Report: Innovation and Commercialisation Strategies for F-drone

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on their application within the context of F-drone, a technology-driven company. The report delves into the importance of innovation and its distinction from invention, highlighting the role of organizational vision, leadership, culture, and teamwork in fostering successful innovation and commercialization. It explores the 4Ps of innovation, the use of the innovation funnel, and the development and role of frugal innovation. Furthermore, the report examines the commercial funnel, the application of New Product Development, the importance of a robust innovation business case, and the evaluation of Intellectual Property (IP) tools. The analysis offers practical insights into how F-drone can leverage these strategies to achieve its business objectives and maintain a competitive edge in the market.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1: Innovation and its importance...............................................................................................3
P2: Role of organizational vision, leadership, culture, and teamwork in innovation and
commercialisation........................................................................................................................4
P3: 4Ps of innovation and use of innovation funnel....................................................................6
P4: Development and role of frugal innovation in F-drone.........................................................7
P5: Importance of commercial funnel and application of New Product Development...............8
P6: Innovation business case.......................................................................................................9
P7: Evaluation of Intellectual Property (IP) tools......................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation refers to brining some efficient product in new way or with new idea while
commercialization will make the availability of those products in the market. Innovation and
commercialization both plays an important role in the life of business. These concepts will lead
the companies to achieve their objectives along with moving with changing trends. This report
will study about the concept of innovation and its importance along with role of company's
culture, leadership, teamwork in the implementation of these concepts. Ps of innovation,
innovation funnel, frugal innovation, commercial funnel are all those concepts which is being
discussed in this report. In addition, of this, new product development process, business case,
intellectual property tools are also being highlighted in this report within the context of F-drone.
MAIN BODY
P1: Innovation and its importance
Innovation:
It can be defined as an idea which will leads to the introduction and improvement in
something new concept or goods or service. Innovation can be implemented in anything which
could either be a process that includes innovation in production process, it can also be executed
in products or services in the form of launching of new product or service (Kahn, 2018). In
simple words innovation can be defined as a term which relates with improvement in existing
product or service by raising its efficiency and effectiveness.
Invention:
It refers to a new thing which is being made and created for the first time. In simple word
invention is related to introduction of something new which is yet not discovered and made
(Confalonieri, 2018). Creativity is the essence of invention and without creativity invention
would not being possible.
Innovation plays a very important role in every sector whether it could be business or
companies. It could also be said that both innovation and invention is closely related to each
other. This means that invention will lead to innovation or innovation is the follower of
invention. This means that firstly invention will occur on which by making innovation its
efficiency and effectiveness can be rose. In F-drone which is a wholly technologically driven

company, innovation and invention both plays a very crucial role. This is because it is very
essential for it to be technologically advanced and innovative while operating its operations.
Distinction:
Innovation Invention
An improvement in the existing product or the
process would be made.
New product of the process will be evolved
and developed for the first time
Marketing, technical and strategic skills will be
required.
Scientific skills required.
Occurs when the need is felt for some
improvement in the existing product.
Occurs when new idea hits the scientist.
Importance of innovation in comparison of invention in the contrast of F-drone:
As F-drone is planning to build world's 1'st transition drone so this is considered as
invention of F-drone company. However, it will be considered as incomplete if its efficiency will
not be high in comparison of present product. Here innovation plays its role. This means that yes
it is important and significant to invent something but its journey will be incomplete without
implementing the concept of innovation (Bag, Gupta and Telukdarie 2018). So innovation plays
an important role in making the product unique and efficient which will meet the market
competition and establish its own special place.
As after inventing drone, F-drone has executed innovation in the form of making the
drone unique in terms of its design, features, heavy payload and various other. It is only due to
innovation which resulted in the creation of such drone that can take-off vertically, capability of
flying like an aircraft and involvement of various other feature. Thus, it would be right to said
that without innovation, there is no use of invention in case of F-drone because invention of
drone is common but making it unique and special is important which is only made possible
through the process of innovation.

P2: Role of organizational vision, leadership, culture, and teamwork in innovation and
commercialisation
Company's culture, leadership, its vision and teamwork plays a very important role in shaping
and directing innovation and commercialization.
Role of organizational vision:
Company's vision plays a crucial and significant role in innovation. Vision of the
company will act as a base upon which entire innovation and commercialisation depends. As in
the case of F-drone its vision is to invent and produce such drone which has yet not been seeing
yet so its innovation is solely depends upon its vision only. This means that on the basis of vision
of company it will adopt the practice of innovation. And ultimately on the outcome of that
innovation it will make commercialization of its product in the market.
Role of leadership:
Leadership also plays an important role in innovation in terms of executing this concept
and process. Since, under leadership direction is provided for execution of work. So, adoption of
innovation would also be incomplete and inappropriate without the concept of leadership. This is
because without direction nothing can be accomplished and achieved (Li, 2018). F-drone also
have to be careful regarding leadership because it is the key for the implementation of innovation
process. Similarly, through leadership only commercialization will be executed because as it
includes bringing new product into the market which would not be possible without proper
leadership approach that will guide how to operate different activities. Thus, leadership plays an
important role in both innovation and commercialization.
Role of culture:
Organization's culture is very important to be considered for the success of any policy or
concept in workplace. If company will not have positive and good working culture then it will
not being able to deliver or execute any process. In the same way implementation of innovation
will not be possible in any company if the working culture of organization is not employee's
friendly. Likewise, the culture of company also become crucial in case of commercialization
because availing the new product in the market will not be possible in such culture where there is
an existence of cultural differences or clashes. Thus, it would be right to said that the culture of
the company including F-done will play a very important role in incorporating innovation and
commercialization.

Role of teamwork:
Teamwork or team spirit is the reason of success for every activity. With a high
contribution of employee's effort company can easily achieve success. Since, innovation is also a
big term whose implementation will not being possible without a positive contribution of all the
employees. Thus, teamwork will make the innovation process easy to execute. In the same way
commercialization will be possible only with good team efforts. Since teamwork will make the
difficult task much easy, so with an appropriate execution of teamwork in F-drone, the process of
innovation and commercialization will be very easy to inculcate in its workplace.
P3: 4Ps of innovation and use of innovation funnel
Innovation Ps:
There are mainly 4Ps of innovation:
Product:
It refers to making the product of company unique and different from other. It is also to
be noted that uniqueness of the product is not limited only up-to its shape or its features, nut it is
also concerned with its packaging, delivery methods and many more.
Process:
It refers to inculcating innovation in process of making the product in terms of making it
efficient or effective. Here it is important to be considered that again it is not only limited to the
process of production but it also involves process regarding selling, supplying, accounting and
various others too (Akgun, 2017).
Position:
Position is not only limited up-to the position of company in the competitive world. But it
also contains the position of company in the eyes of customers that whether they are satisfied
with the company's service or not or what they think about the products of the company.
Paradigm:
It refers to adoption and implementation of required changes that will make the services
and operation of the company unique and different from other competitors and substitute
companies. It can be performed in any way but the main idea behind it is to move and meet the
demand of changing time and trends.

Use of innovation funnel in examining and shaping innovation ideas:
Innovation funnel plays a very important role in shaping and examining new ideas. As in
innovation funnel the process begins with broadening the scope and expanding the thinking for
bringing and grabbing new ideas by which new and innovative output can be produced. This step
is being followed by narrowing the tube. This means that after grabbing ideas then the next focus
will be lied towards filtering the ides and availing only those thoughts that will be in accordance
with company's resources. Lastly only those output and product will be produced or come that is
specific to company's objective and vision and goal.
Thus, it would not be wrong to said that innovation funnel will play an important role in
shaping the ideas as per company's objective and examining those ideas that whether they are
appropriate fitted or not (Ruposov, 2018). Innovation funnel thus provide an appropriate shape to
innovative ideas in the form of appropriate output which will meet company's objective and
goals.
Thus, the concept of this innovation funnel is purely applied in case of F-drone too. As it
plans to make its drone (one of its product) that much unique and special that no competitor can
beet it. So in order to execute this plan innovation funnel plays an important role because
through this funnel it will also invite varieties of new ideas and then on the basis of resources it
will make filtration which will ultimately lead to the production of such output that will meet its
plan and objectives.
P4: Development and role of frugal innovation in F-drone
Frugal innovation:
It refers to a process in which complexity and cost associated with goods and production
will be reduced through removing unnecessary elements from the main product.
It is one of the important concept that is concerned with making of product simple and
easy to use. Here all the non-essential elements are being removed from the product and the
product is being made simple and durable. It is an important engineering process which along
with reducing complexity of the product also lead to reduction of the cost element with the
production of the product.
Role of Frugal innovation in F-drone:

Implementing frugal innovation will not only help the companies including F-drone to
reduce its cost but it will also make it affordable for others without compromising its efficiency.
For example: instead of using too much expensive and additional features in drone like heavy
payload it can also go for some other equipments by which it will without having an impact over
its quality services can reduces its cost of operation. When, cost of operation will reduce then it
will automatically decrease its selling price too. Similarly, with a low selling prices customers
will like to buy the product more which will again raises the sale of F-drone. Thus, enabling the
frugal innovation in working operation will not only lead to reducing its cost of production but at
the same time it also raises its sales percentages too.
Since frugal innovation allows the company to maintain its quality service but at low cost
so without sacrificing value and quality companies can raise their sale through the
implementation of this concept (Weyrauch and Herstatt, 2017). For example: As F-Drone want
to make its product unique in terms of its value and quality so through the execution of this
frugal innovation it can remove unessential elements in such a manner that without having an
impact over quality, its cost will be reduced and as a result its sale will raise substantially. Thus,
it would not be wrong to said that throng the adoption of frugal innovation in companies the
efficiency of product will not being affected but on the same way its cost will be reduced.
P5: Importance of commercial funnel and application of New Product Development
Commercial funnel:
It refers to that funnel by which companies will make their product to be sold to
customers. It includes a series of steps starting from moving out of the store followed by its next
step of moving in the store and ultimately finishes when customer will move out of the store
along with some purchased items (Chapa, 2020).
Importance of commercial funnel:
Commercial funnel plays a very important role in every company and business. This is
because through this funnel only the final product of the company will be sold to its customers. It
would not be wrong to said that the determination of sales and profit percentage is solely
depends upon commercial funnel because it makes the product to be sold by company. Like
other companies it also plays an equal and important role in F-drone also. This is because
production of unique drone is not only enough until it will be sold by company. So commercial

funnel will also play an important role in F-drone. It is also to be noted that this funnel not only
includes selling of product of the company but it also involves using of various promotional
activities which broadly includes use of advertisement. As it is a common fact that if no
promotion techniques will be adopted then no company would be able to sold their products and
connect with its customers. So, adoption of commercial funnel by F-drone will not only help it to
sell its product but it will also lead to promotion of its product which will ultimately raise its
sales and profit percentage.
Application of New Product Development (NPD) processing:
New Product Development process:
It refers to a process which leads to the development of new product. It includes a series
of steps by which the new product will be developed. This whole process will start with
generation of idea which means an idea will be developed that will ultimately lead as a base for
new product. After generation of idea it will be screened in which the best idea will be carry
forward. Later product definition stage will start wherein after that various tests will be done on
which it is judged that whether the idea is suitable or will actually be executed or not. If
everything go right then the next step will be performed which includes development of
marketing strategy on the basis of market research that how marketing will be performed
regarding the product. This is counted under the stage of prototyping. After deciding marketing
strategy, the business analysis will be performed in which it is analysed that the idea or the
desired product will match with the business or not. Here product design stage come that whether
the product design is matched as per the business or not. This also includes analysing of actual
strength of business that whether it will support the whole idea or not. After analysing business,
product will be developed. This process will not only end here but it will further be followed by
marketing test step to know the actual feedback of public (Claessens, 2020). If everything go
right then only actual commercialization will take place.
Since, innovation also includes an idea which will lead to the production of product that
will ultimately be commercialized into the market. Thus, NPD plays a very important role in
actual execution of the process of innovation and commercialization. This is because NPD also
starts with generation of idea which is the beginning of innovation and ends with
commercialization where actual product will be made available in market. Thus, it would not be

wrong to said that steps of NPD includes every element of the process of innovation and
commercialization.
Figure 1NPD process
Source: The Best New Product Development Process., 2021
P6: Innovation business case
Business description:
F-drone is one of the leading company that deals with production of highly advanced
drone for marine activities. It produces drones to provide the best aerial views to its customers
which they had never experienced yet. Its main business is to develop such drones by which
marine activities can be better captured, viewed and examined.
Products:
F-drone mainly deals with the manufacturing of drones that can be used to have exposure
of marine activities. It also invented such highly advanced drones with heavy payload and
features that no competitor can beet its products.
Marketing strategy:
There are lots of marketing strategy that can be adopted and executed by F-drones while
dealing in its products. Right from availing its product over physical stores it can also sell its

products through online and digital modes. The digital mediums generally includes use of its
official websites, availing products on mobile applications, use of social media and many more.
Competitor's analysis:
It is very essential to have an analysis of competitors and intensity of market competition.
Through competitor's analysis it can know its various competitor's and their strategies. The major
competitor's of F-drone includes Arone 2017, Donecle 2015 and many more. Analysing the
competitor's and their strategies will also help F-drone to frame or modify its strategies.
Strength:
It refers to strength or capability of the company (Gürel and Tat 2017). Technological
advanced, unique product, high quality service and specialized features, full control over its
production process, serving extreme advantage for marine activities are some strength of F-
drone.
Weakness:
Low employee's satisfaction, training issues, financial issues and various others are
included in weakness of F-drone.
Opportunities:
Changing trends, development of needs regarding drone, raising interest towards
capturing aerial views, high need to control and monitor marine activities and changes are some
opportunities that can be meet by F-drone if it continues raises the feature of its products.
Threats:
Changing trends and technology, high rising prices in adoption of new technology,
raising market competition are all such threats that could affect F-drone in drastic way. It is also
to be noted that careful analysis and identification of these threats are very essential in order to
reduce their intensity.
Financial plan:
It is also an important element in the entire business case. A detailed study and analysis is
being required before finalization of estimated budget for carrying out operation. Future trends
are also to be kept in mind while deciding financial plan. While preparing financial plan the cash
flow statement concerning the cash inflows and outflows is being made. This will also include
the preparation of break-even analysis that the company should always be in a situation of no
profit and no loss situation in case if it would not be able to garb the desired level of profit.

Cash flow:
Break even analysis: