The Impact of Innovation and Commercialisation on Business Growth

This report explores the critical role of innovation and commercialization in organizational success, using Rowlinson Knitwear as a case study. It begins by differentiating between innovation and invention and highlighting the importance of innovation. The report then examines how organizational vision, culture, leadership, and teamwork shape innovation and commercialization. It delves into the 4Ps of innovation (product, process, position, and paradigm) and the application of the innovation funnel to develop new ideas. The report also covers the significance of the commercial funnel and the application of New Product Development (NPD) for commercialization. Furthermore, it discusses the development of an innovation business case and concludes with the importance of tools for knowledge and intellectual property protection.

Innovation
and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Difference between innovation and invention and importance of innovation to
organisation.................................................................................................................................1
P2: The way organisational vision, culture, leadership and team work can shape innovation
and commercialisation................................................................................................................2
TASK 2............................................................................................................................................4
P3: 4P's of innovation and use of innovation funnel to develop innovative ideas......................4
P4: Developments in frugal innovation.......................................................................................5
TASK 3............................................................................................................................................6
P5: Importance of commercial funnel and application of NPD for commercialisation and
innovation....................................................................................................................................6
P6: Innovation business case.......................................................................................................8
TASK 4............................................................................................................................................8
P7: Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property rights..........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is an essential requirements for every organisation which need to be adopt in
order to achieve desired goals and objective within pre-determined period of time. It includes
the application of new ideas and optimum solutions to fulfil needs and demands of the targeted
customers. The management is held liable to focus on bring innovation in existing technologies
and processes which maximises interest and working behaviour of employees and enhance their
efficiency level. Rowlinson Knitwear, a UK manufacturing company which deals in producing
clothing products for school and corporate purpose. The main purpose of preparing this report is
to role of innovation in growth and success of an organisation. The project covers the difference
between invention and innovation along with their importance. Contribution of organisational
vision, culture, Leadership and team work in innovation and commercialisation all are discussed
under this report. The project also summarises the importance of funnel and application of NPD
for commercialisation of innovation (Baraldi and Waluszewski, 2011).
TASK 1
P1: Difference between innovation and invention and importance of innovation to organisation
Basis Innovation Invention
Meaning It refers to the application of new ideas
and method in an organisation in order to
bring profitable result to company.
It can be refers to introducing
new ideas and methods which
newly comes into market for
the purpose of achieving
growth within limited period
of time.
Responsibility The top authority of company are held
liable to implement innovation in business
structure so as to maximise the
performance of employees and an
organisation.
Every employees working n an
organisation are think freely
and bring out new ideas and
methods for the betterment of
an organisation.
Concept It add value to the existing products in
order to make better than their rivals.
It brings new products
according to the needs and
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demands of customers.
Required skills It requires various skills such as technical,
marketing and many more.
It requires scientific skills.
Illustration Rowlinson Knitwear deals in clothing
product thus implementing design,
changes in quality, price etc. in product
will help in attracting large number of
customers.
Introducing new variety of
clothes according to the
requirements of customers will
help in capturing large market
share.
Importance of innovation in an organisation: As every organisation want to sustain in
competitive market for longer duration and it can be possible only when the management decide
to implement innovative changes in their existing technologies, products on regular basis as per
the needs and requirements of customers. Adopting changes in the business structure brings
motivation and confidence among employees which allow them to contribute more in achieving
desired goals and objectives (Bianchi and et. al., 2010). Some other advantages of Innovation in
Rowlinson Knitwear company are described as below:
Competitive advantage: Implementing changes in production, marketing process help
company in finding new and innovative ways of grabbing competitive opportunities that will
help them in achieving competitive advantage. Rowlinson Knitwear deals in providing clothing
products for school and corporate purpose at an affordable prices. Thus, in order to large number
of customers the management need to focus on introducing new design and pattern in their
product that will help customers in looking more attractive and feel comfortable. This will help
in changing interest and buying behaviour of customers towards purchasing their product and
gives tough competition to their rivals. It will help in increasing the sales figure of company and
generate huge revenue.
Establishment of best methods in organisation: If the organisation wants to capture
large market share then they need to develop their marketing and production process through
adopting new methods and techniques to communicate with their customers regarding the
information about their products and services. This will help in maintaining good relation with
their loyal customers and able to retain them for longer period. Made changes in existing
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technologies used in the production process will maximise the quality of work as well as quality
of product through which the company can bale to provide to their customers at an affordable
prices.
P2: The way organisational vision, culture, leadership and team work can shape innovation and
commercialisation
The organisational vision, culture, leadership and team work contributes maximum in
building innovation and commercialisation in company. Every company has their own vision and
goals on the basis of which the organisational activities will be done. Therefore it must required
for management to define such vision and objectives to their employees which provide the
proper guidance and direction to achieve them within limited period of time. Cultural difference
are also one of the main issue which causes conflicts among the employees. Thus, it is important
for an organisation to maintain culture which helps in removing communication gap and
encourage them to bring new ideas and methods to perform allotted task in an effective and
efficient manner. Leadership and team work also contributes more in the enhancing the
performance of employees as well as company (Caniëls and van den Bosch, 2011).
The leaders who has sufficient skills and capabilities to implement new ways through
which they can get work done from others in more profitable manner. Therefore it is important
for the management of Rowlinson Knitwear to consider all such factors on the basis of which
they should require to make an effective decision regarding innovation and commercialisation.
This will help company to manufacture quality and stylish product that will help in maximising
the level of satisfaction of customers. Through this, the company can bale to give tough
competition to big companies such as Marks and Spencer, H&M etc. Following points are
required to consider by the management while implementing innovation in business structure of
an organisation:
Vision: It refers to the objectives and goals which the organisation has decided to achieve
in future. Rowlinson Knitwear has mission to increase the sales figure of their product and earn
huge revenue so as to compete with their competitors and attain large market share as soon as
possible. To achieve this, the management need to define vision of company and formulate new
plans in order to bring new ideas and innovation in their product in the form of design, colours,
pattern etc. which grabs more attention of customers towards their product which help company
can easily achieve its vision without facing difficulties (Cooper, Seiford and Zhu, 2011).
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Culture: As there are different employees in an organisation which comes from different
backgrounds and culture. Due to this, the employees sometimes hesitate to communicate with
others which creates problems and may arise conflicts. Therefore the management need to focus
on improving such cultural differences through conducting different programs which help in
bringing all employees together and get interact with each other. Sometimes the employees failed
to understand the norms, values, morals, rules and regulations which need to be undertaken by
management and adopting corrective programs to educate them about the the culture and
environment of an organisation.
Leadership: It also contribute maximum in the innovations. A leader who has skills and
capabilities to motivate employees to think new and innovative ways to perform allotted task in
an effective and efficient manner. Rowlinson Knitwear need to give freedom to their employees
and don't pressurize them so that they can freely perform their allotted task through fining
optimum solution which ensured in getting profitable result ton company (Crossan and Apaydin,
2010).
Team work: Woking in a team helps members to know each other strengths and
weaknesses so that they can support each other in completion of given task within limited time
period. Skilled and knowledgeable employees work together will help in creating new and
innovative ideas regarding enhancing the features, quality of product with a focus of attracting
large number of customers.
TASK 2
P3: 4P's of innovation and use of innovation funnel to develop innovative ideas
4P's includes the product, process, position and paradigm. All such aspects help company
in enhancing the quality of their product. This allows employees to work with more efforts and
passion in order to achieve desired goals and objectives. Such 4P's of innovation are defined as
below:
Process innovation: It includes the changes in the process of manufacturing, marketing
etc. of products which helps in increases huge sales and generate more revenue to the company.
Rowlinson Knitwear should required to develop their technological, marketing process so as to
influences the interest and behaviour of customers towards buying their products by ensuring
them to maximise their level of satisfaction. The management is required to focus on improving
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their production process by implementing an effective equipments and other techniques so as to
reduce cost of production and improve efficiency level as well (Edquist, 2010).
Product innovation: It involves the changes in the quality and deigning of the products
with a motive of attracting large number of customers. Offering wide variety of design and
pattern of products by Rowlinson Knitwear which help customers to looks more professional and
feel comfortable. This will help in attracting large number of buyers which directly increases
sales figure of product and improves revenue of company.
Position innovation: It refers to making changes in the perception of products and how it
can be perceived and used. For this, the management may decide to change the logo, symbol and
quality of products that will help in grabbing more attention of buyers and thus chances of
moving customers towards buying company's products will be more (Gray, 2011).
Paradigm innovation: It refers to the changes in the business structure so as to maintain
healthy environment which brings motivation and confidence among employees thus the
company can easily achieve its desired goals and objectives. As Rowlinson Knitwear is small-
sized company which attains limited number of customers thus it is important to give shape to
their overall organisational structure and implement new and innovative methods and techniques
with a motive of execution of project activities more smoothly.
Innovation funnel: It refers to the process of developing existing product through
converting new and innovative ideas into actions so as to meet market needs in more economical
way. It consist of three steps which are described as below:
Wide of mouth: The products and services of company can be development through
obtaining new ideas from different sources. The more ideas company have more changes the
company can implement in their product. Therefore the management need to conduct research
and collect new ideas from different sources as competitors, existing members etc. which help
them in acknowledging the needs and requirements of market and on the basis of which, the
company need to decide to implement changes in their product in an effective and economical
form.
Selection of idea: In this step, the management have various new ideas among of which
the best idea which ensures in achieving success will required to be taken. Before reaching to
any decision, the management need to first test the effectiveness of changes required to
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implement in their existing products and accordingly select profitable ideas which will enhance
the revenue of company (Guan and Chen, 2010).
Implementation of ideas: At this stage, the company decide to implement selected ideas
or concepts into actions with a hope of getting profitable outcome in near future. An effective
plan and strategies should be made to adopt changes in more effective way so that large number
of customers are easily attracted towards the product of company.
P4: Developments in frugal innovation
Frugal innovation: It is the process of reducing the features of products which
diminishes the sales of product. Sometimes due to colour, design or pattern of clothe, the
customers are not satisfied and may not show their willingness to purchase their product. This
will reduce profitability of company. Therefore Rowlinson Knitwear need to use frugal
innovation so as to eliminate cost which are incurred in implementing unwanted design and
pattern in the clothing products. This will help in reducing cost of production and are able to
provide quality product at an affordable price (Huang and et. al., 2012). For example, removing
design which is not suitable for corporate people help them in attracting professionals to buy
their products. Some of the benefits the company will get after adopting frugal innovation are as
follows:
Minimise production cost: The management of Rowlinson Knitwear need to first
identify the non-essential features which restrict customers to buy their products and accordingly
make an effective plans and strategies to eliminate such features as quickly as possible. This will
help in reducing the cost of production and can able to charge lower prices than earlier for their
products.
Development of new feature: Eliminating unwanted feature on products are not enough
to attract customers. The management also required to focus on adding some new feature related
with design, quality, pattern according to the needs and preferences of customers so that they can
able to capture large market share and earn huge revenue. Changes in production process will
help company in adding some extra value to products which maximises the level of customers.
Using of new technologies: This include the adoption of new technologies in the
manufacturing process through which the company can able to provide quality products to their
customers. It brings interest and working behaviour of employees as well which motivate them
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to create new ideas of reducing cost incurred in production process. Thus, changing in the
existing technologies will bring beneficial and profitable result to company.
TASK 3
P5: Importance of commercial funnel and application of NPD for commercialisation and
innovation
Commercial funnel: It refers to the process about manipulation of the mind of customers
while purchasing particular products and services. Thus, the company need to understand their
perception and buying behaviour so that they can make changes in the features of existing
products accordingly. For this, the company need to add extra value to the products which makes
their product different from other and achieve competitive advantage.
Significance of commercial funnel:
Improve quality: It helps in encouraging company to focus on improving quality through
undertaking an effective techniques and tools which ensures reduction of wastage (Ke, Fang and
et. al., 2015).
Reducing losses: Implementing changes in the technologies used in production process
reduces the chances of errors and mistakes which help in saving cost of company. Through
which, the company can able to provide quality products at an affordable prices.
Improves goodwill: Offering clothing products for school and corporate purposes helps
in grabbing attention of professional, employed persons etc. which may show their interest to
purchase their new product so that it help company in attaining strong image in market.
New Product development:
It helps company in introducing new product into market after identifying the needs and
requirements so that they can able to attract more and more customers which indirectly generate
their revenues. But introducing new product into market is not that easy for company as they
need to follow following steps in order to make new product more successful in market:
Generate idea: In this step, the company need to first bring new ideas for the
development of their clothing product after analysing the benefits received by company in future.
cost and time incurred in implementing ideas into actions (Lin, 2010).
Idea screening: In the nest step, the management of company need to decide which idea
may bring profitable result to company.
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Define concept: In this step, the management need to define idea or concept in front of
their employees and gets optimum solutions regarding implementation.
Marketing strategy: In this step, the management need to inform to their targeted
customers about the changes implemented in existing product.
Business analysis: In this stage, the managers need to acknowledge and analyse the
effectiveness of introducing new product into market.
Product development: In this step, the management need to decide the effective
techniques and methods which may help in reducing cost of production. This will ensure in
producing quality products at low cost (Joshi and et. al., 2010).
Test marketing: In this step, the management need to decide which marketing strategies
need to be adopted which helps in grabbing attention of large number of buyers.
Commercialisation: It is the final step in which the management of company review all
above steps and take further actions to bring new product into new market with a hope of
achieving success in future (Bradley, Hayter and Link, 2013).
P6: Innovation business case
Rowlinson Knitwear, a small company which finds more difficulties and challenges in
operation their business activities. Thus, they need to implement different strategies regarding
implementation of innovation. Such strategies includes:
Executive summary: Rowlinson Knitwear company produces clothing product only for
school and corporate people thus while implementing marketing strategies they should focus on
targeting them only. The main marketing strategy the company should required to adopt in
relation wit product differentiation. For example: Creating unique design with best colour
combination that help people to look more professional (McCoy and et. al., 2010).
Need: Brings new developed products into market after analysing the needs and demands
of targeted customers which help company in increasing sales figure of company and generate
huge revenue as well.
Solution: It is important for management to make an effective market research with the
help of which thy can able to make effective plans and strategies regarding pricing policies etc.
On the basis of information collected from research, the management of Rowlinson Knitwear
are in position to make corrective plans and find out optimum solutions in order to cope up with
current market trends.
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Research on customers: The management need to reach to their targeted customers and
collect feedback from them regarding the quality, price of products. This will help management
in directing production and other departments to perform according to the needs and demands of
targeted customers in order to achieve their loyalty.
Design and develop plan: After that, the managers should focus on designing the plan
regarding improving the features of product so as to achieve huge customer strengths and
increase revenues.
Investment requirements: The managers need to focus on arranging funds which are
required to invest in the production and marketing process. Attracting investors, shareholders
through showing their financial statement will help company in getting required funds. There are
different sources form where Rowlinson Knitwear can avail funds such as financial institutions
such as banks, venture capital, borrower's funds etc. This will help them in having good financial
position which allows them to execute business activities without any interruptions.
TASK 4
P7: Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property rights
It is the duty of the management to protect and retain the knowledge and innovation made
by them. Through this, they can secure their innovation from their rivals. It is essentially required
for management to protect their innovation so that it should not be misused by their competitors.
If the crucial information are leaked then it will brings disadvantages for the company. This will
also affects the actual performance of company and demotivate employees as if the confidential
information are not secured by company from their rivals. Thus, there are different tools which
must required to be used by Rowlinson Knitwear which are as follows:
Patent: This help company in protecting information about innovation which must not be
used by any other person or companies. In order to attain patent, the company need to give
application to government regarding holding rights of using such innovation (Micheli and et. al.,
2012). For example, Developing unique and innovative design on their clothing products are
required to be protected from their rivals through using such tool.
Trademark: This is related with making registration of company's symbol, work or tag
line. Such symbol should not be used by other company otherwise such company may faces legal
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consequences. For example, Any other company especially small retailers should have not right
to use symbol, logo of Rowlinson Knitwear in order to increase their sales.
Copyright: It is the right of using company's name in order to sell their own company's
products in market. For this, the company should first give right to other company after getting
some kind of payment from them. If any company or person found on using other company's
name without getting their permissions then victim company have full rights to file a case against
them (Plewa and et. al., 2012). For example, introducing new designs by Rowlinson Knitwear
should not allow others to use unless permission has been given to them.
CONCLUSION
It has been concluded from the above project report that innovation contributes more in
the achieving growth and success of an organisation. The management is required to implement
new and innovative ideas, techniques, methods etc. in the production process so as to reduce
operation cost. 4P's of innovation has their own effectiveness in the development of innovative
product and process in company.
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REFERENCES
Books and Journals
Online
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New Product Development Stages. 2017.[ONLINE]. Available through:
<http://productlifecyclestages.com/new-product-development-stages/>.
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