Innovation and Commercialisation: A Business Perspective Report

This report delves into the crucial concepts of innovation and commercialisation, examining their significance for business growth and development. It explores various aspects, including the importance of vision, culture, teamwork, and leadership in fostering innovation. The report analyzes the innovation funnel, the 4Ps of innovation (Paradigm, Product, Process, Position), and the application of frugal innovation. Furthermore, it highlights the importance of the commercial funnel and the development of a strong business case. The report also discusses tools for developing and retaining intellectual property and knowledge, providing a comprehensive overview of strategies and techniques for successful innovation and commercialisation in a business context. The Sainsbury case study is used to illustrate these concepts.

Innovation and commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Innovation and its importance................................................................................................3
P2 Contribution of vision, culture team work and leadership towards innovation and
commercialisation.......................................................................................................................5
LO2..................................................................................................................................................6
P3: Innovation funnel and 4P's of innovation.............................................................................6
P4: Frugal innovation developments...........................................................................................7
LO3..................................................................................................................................................8
P5 Importance of commercial funnel..........................................................................................8
P6 Business case for organization...............................................................................................9
LO4................................................................................................................................................10
P7: Tools for developing and retaining intellectual property and knowledge..........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation can be termed as the action or activity in which a concept or idea help in
development of the new product and services for the successful growth and development of the
business. Commercialisation is a subset or the broader of innovation which helps in converting
the ideas concepts and innovative techniques into the business. Both the concepts are aimed at
generating the profits for the company and such activities are performed in order to fulfil the
demands of the society.
The study will provide the significance of innovation and invention in an organisation. It
will also help in understanding the importance of innovation and invention in the life of
entrepreneurs. The research will also help in determining various organisational factors which
help in achieving the effective commercialised business. It will also help in understanding about
Four p's of innovation in order to implement the ideas and strategies. This study will also focus
towards the development of NPD in commercialising the innovations. Furthermore, this study
will also help in developing an understanding about tools and equipment used in implementing
innovative ideas in business.
LO1
P1 Innovation and its importance
Innovation is termed as the process which help in developing new product which
maximises the growth and future opportunities for the organisation. Innovative techniques
mainly used to change the process or methods of performing the operational activities.
Innovation may also be applied in the business by changing the working strategies or adding
more features to products and commodities (Zandoval Bonazzi and Ari Zilber, 2014). On the
other hand, invention can be defined as the introduction and development of new goods and
services in the company for the first time and this also helps in growth and sustainability of the
firm.
Comparison between innovation and invention:
Invention is the development of product or service which is new to the entire market
and which is not processed by any other earlier while innovation is defined as the process
to bring improvement in existing products or services by new approaches.
Innovation Invention

 It adds value to the existing services or
product
 It introduces completely new concept.
 It requires technical marketing as well
as strategic skill and thus is not limited
to research team.
 The invention requires scientific skills
and thus comes under scope of research
and development team.
Sainsbury is the second largest supermarket chain in UK who experiences 16.9% share in
this sector. The headquarters of the Sainsbury are located in London with the overall revenue
generation of 2.6 crores in the year 2017. In a past analyses, which have found various key
measures on the basis of marketing trends and operations. This company follows various
strategies in order to sustain and compete with other companies in the world. Innovative
strategies help the business in many ways and it also helps the company to sustain for the longer
time. Such important factors are: Innovative helps the business in diversifying more: Application of innovative ideas help
the business for the successful development and growth. It also helps in bringing the team
efforts of the employees in order to adopt new working concept towards the effective
implementation of strategies.
 Invention of modern techniques: in order to adopt innovative idea in the business one
has to also understand the working procedure of the company. Innovative concepts bring
new strategies and thus employees have to understand different working strategies which
help in improving the skills and abilities of workforce (Ku, 2017). Tools and equipment’s
also help in maximising the efficient output of the employees. It also turns the
environment of Sainsbury positively and thus result in the motivated employees which
help in increased productivity.
For instance, Sainsbury super market company have recently initialised production of various
technology related devices that help company in growing rapidly. Invention and innovation of
the new product in the organisation have helped in generating huge profits and it also helps the
company in sustainability and future growth.

P2 Contribution of vision, culture team work and leadership towards innovation and
commercialisation
Application of creative concepts in the business may affect the business operations for
the longer run. These effects may be negative or positive but overall it influences the overall
objectives in an organisation. In order to adopt the innovative ideas in the business role of the
leadership can be termed as the important aspect which help in directing the employees towards
the achievement of overall objective. Roles and responsibilities of the leader helps workforce in
adopting innovative concepts and it also helps in retention of employees for the longer time. Vision: Innovative strategies may also alter the affects overall vision and mission of the
Sainsbury. With the application of new strategies and innovative product main vision of
the employees also need to be altered in order to achieve the successful business
operations. Working strategies of the employees also required to change accordingly. Culture: If Innovation is applied in the business in terms of developing a new product
then technology, tools and equipment’s are also required to changed. For this purpose,
managers of the Sainsbury company need to conduct proper trainings for making the
employees understand about technological changes. This helps in promoting the new
working culture in the business and it also motivates the employees. Working culture
may positively impacts on the working style of the workers. Team work: Effective Individual efforts of the employees result in overall team
performance and thus help in better performance of the employees which result in
effective productivity (Ahn, Minshall and Mortara, 2015). This helps to carry out
effective commercialised practices in the business. When the efforts of the individual
employees are combinedly applied in the commercialised practices in the business and it
results in effective team performance and thus help in implementing the new and
innovative ideas in the businesses effectively and efficiently. Team work helps in
improving the interpersonal relationship of employees with the environment of Sainsbury
organisation.
 Leadership: Leader are mainly responsible for the leading the path of team members.
This can be achieved by the motivational communicational speech of effective directions
of the leaders in order to produce the effective productivity of the team members. Leaders

style generally influence the actions of the employees and this motivational activities help
in developing a effective team.
Critically analysing the innovative ideas in terms of business and commercialisation of the
activities help in determining the overall performance of the Sainsbury. Innovation or adding the
extra feature to the existing product can be occurred by properly analysing the marketing
research on the basis of which customer needs are identified and fulfilled with the introduction of
new product in the market. Development of new product in the company might impact
negatively or positively in growth and sustainability of the commercialised business. The
positive influence of the Innovation can be measured by the overall profitability of the firm in
order to establish the strong relationship with customers (Akinwale, Adepoju and Olomu, 2017).
On the other hand, if the marketing research of the product is not carried properly then
innovative may leads to huge loses in the industry.
LO2
P3: Innovation funnel and 4P's of innovation
The 4 P's of innovation will help Sainsbury to analyse that how it can bring innovation in
its practices and how it will affect the performance of organisation. The analysis of these
elements is as follows:
Paradigm: This innovative approach aims at bringing innovation in the existing business model
of organisation. For instance, Sainsbury can provide purchase bills via messages or email instead
of using papers. It will save cost and will make process faster.
Product: This innovation element emphasis on improvements in services and products given by
organisation. These changes aim at introducing incremental changes in services so that
organisation can beat other organisations (Tsai, 2015). For example, to lead other supermarkets
Sainsbury can deliver home delivery services within fix time intervals like within 6 hours. It will
help organisation to make its services unique and effective from others.
Process: Sainsbury can also innovate the approaches in its working through which it provides
services. Like there are huge queues in stores for billing thus organisation can bring automatic
machines for generating bills. Similarly, conducting recruitment drive in various countries will
help organisation to gain popularity among people as well as to hire highly talented human
resources.

Position: Currently the organisation is considered as mere supermarket or profit based
organisation. To improve the performance and benefits Sainsbury can position itself in
innovative ways. Like if organisation will participate in charity events or sustainability programs
then people will consider organisation as the participant of social welfare and will support
company for its contribution towards environment.
Innovation funnel
For managing the process of new product development Sainsbury can use model of
innovation funnel. According to this model organisation first gather the new ideas and then
research and development team examine them if they can be processed and implemented or not.
The innovation funnel helps organisation to encourages the creativity and innovative ideas so
that new opportunities can be analysed (Zandoval Bonazzi and Ari Zilber, 2014). The innovation
funnel also helps Sainsbury to conceptualize the ideas so that before investing time and resources
to any proposal its profitability and success can be measured. Thus, it is useful for organisation
as it includes repetitive testing and feedbacks sequence so that before turning an idea into
opportunities Sainsbury can analyse the probable risks and associated success rate.
P4: Frugal innovation developments
Sainsbury can adopt the concept of frugal innovation. The concept is gaining wide
popularity and development in all business sectors. For instance, the organisation can eliminate
non-essential attributes or elements from its working methodologies to make its business process
more affordable. It will also reduce operational cost and will gain the attention of consumers
towards innovation. The modern development practices of frugal innovation focus on reuse and
sustainability. Sainsbury can change and modify the methods of packaging. It will also bring the
potential customers towards the into the fold on consistent basis which help in promoting the
innovating products in the market (Hang Do and et.al., 2014). The tapes and material used in
packing can bring a huge difference in its operational cost. The organisation can use material
which is environment friendly. It will give buyers a new experience as well as company will be
able to contribute in sustainability goals.
Similarly, Sainsbury can also promote the paper reuse and recycling of waste materials. It
will inspire people to join organisation for the noble cause of sustainability. Frugal innovation
models are based on the concept to deliver affordable services instead of expensive ones. The
organisation can also improve the transportation approaches used for providing home delivery

services. The transportation routes managed by the company must be well designed so that cost
and time both factors can be managed.
LO3
P5 Importance of commercial funnel
The companies require developing new products so that customers are retained and its
growth is maintained. for this a concept is applied known as new product development (NPD). It
provides platform through which opportunities are created for further expansion. With help of it
company gets an overview what features are to be added in product (Jaffe and Jones, 2015).
Moreover, it provides accurate data and information about how product will be developed and
funds required for it. its importance is company is engaged in making changes in process. This
helps in providing new ideas related to products (Abdul Razak and Murray, 2017). Through this,
huge profits can be generated by gaining large market share. There are various steps followed in
NPD process. These are described below:-
Commercialization- It can be considered as the process which helps in proper implementation
of various business strategies in order to achieve the profitability. Development of new concept
and idea into the business help promotes new working techniques which involves the use of new
technology in operation of the business activities. Commercialization is mainly considered as
promotion of new goods and services which are produced by the Sainsbury company. Managers
generally uses different tools and techniques for marketing the new products into the different
areas of the world. Application of commercialization attracts the customer and therefore it results
in increased sales of product developed by the innovation team of Sainsbury organization.
Business analysis- This analysis is done to identify the cost of the product in different
competitor industries who are dealing with same products but provides different functionalities
to customers. It also helps in identifying the demands of the public.
Improved Society: development and innovation of new product in the business helps in
providing variety of products to customers. When the customer gives the good response to the
new developed production of Sainsbury then it increases the sales of the product and therefore it
helps in generating more profits in the company.
growth of company: when the new product is developed it has been introduced after various
survey and business analyses but its establishment of product also always with two aspects of the
society (Collet, Hine and du Plessis 2015). Weather the product will be liked by the customers or

it leads the company towards the loses. All the things may affect by the proper analyzing and
marketing research of the goods and services. Advertising factor may involve at the time of
promotions which helps the customers in understanding about the uses and impacts of the NPD.
It may be advertised through newspaper, TV, etc.
Creates value for customers: establishment of new product adds the values towards the facilities
of the consumers. Growth and development of the company is ultimately depended on the
successful implementation of NPD in Sainsbury organization.
P6 Business case for organization
Here is a business case where in recent time there are a lot of complaints regarding poor
quality of products. It has resulted in decline in sales and profits. Therefore, in order to gain trust
of customers it is necessary for Sainsbury’s needs to make changes in their product features.
They need to bring innovation in production process so that quality can be improved. Other than
this, new products can be developed to attract more people. In order to do this, NPD has to be
implemented. By doing it, company can make different types of product for each segment. It will
offer people to choose from variety of goods. Business will be able to compete in market with
big firms. NPD will lead to generating new and creative ideas that what modifications can be
made to improve goods features and specifications. This will be useful in ensuring smooth flow
of operations in Sainsbury’s.
For example, Sainsbury’s can start producing natural and herbal products and offering them to
customers. this will attract large number of people who are health conscious to buy that products.
Also, they can start providing home delivery of herbal goods to restaurants and customers. It will
increase the customer base and operational market of the organization. with help of it,
Sainsbury’s will be able to growth in UK.
Relationship between innovation and return on investment
The innovation is having direct relationship with return on investment. With innovation,
ROI is calculated that provide insight how much organization will earn through it. ROI is
calculated by comparing sales of product with research cost and other expenses included in it.
Besides this, it becomes easy for company to proceed further that whether to do innovation or
not. They get overview about total cost incurred and ROI obtained from it.

In order to do so resources are required and funds are needs for operating cost.
Sainsbury’s is having a strong financial position in industry. They can easily innovate various
products to fulfill needs of people (Parker and Van Alstyne, 2017). Moreover, additional fund
can be acquired from different sources. Sainsbury’s operates in many countries. Thus, they
should produce variety of goods in each market segment. Apart from this, funds are needed to
promote it in market through effective strategies. Furthermore, it is necessary to maintain
product quality so that customer satisfaction can be gained (Dhewanto and Sohal, 2015). In order
to execute NPD capital is required. The company should develop a budget to get an estimate of
funds that are needed for innovation. Also, it will help management in allocating it in different
department according to their needs. The budget is as follows:-
Budget for innovation
Activity Cost
Designing of product $550
NDP implementation $750
Raw materials $1000
Manufacturing $1500
Advertisement $1200
Total $5000
LO4
P7: Tools for developing and retaining intellectual property and knowledge
Intellectual property is defined as the original ideas or innovative concepts which are
developed by individuals and organisation. Sainsbury must protect its knowledge and intellectual
property so that it can optimize the benefits from its creativity as well as can protect other
competitive organisation to take advantage from the hard work of Sainsbury. Organisation can
use various tools such as trademarks, patent, copyrights and trade secrets for the purpose. For
instance, the copyright can be used by Sainsbury to protect its logo so that fraudster cannot use it
for misleading or cheating people (Innovation vs. Invention. 2009).

Similarly, the organisation uses various tag lines in its promotional activities. The
company can prohibit others from using these lines for their benefits (Ku, 2017). The world
intellectual property organisation regulates that these tools are used as per the laws and if
organisations disobey these protection rights then they may be subjected to financial penalties or
criminal offences.
In order to protect intellectual property and information assets Sainsbury can use various
tools provided by intellectual property rights. They are as follows:-
Trademark- It is tool which can be useful for Sainsbury to protect their knowledge. A
trademark is a sign, design, etc. that enables organisation to differentiate their products from
competitors. usually, it is used to offer services known as service marks. through this, Sainsbury
can provide unique after sales services to customers.
Copyright – This tool refers to protecting work of author legally. It provides right to other
person to sell, distribute, etc. original work for particular time period. By using this tool,
Sainsbury can protect their innovation. The company can provide right to suppliers to sell their
product and offer services to customers. If any of the organisation uses IP of Sainsbury then
organisation can take legal actions against it.
Patent- With the patent organisation can protect its innovations from being generalised and to
earn huge revenues by them by their uniqueness or royalties.
CONCLUSION
From the above study it had been concluded that innovation is very important factor that
helps in shaping various aspects of commercialised business. This study had made a clear
understanding about the role of leadership and team work in influencing the ideas of innovation
and commercialisation. This document had also supported the invention of innovative ideas and
development of new product in order to sustain the organisation for the longer duration. It had
also helped in making a clear view about the role of leadership and effective team work that
help in developing the innovative ideas. This research had also provided 4 p's which effects the
growth and development of the business. It also helps in understanding the concept of Frugal
innovation in the organisation. Further it also explained the importance of processing New
product development (NPD)in market.

REFERENCES
Books and Journals
Abdul Razak, A. and Murray, P.A., 2017. Innovation strategies for successful commercialisation
in public universities. International Journal of Innovation Science. 9(3). pp.296-314.
Ahn, J.M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs.
Akinwale, Y.O., Adepoju, A.O. and Olomu, M.O., 2017. The impact of technological innovation
on SME's profitability in Nigeria. International Journal of Research, Innovation and
Commercialisation. 1(1). pp.74-92.
Collet, C., Hine, D. and du Plessis, K., 2015. Employability skills: perspectives from a
knowledge-intensive industry. Education+ Training. 57(5). pp.532-559.
Dhewanto, W. and Sohal, A.S., 2015. The relationship between organisational orientation and
research and development/technology commercialisation performance. R&D
Management. 45(4). pp.339-360.
Hang Do, T. and et.al., 2014. Predicting anticipated rent from innovation commercialisation in
SMEs. European Journal of Innovation Management. 17(2). pp.183-208.
Ku, R.S.R., 2017. The creative destruction of copyright: Napster and the new economics of
digital technology. InCopyright Law (pp. 207-268). Routledge.
Razak, A.A., Murray, P.A. and Roberts, D., 2014. Open Innovation in Universities: The
Relationship Between Innovation and Commercialisation. Knowledge and Process
Management. 4(21). pp.260-269.
Tsai, S. P., 2015. Dynamic marketing capabilities and radical innovation
commercialisation. International journal of technology management. 67(2-4). pp.174-195.
Zandoval Bonazzi, F.L. and Ari Zilber, M., 2014. Innovation and Business Model: a case study
about integration of Innovation Funnel and Business Model Canvas. Revista Brasileira de
Gestão de Negócios. 16(53).
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