an environment
of adaptability so that workers also love to work under changing environment. Innovation funnel
and Frugal innovation are main component which help in growth of business. Entrepreneurial
ventures have impact on industry and small business effects local, national and i9nternational
economy. This promotes traditional skills and family businesses.

REFERENCES
Books and Journals
Aarikka-Stenroos, L. and Lehtimäki, T., 2013. Building up a firm’s commercialisation
competence: from product concept to the first reference. International Journal of
Technology Marketing 24. 8(2). pp.177-196.
Collet, C., Hine, D. and du Plessis, K., 2015. Employability skills: perspectives from a
knowledge-intensive industry. Education+ Training. 57(5). pp.532-559.
Fiedler, M. and Welpe, I.M., 2010. Antecedents of cooperative commercialisation strategies of
nanotechnology firms. Research Policy. 39(3). pp.400-410.
Karo, E., 2010. Improving governance of science and innovation policies, or just bad policy
emulation? The case of the Estonian R&D system. Administrative Culture. 11(2).
pp.174-201.
Kim, H. and Park, Y., 2010. The effects of open innovation activity on performance of SMEs:
the case of Korea. International Journal of Technology Management. 52(3/4). pp.236-
256.
Lee, S. and et. al., 2010. Open innovation in SMEs—An intermediated network model. Research
policy. 39(2). pp.290-300.
Lichtenthaler, U., 2010. Intellectual property and open innovation: An empirical analysis.
International Journal of Technology Management. 52(3/4). pp.372-391.
Mazzarol, T., Reboud, S. and Volery, T., 2010. The influence of size, age and growth on
innovation management in small firms. International Journal of Technology
Management. 52(1/2). pp.98-117.
Romero, D. and Molina, A., 2011. Collaborative networked organisations and customer
communities: value co-creation and co-innovation in the networking era. Production
Planning & Control. 22(5-6). pp.447-472.
Smith, H. L. and et. al., 2014. Entrepreneurial academics and regional innovation systems: the
case of spin-offs from London's universities. Environment and Planning C: Government
and Policy. 32(2). pp.341-359.
Smyth, S. J. and Gray, R., 2011. Intellectual property sharing agreements in gene technology:
implications for research and commercialisation. International Journal of Intellectual
Property Management. 4(3). pp.179-190.
Vecht, J. A. and et. al., 2010. Translation to success of surgical innovation. European Journal of
Cardio-Thoracic Surgery. 37(3). pp.613-625.
Online
Alcatel-Lucent to meet demand for ultra-broadband access and gigabit services with new
innovations in fiber and copper technology. 2018. [Online]. Available
through:<https://networks.nokia.com/press/2015/alcatel-lucent-announces-technology-
partnership-partech-shaker-worlds-first-campus-dedicated-digital >