Innovation & Commercialisation: Developing F-drones Business Case

This report provides a comprehensive analysis of innovation and commercialisation within F-drones, a Singapore-based company specialising in aerial transportation services. It compares innovation and invention, explores how organisational vision, leadership, culture, and teamwork shape these processes, and examines the 4Ps of innovation and the use of the innovation funnel. The report further discusses developments in frugal innovation, the importance of the commercial funnel and new product development, and presents an innovation business case for F-drones, including ways to access funding and measure overall effectiveness. Finally, it evaluates various tools organisations can use to develop, retain, and protect knowledge and intellectual property, offering evidence-based judgements on overcoming challenges to enhance successful innovations.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explain innovation and its importance in comparison with invention..................................4
P2 How innovation and commercialisation is shaped by organisational vision, leadership,
culture and team work. ...............................................................................................................5
M1 Different sources of innovation and how organisation can develop both environment and
culture..........................................................................................................................................6
TASK 2............................................................................................................................................7
P3 4Ps of innovation and use of innovation funnel in order to examine and shape innovative
ideas.............................................................................................................................................7
P4 Developments in frugal innovation and examples of how it is used in organisation............8
M2 Analyse and apply innovation funnel in context with organisation.....................................8
M3 Role of frugal innovation in context with organisation........................................................9
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and new product development process for
commercialisation of innovation ................................................................................................9
P6 An innovation business case for an organisation including ways to access funding...........10
M4 A detailed innovation business case which involve how to measure overall effectiveness
by using techniques available to test, iterate and improve .......................................................11
TASK 4..........................................................................................................................................12
P7 Evaluate different tools which organisations can use to develop, retain and protect
knowledge as well as intellectual property...............................................................................12
M5 Present supported evidence based evaluation of different tools in context of wider
business environment................................................................................................................12
TASK 1&2.....................................................................................................................................13
D1 Analyse how innovation is developed, embedded and measured in an organisation..........13
TASK 3&4.....................................................................................................................................13
D2 Evaluate the nature of innovation and the context in which it got developed, providing
evidence based judgements on how organisations can overcome challenges to enhance
successful innovations...............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is defined as the procedure of creating something new or using a different way
to do something. It involve two things that is innovating new products and improving the
existing ones in order to attract employees. Commercialisation refers to a process of inventing
new and unique products in market. Both innovation and commercialisation include certain
elements which are been considered. In case of innovation it includes enhancement, creation and
many more. In case of commercialisation it includes production, marketing as well as support
from customers(Johansson, 2021). The below report includes comparison of innovation and
invention, how innovation and commercialisation are shaped by organisational vision,
leadership, culture and team work. It also includes 4Ps of innovation and usage of innovation
funnel, developments been done in frugal innovation, new development process and importance
of commercial funnel, a business case of innovation and different tools which can be used to
protect intellectual property. The below report is based on F-drones. It was founded in Singapore
in 2019 which offers aerial transportation services through which they deliver supplies to ships
and offshore platforms also.
TASK 1
P1 Explain innovation and its importance in comparison with invention
Innovation is a way of producing new things by using new ways of production and also
improving existing products. It is considered as an idea which gets changed into functional
reality. Every organisation wants that their customers remain attracted to their company only so
it is important to produce new things and also improving products if necessary and it must be
done on regular basis. Innovation is necessary in developing a business and its importance is
been explained as below:- Growth of business: - In order to grow business and increase productivity it is important
to innovate things. There are many competitors and each company try to offer unique
products so it is also important for them to built up new products and improving existing

products. When company innovates things, their business grows as well as its
productivity and customers gets attracted to their products. Helps organisation differentiate themselves: - If a company updates their product as
compared to other companies then they will earn competitive advantage. Innovation helps
them in differentiating themselves because customers memorise their company by using
such unique products.
Comparison between innovation and invention:-
Basis Innovation Invention
Meaning It means producing new
product and improving them in
order to attract customers.
It means execution of a
complete new idea to produce
a unique product which has
never been invented earlier.
Concept Implementing new ideas and
innovating products.
Original idea is created
according to which product
gets invented.
Concerned with It involve various products as
new things as well as earlier
products get improved.
It is concerned with only one
product. As company invents
only one particular product.
Occurrence Innovation is done when
organisation feels that they
should offer new products or
improve their products.
Invention occurs when
companies gets a new idea and
then invent product.
Invention and its example
Invention is defined as a concept in which a complete new product gets developed. It is
the act of bringing new ideas and objects together in order to invent something unique. In case of
F drones their AI engine supports self operating building which requires no human intervention.
It controls everything like in context with heating and also use cloud based computing in order to
create maximum impact on energy consumption.
Example of innovation:-

In terms of drone technology, they are doing continuous innovation. The company is
moving forward within widespread adoptions which involves new offerings in technology. The
main innovation which company did was in context with their delivery programs.
How f-drones are helpful in innovation and commercialisation:-
In terms of f drones they are helpful in the period of natural disaster. It is also helpful as
the traditional means are more expensive but in case of company they save up to 80% of costs,
time as well as C02 emissions. They also decrease unnecessary human contact in accordance
with today's world situation due to COVID pandemic.
P2 How innovation and commercialisation is shaped by organisational vision, leadership, culture
and team work. Leadership:- It is one of the most important thing in an organisation. A company can
achieve success only if employees are working and it can be only done if leaders are there
are they perform their role effectively(Ouma-Mugabe, Chan and Marais, 2021).
Leadership is of various types like autocratic, democratic, participative and laissez-faire.
In the case of F-drones, they applied the democratic style of leadership in order to lead
innovation and commercialisation in more effective way. Through this style of
leadership, organisation made many strategies and according to that they achieved
growth. Vision:- Organisational vision should always be clear so that it becomes easy for them to
be successful. Innovation and commercialisation is shaped by organisational vision
because they create such a business environment where every employee belong from
different backgrounds and they are been offered a chance to share their ideas to produce
new products. Culture:- Organisational culture involve things like symbols, rituals and so on. Every
organisation follows different type of culture as per their backgrounds. It is different in
the form of attitudes, values and also what is been accepted in one city may not be in
another city. In context with both innovation and commercialisation processes are which
involved is shaped by culture because everything is done according to rituals and
structures.
 Team work:- Tasks can be performed efficiently and effectively only if there is proper
team work. Management team helps organisation in solving each issue and work done on

the basis of planning. While innovating and commercialising a product there is a
specialized management team who built up a product(Hsu and et.al, 2021).
M1 Different sources of innovation and how organisation can develop both environment and
culture
There are different sources of innovation and it is been explained as below:- Unexpected innovation: - In an organisation innovations can also happen expectedly. As
new ideas can get strike at any point of time and according to it company innovates new
product. In context with F-drones they also had unexpected innovation as in their delivery
programmes they allowed shipping also in order to save delivery costs.
 Changed process: - Organisations can change their process at any point of time if they
feel that it is necessary to apply a new method in order to enhance their growth. In case of
F-drones, they are now using surveys and surveillance in order to visit all construction
sites quickly.
Organisation can develop and foster innovation by applying some ways and it is been explained
as below:- Create a culture of innovation:- Innovation can be developed and fostered if employees
are also given a chance to give new ideas. Employees perform at their best only if they
are been motivated and inspired.
Importance to F-drones
In terms of F-drones they provide last mile delivery of its spare parts. Its importance is
that they are exploring safe as well as inexpensive methods for delivering their spare parts and
through this they were leading to growth. It is also important because they are providing various
parts in different kind of shapes as well as sizes for maritime industry.
TASK 2
P3 4Ps of innovation and use of innovation funnel in order to examine and shape innovative
ideas
Innovation funnel is important for business as without accessing to innovation or
invention it is not easy for firm to achieve their goals and achieve competitive edge. Also, with
proper consideration of innovation funnel, F-drone can enhance their limits and increase their
competency level which is beneficial for survival in this competitive market. Another benefit of

innovation funnel is that it enhances the work effectiveness of brand and which also leads to
modifying changes which are needed at priority level. For example- F-drone is forcing
management towards adapting of new tools and techniques that can leads to new ways of doing
business and new parameters. So, it is further discussed as follows- Product innovation: - It means developing new products, making changes in existing
products and even using new raw materials during the stage of manufacturing products.
Organisations do this because they want to enhance their quality of both new products
and earlier products. In case of F-drones, they made a planning of innovating drones
which can offer 100 kilos over the distance of 100 km. Process innovation: - It means execution of whole new product and the improved
product also. There are many changes which are done by organisations in techniques,
software and many more(Jaaffar, Abd Rani and Zakaria, 2021). Organisations use
process innovation so that they can support companies in managing processes in effective
manner so that they can achieve success. According to view point of Naida Hakirevic, F-
drones can carry 5Kg till the distance of 50 Km and their objective is to innovate a large
scale drone which can deliver 100 Kg till the distance of 100Km. Position innovation: - It means changing the methods and ways in which products are
been innovated and produced. Organisations constantly make changes because customers
mental perceptions gets changed. They want something different after every point of
time. In accordance with F-drones, they made change by breaking drones in the form of
rigid traditional barriers. Paradigm innovation:- It refers to modifications by using totally different technologies.
There are many elements which are included in this innovation like principles, theories.
In context with F-drones, they used their drones in oil and also in gas industries and make
changes in their ways in terms of geophysical acquisition.
Use of innovation funnel
It refers to an implementation that includes regular stream of ideas and also paradigm.
Organisations use innovation funnel in order to determine what kind of ideas will be beneficial
for them and what not. It involve three steps and these are mouth of funnel, narrowing the funnel
and narrowed part of funnel. In case of mouth of funnel, the goal is to gather many ideas and to
enable it companies improve their knowledge and availableness of information. With the help of

such ideas it helps companies in finding out the solutions very fast. In case of narrowing funnel,
all ideas which got executed during first stage are been screened. It is done by matching all ideas
to determine that their ideas contain some value or not. In the third stage that is narrowed part of
funnel organisations ensure that screened as well as selected strategies should be according to
business goals(Din and et.al, 2021). In case of F-drones, they used drone technology which
provides various applications to technology. The innovative idea which they used was delivery
programmes in order to decrease costs. As F-drones is organising test flights in context with
hyperlaunch which has the capacity of delivering 5Kg loads of around 50 Km. It is also planning
to start test flights to ships in Singapore. All funding which has been done enable the company to
formulate more advanced technology and also hire global talent.
P4 Developments in frugal innovation and examples of how it is used in organisation
Frugal innovation refers to the process of commercialisation in context with limited
resources, good quality products which are affordable. It defines a new entrepreneurial landscape
in which small firms involve less resources in order to enhance innovations in those cities where
people has less income. It did many developments like increased demand for frugal products and
organisational context also enhancement in their own products. In case of environmental
constraints they were in relation with climate, water and so on and it also raised demand in the
case of consumption and production. To generate economic, social values businesses can provide
frugal products. In case of F-drones they used frugal innovation instead of usage of technology.
The drones which they used was cargo drones.
Characteristics of frugal innovation:-
Mainly there are three characteristics and these are market perspective, product
perspective and business perspective. In terms of market perspective the innovation is done
under the case of severe resource constraints. It is been determined that frugal innovation is in
relation with resource scarcity, affordability constraints which is applicable to large number of
people. In context with product perspective, it means all products which are cost effective and is
been developed quickly. The value of product can be received by decreasing overall cost of
ownership and is user friendly. In terms of business perspective it is been analysed that frugal
innovation is all about efficiency in terms of their operations as well as efficacy.
Reason and beneficial of frugal innovation to organisation

 Main benefit of frugal innovation is that F-drone will able to analyse and examine the
need for change and it become easy for them to analyse how to achieve competitive
benefits.
 Another benefit of this process is that this process helps in accessing to new ideas for
business on basis of which F-drone will able to reach to positive benefits.
M2 Analyse and apply innovation funnel in context with organisation
F -drones made use of innovation funnel as they wanted to decrease their shipping costs.
They were evolving regular ideas and through this they used innovation funnel over the usage of
technology. Organisation made many strategies in order to achieve goals so they applied the
concept of innovation funnel and frugal innovation. It was been analysed that through frugal
innovation they started using cargo drones. Before applying innovation funnel they made sure
that its values will be beneficial for them and by proper screening of all ideas they applied the
concept of using cargo drones(Yıldız, Yumuk and García-Fernández, 2021).
M3 Role of frugal innovation in context with organisation
Frugal innovation is done because it increase demand for all kind of frugal products and
lead F-drones also to enhance their drone technology. They also wanted to generate certain social
values so they applied frugal products and reached at a high position. The company never
remained at a specific position and depend on technology so they started using frugal products
like cargo drones.
TASK 3
P5 Importance of commercial funnel and new product development process for
commercialisation of innovation
Commercial funnel refers to the process of purchasing which organisations lead
customers in buying products. It is necessary and important for organisation because by using
sales funnel it becomes easy for organisation to do marketing and with the usage of commercial
funnel forecasts that company does is also accurate. According to a report it was determined that
F-drones used commercial funnel in order to increase sales and earn more profits from the
innovated product(Holman, 2021).
New product development:-

It is a multi-disciplinary procedure that can change market opportunity into a new
product to built up customer satisfaction. If a company will rely on existing products then they
will not be much successful as compared to other companies. So, to achieve success new
products must be invented as per requirements of customer. The new product development is
been explained as below:- Idea generation:- It refers to a investigation for producing new products. Organisation
develops many ideas in their mindset and from those ideas they consider the best one
which can be used. There are two types of ideas like internal idea and external idea.
Internal idea sources means that research is been done internally only but in external
sources ideas occur from suppliers and even from competitors also. Idea screening:- It means selecting best idea from all generated ideas. In this stage only
those ideas are selected which are suitable for organisation and companies will earn more
profits from that(Bahl, Lahiri and Mukherjee, 2021). Concept development and testing:- This stage comprises of effective ideas and they
should be developed. During developing and testing the product, it is important to ensure
customer value so it must be done by specific and physical representation. Marketing strategy development:- In this stage a new strategy is designed in order to
develop new product. It involves target market, budget, planned price and different
strategies. Business analysis:- It refers to the procedure of finding out whether there is customer
satisfaction or not and includes all type of costs, sales and profit perceptions. In order to
analyse sales organisation has to look at their sales history and conduct surveys. Product development:- If products are been tested successfully then they should get
developed in the form of physical product to assure that development is been done
efficiently and not they can be offered to consumers(McDonell, 2021). Test marketing:- In this particular stage, all sort of marketing programmes are tested and
also share an experience while doing marketing. It allows organisations to test their
product which involve advertising, packaging and many more.
 Commercialisation:- This refers to a process of innovating something new in the market.
While performing this stage, high costs are been involved as they spent on advertising
their products. There are certain guidelines which has been set like when economy is

down then at that particular time product should not be launched and products should be
offered according to specific location of city or country.
In case of F-drones, they built up their first commercial drone delivery at night. The specific
drone navigated anchorage which was helpful in delivering a critical element. According to this
perspective, company now can carry 5Kg till the distance of 50 Km.
P6 An innovation business case for an organisation including ways to access funding
Business case:- It refers to an organised structure that include task as well as different
activities. In case of F-drones, they also developed an innovation business case in order to
successfully develop their product and commercialise it. The plan which company made was to
develop 100 Kg -100 Km drone which was also called as Hyper launch and through this they
will be able to provide 5Kg loads till the distance of 50Km to their offshore platforms(Nersessian
and Mancha, 2021).
Executive summary:- The business case which was planned in accordance with
developing products was done in such a manner that they receive good level of resources in order
to develop their policies.
Background of company:- F-drones first transition can provide aerial deliveries to their
ships. Th product which will be developed include the combination of payloads and long range
capabilities and it was considered as a threat for other competitors.
Vision:- Their main vision was to be a leader involving heavy payload drone logistics in
upcoming 5 years.
Mission:- The organisation mission is to execute large scale and provide aerial
transportation of products and establish those drones which can fly with heavy loads also.
Satisfaction of need from innovation:- Company planned to develop new products in
order to attract more consumers.
Competitive edge:- Drone products were been modernized with the help of advanced
technology like micro-controllers which were helping them to enhance their measurement tools.
Size and growth possibilities:- F-drones market size was decided to reach $100 billion. In
case of growth possibilities it was analysed that they will reach $43.1 billion till 2024 and in year
2018 they were at $14.1 billion only(Hadjielias and et.al,2021).

Target market:- It was decided that target market would be to raise their R&D
investment and also certain initiatives in order to have better source of funding for military
programmes to ensure that they are achieving growth in their sector.
Strategy:- The strategy which F-drones made was to use the method of price skimming in
order to invent a product in a well manner.
Promotional strategy:- For doing promotion company made an strategy of using 3D
mapping and also did surveys of different sites in order to promote their products.
Funding:- Company got their funds from drone revolution which was partnered with
government. Singapore government also provided them funds who were collecting foreign
investments as well as shaped development in their industry.
Cost is to be considered as biggest challenges and it can affects the overall functions as
well as operations of business at wider scale. In context of F-drone, they can overcome with cost
problem through using of recycled resources and taking bank loans or searching for inverter who
can invest in business.
M4 A detailed innovation business case which involve how to measure overall effectiveness by
using techniques available to test, iterate and improve
It is necessary to build up a innovation business case because it provides a complete
different approach to handle problems which may arise while doing innovation. To measure
effectiveness company should offer unique tools for initiating the process, providing guidelines
to initiate a successful business case. It is necessary to build up a business case by analysis
proper costs as well as benefits and determining different interests of stakeholders. There are
certain factors which must be considered like analysing competition as well as different moves
which an organisation should take in order to increase effectiveness(Glebova and Desbordes,
2021).