Innovation and Commercialisation Report: Analysis of F-drones Strategy

This report provides a comprehensive analysis of innovation and commercialisation strategies, using F-drones, a Singapore-based company specializing in drone delivery, as a case study. The report explores the definition and importance of innovation, differentiating it from invention. It examines how vision, leadership, culture, and teamwork shape innovation and commercialisation within an organization. The report delves into the four Ps of innovation (product, process, position, and paradigm) and the application of the innovation funnel. It also discusses frugal innovation, providing examples of its use in an organizational context. Furthermore, the report explores the commercial funnel, the application of new product development (NPD) processes, and the development of a business case for F-drones, including ways to access funding. Finally, it evaluates tools organizations can use to develop, retain, and protect knowledge and intellectual property. The report concludes by summarizing key findings and offering insights into the successful commercialization of innovation.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1) Explain innovation and its importance in caparison with inventions...................................1
P2) Analysis of how vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................3
TASK 2............................................................................................................................................4
P3) Examine 4ps of innovation and use of innovation funnel....................................................4
P4.Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................6
TASK 3............................................................................................................................................7
P5. Explain the importance of commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation........................................7
P6) Innovation business case for F-drones and ways to access funding.....................................9
TASK 4..........................................................................................................................................11
P7. Evaluate the different tools that organisation can use to develop, retain and protect the
knowledge and intellectual property.........................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is defined as the process of carrying out something new by which a product or
services is renewed and brought up the date through applying new processes, techniques or
establishing successful idea yo create new value. Whereas commercialisation is refers to the
process of introducing new product or services into the general market. It takes production,
marketing, distribution and sales into the account along with customers support as to accomplish
commercial success of new product and services (Reyes,and. et. al., 2021). Commercialization
occurs when small business has grown and reach levels which allow it to successfully access
larger market. Moreover innovation involves various activities as to uncover new ways of doing
things. This helps company to stand different from others and provides competitive advantage
for the longer sustainability and strong customers base. This report is based on F-drones private
company in Singapore which is specialise in building transition drone as to enable aerial
deliveries to ships and offshore platforms. This report is consist of the concept of innovation,
long with difference between innovation and invention, analysis of process required for
commercialise innovation. Moreover it includes the range of methods for protecting ideas along
with there advantages and disadvantage.
MAIN BODY
TASK 1
P1) Explain innovation and its importance in caparison with inventions.
Innovation is refers to the process which includes multiple activities that uncover new
ways of doing things. Through innovation organisation cater bigger opportunities and critical for
the longer sustainability, economic growth and success of the company. Companies that adopts
innovation are able to set the organisation in a different standard through which it identify new
opportunities and the best methods and techniques to solve current problems (Li, and. et. al.,
2019). It is important to develop a organisational culture which embrace creativity and openness
when someone suggest new idea. In terms of business, development has to be done on constant
basis for the better productivity and efficiency. In comparison of inventions, it is process that
only focus on introducing new things but innovation also focus on improving and enhancing
previous things. There are several impotence of innovation which are discussed below:
1

Business growth: When a company innovate or improve existing product it significantly has the
positive impact over its growth (Weng, and. et. al., 2018). Improving existing product and
launching it into the market with new feature and value, more customers get attracted that
provides a business growth.
Different from competitors: when a company produce something new or improve in its existing
products, they try to offer complete different or unique products from it competitors. Which
provide support in to develop competitive advantage and stand different from competitors
through which company will attract more customers base.
Innovation and inventions:
On the basis of meaning: Innovation is refers to the procedure of making improvement
in existing product or replacing something. Along with this, it also a implementation of new idea
for a specific product. Moreover, innovation is refers to a act of bringing idea or objects together
to create something new which did not exist before.
Skills required: Innovation required marketing and technical skills are required for
improving product or implementing something new which is done as per the need and
requirement of customers.
Concern: Innovation concerned about product, services, process and everything that is
need to be improved for the better satisfaction of customers. Along with this, invention has been
concerned with the single product that is going to be invent.
Importance of innovation in comparison to inventions
Competition: There are various companies within market area which has been induce
competition within industry , in order to compete effectively it is important for the company to
innovate its product, services along with the process within stipulated period of time so that firm
achieve growth in particular sector. Competition is one of the key factor which force companies
to be more innovative and competitive for longer sustainability
Customers: Business has been operates in the dynamic market in which demand of the
customer can be changed at any period of time, in order to keep customers it is important for the
company to be innovated and induces certain changes so that existing customers get retained and
new potential customers get attracted towards brand.
2

P2) Analysis of how vision, leadership, culture and teamwork can shape innovation and
commercialisation Vision: this is refers to s mental image of a possible and desirable future of the
organisation. It is the most important thing for achieving goals ad objectives. If a
company is consist of clear vision, then it is easy for the management to achieve them
effectively and efficiently (Awni, and. et. al., 2019). This helps in shaping innovation and
commercialization as because this is the key element that guide team for the processing
the innovation and commercialisation. Along with this, business create such environment
in which people belongs to different backgrounds and given a chance to share their ideas
in order better and effective innovation. Leadership: this is refers to a ability of an individual to guide, direct and influencing the
employees and team towards common goal of the organisation. In today scenario,
without effective leadership, the company will not able to accomplish success and growth
(Montgomery, and. et. al., 2019). There are various types of leadership that a company
adopts for performing the task such as autocratic, democratic, coach style etc. in relation
to the f-drones company, the have been followed a participative style of leadership for
leading a innovation and commercialisation. In this leader allow every team member to
involve in decision making process through more ideas and suggestions are gather for
effective strategies and planning. Culture: Organisational culture is defined as the beliefs, assumptions, values and ways of
interacting that contribute in the unique social environment of organisation. Culture did
not remains same in every organisation, it varies from country to country (Altaf, e Hassan
and Batool, 2019). It can be different in the form of values, attitude and several things
that can be accepted in one city and may not be accepted in another. Culture has a
significant impact on the both commercialisation and innovation. This has been defines
expression of people, their behaviour and their idea through innovation is generated and
get influenced. In commercialisation all the procedure that have been followed are shaped
by the organisational culture, as process is made of rituals, ideas and structure that is
accepted within organisation. When a company is consist of the innovative culture the it
has creates regular improvements regardless of directives and this has been promote
3

innovation as the regular part of company and has build strong competitive advantage
through which company will benefited with the longer sustainability.
 Teamwork: This is refers to collaborative effort of a group to complete task or to
accomplish a common goal. Innovative is refers to the unique which require unique skills
and abilities for this team work in company has allow employees to broaden their
knowledge and capabilities. This provides support in to made the adequate improvements
in working which produce more profitable outcomes. In the organisation effective team
work is necessary as they provides support in solving all kind of problems and in
completing the task as per the plan (Scott, and. et. al., 2020). There is a specialized team
that mainly focused on innovation and commercialization of product and act accordingly
as per the objectives and aims of the organisation.
TASK 2
P3) Examine 4ps of innovation and use of innovation funnel.
Four Ps of innovation are product, process, position, and paradigm innovation which are
discussed in detail below as:
Product innovation: This is refers to a creation of a new product, improvement and
changes within the existing products and services. Along with this, companies have also use new
raw material while manufacturing existing products (Zahedi, and. et. al., 2018). This has been
done because company wants to improve quality of their existing products as to increase
customer base and sales. In relation to the f-drones company, they are planning to innovate their
4

drones that will be able deliver 100 kilos over distance of 100 kilometres on ships ans offshore
platforms.
Process innovation: it is described as implementation of new or improved process within
the organisation. This involves changes in techniques, procedures, goods and software. Entities
utilized process innovation so that company can align their processes in a customised manner for
the positive and effective outcomes (Sutopo, Astuti and Suryandari, 2019). As per the view
point of ajay, 2020, f-drones has been completed their first commercial BVLOS drone delivery
that has been delivered 2kg of vitamins in around 2.7km in 7mins to the ship. Now their aim is to
implementing innovation in the process through which they can make drones that will be able to
deliver 100kg load in around 100km in ships.
Position innovation: This means making certain changes through which products are
produced or innovated. These changes are done because of the people perception that has been
changes over a period of time. In relation to f-drones company, they are at beginning stage but
change has initiated by launching their drones into rigid traditional barriers in industry (Hameed,
Von Staden and Kwon, 2018). It has evaluated that workload and cost get reduced but along
with this, customers relation has been enhanced.
Paradigm innovation: this is refers to an innovation in technology that has been use by
organisation. It is also known as mental model which includes many theories, beliefs and
principles. In the perspective of f-drones company, there are utilizing oil as well as gas for their
drones. Along with this, they are applying new ways and approaches in relation to subsurface
imaging and geophysical acquisition.
5

P4.Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
It is the process of reducing the complexities of good and services and its production.
Usually it refers to the elimination of the non-essentials features from the production process so
that affectivity of the business can retain in the production process. Process of frugal innovation
is explained as follows:
Find opportunity in adversity: In this process, the aim is to find the opportunities in the
existing problems so that it will leads to enhance the performance of an organisation
(Suryawanshi, and. et. al., 2018) . In context of At F-drones, they are focusing on delivering the
products through drones in ships and offshore platforms. Thus will leads to increase the
profitability and growth in the business.
Use of less perform more: In this step, the business analytics identifies the various
business operations and their resources that are utilizing by the various department in order to
offer the quality products(Karimi Yazdi, Haghighi and Nategh, 2019). It helps in assisting the
demand in their business so that efficiency of the various operations can retain within the
organisation. In this f-drones has been company has been equally allocate the resources in all
department and has the main focus over the coordination so that all the function perform well
coordinating with other so that a better result can be obtained.
Think and flexibly: In this step, All the strategies and the polices which are not flexible
and creating the hurdle in the organisation. Business needs change in their operational activities
by analysing the needs and demand of the potential customers and organisation will leads to
implement the change and this will help in getting things done in an appropriate manner. For the
effective implementation of plan into action it is necessary for company to formulate adequate
strategies that are aligned with customers wants and need. Such as loading weight is typical task
which requires money and time for this problem company has invented drone that can deliver
load of 100kg to 100km to ships as well as offshore platforms.
6

Use simple methods: This step stated that all the operations and the task can be done in
a simple manner so that each employees can learn the method of business operation in an easier
manner(Onken, and. et. al., 2019). In context of At F-drones, It will easy for the company to
identify the market change ad competitive edge in the large market.
Include the margin: This step says that customer are taken for the process of
improvement so that it will leads to completing of each task in a appropriate manner. At F-
drones, The business will get to know the various needs and requirement and help the business to
run in an effective manner.
Follow your heart: This is the last step in which it is suggested that all the operational
activities must be done with passion and emotions so that all the operation will be run in an
effective manner in order to achieving the business goal. At F-drones also improve their
production by analysing the needs and demand of the target market.
TASK 3
P5. Explain the importance of commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.
Commercial funnel is best known as the sales funnel as the key objective of the
commercial funnel is to change the targeted customers in to customers. In this process the net
income of the company increase as by acquiring the new products and raw material in the further
development the business (Oderanti, and Li, 2018). It also help the At F-drones to determine the
cost and selling prices of their new and innovative products. There are various point which state
the importance of commercial funnel which is explained as follows:
7

New product development: This is the concert in which new products is introduced in
the large marketplace. It helps in getting the competitive advantage by analysing the needs of the
current market so that right product can be launch so that it will satisfy the need and demand of
the customer.
Business analysis: In the process of NPD, Cost and profit are determined in the
operation business so that Research&Development department will determine the total risk,
budgeted profits and cost sheet that will help in finance team At F-drones, will do the cost and
profit analysis for the better completing business activities.
Market strategies analysis: It is the analysis of market in which they identify the
various business strategies so that promotional and operational activities can be determine in
terms of their budget. The cost is being allotted to each department so that price will be easily
identified so that business can establish good brand image in the market.
Development concept: Under this step the company perform the research and
development in order to identify the various strategies that will leads to innovate and
advancement in the various products.
Idea generation: It is the process of generating the new ideas for their product
development so that products can meet the expectations of the customers (Parikh, 2019). At F-
drones, also generate the idea of manufacturing the new product that will leads to ease in the
delivery of the products in different locations.
Commercialisation: Under this step of NDP, product is ready for commercialisation or
ready for selling in the large marketplace. For At F-drones, It will help in generating the new
business opportunities.
8

P6) Innovation business case for F-drones and ways to access funding
Business case: This is refers to a organised structure document which is consist of task
and various other activities. It captures the reasoning in order to initiating project or task. In
relation to f-drones, they are developing an innovation business case in order to successfully
implement a product and commercialised it in effective manner (Brenner and Adamovic, 2018).
The company has been planning to develop a drone with 100kg load with 100km distance which
named as hyper launch. This will be on of the most innovative and unique drone till date.
Executive summary: The business case plan that has been made to develop product are
included in a way through which it receives high level of resources in order to develop effective
policies.
Background of f-drones: This company s developing and world's transition drone that
can do aerial deliveries to ships and offshore platforms. The product that is to be implemented
involves the combination of heavy payload along with long range capabilities. This is stand as a
threat to other companies.
Vision: This is refer to the mental image of company's future, the vision of the company
is to become a leader of heavy payload drone logistics across every industry in coming 5 years.
Mission: This is refers to the statement of why organisation is exit in a market. The
mission of f-drones is to modify large scale and on demand aerial transportation of products and
building drones that can fly with heavier loads.
9

Satisfaction of need from innovation: By introducing new and innovative product along
with great qualities, they ca attract potential customers and can develop strong customers base.
Opportunities in market: there many opportunities prevailing in the market for f-drones,
as this save 80% of cost, time along with carbon emissions in both marine and offshore logistics.
Competitive edge: The technological advancement in electronics like micro controller are
modernizing drone products through which companies develop measurement tools. This stand as
strong competitive edge for the company.
Size and growth possibilities: The market size which is been planned to reach is $100
billion and in relation to growth possibilities, it is estimated that it will reach to $43.1 billion by
2024 as they were already at $14.1 billion in 2018
Target market: This is refers to group of potential customers to whom company want to
sell its product and services. F-drones want to increase their R&D investments along with
initiated better funding for military programme for growth in business.
Strategy: F-drone company will used the strategy for premium pricing as they are
offering unique and innovative product along wit great quality.
Promotional strategy: Company will use strategy of 3D mapping and surveying site do
not promotional along with advertising on television and social sites.
Funding: F-drones is getting a fund from drone revolution fund which is in partnership
with government (Lai, P.C., 2018) . They also get funds from Singapore government who are
bringing foreign investors and provides support in to development of industry.
Ways to access funding:
Internal source of funding: This is refers to the money which has been comes from the
company itself, as there are several internal methods that can be utilised for operations of
business, such as owners capital.
External source of fund: This is the source in which company collect finance from all the source
that are outside the company such as share issue, business angels etc.
Bank loan: it is refers to the raising fund through taking money from that is going to be pay back
along with interest.
Plough back profit: This is define as the one of the management policy in which all the profit is
not share among shareholder rather some part is retain and used for the operation of business.
10