David Game College - Unit 8: Innovation and Commercialisation Report

This report delves into the concepts of innovation and commercialization, exploring their significance in driving business growth and societal change. The report uses Amazon as a case study, analyzing the differences between invention and innovation, and examining the sources of innovation within the company. It critically discusses the link between Amazon's innovativeness, leadership styles, organizational culture, and teamwork. Furthermore, the report evaluates the 4 Ps of innovation (product, process, position, and paradigm), assesses the value of the innovation funnel, and considers frugal innovation. The second section focuses on the commercial funnel and the New Product Development (NPD) process, emphasizing their importance for successful innovation. It builds an innovation case study using the commercial funnel, evaluating resource and funding considerations, identifying key risks, establishing Key Performance Indicators (KPIs), and exploring strategies to protect intellectual property rights. The report concludes with a comprehensive overview of innovation and commercialization strategies within the context of Amazon's business model and market position.

Unit 8: Innovation and
Commercialisation

Table of Contents
Contents
Table of Contents.............................................................................................................................2
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Section 1...........................................................................................................................................3
Background to the company and its commercial potential....................................................3
Examine the difference between invention and innovation, analyse sources of innovation as a
core process in a specific company........................................................................................4
Critically discuss link between innovativeness of a specific organisation and its leadership,
organisational culture and teamwork......................................................................................5
Evaluate 4 Ps of innovation, appraise the value of the innovation funnel and frugal innovation
with reference to your case study...........................................................................................6
Section 2...........................................................................................................................................8
Explain the importance of the commercial funnel and New Product Development process for
successful innovation..............................................................................................................8
Build an Innovation case utilising the commercial funnel...................................................10
-Evaluate resource and funding considerations....................................................................10
-Identify key risks that can impact the successful implementation of the innovation..........11
-Establish Specific Key Performance Indicators that will allow to control/monitor and assess
the success of the new product’s implementation................................................................11
-Evaluate how the company can protect the intellectual property rights of the new product.12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation and commercialisation is a process that is used to transform various set of ideas,
invention, and knowledge in order to progress higher wealth. It brings positive change within
society as it is a broader prospect under which something new and better is offered to
marketplace. In this new or modified range of goods and services is processed within market and
entail distribution, marketing, sales, customer support, production and many other functions as
well by which ability to make more success bring commercial success and development (Ales,
Cho and Körpeoğlu, 2017). The report below is based on Amazon that is an American
multinational business and maintains focus towards cloud computing, digital streaming, e-
commerce and artificial intelligence. The report consists of difference between invention and
innovation, link between innovativeness, 4Ps of innovation, importance of commercial funnel
and innovation case.
MAIN BODY
TASK 1
Section 1
Background to the company and its commercial potential
Amazon is a multinational technological company and consider as US biggest companies
as it is also being referred as “one of the most influential cultural and economic force in world”.
It was founded in 1994 by Jeff Bezos in Bellevue, Washington. As in the initial stage of business
they had started with online marketing of books and then after that expanded its range and covers
electronic, video game, software, apparel, games, furniture, toys, jewellery and food. Amazon
also acquire Whole food market in the year 2017 for US$13.4 billion that increases its market
footprint as physical retailer and also surpassed as the most valuable retailer in terms of market
capitalisation (Arora, Cohen and Walsh, 2016). Furthermore, in 2018 the CEO also announces
they have delivered the service as by surpassing 100 million subscribers all across the world. The
business is also known as for its disruptions through technological innovation as well as mass
scale. It is the largest internet service company in terms of revenue and second largest private
employer that makes it even more valuable.
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The commercial potential of business reflects commercialisation opportunities in terms of
technological advancement. In this market reach as well as market need both get thrive as in
prosper of continuous change as according to unpredictable environment of business and
marketplace. Amazon has higher potential of commercialisation as they have provided wider
range of services to its customers and with this ability to reflect higher sales is increases and
continuous success and development is addressed with moderateness.
Examine the difference between invention and innovation, analyse sources of innovation as a
core process in a specific company.
Innovation is a concept through which additional components and features are added on
the corresponding products and services (Bagley and et. al., 2018). On the other hand, invention
is a process in which completely new is offered to the marketplace. It is induced within the
business for the concern or about to fulfil the need and demand of potential customers or to gain
higher sales and more revenue.
BASIS INNOVATION INVENTION
Concept In this business worked to make
appropriate level of modification within
existing products and services in terms of
development.
It is a process in which organisation
worked to produce completely new
product as in order to gain higher
revenue and profit.
Skills In this strategic skills are used by
management through which completely
new working standards is implemented
as per requirement of certain condition.
In this management of business and its
employee make adequate usage of
scientific and technological skills as
with this completely new is developed
and designed with perfection.
Limitations It is only get depends on the participation
level and through this rate of working
and possibility to advanced overall
working productivity is advanced on
regular basis.
In requires perfect implication of
different sources in timely manner that
sometime creates more complex
situation which also limits rate of
research.
There is different source of innovation as a core process within Amazon and it is as
explained below as:
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 Amazon build on past ruins: It is essential for the business to get learn various basis
from the past experiences as through this future credibility is expanded in ordinate
manner. As per relation to Amazon they have worked parallel as with consideration of
past ruins and with this its ability to advanced and implement continuous level of
modification is advanced over regular period of instance. For example, “Amazon music
unlimited” is a latest stream music which act as an innovation and it also advanced
overall working sufficiency.
 Embrace continuous evolution: It consist of continuous level of modification and with
this ability to advance and enhance working acceptance is propagating in balanced mode.
For this, Amazon induced more emphasis towards usage of online platform and with this
suitability of accomplishment of loyal customer’s base is developed in adequate
manner.it is a motivational framework that helps Amazon to increase its working sale and
profit margin for continuous period of time.
Critically discuss link between innovativeness of a specific organisation and its leadership,
organisational culture and teamwork.
Innovativeness within organisation brings higher motivation for employees as well as in
this ability to make profit from offered goods is increases (Çengel, 2019). In this induce by
Amazon to gain higher profit and to shape up business performance that is furthermore explained
below as: Leadership: It is an aspect under which management of Amazon uses autocratic style of
leadership and take adequate decision as per suitability of condition. In this balanced
level of support is offered by innovativeness as in this ability of employee to perform its
roles and responsibilities get clear. For example, the leader of Amazon makes ensure that
their working standards and its ability to get connect with all the working employees is
enhanced by which rate of accomplishment of task is progressed in productive manner. Culture: It usually reflect belief, norm, attitude, behaviour of business that make working
process easier for employee. In this Amazon promote innovativeness and induces positive
impact over business productivity in balanced manner. In this employee felt more
motivated and connected towards business operation and also accept the change with
flexibility. For example, the culture of Amazon makes supportive usage of role culture
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and with this provide adequate roles and responsibilities to each individual by which
working efficiency get developed in sustained mode.
 Teamwork: It is a prospect under which different individual work all together to enhance
working productiveness and each and every individual plays their responsibility with
perfection and accuracy (Dutta and Folta, 2016). It is essential for innovation as with
every individual produces innovative ideas with brainstorming that assist to make better
change. For instance, in order to promote teamwork management of Amazon ensure that
to collective working is promoted as with this effectiveness of team working is getting
advanced over a regular period of instance.
Leadership, culture and teamwork all involve balanced level of participation towards
advancement of working standards as in this ability to achieve long term success and
development is programmed in parallel mode. In relation to Amazon the management uses
autocratic style of leadership as it assists to complete standardised ending with better
modification in which adequate control is induced about decision making of business. In addition
to this positive culture is used to promote working suitability and with this ability to advance and
improvise working standards is enhanced in better way. Moreover, teamwork is an essential
aspect within which probability to achieve standardised outcome is enhanced on regular basis.
Evaluate 4 Ps of innovation, appraise the value of the innovation funnel and frugal innovation
with reference to your case study.
The 4P's of innovation relates to the innovation and it is as explained as in context to
amazon as:
Product innovation: It is done to induce constant changes in product style, design,
packaging those are offered to th c e customers. Amazon keeps on making changes in their
product by providing different services like Amazon prime, Amazon dash, Amazon publishing.
Process innovation: It is referred to the way that is used by company in order to
delivered its potential products and services in competitive marketplace. As being an online
business company amazon provides e books services and other official e commerce websites.
Position innovation: It is an innovation that process changes those are done in context of
how the product is presented in front of the customer. Amazon is using direct marketing, sales
promotion to gain better working position in marketplace.
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Paradigm innovation: It refers to making changes in the mental models of the company.
In this innovation is processed through outlooks and working styles of the company. Amazon
keeps on changing its business strategies and business models (Ferasso, 2018).
Innovation Funnel:
It is a procedure by which specified level of effectiveness is promoted as by fulfilling
market need and demand. It usually embedded various function that is explained below as:
Illustration : Innovation Funnel
(Source: Innovation Funnel, 2019) Assessment of Opportunity: It is an initial stage in which Amazon conduct market
research and for this respective information is collected from the marketplace and for this
management conduct questionnaire that assist to make better accessibility. Moreover, it
helps to achieve standardised changes and modification within working standards so that
working possibility and its effectiveness both get advanced in balanced mode. Ideation Process: It is a process in which Amazon looking forward to develop various
opportunities by which effectual capitalisation is increases on direct basis. Conceptualisation: At this stage overall concept is identifies under which involvement of
advertising copies, mock-up of packaging, detailed configuration is developed that
advanced product innovation and feature advancement within Amazon (Hossain and
Kauranen, 2016). Benchmarking: In this stage standardised outcome is controlled by management of
Amazon and under this suitable idea are generated on the basis of revenue collection. It
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also promotes performance credibility as by forecasting profitability on the basis of
development.
 Go or No go and launching: It is final stage at where innovation is implemented as per
clear suitability so that product launching is processed with perfection and transparency.
In this Amazon take an initiative and on the basis of that initiative different measures
have been taken in future period of time with this rate of productiveness and its overall
performance get advanced in ordinate manner.
Section 2
Explain the importance of the commercial funnel and New Product Development process for
successful innovation.
The commercial funnel is an essential tool under which profitable outcome is achieved
and within this Amazon has manages its decision making ability by which customer’s attraction
is increases with sufficiency (Khajeheian and Tadayoni, 2016). It also allows enhancing sale
with effectiveness so that its ability of Amazon to retain its potential customer’s for longer
period of time is increases. In this sales evaluation is perceived by which potential and larger
customer base is developed in adequate mode.
Process of New Product Development (NPD)
It is a process that is used to accomplish as per usage of launching an innovative product
that is completely dependent on customer’s prospect of and its stages is as explained below as:
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Figure : THE NEW PRODUCT DEVELOPMENT PROCESS (NPD) – OBTAIN NEW
PRODUCTS, 2020
 Idea generation: It is initial stage in which brainstormed ideas are developed by Amazon
that assist to make better innovation as per basis of customer’s requirement and need.
 Idea evaluation: In this Amazon evaluate all the suitable ideas through which effectual
idea is processed in effective manner.
 Concept definition: At this stage feasible outcome is developed by Amazon as by
specifying innovative products and services.
 Strategic analysis: In this appropriate strategy are developed by management of Amazon
in order to develop and process sustained and effective outcome that is also be supported
with effectiveness of suitable planning and designing (Mazzarol and Reboud, 2020).
 Amazon Product development and testing: In this management of Amazon make
accurate judgments that aid to generate and develop creative idea.
 Market testing: In this Amazon collects customer feedback by which working
accessibility is increase so that rate of revenue generation is advanced in balanced mode.
 Commercialization: It is a form under which Amazon performs marketing as by making
adequate assistance of product launching.
 Product launch: It is a last stage in which prominent alteration is induced by Amazon
that induces smooth working and in this ability to target specified audience also increases
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Build an Innovation case utilising the commercial funnel
Business case: It is a case that is processed in detailed basis under which various
activities and function is addressed effectively. In this Amazon and its invent recharging pods for
electrical vehicles.
Executive summary: In relation to the effectual understanding various policies are
developed as per suitability of targeted audience. In this major concern is designed and
developed on the basis of electrical vehicles and its recharging pods so that long term durability
is advanced with perfection.
Vision: The vision of Amazon is to maintain focus on tomorrow as on the basis of wants
and demand of marketplace.
Mission: It is to make clear statement under which continuous changes is addressed as
per balance of customer experience with support of technology and internet.
Opportunity in market: Amazon is well known organisation and have offered wider
range of product and services across all over world (Roper and Love, 2018). It provides adequate
support to make productive amount of changes that assist longer sustainability. In concern of
recharging pods for electric vehicles ability to expand working credibility is also get enlarged
with better suitability.
Target market: Amazon innovate recharging cables and pods for electrical vehicle as
with this capability to target wider market base is enlarged with perfection. In this working
suitability and its attractiveness get enhanced that advance rate of revenue generation/
Strategy: Amazon uses competitive pricing strategies and set the price as by considering
its competitors’ offerings.
-Evaluate resource and funding considerations
Resource consideration includes better set of implication of various portfolio under which
balanced level of investment is processed in systematic manner. In relation to collection of
suitable resources and funds for the new business case of recharging pods for electrical vehicles
Amazon looking forward to expand its working tendency with adequateness. Insufficiency of
resources make difficult for business to attain sustained success over regular period of time. In
this Amazon and its management take various benefits as without paying any saving by which all
its expenses get managed. To get innovate the product it is required that management make sure
that while making innovation required resources are available for balanced period of time. So
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that availability of resources is processed with systematic mode. In this adequate human
resource, equipment, machinery and training is required as per relation to appropriate resources.
In relation to funding consideration Amazon makes and collects its money with the
support of subscription, retail, web services that are used towards other digital platforms. In
consideration of primary source online and physical stores assist to make suitable accounting
towards its share and it aid to make better innovation.
-Identify key risks that can impact the successful implementation of the innovation
There is different risk that has direct impact over successful implementation of
innovation of Amazon and it is as explained below as: Failed to meet quality: If ability of business to manage operational and functional
practices is getting affected at any stage of innovation than it takes more cost of
scheduling. As per providing recharging pods for electrical vehicle it cost higher to
implemented and for this quality standards is also being require to matched.
 Failed to abstract customers: It is risk at where Amazon is not able to meet commercial
benefits by which they didn’t connect with marketplace (Rosca, Arnold and Bendul,
2017). Thus customer didn’t relate themselves than it cost even higher and affect profit
generation and its credibility. In this Amazon induce suitable changes as per requirement
of potential customers as it assist to pertain long term sustainability with adequateness.
-Establish Specific Key Performance Indicators that will allow to control/monitor and assess the
success of the new product’s implementation.
The key performance indicator basically consists to make better implementation of new
products that assist higher success of Amazon and it is as explained below as:
Benchmarking: It is an indicator in which Amazon set a standardised goal and objectives
and for that induce various strategies and policies in order to achieve that target in timely basis.
For this ability to gain higher success is attained with perfection so that productive amount of
changes is addressed with adequateness.
Monitoring investment: In this priority is balanced out by business so that rate of
profitability is increases in sustained basis. In this suitable investment is segmented by which
every activity is processed with certain adequateness.
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-Evaluate how the company can protect the intellectual property rights of the new product.
There are different sources through which Amazon protects its intellectual property rights
and it is as explained below as:
Patents: It is an intellectual property that is more effective and under this owner of a
business make exclusive right to others by which competitors didn’t copied their products,
values, services etc. The major advantage is to protect business from its rivals and disadvantage
is that it perceived higher cost in moderate mode (Xiao, Li and Liu, 2016).
Trademarks: In this business has protect its symbol, design, signs so that they could
differentiate their products and services with respect to its competitors. In this clear benefit is to
advance brand value in which ability to make individual product differ from other is increases.
On the other hand, it takes higher cost and after a period of time it is revue and it take more cost.
Amazon uses patent and under this the capability of business to manage its products and
services didn’t get copied by the other business of marketplace. It induces higher benefits by
making higher profit and more sales so that precedent position is attained with perfection.
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CONCLUSION
It has been concluded from above report that innovation and commercialisation is
induced within the business as per suitability of market. It is induced by business to enhance its
market potential, share, profit and revenue generation so that long term benefit is achieved with
repetitiveness. In this useful changes are induced that assist to make competitive advantage in
ordinate mode. Furthermore, commercial funnel and its importance are processed that helps to
make successful innovation along with innovation case.
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REFERENCES
Books and Journals
Ales, L., Cho, S.H. and Körpeoğlu, E., 2017. Innovation tournaments with multiple
contributors. Available at SSRN 2277215.
Arora, A., Cohen, W.M. and Walsh, J.P., 2016. The acquisition and commercialization of
invention in American manufacturing: Incidence and impact. Research
Policy. 45(6).pp.1113-1128.
Bagley, C. and et. al., 2018. Mapping the UK research & innovation landscape: Energy &
development.
Byun, J., Sung, T.E. and Park, H.W., 2018. Technological innovation strategy: how do
technology life cycles change by technological area. Technology Analysis & Strategic
Management, 30(1), pp.98-112.
Çengel, Y., 2019. Ramifications of the 2nd law of thermodynamics on innovation and
sustainable future. International Journal of Research, Innovation and
Commercialisation, 2(2), pp.91-104.
Dutta, S. and Folta, T.B., 2016.A comparison of the effect of angels and venture capitalists on
innovation and value creation. Journal of business venturing. 31(1).pp.39-54.
Ferasso, M., 2018. The representativeness of exportations for local development: evidences from
family-owned SMEs. International Journal of Research, Innovation and
Commercialisation, 2(1), pp.38-57.
Hossain, M. and Kauranen, I., 2016. Open innovation in SMEs: a systematic literature
review. Journal of Strategy and Management.
Khajeheian, D. and Tadayoni, R., 2016. User innovation in public service broadcasts: creating
public value by media entrepreneurship. International Journal of Technology Transfer
and Commercialisation, 14(2), pp.117-131.
Mazzarol, T. and Reboud, S., 2020. Work Book: Adoption and Diffusion of Innovation. In
Workbook for Entrepreneurship and Innovation (pp. 63-76). Springer, Singapore
Roper, S. and Love, J.H., 2018. Knowledge context, learning and innovation: an integrating
framework. Industry and Innovation, 25(4), pp.339-364.
Rosca, E., Arnold, M. and Bendul, J.C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services. Journal of Cleaner Production .162.
pp.S133-S145.
Xiao, X., Li, Y. and Liu, Z., 2016. Graphene commercialization. Nature materials. 15(7).pp.697-
698.
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