Innovation and Commercialisation Report for Business Development

This report comprehensively examines the concepts of innovation and commercialization within a business context, focusing on the fictional company LD Express. The report begins by defining innovation and differentiating it from invention, highlighting its importance for business growth and competitiveness. It then delves into how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. The 4Ps of innovation (Product, Process, Position, Paradigm) are explored, along with the application of the innovation funnel. The report also analyzes frugal innovation, emphasizing cost reduction and resource optimization. Furthermore, it examines the importance of the commercial funnel and new product development. The development of an innovative business case is discussed, followed by an evaluation of tools for protecting intellectual property. The report provides a detailed overview of the topics, including real-world examples and practical applications, making it a valuable resource for students of business development.

Innovation And
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Importance of innovation and difference between innovation and invention........................3
P2 Organisational vision, culture and teamwork shaping innovation and commercialisation. . .5
TASK 2............................................................................................................................................6
P3 4P's of innovation and use of innovation funnel in examining ideas.....................................6
P4 Development in frugal innovation in context of business.....................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and application of new product development..................8
P6 Developing Innovative Business Case of an organisation.....................................................9
TASK 4..........................................................................................................................................10
P7 Evaluating different tools that are used to develop, retain and protect intellectual property
...................................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisation requires an effective tool, known as innovation, which will help it to cope
up every single challenge that occurs in its progress stage. There are numerous benefits
associated with it such as modifications, up-gradation and manipulation in existing product. This
not only enhances quality of product but also increases its value in the market place. Innovation
brings reliability and uniqueness in offerings of a company thus giving it competitive advantage.
To make business more worthy it is important to create policies, ideas, plans, strategies and
procedures with more innovative concept (Al-Ansari, Pervan and Xu, 2013). Outcome of
innovation is to increase customer’s preferences and target market. Some enterprises use
innovation in their business context to make long-rum marketing strategies by modifying their
product and service. Basically, innovation is all about creating new concept and idea which is to
be launched in future. One of world’s largest company dealing in medical technology is LD
express is a small drug store in London which deals in range of medicines. In this project,
concepts related to innovation and its importance will be discussed. Further, difference between
innovation and invention and how commercialisation is moulded using vision, culture and
teamwork will also be analysed. Later, 4P's of innovation and development of frugal innovation
in context of respective organisation will be examined. At last, commercialise process and
various tools that company can use to retain and protect intellectual property will be evaluated.

TASK 1
P1 Importance of innovation and difference between innovation and invention
For business there exists a process where an idea is converted into goods and services
with increase in quality and price. This process is known as innovation. It is used by all the
organisations that exist anywhere in the world to make their products and services more distinct
and specific in nature. Thus fulfilling client’s expectation and need. Innovation is a combination
of imagination, ideas and information which adds more value to product. Still there are few
companies that void using innovation in their manufacturing as it increases risk of losing market.
Company who want to expand and grow need innovation in their existing products and services
to increase customer base (Baden-Fuller and Haefliger, 2013). Risk with innovation is that it
creates new market for the product which makes companies to resist for it. LD express has been
existing in marketplace for past many years thus helping people with their medical services such
as neurosurgery, radio-surgery, orthopaedic surgery, etc. thus enabling company to implement
innovation in their business for future success and growth.
Importance of innovation in LD express
Business is created into more valuable asset by implementing innovation in process and
management of business. With the help of innovation company can develop more advance
culture and system which will help in achieving success (Cheng Yang and Sheu, 2014). Below
mentioned are few importance if innovation with respect to business:
 Innovation can cause certain insecurities while adapting technology thus making
company more probe to resistance.
 Very spontaneous events can affect business.
 Bringing technology in workplace.
 Having customer satisfaction by fulfilling their specific expectations.
Invention is used to re-manufacture a product with the help of new ideas and concept. For
example, in radio-surgery usage of altered induced motor. To have invention years of experience
and practice is essential which will help in gaining competitive advantage in the market place.
Basis Innovation Invention
Meaning On existing product or service of a
company implementing new concept.
First time occurrence if an idea or
concept in brains of people.

Result Total new product thus creating new
market.
Existing product is modified thus
increasing its value.
Skills needed Scientific skills. Technical along with marketing
skills.
Scope In R&D department only of the
company.
Spread all across the company.
Application New requirements are fulfilled with new
skills.
To met needs unique methods and
techniques are used.
Example Laboratory assay protocol. Inventing laboratory assay protocol.
P2 Organisational vision, culture and teamwork shaping innovation and commercialisation
Companies have their own unique vision and mission plan through which policies and
procedures are created. Using innovation in business process more realistic mission plans are
created. Various functions of LD express use innovation as an effective tool such as marketing,
personnel, sales, etc. It is known that commercialisation is achieved using innovation that further
helps in delivering new product and service for various activities such as distribution, sales,
marketing and customer service (Gundry, Ofstein and Kickul, 2014). To overcome obstacles in
business process it is important to plan proper before supplying in market. Innovation in
companies benefits in numerous ways. Some of the factors are mentioned below that plays an
important role in innovation and commercialisation:
 Vision: Long-term action plan created by companies is known as vision. It helps in
expansion and guiding business in right direction. LD express has its vision statement
saying,” Increase access to and consistency of treatment for patient’s everywhere.”
which helps company to grow in its respective field.
 Leadership: Leadership means leading others. Here, act of influencing individual or
group of individuals for a definitive purpose. Leadership skills are necessary in order to
target company for its objectives. All top level is responsible for directing employees of
company by motivating, influencing and leading them. It is very important for an
organisation to have effective leadership qualities in their management team as they help
in overcoming various issues and barriers. LD express has employees that are expert in

their areas of technology and medical sciences. Thus bringing customer satisfaction with
their services which enhances productivity.
 Culture: Organisation culture is generally its surroundings combined with employees,
staff, management, etc. It is framed with the combination of both employee and
employer. To have calm and healthy work culture it is important to motivate employees
so that they give best results. LD express maintains its organisation's culture by creating
strong relation with its staff members and employees as well. As customer satisfaction is
employee satisfaction which is obtained using good organisational culture.
 Teamwork: Teamwork means bringing every hand on one purpose. Each company
require team effort to have efficiency. Coordination and corporation brings harmony to
business environment and accomplishment of task in desired time. LD express has a
team of efficient employees to achieve their goals and targets in expected time by
working hand in hand.
All the above mentioned factors are very crucial for development of a business. Proper
implementation and evaluation is required while implementing innovation in business unit.
TASK 2
P3 4P's of innovation and use of innovation funnel in examining ideas
Innovation plays an important role in today’s modern world as these days’ different
people have different working styles which comes in them with a good innovative ideas and this
lead to the modern workings in today’s working done with the help of different sources
(Johnson, 2016). It is very important to have right implementation of innovation thus giving
competitive advantage to business. Proper research and studies are required to have innovative
strategies in organisation. Following are 4P’s of innovation that are used by companies to
manufacture their product:
 Product: Being resultant of every business unit it is very important that it must possess
innovation. To create innovative products companies must conduct analysis of market
data. For doing so, multiple techniques are there which are used by top management. LD
express provide innovative equipment’s for medical services to various patients such as
equipments for radio-surgery, orthopaedic surgery, etc.

 Process: To make products valuable in market process is essential. Some of the process
associated with business is selling, accounting, distributing, etc. Innovation can be
applied to those processes as well to have wide customer base.
 Position: Product and its associated process require promotion in market to attract right
customer. Competitors existing in medical services make LD express more aware about
their business process. Company learns from them and position themselves accordingly
by implementing effective policies and plans (Laužikas and Dailydaitė, 2015). Here,
enterprise uses print media as well as digital media to position itself in the market area.
 Paradigm: To make business more profitable and efficient it is important to set right
paradigm for positioning. This help in creating positive perception in the minds of
customer by delivering good products.
Innovation funnel: Innovation funnel is created by combining activities that are used for
product development. Innovation is used to fulfil needs of people and their demands which they
expect from a company. While creating innovative products ideas are transformed that occur
initially while having product development (Mooi and Frambach, 2012). Innovation funnel is
used by companies to have advantage that will help in growth and success. Generally, with the
help of experts, innovation funnel is used creating useful products and services.
P4 Development in frugal innovation in context of business
Production process involves cost of goods and complexity associated with it thus frugal
innovation is used to minimise it. It consists of activities that remove unnecessary features from
existing goods. To create more effective and useful products companies uses frugal innovation as
this technique is more convenient and environmental friendly in nature. It also helps in having
optimum utilisation of resources which benefits enterprise in many ways. It is known that
products that are created with the help of frugal innovation are more reliable, cheaper and easy to
use. They are produced by minimum wastage.
Sometimes, this technique is used to create distinct product which makes it quite risky to
implement. As it produces whole new market using single product. LD express has been using
innovative technologies in their medical services to benefit society. Following are principles of
frugal innovation that are used by LD express:

 Collaborate with partners: Partners in company are very important as they help in
formulating strategies in their business models. Generally, partners from external
environment are used here.
 Analyse consumer behaviour: Consumer behaviour is used to determine pattern used by
customers while acquiring or accepting any product (Ngo and O'cass, 2013). As primary
concern is to fulfil needs of people, therefore analysis of consumer behaviour is essential
which will further help in identifying sales and marketing statistics.
 Sustainable resolution: While practicing innovation, sustainability is a major issue which
is of primary concern for any company. Organisation must have policies that will help
them to survive in external as well as internal market.
Frugal innovation requires new tools and techniques that further help enterprise to
minimize their manufacturing cost thus increasing productivity and efficiency. Certain standards
are to be maintained before modifying product as per customer’s needs. LD express has advance
development team that work hard day and night to deliver best technology for people. Their
R&D department is very creative and innovative. Some of the best examples of frugal innovation
are Multix Select X-Ray machine, which is prepared by considering various standards in the
field of innovation plus technology which is very useful for small sized hospitals.
TASK 3
P5 Importance of commercial funnel and application of new product development
Commercial funnel is used by various organisations where appropriate source is
determined to deliver products and services. Generally, marketing department uses this technique
to increase their sales by providing their products in destination. Manger associated with
responsibility identifies appropriate source and destination for their distribution (Olavarrieta and
Villena, 2014). Hence commercial funnel enhances sales and revenue of a business. Basically,
there are four stages available with commercial funnel. These stages are attracting to market and
advertise; convert to keep information of customer; close to receive payment from customer and
delight to have quality service. LD express implements commercial funnel for new product
development to attract customers. Below mentioned re stages of new product development:

 Idea generation: Being first stage of process it requires systematic research and study
from sources such as distributors, customers, suppliers, consumers, etc. For idea
generation intrinsic elements are used as they re familiar with company’s offerings.
 Idea screening: Being second stage it consists of selecting relevant thought and pin it
down for future consideration. For doing so market research is conducted and a
checklist is created where every purpose is carefully noted down.
 Concept development and testing: Being third stage it has detailed version of concept in
terms of meaningful statements. First ideas are developed and then testing is made by
applying it on consumers.
 Marketing strategy development: Basically there are three tasks to accomplish; target
market, product positioning and marketing strategy statement (Ritala, Hurmelinna-
Laukkanen and Nätt, 2012).
 Product development: Very important stage as it consists of R&D department which
plays crucial role in developing prototypes as per requirements of customers.
 Test marketing: In this stage product is developed and its associated marketing program
are carried out in more realistic and practical environment (Smith, 2013). Generally,
cost for test marketing can be huge thus making management team to skip this stage and
move to next one.
 Commercialisation: Being final phase of process it introduces new products with the
help of advertisement and promotion. Generally, marketing manager is responsible for
examining appropriate location, timing and distribution network for launch.
Thus above steps shows process of commercialisation and with its help stages of new
product development can be easily understood.
P6 Developing Innovative Business Case of an organisation
Business case is a written document constructed by companies that are about to initiate
their process thus very complex and hard to create. Steps followed in creating business cases are
sometimes unstructured, unclear and ambiguous thus making commercialised process to stop. It
is very important to have innovative business case that will help in removing problems that are
associated with it. This case is prepared in order to ensure proper work done by associated
employees. It includes company's mission, vision, procedures, time limit, etc. to provide a better
understanding of activities and timely completion. Following is the business case of LD express:

Company's objectives: This is the first step in which company identifies their
objectives and then plan their activities so that company can achieve their set targets. LD express
sets their objectives and try to implement innovative ideas at the time of objective formulation. It
also support in aligning the changes as per the requirements and targets of the company.
Market research and survey: LD express is medical store that are attractive in nature.
It is necessary to run market and customers research in order to know about demands, needs,
likes, preferences of people and make those types of medical available in the store. This will help
in increasing the profits and attract customers towards their store. Research also help company to
analyse the competition and prepare themselves from competition.
Funding: Financial support is necessary for company as funds help in practical
implementation of ideas. There are several source of funds that can be used by Collaborative
store: Banks: From banks, company can take necessary loans and funds that help company to
implement various activities and also help them to expand their business.
 Investors: They can also take financial help from investors who are interested to invest in
the company.
Target: Managers should set short term as well as long term targets, this will lead to
completion of company's tasks in more effective manner.
A perfect business case consists of following elements:
Executive Summary – LD express is a medical shop that is delivering different quality
drugs to the market. it can grow to other scales by adding more variety to its products and raising
the services.
Objective – The goal of this unit is to deliver medical services to the customers and to
generate higher profit margins.
Solution – The referred unit wish to increase its supply chain so that it can increase its
present scale of sales.
Identification of potential clients – this is an important process that assist in delivering
quality services to customers.

Development and designing of plans – This is the stage at which prior arrangements are
done like planning how the present system of doing work will be innovated so that it can
influence the customers to use the services of the given company.
Necessity of capital – To bring change in the working conditions and to innovate the
supply chain there is a requirement of funds which can be fulfilled using different sources of
finance.
Expectable benefit- It is important for organisation is to make innovative products which
has reasonable price and this can be affordable by buyers.
TASK 4
P7 Evaluating different tools that are used to develop, retain and protect intellectual property
Innovation means bringing in creativity and imagination in existing business plans, ideas,
strategies, etc. which automatically increasing theft of stealing. In order to prevent such activities
government has initiated few rights know as intellectual property. Client’s expectations are
primary concern for every organisation hence implementing innovation in their existing products
and services to bring growth and success. Whenever a unique product is launched with some
distinct feature there is always of fear of competitors stealing that very same concept (Visnjic,
Wiengarten and Neely, 2016). In order to avoid such actions various tool are created that help a
company to protect, develop and retain their intellectual property. Few tools are mentioned
below:
 Patent: Major significance of having patent products is to have rights of selling or using
them. Business is considered as successful when it brings competitive advantage in return
with the help of innovation. Products and services can be made patent with the help of
government’s intervention. Generally, plant, design or utility can be made patent which
grant rights of taking legal actions against those who uses patent property.
 Trademark: To protect innovative strategies another tool that can be used is a trademark,
which can be a symbol, phrase, word or design. It is very crucial to prevent products or
services from being stolen hence unique symbols or mark are used for their prevention.
Basically, database of federal and state government delivers right for trademark which
means thorough research is required before filling for it (Wei and et. al.., 2014). As no
two products can have same trademark.

 Copyright: Copyright grant an individual with full access for its work and can modify or
display it with his own choice. Generally, artistic, architectural and technical work is
prevented with the help of this tool. Once a product is marked as copyright, it cannot be
manufactured by any other party or strict actions will be taken against him.
These were few mentioned methods that are used by companies to protect innovative
products and services. Business investors require some protections that help to maintain their
trust for brand they are associated with. Full analysis of competitors is essential in order to have
knowledge about their initiatives that will help to protect business process. These physical
protection tools therefore are essential in every business. Being innovative in their medical
services, LD express has introduced various surgical instruments and equipments.
CONCLUSION
As per above mentioned report, innovation is important for every organisation to sustain
in market place. It not only provides long-run sustainability but also help in creating entirely new
product that can bring competitive edge to the business. Business process and its development
are created with the help of invention as well as innovation. As a result, needs and requirements
of customer are fulfilled with more specific goods. LD express has been providing medical
services since past decades and has established itself way ahead in the field of innovation and
invention. It has acquired its target market on global platform thus bringing more creative and
innovative instruments in the field of medical sciences. According to this report, importance of
innovation in business environment has been successfully justified. Later, it is continued with
4P’s of innovation and frugal innovation that will help organisation in operation. These segments
of study have successfully mentioned innovation and its application in new product development
used by organisations for their growth and success.