Innovation and Commercialisation Report: Strategies for ICELAND LTD.

This report provides a comprehensive analysis of innovation and commercialisation, focusing on their significance for business growth, particularly within the context of ICELAND LTD. It explores the distinction between innovation and invention, highlighting the importance of innovation for creating a competitive advantage, responding to customer expectations, and implementing effective business methods. The report delves into the factors that shape commercialisation and innovation, including vision, leadership, teamwork, and culture. It also explains the 4Ps of innovation (process, product, paradigm, and position) and the innovation funnel, providing insights into new product development. Additionally, the report discusses frugal innovation, its role in cost reduction, and the application of these concepts to ICELAND LTD. The report covers the commercial funnel and the process of new product development, and addresses innovation business cases and funding access. Finally, it examines tools and techniques for protecting and retaining knowledge and intellectual property. The report references Apple and Virgin group as examples.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Innovation and its significance in comparison with inventions ............................................3
P2 Shape of commercialisation and innovation through different factors..................................4
TASK 2 ...........................................................................................................................................5
P3 Explain the 4Ps of innovation and innovation funnel............................................................5
P4 What is frugal innovation ......................................................................................................7
TASK 3............................................................................................................................................7
P5 Commercial funnel and the process of new product development (NPD).............................7
P6 Innovation Business Case and the ways to access funding...................................................9
TASK 4..........................................................................................................................................10
P7 Tools and techniques use to protect and retain knowledge and intellectual property .........10
CONCLUSION..............................................................................................................................10
REFERENCES ..............................................................................................................................12

INTRODUCTION
In simple words, innovation can be describe as new idea or thought. It is often viewed as
the tool of better solutions which meet new requirements. In context of business organisations,
innovation relates with those ideas which are applied by the managers in order to fulfil the needs
and demands of customers. It is also helpful for generating new products and services. Apple
and Virgin group, such type of large business organisations are generally using innovations in
order to improve their appliances. ICELAND LTD. is the chosen organisation in this present
report; it is a small retail organisation of UK that sells grocery, food and home products. Apart
from this, the report involves the value of innovation for company's growth and success
(Anokhin, Wincent and Frishammar, 2011). It is helpful for managers so as they can adopt new
and adequate techniques of production for providing better quality services to customers. Along
with this, the four P's of innovation – press, product, people and process is also explained in this
report.
TASK 1
P1 Innovation and its significance in comparison with inventions
Innovation is considers with the process or an activity of making or doing something new
in an effective manner. Along with this, business innovation is relates with the concept of
improvement. It can be also associated with flourishing new products, improving existing
technologies, designs, processes and marketing in order to resolve problems and issues.
Innovative products and appliances also reach new customers in target market. In ICELAND
LTD. ,innovation is helpful in implementing and creating dynamic goods. It can be catalyst for
the growth and success of the cited firm and helps managers to grow in the market place.
Apart from this, invention relates with invent something different that is totally new to
market as well as customers. In addition, it means to introduce the customers from a unfamiliar
technology. Below given the differentiate between innovation and invention: -
INNOVATION INVENTION
It comprises with bringing new idea to the
market.
It is all about making new things or items and
finding new ways of creating products.

Innovation needs various skills, such as-
technical, strategic marketing etc.
It is only required scientific skills.
It spreads out of business organisation. It is limited only with research and
development department.
It is related with the improvement of various
products.
This can be considered with only a single
product or item.
Importance of innovation for a business organisation :-
 Create a competitive advantage
Innovation supports to a business enterprises in order to create a competitive advantage. In
modern world, it is essential for managers to improve their current methods and techniques of
productions (Aryal and et. al., 2016). In ICELAND LTD. , it is helpful to demonstrate a true
commercial advantage. Many customers often see that innovation is assists to add value for a
company or its product.
 Responding to increasing customers expectations and choice
The core concept of innovation is capable to fulfil customers needs and wants. It focuses on
retaining and attaining buyers towards business organisation. Along with this, customers can also
attract towards new products and for that they are ready to pay higher costs. Thus innovation
helps to increase firm's sales and profits as well.
 Implement the best method for organisations
Innovation supports to managers as they can easily adapt to changing and dynamic working
environment. It is also helpful for them to implement the best and appropriate methods of
production (Bagchi-Sen, 2010).
P2 Shape of commercialisation and innovation through different factors
Innovation and commercialisation, both are key factor of success for every business
enterprise. As per above definition, innovation relates with improvising existing products
whereas commercialisation is used in marketing of products. There are some changes that take
place in operation of ICELAND LTD. . Along, with this, it is necessary for cited company to use
innovation in order to improve product's quality. This will helpful more to achieve goals and

objectives of business organisation. There are given below some factors which contributes in
innovation and commercialisation: - Vision – It is essential for the owners of cited company to have clear vision, mission,
goals, objectives and aims. All these elements are capable to provide assistance to team
members as they can produce quality products and services. Using of new innovation and
techniques are developed so as the vision of the company can be achieved in an effective
and better way (Breznitz and Etzkowitz, 2016). Leadership is directing, controlling, encouraging, motivating and guiding people in an
business organisation for achieving its aims and targets. Innovation and
commercialisation require a determine leader who can influence employees to use
innovation and trendy tools of productions. Leader should effective for his/her team so as
team goals can be easily accomplished. Apple and Virgin group are famous for their best
facilities to their staff members; either in terms of environment as well as guidance. As
same ICELAND LTD. also has to appointed best experts who can guide people as they
can develop products as the per the standards of the company. Teamwork concerns with working together for a specific goal and objective. Innovation
and commercialisation is based upon teamwork. Apple and Virgin are the best team
groups that is why both are the leading companies in global market. A business
organisation is famous by its operations and activities; it is the outcome of their efforts. A
team can gives innovative and new ideas because there different people have divergent
views. In addition, with the help of effective communication they can share team
members can share their thoughts with each other (Chun and et. al., 2015). It is helpful in
order to make a product more effective and adequate.
 Culture is the factor that put a huge impact on innovation and commercialisation. It
relates with attitude, religion, norms, values and beliefs of a employees in a company by
which it operates. The cited company is the data source company so as it is obligated for
it to develop new strategic and technologies in their practices and operations. If the
culture of the company is not able to compete with diversities so that it might be effected
firm's goodwill and reputation in competitive market.

TASK 2
P3 Explain the 4Ps of innovation and innovation funnel
Innovation's 4Ps are justified as follows:
 Process
This justifies that there is a process when a company innovate its product and that process is
chosen after ascertainment of various other process. This is done through using innovation funnel
which helps in taking best decision regarding up gradation of an existing product of a company
(Davila, Epstein and Shelton, 2012). There are many ways of modifying which are available and
gathered through innovation funnel and best is extracted amongst them.
 Product
A company already is operating in various products and innovation related to modification of
those products which are done by company. Like- Apple produces series of I phone which are
modified in each upcoming series and this idea of modification comes from funnel.
 Paradigm
innovation implies change in way of company's work as it is a new idea which is being
implemented in a company that is to defined and communicated to employees so that they can
work accordingly. Hence, paradigm is a way to shape new product or idea into reality which is
changed when innovation is added to it.
 Position
This position related to choice of best way so as to reach customers in market. By funnel various
ideas for doing so are identified and among those ideas best available is chosen so as to reach
customers in a effective and efficient manner. Like- apple have established its stores in various
areas to directly seal with customers.
The above ideas which are used by APPLE can be used by ICELAND LTD. in its
operation which will lead it to endeavour success in its business.
Innovation funnel :- The prime aim of any project development process is to take an idea
and change into reality by covering to a specific product which is able to meet market needs and
requirements. Innovation funnel is the procedure and an activity that is used by managers in
order to make their product more effective and innovative. Along with this, it is also relates with
those ideas and thoughts which helps in product development process. Through the same,
employees can easily extend their innovative ideas and from among they can chose the best one

to attain competitive advantage (Godin, 2012). Apple and Virgin group are using various
processes and activities to make impressive products. There is a process that is to be adopted by
the ICELAND LTD. in order to compete with external environment.
P4 What is frugal innovation
Frugal innovation is a way of removing unusable things from a product which reduces
cost of production as well as price of product. It is done by a company to populate its product by
making suitable changes according to a market in which it is aiming to enter. Like in apple and
virgin operation are spread in various parts which states that it have its existence in several
market which are different in their nature (Guha and Yang, 2010). Countries varies so as their
demands also which states that they have to make product changes according to them. Hence,
sometimes company modifies product by removing unnecessary features in it which are not
required in a particular market which have been targeted.
Likewise, PERISCOPIC can adopt this policy so as to have cost defective operations in a
new market which is totally different for company. This will help in sustaining in market as well
as will lead to expansion of the SME. There are various feature which this company can adopt
from Apple and Virgin so that it can have a base to work for. Frugal innovation is developing
day by day as companies are adopting these techniques to utilise resources completely in order to
have effectiveness and efficiency in its operations (Hemmelskamp, Rennings and Leone, 2013).
It adds a lot to success in an organisations business as it works according to taste and preferences
of a market which it is aiming to target for establishing its business. For example – frugal
innovation helps in ICELAND Ltd. as to increases its sales and profits. If customers come in
stores and saw divergent varieties of products as he or she tend towards to purchase them. But
for that, managers need to manage all goods in the systematic manner so as to buyers can easily
attracts towards. If a person come in food section, where he or she see wide range of food
matériels and buy the same. Therefore frugal innovation helps in enhancing customers attraction
as well as profitability of the company in an adequate manner.
TASK 3
P5 Commercial funnel and the process of new product development (NPD)
The prime of funnel is to develop innovative and new products. Commercial funnel plays
an essential role which is helpful for companies with that they can sell their products or services

in market and maximise their profitability. It is an important for every company to do new
experiments or innovations with their products and services, with this they are capable to provide
something new and attractive things to people. Commercial funnel is a tool that is accessible
make suitable choices for sales, i.e. choosing the best method for distributing products in target
market. Below mentioned the importance of commercial funnel:-
 It is also responsible in order to increase sales and profits of business organisation; the
process is implemented by managers to earning profits by selling something new at the
marketplace.
 There are various methods are available in market to reach customers. Sales funnel helps
in find out the best ways through which managers can easily reach with their target
customers because it is very important for companies to cover its costs (Hoque, Chishty
and Halloway, 2011). It is also helpful in development and testing of a product. Apple and Virgin group are
developed their products by market research; it will helps them to check that are things
that are involved in product should be identical.
New product development process
The process of NPD covers all aspects that are essential in order to bringing a new
product in market. New product development process is described in a documentation form that
helps managers to know the pros and cons before launching a product in market. Along with this,
it gives a proper understanding of customers needs and wants, competitive environment and the
nature of the market; all these factors are required in order to make a product successful as well
as effective. There are given stages of new product development process are as follow:- Idea generation and screening – The process of NPD is started with idea generation. It
can come from SWOT analysis, market research, listening customers needs and wants
etc. after generating any idea, managers also have to ensure that it should be appropriate
for business organisation
Unsuitable and inappropriate ideas are rejected as soon as possible (Thore, 2012). Concept development and testing – it is the second step of NPD; in which managers are
clear their concepts and issues by experiment on a small group of people. The idea need
to be tested in order to see its reaction whether it be good or not for the success of the

company. The step helps to develop the concept of product development by giving
feedbacks and necessary resolutions. Business analysis – once the concept has been decide; managers need to analyse that this
particular product and service will be profitable for them. It involves product positioning,
marketing mix, highlighting the target market and a detailed market strategy. Product development – If the new product is approved; it will be go to the marketing and
technical development stage. In this, managers are finalised exact design and
specification of the product. It is helpful to make a value and quality added product. Test marketing – Market testing and consumer testing is a different concept. In that,
product is distributed among target customers; it can be done in order to kwno the
reaction or feedbacks of of people (van Hemert, Nijkamp and Masurel, 2013).
 Commercialisation and launch – if product become successful so as mangers find out
the ways with which they can launch their product in market. In that, pricing and
marketing plans needs to be decided before selling the product in market. After all
finalisation, a detailed launch plan is developed. This includes when and where to launch
the product for first time.
P6 Innovation Business Case and the ways to access funding
Business case is developed in order to make an effective planning for a business
organisation. It is supportive in growth and success of a launched product. Apple and Virgin
group are using various business cases in order to make their services more impressive and
attractive. Innovation business case for the company helps it to justify the risk of investing in
invention. It also ensure about the logical thinking of managers through which they can produce
innovative products and services for their customers and the case is also supportive in to
convince the management as to endorse their ideas and concepts in the meaningful manner.
Virgin group launches new products with innovative techniques so as it can easily increase its
market share and compete with competitors. Whereas apple also launches its new products and
services, every year with the help of time span policy. It adds up values in the series of existing
items.
To implement a new idea and innovation in market, a company has to do proper market
survey. Business case is also helpful to forecast about the product whether it can attain success or
not at marketplace (Jagoda and et. al., 2011). There are given following activities of business

case which are needed in innovation of a company :- idea generation, implementation of idea,
commercialisation of products and using innovative production process. Apart from this,
ICELAND LTD. also should conduct a market research in order to know needs and demands of
its customer, it also helpful in recognising the strategies of competitors. But for that, innovation
case also needs various resources which make product more innovative and unique than its
substitutes. Along with this, this is assistive in improvement in existing products or developing a
new ones. The process of product development take definite time period for performing various
activities and operations.

Ways of funding for new innovation :-
 Bank and other financial institutions are best option for a company. In that, organisation can
apply in a bank for loans and credits. By this way, there companies can easily make changes in
their business. But to take loans and credit, organisations have to give some assets to these credit
institutions as a security.
 Investors are also a good method with which, organisations can raises up their money. There are
many investors who are ready invest in companies but for that they want some shares of the
company. Apart from this, many government agencies are also provide funds and assistance to
business so as they can serve better services to public.
TASK 4
P7 Tools and techniques use to protect and retain knowledge and intellectual property
Innovation is a formula or technique through which protect company from the external market
effects. So as there are various methods with that managers can protect their data and information as well.
There are given some major elements of intellectual property, such are stated as under: -
 Patents – It applies on industrial inventions and processes. Patents helps in protecting the
unauthorised execution of the innovations. In order to make patent for a specific products as to
take grants of the government. The right of patent is given to the creator. Typically, patents are
granted only for 2 to 3 years only.
 Design rights – It may be subjected to the copyrights as well as design rights. Government used
same method also in order to give design rights to an individual.

 Trademark – it means to a logo, symbol etc. of the organisation. It cannot be theft or misused by
anyone. Trademarks are registered at national level by the approval of legal body. Trademarks are
adopted by the companies in order to make their brand more effective than other rivals.
 Copyright – It refers when company adopt all rights of a particular product. Copyright protects a
company from duplication of products (Walsh, 2012).
There are divergent tools and techniques are available in market which is utilised by
company in order to protect intellectual property rights. The key benefits of using these methods
are as follow:-
 No one can infringed the rights of company.
 External stakeholders cannot theft the ideas of company. .
 It is helpful to enhance the market and brand value of firm.
 Increases sales and maximise profits.
CONCLUSION
From the above mentioned report it has been concluded that, innovation is the important
aspect for every business organisation. It consist those ideas and thoughts which are
implemented by managers in order to generate a new product in market. The present repost is
based upon the overall study of innovation and how it is useful in commercialisation or
marketing. Along with this, it is helpful in creating a competitive advantage and evaluating the
best methods. Innovation and invention both are different sides of a coin. It also involves
different P's of innovation and innovation funnel is the technique that is used in new product
development process. At last, business case and different techniques of intellectual property
rights are described.

REFERENCES
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