Innovation Strategies for Business Growth: Semester 1

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UNIT 8: INNOVATION AND
COMMERCIALISATION
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Table of Contents
Introduction.................................................................................................................................................3
LO1 Explain the context for innovation and determine the difference between invention and innovation. .4
P1 Explain innovation and determine their importance to organisations in comparison with the
invention..................................................................................................................................................4
P2 Explain how organisational vision, leadership, culture, and teamwork can shape innovation and
commercialization...................................................................................................................................5
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation....................................................................................................6
LO2 Explain the different types of innovation............................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.......................................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..............................................................................................................................8
M2 Analyse and apply the innovation funnel in an organisational context..............................................9
M3 Evaluate the role of frugal innovation in an organisational context.................................................10
D1 Critically analyze how innovation is developed, embedded and measured in an organisational
context...................................................................................................................................................11
LO3 Discuss the process required to commercialise innovation................................................................12
P5 Explain the importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.........................................................................12
M4 Build a detailed Innovation Business Case which includes how to measure its overall effectiveness
using appropriate techniques available to test, iterate and improve.......................................................14
LO4 Evaluate the range of methods for protecting ideas and understand their advantages and
disadvantages............................................................................................................................................15
P7 Evaluate the different tools that organisations can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................15
M5 Present supported evidence-based evaluation of these different tools in the context of the wider
business environment............................................................................................................................16
D2 Critically evaluate the nature of innovation and the context in which it is developed, providing
evidence-based judgments on how organisations can overcome challenges to develop successful
innovations............................................................................................................................................17
Conclusion.................................................................................................................................................18
Reference...................................................................................................................................................19

Introduction
The following report will focus on the innovation, invention techniques and strategies required
by any firm or an organisation to perform better than the other organisation present in the same
field. Also, how the organisational values, culture, teamwork effects innovation in any
organisation. Along with this, various sources of innovation will also be analyzed which can be
further worked upon. The 4P’s in the innovation funnel will also be discussed in depth in this
report. It will also help in giving a brief knowledge about the customer's demands and needs
upon which an innovative project can be thought of. How the knowledge of an innovator is used
and applied in the project will also be seen. Intellectual properties needed for the invention and
innovation will be discussed. All this is required for developing and bringing innovation n any
project or during the invention of a project (De Filippis et. al., 2018). All these points are seen
very much in depth and are worked upon accordingly. The main role in the report is the demands
and needs of the customers which are fulfilled by the company by implementing innovative ideas
in the product. To satisfy people needs all of this work will be done which points towards the
innovation.

LO1 Explain the context for innovation and determine the difference between invention
and innovation
P1 Explain innovation and determine their importance to organisations in comparison with
the invention.
Innovation is bringing new ideas for an already existing product in the organisation. Innovation
is thinking upon when there are similar demands arises from the customer side or very good
feedback arises from the customer which can be helpful on a general base for every customer if it
is implemented. The innovation can have a great impact on the organisation in the market. This
can be achieved by implementing various techniques, strategies to the project or the product.
Innovation always helps in making the product more up to date by implementing more advanced
and recent technologies.
The invention is the making of a new product which is based on completely new technology and
methods, which is not usually seen in the market and has a completely new beginning and starts
to form a fresh idea. The invention is needed by an organisation to make it different from other
organisation working in the same sector. But innovation helps the organisation in making the
same product much better as compared to the product of other organisation. In making the
product better, customer needs, demands, and satisfaction are set as the first priority. Bringing
innovation to the customer's demands helps in making the company grow (Curtis & Sweeney,
2017). Innovation is giving life to a product while the invention of the process for generating life.
For example, Apple is the leading brand in the smartphones industry as it is more focused on
innovation. Apple has invented something but is now completely working on the innovation part.
From this, it can be determined that innovation holds equal importance to the organisation.

P2 Explain how organisational vision, leadership, culture, and teamwork can shape
innovation and commercialization.
Innovation is working upon the idea of the invention. It is basically a change implemented in the
existing product to make it better and up to the mark for the customers. , on the other hand, is
related to the launching of the product in the market. Product is launched in such a way that it
can attract as many customers and users. Organisation vision to its knowledge, everything related
to the organisation holds an important value in the shaping of innovation and commercialization.
Innovation can only be implemented when the organisation thinks of it, so for this organisation
vision plays the foremost and important role. Leadership helps in doing the process in an orderly
manner which is very much required for any project. As when the project is carried out
according to the steps then it can be more helpful. For this, a leader is required, who can monitor
each stage and every process (Bagno et. al., 2017). Culture along with all of this plays an
important role. Culture of people working on the same project can help in making the product or
can be really difficult. As people belonging to different cultures have different thoughts on the
innovation and commercialization for various product. A leader can help in resolving such issue
if it arises. Also taking recommendation from every employee can help to add value to the
product. Along with all this, teamwork can help in making a project reach a higher level. As one
person can open a company but he cannot run the company alone and requires people for specific
positions. This is the same requirements seen in the innovation and commercialization part.

M1 Analyse different sources of innovation, and how organisations can foster and develop
an environment and culture of innovation.
Fostering and developing different types of culture for innovation is very much essential for an
organisation. For this, there are many ways present, but the four, which are best of them are
discussed below which helps in the fostering and maintaining of the innovation by providing
appropriate culture and environment.
Communications between the employees are very much important at every level. This helps in
maintaining the trust between the employees and as well as the organisation and employee
relation be maintained. According to, França et. al., (2017) this can be done by motivating every
employee to present their ideas. This can help the employees and as well as the organisation in
developing new ideas for the innovation.
Organizing a jam session in the organisation can help in making every employee know each
other and make them comfortable in sharing their ideas.
Motivating employees in a daily manner about their work and ideas can make them comfortable
with the team and make them work more and to their full extent, which is very much needed
during the innovation period.
Keeping track of all the innovations which has company successfully completed and a list of
innovation for which the company is required to complete is seen and needed.
Mostly the innovation can be taken from the customer sources as they are the one using the
product and the services. So all these should be properly done so as to maintain the environment
and culture of the organisation.

LO2 Explain the different types of innovation
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.
The 4P's of innovation on which the entire process of innovation works upon are Paradigm,
Product, Process, and position. The 4P's are given by Joe Tidd and John Bessant. The 4P’s are
explained below:
Paradigm- This basically refers to the pattern or some steps which are being followed for the
innovation procedure (Lopes et. al., 2017). It can be referred to as the planned process that needs
to be followed by the organisation for the innovation.
Product- The innovation which is being done held on a product only. The innovation is thinking
upon when a customer demands and needs related to a certain product are not matched. So this is
the import P in the 4P's.
Process- Certain steps need to be followed by the organisation, in order to complete innovation
and reach to the end product include the process. For every step, there is a strategy involved and
to complete that strategy processes are completed.
Position- This basically comes in the goals section of the organisation. This means that through
innovation, what exact position the organisation is thinking of getting achieved.
Innovation funnel refers to the filtering of innovative ideas. Just like the funnel, the idea is being
collected at the first step, then depending upon the resources and utilization it is being filtered,
just like the neck of a funnel. Then the resources which include man resource, power, and
techniques, strategies everything is collected and is proceeded to perform innovation.

P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is done whenever there is the scarcity of resources is seen. This helps in
making the use of these limited resources and giving birth to an innovative idea depending upon
these scarcities. In frugal innovation, quality of the product should be maintained but the
functionality can be less as compared to other innovation. Frugal innovations are hindered by
political and economic factors also. These factors help in shaping the innovation idea. Expenses
are the foremost things, which are being focused upon majorly. An expense needs to be cut down
but in a manner which it directly did not affect the value of the organisation or the product.
Example of such type of innovation can be seen as many where. Mostly the organisation which
has a huge customer base prefers frugal innovation (Weyrauch, & Herstatt, 2017). As in this type
of innovation, they have to deal with a person from a different culture and environment.
Depending upon this, the resources are being cut, so as to help with the product and make it easy
for the customer to understand and buy. The quality of the product is not hampered that much but
definitely, the functionality is not that much as compare to the functionality of the other higher
products. By dividing the innovation according to the country literacy and economy helps an
organisation to enter their wide market.

M2 Analyse and apply the innovation funnel in an organisational context.
Innovation funnel basically refers to the filtering of the innovation ideas first and then
implementing and working upon it. The innovation funnel follows the shape of the normal funnel
and works upon that property. For building an innovation funnel, there are some steps which
need to be done. The first step is the Strategic thinking; in this, the outputs of the innovation is
thought upon and are made to align with the strategic goal. Then comes the concept, on which
the whole innovation depends and worked upon. The plan is the third step in which the proper
setup and processes that can be followed for the innovation are thought upon and set in a proper
manner. After the planning part comes the developing part where the practical implementation of
the plan is done and worked upon (Prabhu, 2017). The goal of this step is to develop a good
product. Qualifying of the project comes after all the above steps have been completed carefully.
This step focuses on maintaining the quality of the product and increasing the functionality
which is demanded by the customer. Then the last step is the launching of the product in the
market, which includes the advertising and promotional part followed by the launch. Any
organisation has to follow these steps in order to achieve the best innovative product at the end.
Also, implying this will help in saving the organisation resources.

M3 Evaluate the role of frugal innovation in an organisational context.
Frugal innovation refers to the decrease in the cost which is being used for the innovation and
using the scarcity of resources not as a weakness but as a strength for the organisation. In this
type of innovation, whole work is focused upon the scarcity of resource and the processes which
can be implemented for the betterment of the resources. All this is done to help the organisation
to make products according to it. Frugal innovation helps by making organisation works
according to the customer needs in a specific area and thus can save a large amount on the
making of the product and the resources. Many organisation uses frugal innovation to help with
their products innovation. One of the examples can be of Samsung organisation, which deals
vastly in the smartphones industry. The organisation works differently in different countries and
mostly takes into account the economy and the resources which can be easily provided in the
company (Rosca e. al., 2017). Quality of the product is maintained but the functionality of a
smartphone launched in India and as compared to a smartphone launched in the UK, the UK
based smartphone will have more functions as compare to the Indian one. The sole reason behind
this is that India literacy is lower than the UK literacy and as well as there is a huge up and down
in the UK and Indian economy. SO the launch of the product in India are much cheaper and have
less functionality.

D1 Critically analyse how innovation is developed, embedded and measured in an
organisational context.
Innovation is seen as the essential work that needs to be done for the growth of an organisation.
There is a very thin line between invention and innovation. So firstly the invention idea is
generated which is further changed into innovation and practical implementation f the innovation
is seen and forwarded for the commercialisation. This is done to meet the users’ demands and
needs. Proper satisfaction of users is needed for this. Innovation is developed from various
means; this can be by the innovation funnel. Innovation funnel is very much in demand and helps
in the proper functioning of innovation by processing various outputs and inputs. All this is done
to help the organisation reach a higher level (Annala et. al., 218). Along with this, many other
procedures need to be followed, this includes various strategies and methods. Innovations are
first to think upon and then the practical implementation for the same is done. Many strategies
are incorporated for the best of the organisation. Frugal innovation is a type of innovation which
has helped the organisation to perform differently in different countries depending upon their
economy and literacy condition. For an organisation or a company to grow, innovation is
essential and important for it.

LO3 Discuss the process required to commercialise innovation
P5 Explain the importance of commercial funnel and the application of
New Product Development (NPD) processing for commercialisation of innovation.
Commercial funnel is seen for the commercialisation and is also knows as purchase funnel. It is
divided into five parts. The commercial funnel starts from the marketing of the product and ends
at the purchase of a product by the customer. The five essential parts are awareness, opinion,
consideration, preference, and purchase. The cycle of the commercial funnel follows in this
manner. Starting awareness about a certain product is very much important for any organisation,
as if the customer doesn't have any knowledge about the product, he will not by it. Second is the
customer opinion which can help in the innovation is required by the organisation (Pisoni et. al.,
2018). Making it more preferable than the other product can also attract a lot of customers and
will increase the sale of the product. NPD is needed for maintaining a true self between the users
and the authorisers, i.e between the customers and the organisation. This is very much needed for
making a clear relationship and earning the trust of the user. During the commercial or marketing
of any product, depicting how the product is been developed can help users at various levels and
in turn, it can help the organisation as well.