Innovation and Commercialisation: A Comparative Business Report

This report delves into the critical aspects of innovation and commercialization, emphasizing their importance for business success. It begins by differentiating between innovation and invention, highlighting the significance of vision, mission, leadership, culture, and teamwork in fostering a culture of innovation. The report then explores the 4Ps of innovation (product, process, position, and paradigm) and the use of the innovation funnel to shape ideas. It also examines frugal innovation and its applications. Furthermore, the report addresses the commercial funnel and New Product Development, including the construction of an innovation business case. Finally, it outlines tools for retaining, developing, and protecting intellectual property, providing a comprehensive overview of innovation and commercialization strategies. The report uses case studies of Virgin and Apple to illustrate key concepts.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
P1. Importance of innovation and difference between innovation and invention .................2
P2.Impact of vision, mission, leadership, culture and teamwork on innovation and
commercialisation...................................................................................................................3
TASK 2............................................................................................................................................4
P3. Explain 4p's of innovation and use of innovation funnel to shape innovation ideas.......4
P4. Explain developments in frugal innovation and their usage in organisation .................6
TASK 3 ...........................................................................................................................................7
P5. Importance of the commercial funnel and the application of New Product Development7
P6. Build an Innovation..........................................................................................................9
Business Case........................................................................................................................9
TASK 4 .......................................................................................................................................10
P7. Tools which are used to retain, develop and protect intellectual property.....................10
CONCLUSION ............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
In today's world, every company wants to have competitive advantage. For this firms
keep on updating their products regularly so that they can provide best quality of goods to their
consumers. Innovation tends to bring new ideas, creativity, processes by which the new solutions
can be introduce in market. On the other hands commercialization refers to procedure by which
firms can produce goods by implementing in new ways and bring new ideas in business. These
both are very crucial elements for business growth (Anokhin, Wincent and Frishammar, 2011).
Customers wants product which satisfy their needs. customer never buy product which is
outdated and old technology. So introducing new methods in business and in goods are very
crucial for company to sustain.
The company which is taken into consideration for this particular report is virgin and
apple. These both are different companies from different industrial segments. Virgin is group is
related with entertainment, finance and lifestyle. While on other hand apple refers to electronic
gadgets producing company they are into production of iPods, iPhones and iMac. These both are
big brand names in market. Market share of these both companies is very large (Bagchi-Sen,
2010). Their profits margins are also very high.
In this report, the difference between innovation and invention has been mention. 4P's of
innovation are describe in this assignment. Different tools of intellectual property protection are
discuss in this project.
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source 1:
Innovation, 2016

TASK 1
P1. Importance of innovation and difference between innovation and invention
Innovation refers to bringing of new ideas, methods, procedure in business. By
innovation the existing problems can be solved in more easy way. Innovation is having its wide
meaning. Every company is going to bring innovate their products. It’s very important part of an
organisation. By this company can sustain for longer run. Every customer want the product
which is new technology and firm need to innovate their products before their old products
demand decreases in market (Davila, Epstein and Shelton, 2012). By this more revenues can be
generated. Innovation helps firms to improve their efficiency of products and services.
Importance of innovation is given below.
 Creates competitive advantage: Innovation help to provide competitive advantage to
firm. When firm is providing different facilities to customers. They gain competitive
advantage. They providing those goods which is company's competitors are not having.
For example Apple is manufacturing iPods. By this person can listen to music in very
accessible manner. By carrying small device and large storage. By this device
Customers can enjoy music anywhere at any time. when this product launch many
customers like this product. There is different perspective of value from different
people. Some people perceived value as worth for money but some customer perceive
value in features of product. As firm is bringing new trend in market customer this
encourage customers to buy new products in market. As like virgin they are dealing
with many many segments they are continuously coming up new innovation. This give
them competitive advantage to firm. According case study virgin create new idea of
venture which gave them success in their particular field.
 Establishing new methods and process for business: By innovation the new
solutions of existing problems can be identify by the firm. Innovation make easy for
firm to solve problems. As new techniques come in market place the process of
business become more fast, production take place in faster manner, quality of goods can
be improved. As new technology is taking place employees are trained accordingly by
which employees able to serve customers in effective manner. Firm need to use all
their resources in effective manner so that innovation process and its implementation
can take place in adequate manner (Godin, 2012). In context to virgin group firm is
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taking ideas for their whole staff. While investing in any project they take suggestion
from their team member which brings new methods to an organisation.
Difference between innovation and invention
Basis Invention Innovation
Meaning Invention refer to introducing
something for first time which is not
there in market before.
Innovation refers to bringing
new change in old products.
Concept In invention original concept is in
theoretical manner
Innovation refers to
implement the invention
ideas for first time.
Skills required In invention the skills which is required
is scientific skills .
The skills required in
innovation is managerial and
marketing.
Occurs This is occurs when scientist come up
with new ideas.
Innovation take place when
company feel they wants to
make change in their
existing products.
Concerned with Single product and services taken into
consideration while doing invention
Various product and services
combine together to do
innovation
Activities Invention techniques are done by
research and development department
These activities take place
across the world.
In context to case study apple introduce various new products like iPod. it bring new
trend in market by which customers can get new experience of listening music. . Now apple is
doing innovation in their products by bringing new changes in their iPods. The change can be
take place in terms of size, features, prices and others. As per virgin group the firm is introducing
new ventures which are innovation for firm. Virgin group is continuous expanding their market
in other segments also which increase their profits margins.
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P2.Impact of vision, mission, leadership, culture and teamwork on innovation and
commercialisation
To implement innovation and commercialisation it is very important that firm should
have clarity about their vision and mission. Vision is statement in which firm decide where they
see themselves in future. It is primary step for firm to make decision about their vision because
all strategies follow accordingly (Guha and Yang, 2010). Next is mission in this firm decide how
they going to achieve their vision. Mission follow vision. In context to case study the vision of
apple is to sustain as leading position in market And mission is to bring and provide high
technology products to their customers. According to these concepts the innovation strategies are
formed because ultimately firm want to achieve their objectives.
The next concept which comes into picture is leadership. Leadership is having certain
qualities which make them unique from other people. Its also very important while doing
innovation and commercialisation. There are many qualities by which leader come up which new
ideas and creativity and they handle their followers and ensure that all task should be completed
on time and in adequate manner. Innovation is long process and cost incurring process. So all
activities should be conducted in proper manner. Proper coordination should take place among
team members (Gulbranson and Audretsch, 2008). Leader always encourage their followers to
complete task on time and in effective manner. By this procedure rules can be follow as per
standards. Another factor is culture. This refers to belief, norms, values which is shared by
common group in an organisation. While bringing innovation culture play very important role. If
culture of organisation is flexible than innovation can be introduce in easy manner. But
employees of firm is rigid in nature business unit get difficult to bring change in an enterprise.
These all factors are having negative and positive impact on implementation of
innovation. In this phrase firm took steps to eliminate negative impact so that innovation
procedure can take place. Leader need to give training to its followers so that workers enhances
their skills, knowledge and complete task in productive way. If employees are having good
understanding between them they can learn from each other. Leader should help employees to
understand about vision, mission and objectives of business unit so that they can follow
particular direction. By all this groups divide their work and try to complete given project on
time. In context to apple firm establish something which was not their in market earlier. As the
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Steve jobs is having clear vision, mission of firm he worked on that project until he get success
into it.
TASK 2
P3. Explain 4p's of innovation and use of innovation funnel to shape innovation ideas
In marketing there are 4p's. Like wise there are also 4'pc in innovation also. This give
broader knowledge about innovation. The 4p's of innovation refers to product, process, position
and paradigm (Hemmelskamp, Rennings and Leone, 2013). Following are explanation of
innovation 4p'c.
 Product: The first factors is product. When company wants to make changes. They need
to consider their products. The product is first thing that comes into mind. There are
different aspects that can be change in product such as features, colour, size and others.
Firm regular make changes in their product so that they can provide high technologies
feature into it so that customer get more satisfaction. In context to case study virgin
group is bringing regularly change in their travel packages, their financial products. By
this business unit can attract more and more customer. Sales can be positively affected by
this. In context to virgin the product can be its phones and apple products are iPod. Both
companies are trying bring changes in their products and introducing new product lines.
 Process: Next important p's is process. Innovation bring new concept in process as
company is manufacturing products if they use new techniques the goods can be produce
in more faster way and in less cost. There are many changes can be take place in context
to process (Hoque, Chishty and Halloway, 2011). Firm can choose the effective
distribution channel by which they can reach to maximum number of customers. Such as
apple is selling their products online. By this new distribution channel the sales of firm
can be increased. AS virgin is using high technology in their entertainment segment and
apple have large focus on their product quality so in process they need to consider these
factors.
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 Position: Position is part of promotion. Position refers to establish the image of brand in
consumers mind. In this firm influence consumer mind so that they perceived goods in
proper manner (Jagoda and et. al, 2011). In context to case study apple positioning their
products as most innovate and unique gadgets. When firm positioning its product they do
it in very proper manner because if business unit is not able to fulfil their promise the
customer dissatisfaction can take place. Position depends on perception so that innovation
helps to change that perception of customers. Virgin group is know for mobile and
airlines by most of people in the population hence this brand positioning of company for
which it is addressed.
 Paradigm: Paradigm refers to change in additional services. In this firm bring changes in
the way in which they are serving their customers. The delivery process can be change.
By this customer get services in more better way and proper communication can take
place between staff and consumes (Kutvonen, 2011). By this business get success. Apple
is providing additional services as customers face any problem in their products company
take guarantee to swap it with new one.
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source 2: 4p's of Innovation, 2017

The concept of innovation funnel is play vital role in an organisation. It gives steps and
procedure to develop the products and services. By innovation funnel products and services are
design in manner so that they can satisfy customers needs and wants. There are various steps that
need to be followed such as investigation in which the market demands need to be evaluated.
Next is development in this marketing department gives information to operation department
about product which need to be manufacture. Final step can be shipping of product when product
is ready the product need to delivery to its final customers. In this the distribution channel need
to decided by which firm so that they can reach to its maximum range of customer.
P4. Explain developments in frugal innovation and their usage in organisation
Frugal innovation is used to minimise the complexity in business. Nowadays every
company is having main motive to reduce their cost and increase their sales. This concept help
them. To achieve their objectives. Many business units are using frugal concept such as cocoa
cola. The company conduct campaign in which they are asking customers to write their favourite
celebrity name and this campaign is about if they like Kate they can meet Kate and other
celebrities according to their choice. By this campaign business unit notice that sales of company
is increasing drastically. After this event people used to drink more soft drinks.
With the help of this innovation many firm earn high revenues. Apple is also using this
strategy as they introduce an offer in which customer can exchange their old apple products to
new one (Lee and et. al, 2010). There are other lot of strategies are there by which sales and
profits can be increased. This innovation suggest to firm that they should offer additional
delivery services to customers. This can attract more customers and brand loyalty can be
improved. There are many competitor are their those who produce similar kind of products. So it
is very important for firm to deliver its product in adequate manner so that they can again
competitive advantage. For firm to loosing one customers is also very big deal. So business unit
need to make sure they should loose a single customer. It is very crucial to build brand image
among consumers. In this case both apple and virgin are performing very well. They are well
establish enterprises. They have many premium customers which are extremely loyal to them.
By frugal innovation the non-essential features are eliminated from the product which
make goods more effective and quality of goods are increased. The cost can also be reduced by
these innovations. This concept is used when company wants to sell their products in other
developing countries (Snow and et. al, 2011). Due to globalisation this concept is arising as
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because firm wants to sell their goods in other countries they can for inferior quality but prices
should be less. There are certain feature in product which might be needed in one country but not
required in other. So for this firm eliminate that unnecessary product. By this cost also decrease
and sales increase. This may result in increase in profit margins of firm. For example apple is
having different features according to countries they are selling their products. Like in America
Hindi language is not required so that they eliminate this features. Like that there are many
different features are offering to different regions. In context to virgin company provide different
offers in their airlines segment so that the sales can be increased. Many schemes are given by
apple in terms of rise its sales and more customers prefer to buy apple gadgets.
TASK 3
P5. Importance of the commercial funnel and the application of New Product Development
This concept helps to understand needs and wants of customers. It is important to
evaluate the needs of customers before offering them any products. If business unit is not able to
fulfil customer then it is difficult for them to get success. Before launching any goods enterprise
generate their potential needs. After that they manufacture their goods accordingly. There is
particular process has been follow. Funnel have different concept for customers and suppliers.
From customer point of view they perceive as buying process such as awareness, discovery and
purchase. According to this process customer see any advertisement from that stimuli generate.
By this they get aware that particular kind of product is available in market. Next step is to
discovery in this stage customer search another more companies those are producing same kind
of goods customer compare all thee goods with each other (Thore, 2012). The final step is to
purchase in this stage consumer buy product which they like the most and which is suitable to
their requirement. Funnel is important for business and their importance are as follow.
 Company can know what their competitors are offering
 Potential sales needs can be generated by this
 Bring awareness among customers.
 This help to reduce cost because firm know about customers needs and wants
 Increase in sales can be generated by funnel innovation
 As good quality of products are provided to customer this helps generate customers
satisfaction
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 There is strong relationship can be built by firm and customers.
New product development application
Every company wants earn high more profits. It is very important for firm to retain all
their customers for longer run. Because by this strong brand name can be established. When firm
wants to attract more customers they go for new product development in this stage enterprise is
targeting their existing market and with that they come with new product. This situation may
take place when demand of old product is diminishing (van Hemert, Nijkamp and Masurel,
2013). So enterprise do research, understand customers needs and design product accordingly. In
context to case study apple is coming up with their new iPod model with this iPhones, iMac is
launching. By this many customers are their those regular purchase apple items due to its high
technology which is bring out by Apple. To new product development following are the steps
which need to be followed.
 Generating ideas: To design any product idea is necessary. So first step which is taken
by company is that they do research in market communicate with public understanding
their needs and wants and after they generate idea about changes that is required to
make. In this firm go for SWOT analysis by which they can determine their strength,
weakness, opportunities and threats. Apple generate ideas by analysing the needs of
consumer in market. Every time company is coming up high technology products
because they staff of apple is very creative.
 Screening idea: After generating ideas company go for screening in which they
identify that changes need to made. In this apple find the change which they need to
make in their gadgets.
 Testing the concept: Next step is to test the product in market and identify whether
product can fulfil needs of customers or not. When apple is making any changes in
their iPod. They test whether it is working properly or not. The separate department is
there which check the quality and check efficiency.
 Business analytics: In this step firm evaluate the time which is taken by each activity
conducted to finish (Walsh, 2012). For this business analytics can be done so that
proper schedule can be made and time is allotted to every activity.
 Marketing test and commercialize: In this product is tested in market. It can be done
through by providing samples and testers. Few consumers can try product and give
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their opinion. By this if positive reaction are their company launch product in market.
But if there is any changes are their which is suggested by customers it need to done
before launching. Apple evaluate the results they communicate with customers those
who are visiting in stores. By this they can interpret that whether customers like
product or not.
 Post launching reviews: It is happen after launching product in this customers reviews
are taken. In this company see reaction of public and compare actual performance to
standard ones. By this deviation can be identify. Further firm can make changes if any
requirement are there.
P6. Build an Innovation Business Case
Business case is very complex procedure. It take time and cost both. Firm should ensure
that business case need to be properly prepared so that target can be achieved. There are different
kind models by which business case can be develop. Following are the steps by which business
case can be develop.
 The first step the discussion take place by firm about particular topic. In this topic the
give facts and figures need to be concern and noted. There can be different issues that
need to be discuss such sales of firm, innovate products and others. In context to apple
company staff discuss about particular topic. In this members give different suggestion
about new product.
 After first step the different ideas need to be noted. This can help firm to do cost
analysis, future needs , uncertainty need to determine. This factors make clear whether
business case which is design is correct or not.
 Next step is study about competitors, threats, opportunities. By this strategies are
prepared (Wong, 2011). There are competitors those who sell similar kind of products.
In this case the delivery style need to modified. The delivery need to be design in manner
by which costumer can attracted. Apple design and give feature to its product so that
they attract more customers. In this they use advance technology in gadgets because of
this reason company is having potential premium customers.
 In last step all resources need to be identify which are going to use in implementing
business case. There are different resources are need to used such as finance, human and
others. Apple is company to which all resources are available in adequate manner and
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