Innovation and Commercialisation Report for F-Drones (Module Report)

This report provides a comprehensive analysis of innovation and commercialisation, using F-Drones as a case study. It begins by differentiating between innovation and invention, then explores how organizational vision, culture, leadership, and teamwork shape innovation and commercialization. The report then delves into the 4Ps of innovation, utilizing the innovation funnel, and examines the application of frugal innovation. It further explains the significance of the commercial funnel and the application of new product development (NPD) in the commercialization process. A business case for F-Drones is created, including potential funding sources. Finally, the report evaluates tools for developing, protecting, and retaining knowledge and intellectual property, concluding with key insights into the overall process.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Difference between innovation and invention.......................................................................3
P2 Impact of organizations vision, culture, leadership and teamwork over the shaping
innovation and commercialization..............................................................................................4
LO 2.................................................................................................................................................5
P3 Explaining 4ps of innovation and utilize of innovation funnel to shape & examine
innovative idea............................................................................................................................5
P4 Justifying developments in frugal innovation and examples of how it is used in context of
F-Drones......................................................................................................................................7
LO 3.................................................................................................................................................8
P5 Explaining significance of commercial funnel and application of new product development
processing for commercialization of innovation.........................................................................8
P6 Creating an innovation business case in regard to F-Drones, including ways to access
funding........................................................................................................................................9
LO 4...............................................................................................................................................11
P7- Evaluating different tools that companies can utilize to develop, protect and retain
knowledge as well as intellectual property...............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is something which very company deals with leading to the growth and
development. There is always a misconception about the invention and innovation that both are
same but it is not so. This report is in respect to the organization F-Drone which is into the
building of the drones for enabling aerial deliveries of the goods to the ships and offshore and
can land easily on the moving object. This report so focused on the understanding the concept of
innovation and how it differs from the invention. Along with this, it elaborates the aspect which
results into shaping the innovation and commercialization. It explains the 4Ps of innovation and
the usage of innovation frugal within the organization and the significance of commercial funnel
along with the application of NPD in the commercialization process. In addition to this, it
evaluates the various tools for retaining and protecting the intellectual property.
LO1
P1 Difference between innovation and invention
Innovation
Innovation basically accounts for the process which is focused on coming up with
something new and innovative in the market in order to take first mover advantage and gaining
competitive position (Difference Between Invention and Innovation. 2017). It accounts for
making changes in the processes for the purpose of creating the processes in a more effective
way. In simple words, only modification in the existing product takes place.
Invention
It refers to the act process of bring new ideas and objects in such a way for creating
something new which does not exist. Invention only deals with the creativity along with the
production of the company.
Difference between invention and innovation
Invention Innovation
 Invention is concerned and focused on
the making of new items and
introducing it in the market.
 Innovation accounts for the creation of
something new which will result into
up-gradation in the existing product,
service or the processes.

 It results into enhancing and creating
the brand value of the entity.
 In contrast to invention, innovation
leads to the creation of the business
value.
 It basically requires the scientific skills
which is essential for the invention.
 On this side, in innovation relevant
marketing and strategical skills are
needed.
 Invention is based or relied upon the
theory of product.
 Innovation is relied on the practical
enforcement of the product.
It is very obvious that any business entity which initiates with some of its products and
services but later with time it keeps on changing its products and services in order to meet with
the changing trends. It is very simple to understand that F-Drone started its business with just
mere drones but now it is running on innovation only. The innovation is considered to be the
most crucial concept pertaining to the growth of the organization and along with this, it exhibits
its rival power in front of its competitors. Thus, these are the key difference among the
significance of the innovation and invention within the business organization.
P2 Impact of organizations vision, culture, leadership and teamwork over the shaping innovation
and commercialization
Commercialization accounts for the gain which is being derived from the introduction of
the new product or service in the market. It supports the organization in respect to dealing with
the marketing and planning aspects of the business. There are certain criteria for innovation and
commercialization of any company.
Vision: F-Drone has its vision of becoming leader in heavy payload drone logistics all
across the industries (Krasadakis, 2020). This helps it in determining the product which it needs
to innovate and the ways in which commercialization of the product which is being innovated
can be done. Vision helps in deciding the growth of the organization and thus, plays a crucial
role in shaping innovation.
Leadership: It is the common process in which the leader leads the team with his or her
specialized skills and qualities for accomplishing the desired objectives. F-Drone is having a
good market presence which means that it has maintained its lieu among its competitors.

Culture: The culture of an organization differs from one another and it defines the way in
which the product of the company will be innovated and the way in which the commercialization
of the same is affected (Kratzer, Meissner and Roud, 2017).
Teamwork: Attainment of growth is directly linked to the teamwork within in the
organization which results into increasing the productivity and performance. Along with that,
teamwork also results into greater contribution pertaining to the commercialization of the
product and services.
As per Peter F Drucker, there are 7 sources of innovation which are stated below:
Unexpected: Innovation is pertained to be best when it is unexpected as such ideas results
into generation of more profits leading to growth.
Congruity: It accounts for how the organization makes it best and makes sense in fitting
it into the organizational processes (Mayakova, 2019).
Market structure: Determining and analysing the prevailing market conditions and
structure helps in exhibiting how new product is launched in the market.
Demographics: It defines what and where innovation should be done in the market for
grabbing untapped market.
Necessity: It basically defines the necessity for the innovation of products.
Changing perception: Perception varies form one person to another because of different
thinking process.
New knowledge: Gaining market information helps in getting the idea about the
innovation.
LO 2
P3 Explaining 4ps of innovation and utilize of innovation funnel to shape & examine innovative
idea
Product-
It is the first element or thing that comes into mind when a company think about
innovation and conveys modification in their services/ products which they offer to target
customers (Akgun and et.al., 2017). In context of F-Drones, when organization focus on
introducing new heavy pay load drone, it may focus on adding creative features by using
innovation techniques and approaches.

Process-
It refers to essential changes in the way goods has produced and delivered to target
market (Kim, 2020). For example, organization use this ps of innovation by hiring those people
who are able to give an attractive look to its new product.
Position-
Position innovation is modification in regard to which things are launched in the market.
Company may use this element in term of using social media accounts and other digital
marketing tools, which enable it to introduce or launch new heavy payload drones in the market.
Paradigm-
This innovation, in specific is also referred to change in context of underlying mental
concepts which frame what enterprise does. While thinking about innovation, organization must
think about unique features and approaches that may apply in context of item.
Innovation funnel-
It is one of the most effective and beneficial ways that nearly all big brands in the
business world has used to manage their innovation concept in systematic manner (Franken and
et.al., 2020). F-Drone may use this approach to narrow down its idea for new heavy payload
drone as innovation procedure into realistic & feasible plan. It includes 6 key stages that help
company to examine & shape innovative idea.
Stage 1- Idea generation-
In context of examining innovation idea, leaders in F-drones may conduct a group
meeting, which enable them to generate many ideas that is quite beneficial for its venture growth
in competitive market (Lau and et.al., 2018).
Stage 2- Idea management-
After generating varied ideas, according to this phase management may chose the most
appropriate one, which firm manage in term of implementing it into practical manner.
Stage 3- Development-
Organization comes to third phase, after passing above two where the selected idea in
form of new heavy pay load drone is continued to proceed further in term of development.
Stage 4- Exploration-
After developing a new drone, it's time when firm make a test before launching into
market as it help to shape innovation idea in attractive manner.

Stage 5-Market introduction
The current stage allow F-drone to successful launch its new items, which contributes in
term of commercialization.
Stage 6- Outcomes-
Success of new drone launch bring a lot of benefits for company in term of increasing its
profitability and building strong brand image in market. It may consider as results that help to
increase sales.
P4 Justifying developments in frugal innovation and examples of how it is used in context of F-
Drones
Frugal innovation is described as Jugaad that improvised effective and appropriate
solutions comes from creativeness and ingenuity (Pisoni, Michelini and Martignoni, 2018). It
also defined as commercialization in regard to limited resources of quality items or services that
are cost effective to masses.
For example, F-drones may utilize this concept by using accessible resource like
machines, tools, electronic equipments etc. in context of new heavy pay load drone production. It
simply defines as process of producing and delivering a product which is made up by using
Illustration 1: Innovation Funnel
(Source: Six Major Stages of Innovation Funnel Management, 2021)

limited assets in effective and attractive manner. It helps save money and bring benefits in term
of increasing profits margin and sales level even better than other companies that has operated in
same sector from longer period (Frugal Innovation for Sustainable Growth and Development,
2017). Peek Vision, Be-Bound, NESTA etc. are varied companies that has been using frugal
innovation concept.
Frugal innovation play vital role in company as it help to delivery more valuable and
quality products to customers at lower costs (Hassani, Ionescu and Mansour, 2019). It
contributes to increase consumer satisfactory and experience level even better than last few
months or years.
LO 3
P5 Explaining significance of commercial funnel and application of new product development
processing for commercialization of innovation
Commercial funnel is used in context of many firms in term of sales funnel, which is a
marketing concept that defines journey of potential consumers in context of products purchase
(Sergeev and Kirillova, 2019). It is quite important in regard to commercialization of innovation,
because it makes F-Drones able to comprehend what its consumers are thinking and demanding
for and moving towards producing a new item accordingly which in increase sales, profits
margin, productivity and customer base as well. The over insights of customer decision-making
journey permit firm to invest to right marketing channels and tools.
New product development (NPD)-
Here, the concept is applied in context of F-Drone as they attempt produce new heavy
payload drone that help to delivery heavy products from an company outlet to offshore
platforms.
Idea generation-
It is the first stage of NPD, where workers, leaders and owner through conducting
meeting generates a lot of ideas. It refers to systematic approach that utilize for new product idea.
Idea Screening-
After generating hundreds of creative ideas, now firm authority chose the best one, which
allow them to satisfy target market and fulfil their expectations, which is quite important to do.
Concept development and testing-

Firm select an idea which it transforms into production of new heavy payload drones.
Third stage of NPD, permit company to conduct chosen idea into practical form and then test
new drone before launch.
Marketing strategy development-
It is one of the most important and difficult stage because it requires a lot of time to select
the best marketing tactic and chose to advertise channel.
Business analysis-
According to this stage, organization may reviews its sales, profits and costs for new
drone to find out whether these elements satisfy business objectives and contribute to achieve
aim as well as objectives.
Product development-
The overall process of new drone development goes on with real product development
stage. After passing above phases, company focused on producing heavy pay load drone which is
quite different from earlier produced items.
Testing and verification-
NPD process drives towards final stage where management works hard to test new item
before launch. Testing is the main part of entire procedure which enable firm to identify where
changes are needed and then allow to launch in market.
Commercialisation-
The above phase has give F-Drones information about required to make final judgement
in term of product launch.
P6 Creating an innovation business case in regard to F-Drones, including ways to access funding
Executive summary-
F-Drones due to increasing competition in market and highlighting the name of its brand,
has produced new heavy payload drones that fly like a fixed wing plan and transfer a product
from one place to another easily. By using the most appropriate form of funding, company has
manufactured new product.
Company background-
After building the first drone in the world, firm is now driving their attention towards
producing new one, which may attract international customers that seeks to use a technology
which help to carry an item and transfer it to shipping area.

Mission-
The mission of company is to become a market leads and hold its position for longer
period.
Vision-
The vision of F-Drones is to build aviation and top class drone that set reliability
standards and high safety.
Satisfaction of innovation-
Organization satisfy their customers through its innovation in term of new heavy pay load
drone by adding unique feature in it. For example, company can add recording system in its new
product to record the overall process which starts from carry an item to placing it at shipping
area.
Opportunities in market for new item-
The growth chances in context of new heavy pay load drone are accessible, because there
are many companies available in the business world that seeks to buy and used advance
technologies which help to carry heavy products and shift into another place like warehouse etc.
Competitive edge-
Heavy pay load drone with recording system is quite unique idea that help F-Drones to
gain competitive advantages in term of leading in market and gaining attention of most of the
companies towards usage of new item.
Market chance-
By using Porter's five forces model, it has been identified that low degree of substitute
products or services provides great chance to F-drone in term of increasing their sales and
profits. As compare to other transportation vehicles, new drone of company is quite better as it
fly in speed and record overall process which is quite important.
Target market-
F-Drones target its customers by using behavioural and psychological segmentation
strategies. Furthermore, according to these tactics company can target manufacturing brands
which seeks to use those technologies that easily carry and transfer heavy items from one place
to another (Jewel and Kalam, 2020). Under targetting, it can use undifferentiated approach. Firm
can use traditional and digital marketing sources to set the great position in mind of customers.
Marketing strategies-

It encompasses key approaches, methods and techniques that F-drone can consider in
term of its marketing tactics. For example, digital marketing channels like social media is one of
the best sources that firm can use to promote its new heavy payload drone in market.
Expected benefits-
Organization expect excellent benefits after new product launch in market in term of
increasing sales up to 50%, profits margin by 60% and productivity as well.
Ways of findings-
Venture capitalist-
It includes in list of leading sources of funding, which many companies have been
utilized to achieve set business aims. F-drones can utilize this source by making legal partnership
with venture investors that are able to invest money in profitable projects or tasks.
Equity financing-
Organization can also use this source of funding by selling stocks to venture investors
and get ownership right in a firm.
Bank financing-
It is one of the most common methods of funding, because it allows company to give an
application for specific amount in term of loan and receive after approval. It best thing about this
source is that it is trustable.
Budget-
Resources Amount (£)
Employees salaries 1200
Collecting new electronic tools and
equipment's
1000
Conduct Market research 700
Development of Marketing tactics and usage
of channels
900
Selling 2000
Total 5800

LO 4
P7- Evaluating different tools that companies can utilize to develop, protect and retain
knowledge as well as intellectual property
Patent- this tool is used by many firms because it gives granted rights to a product
inventor in term of permitting them to exclude others from using, producing and selling their
innovation (Shalaby and Zadrozny, 2019). F-drones may utilize this approach to secure and
retain its new heavy pay load drones ideas from other brands.
Benefit and drawback-
 It is one of the best IP tools because it makes company able to stop other legally from
manufacturing and using its idea, products and other valuable things.
 On the other thing, patent is ineffective as it consumes a lot of money and consider as
expensive tool.
Trade mark- organization may also use this tool as well in term of creating a symbol and
pasting it upon drone in form of its firm initial, which restrict other to use it. It is a unique word
or symbol that a firm may use to represent a venture or items.
Advantage and disadvantage-
 Trademark is useful and beneficial for F-drones as it help to protect its new products
from infringement for longer period of time. It is used at very low maintainability cost.
 When firm use this approach, it has to pay fee every 10 years to take care of it. Non
payment of renewal amount may cause removal of trademark.
Copyrights- it is a legal concept that utilized to define rights that innovator has over their
innovation. It gives rights to company in context of protecting new drone from other
organization as they take approval before using it.
Benefit and drawback-
 The key strength or benefit of this IP tool is that it automatically extends to all innovative
products or services as soon as firm publishes them.
 It is ineffective because of expensive registration and renewal fee.
CONCLUSION
It can be inferred that innovation and commercialization has resulted into bringing
growth and development to the organization. The difference among the invention and innovation