Innovation and Commercialisation: Samsung's Business Model Analysis

This report analyzes Samsung's approach to innovation and commercialization, exploring how the company transforms ideas into marketable products and services. It examines the significance of innovation compared to invention, highlighting how organizational vision, culture, teamwork, and leadership shape innovation and commercialization within Samsung. The report delves into the 4Ps of innovation (paradigm, product, process, and position) and the use of the innovation funnel. It also covers the development of frugal innovation, the importance of a commercial funnel, and the application of new product development. Furthermore, the report discusses the creation of an innovation business case and the evaluation of tools for knowledge and intellectual property protection, providing a comprehensive overview of Samsung's strategic innovation practices. The report is contributed by a student to be published on Desklib, a platform providing AI-based study tools.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................................1
TASK 1..........................................................................................................................................................1
P1. Innovation and its significance to organisations in comparison with invention................................1
P2. Ways through which organisational vision, culture, teamwork and leadership can shape innovation
and commercialisation............................................................................................................................3
TASK 2......................................................................................................................................................5
P3 Explain the 4Ps of innovation and use of innovation funnel...............................................................5
P4. Development of Frugal innovation....................................................................................................7
TASK 3......................................................................................................................................................7
P5. Importance of commercial funnel addition to application of new product development.................7
P6. Innovation business case...................................................................................................................8
TASK 4....................................................................................................................................................10
P7 Evaluate the different tools to develop, retain and protect knowledge and intellectual property.. 10
Conclusion.............................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
Innovation depicts as a process which is a useful in converting the ideas and invention
into goods and services in order to satisfy the needs and requirements of the customers. It is
considered as a core activity of an organisation as it related to applying new processes and
technologies in the firm in terms of remain competitive in the changing market environment.
Other, Commercialisation refers to a process which is helpful for the business in launching new
products or manufacturing method as per the current market segments. This assignment is based
on the Samsung which is a South Korean multinational conglomerate that is founded in 1938 by
Lee Byung-chu. This file will cover about the innovation and its importance for the organisation
along with the 4Ps of innovation. Also, this study will focus on explaining importance of
commercial funnel and the application of new product development within the organisation.
TASK 1
P1. Innovation and its significance to organisations in comparison with invention
Innovation
Innovation refers to that activities which are adopted by the organisation in order to carry
out effective modifications in their products and services as per the current market trends and
customers perceptions. This will help the business organisation in sustaining their position for a
longer period of time and attaining higher profitability in the marketplace. For instance, Samsung
Electronics identify the market segment and adopt some innovation in their business accordingly.
Examples of the innovation of this organisation is 5G Phones which enables them to attain the
more customer attention in their business. Consideration of innovation is very important for the
organisation which can be seen by following points:
 Responding towards trends addition to competition: This help the organisation in
assessing the current market trends and opportunities of the business. The business
manager of Samsung not only focus on analysing the current market trends but also on
predicting the future trends so that they can formed an effective decision which helps
them in achieving their desired results and compete their competitors.
Competitive advantage: By considering the innovation term in their existing products and
services respective organisation is also able to attain higher competitive advantage in limited
period of time(Walsh, 2012)
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Invention
Invention refers to that ideas, creativity and thought which has never introduced before in
the market. For example, Samsung Electronics has invented various products such as Samsung
Galaxy S6 Edge+ and Samsung QLED TV. By considering the demand of innovation they have
invent these products in 2018. The significance of invention in the business is as follow:
Attract more customers: By inventing various products Samsung will be able to attract a range
of customers by introducing unique feature in their mobile phones and other commodities and by
providing it at affordable price(Hora and Dutta, 2013).
Innovative product: Invention helps the business in innovating products in the marketplace
which helps them to get higher success in business. Samsung understand this aspect and give
their focus on producing innovative products.
Comparison between innovation as well as invention
Comparison basis Innovation Invention
Definition Innovation refers to a process
of applying effective
techniques and methods on the
existing products in order to
present them in an innovative
manner.
Whereas, invention is depicted
as a new method or idea of
manufacturing the products
which has never come before
it.
Focus The main focus of innovation
is on combination of various
commodities.
It is related to invent a new
product in the marketplace.
Required skills as well as
qualities
It requires technological skills,
marketing and mechanical
skills.
Invention requires scientific
skills.
Samsung's scenario with examples describing the ways successful implementation of the
concepts along with time period.
Samsung Electronics has formed in 1969 which was operating at initial level in inventing
black and white televisions. After some of the years, their main focus on expanding their business
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in international market by introducing new technologies in the marketplace. For enhancing their
brand position, they have adopted some innovative development procedures due to this they are
able to invent the new product that is Samsung galaxy S10 in 2019. Before launching this
product, marketers of this company give their focus on understanding the needs and demand of
the customers and current market along with this they also assess the future trends effectively.
Also, the business designers and managers discussed this idea to invent a new product and
finalised it in order to attain the higher market share and customer satisfaction. After this, the
company has successfully launched their product that is Samsung Galaxy S10 in the marketplace
and able to attain higher customer base towards their new product(Rasmussen and Eliason, 2017)
P2. Ways through which organisational vision, culture, teamwork and leadership can shape
innovation and commercialisation.
Innovation and commercialisation are very important for the business organisation as it
enables all the members within the organisation to accomplish their operations in an effective
manner with higher efficiency. As every business firm has some vision and objectives which they
want to achieve in near future. These all have such as organisational vision, culture, leadership
and teamwork has great contribution in shaping up the innovation and commercialisation which
can be understood by following points:
Organisational vision: This term describes about the target of the company that what
they want to attain in coming years. Samsung Electronic has the vision of change the world by
providing more digital experiences and develop the technologies. The clarification of the vision
help the organisation to inspire the employees in the right direction as they will stay motivated
towards achieving the goals and objectives of the business organisation, also, this will help the
manager in easily sharing the new ideas and trends among the employees so that they can modify
their production process accordingly and shape up the innovation and commercialisation.
Culture: In order to maintain the interest of the employees in the organisation business
manager must focus on creating positive culture or environment within the firm. In this aspect,
the business manager of Samsung can use the Charley Handy model of organisational culture
which are as follow:
Power culture: In this the power is handed only few people who are able to influence to
working place. This consider some rules and regulation which need to be considered while
carrying out their activities.
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Role culture: The power comes from the role of each individual as in this everyone is
aware from their roles and responsibilities. This is highly controlled as each person has to
accomplish their responsibilities on time(Terrile and Jackson, 2013)
Task Culture: It is occurred when a team wants to accomplish or address some specific
issues and projects.
Person culture: In this, all individual considered themselves very unique and superior due
to this in this type culture power comes from each member of team.
As per the above discussion, manager of Samsung Electronic will give their emphasis on
task culture in which each individual comes with their specific skills, capabilities and experiences
which enables them to perform all the activities in an effective manner and also solving out all
the issues which are needed to be solved in term to effectively regulate innovation and
commercialisation within the firm.
Leadership: Leadership refers to all those activities which are conducted by the leaders
in order to motivate a guide their subordinates so that they can accomplish their task with fuller
efficiency. If the leaders of Samsung Electronics will support and cooperate their employees then
they will be able to enhance the working capacity of them. In this aspect, they are adopting
decentralised leadership style in which they are delegate their power among their subordinates
which allows them to share their ideas and conflicts easily with their top management so that
leaders can implement their ideas in their working process and can shape up the innovation.
Team work: In order to operate all the activities effectively and regulate the innovation
the manager of Samsung Electronic must focus on motivating their employees to work together.
For meeting this term, they are using Bruce Tuckman's theory which comprises various stages
that are define below:
Forming: In this, all the members of several departments are highly depended on the
leaders for guiding and directing whole team.
Storming: Herein, all the team members are feeling hesitate to share their perceptions and
ideas due to this leader have to play role of an effective guide which can force the subordinates to
be an open minded and speak freely.
Norming: After the above stage, teams will be able to moving forward and using their
efficiency in accomplishing their responsibilities. In this aspect, the leader give emphasis on
providing more liberty to the employees so that they can work their own(Marion and Friar, 2012)
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Performing: It is last stage in which all team member will give their higher support in
achieving the organisational objectives and goals. All they are free to make decisions without
taking the help of team leader.
By considering all the above-mentioned stages leader of Samsung Electronics will be able
to attain higher attainment and efforts in shaping up innovation and commercialisation by
implementing new ideas and way of working.
TASK 2
P3 Explain the 4Ps of innovation and use of innovation funnel
The 4Ps model has formed by John Bessant and Joe Tidd which renders various helpful tool for
the Samsung electronics as it helps them in successfully launching new product in the
marketplace. Also, it will help them in giving direction that where they require to go and in which
areas organisation needs to bring innovations. The detailed explanation of this model is given
below:
Paradigm innovation: It consist various principles, theories, value and beliefs which
helps the business organisation in ascertaining that changes are goods for the business or not.
This will also enable the manager of Samsung electronics in applying effective changes in their
business which helps them in attaining higher profitability in limited period of time(Ke and et.
al., 2016)
Product innovation: This is the first component of this model in which the management
of Samsung electronics identify that which changes they are require to adopt in their
products and services so that will be able to attain more customers attention and interest
toward their new developed products.
Process innovation: This term refers to the evaluation of all the manufacturing or other
processes of business so that all the processes can be operated as per the current market
scenario. It enables the manager of Samsung electronics in improving their all process
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like supplying, training, hiring people and many more so that the proper flow of activities
can be maintained.
Position: It snatch the attention of management of Samsung Electronics on targeted
markets for their new developments. It is considered as an effective way which will help
to the management of Samsung electronics in identifying about the ways that where and
who is interested in their products and services so that they will be able to provide right
product to the right customers in order to earn higher profitability.
Use and importance of innovation funnel
The model is very beneficial for the business organisation in successfully
developing a new product or service in the marketplace. The manager of Samsung
electronics is using this concept in order to create effective business process and products
which enables them in meeting with market needs. This model comprises three steps in
which first step that is wide mouth of funnel an organisation will give their focus on
collecting the information related to develop a new product by using the various methods
like research, existing partners, competitors, newspapers and many others. In the second
stage that is narrowing segment of funnel, company screening their processes that their
ideas and processes are able to meet the objectives of their business or not so that they can
determine that this will use further or not. At the last stage that is narrow segment of
funnel, company will give their emphasis on releasing their new product in the
marketplace effectively. Hence, it is very profitable for the Samsung Electronics as it not
only helps them in launching a new product but it also enhances the creativity and ideas in
the new product so that the organisation will be able to attain the higher success and
profitability in their new innovation.
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P4. Development of Frugal innovation.
Frugal innovation: It is also known as Frugal engineering which a most effective
technique as it involves all those processes which are helpful in eliminating non-essential
features, conflicts and also helps the business in decreasing cost of various products. The
manager of Samsung Electronics focuses on using frugal innovation as it helps them in executing
new changes in their production process as it allows them to reduce all the complexities from
their manufacturing activities. It provides huge benefit to the Samsung Electronics so that the
increment in profit can be attained(Datta Mukherjee and Jessup, 2015)
Example of Frugal innovation:
Samsung Electronics has adopted this method as it enables them in reducing all the
unnecessary cost or activities from their manufacturing operations. For instance, automation can
be seen by using machines instead of human force at the time when employees go for strike so
that the unproductive activities can be eliminated. It helps them in increasing their profit ratio and
their efficiency by deducting all non-valuable features.
TASK 3
P5. Importance of commercial funnel addition to application of new product development
It is also known as sales funnel which is concerned for graphic presentation of all the ideas
which has implemented in existing products. This helps an organisation in determining demand
and supply of their several products. By using this method Samsung electronics can make
business plan and ascertain price along with this, with the help of this they can expand their
business earn higher profit.
Importance of commercial funnels:
Attracts customers: Commercial funnel renders various resources so that the
organisation will be able to attract more customers towards their products. The management of
Samsung electronics can use various platforms like social media and newspapers in order to
attract range of customers in their products. This will help them in attaining higher profitability
and brand recognition in the marketplace.
Converts: This technique also helps Samsung electronics in converting their unknown
candidates into potential customers by rendering various offers and discount.
Application of new product development procedures:
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New product development contains several steps within which helps the business
organisation in producing new innovative products in the competitive market. By using this
model Samsung electronics can enhance their customers base and brand value(Yin, Shi and Yan,
2014)
All these stages are mentioned below:
Idea generation: This is the first stage in which the management of Samsung must focus
on generating an effective idea by considering all the aspects like customers survey, production
staff, marketing channels and competitors. Also, they must give their emphasis on assessing
customer behaviour and opportunities in the marketing place for their new development.
Screening: It is referring to the examination of generated ideas in this aspect management
of Samsung electronics has adopted SWOT analysis and product market scenarios. Scenario
depicts all the necessary output evaluation and future trends analysis so that the production
activities of the business can be operated in an effective manner.
Idea evaluation: In this step, the idea which have generated previous stage has been
evaluated from the all aspects like cost, profit, and market research. In this term, the management
of Samsung Electronics using market research and hypothesis testing method in order to examine
the ideas significantly.
Development: This stage comes after successfully completion of all the above-mentioned
stages. At this stage, Samsung electronics focus on researching and designing formation in order
to design their products effectively and expect to earn higher profitability.
Commercialisation: In this stage, ideas which has been converted into new or innovative
products has placed in the marketplace in terms to attain higher profitability and recognition in
the marketplace. The management of Samsung electronics is using effective marketing strategies
which allows them to introduce their new products in the marketplace effectively.
P6. Innovation business case.
Innovation business case refers to those concepts which are helpful in formulating plans
which comprises various ways for evaluating the business performance. Each and every
organisation consider business case while introducing new invention in the marketplace. Like
Samsung electronics is using this in launching new products that is Samsung Lamp. The business
case of them is as follow:
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Executive summary: Samsung electronics is a well-recognised organisation which is
leading their business in manufacturing home appliance as well as consumer electronics. At
present, this company is giving their main focus on launching Samsung Lamp which comprises
various unique features like classic folding, several light shades and gravity LED. In this aspect,
they have developed business can includes vision, mission, SWOT analysis, STP strategies and
resources allocation(Yu and et. al., 2016)
Vision statement: The main vision of this company is to enhance the usage of innovative
technologies and designs.
Objectives: Samsung electronics has ascertained smart objectives which are as follow:
 To cover 40% market share by 2020.
 To attain sales of 400 billion USD by 2020.
Situation analysis: For analysing the situation Samsung electronics has adopted SWOT
analysis:
Strength Weaknesses Opportunities Threats
 Higher
recognised
brand.
 A range of
products
they are
offering in
the
marketplac
e.
 Not able to
reach to the
rural areas.
 They have to
face conflicts
due to the
customers
perceptions.
 Provide quality
products at
affordable
price.
 Expand their
business
globally.
 Tough
competition.
 Fluctuations
in the
marketplace.
Financial projections: The activities from planning to launch a new product, financial
projection has been formed so that the proper allocation of funds can be ascertained. The
financial projection of Samsung lamp is given below:
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Access to funding: In order to operate all the business operation without any crisis or
hurdles management of Samsung electronics consider various resources for maintaining the
appropriate level of funds. All these resources are mentioned underneath:
Financial institutions Samsung electronics taking the help of various financial institutions
and banks for arranging their funds as it provide funds at lower interest rate. They are utilising
these resources in order to operate all the activities related to promote their Samsung lamp in the
marketplace effectively.
Friends and family: For maintaining the small level of operations they are arranging their
funds from family members and friends so that they can return back it in an ease manner.
TASK 4
P7 Evaluate the different tools to develop, retain and protect knowledge and intellectual property.
The different methods available which are using by the organisation in order to protect its
knowledge and their intellectual property. All these methods are described below:
Trademark: It can be a word, symbol or design which identify the source of the product
and makes difference from the other similar products which are available in the marketplace.
Trademark do not expire certain period of time as like the copyright and patent. While using the
trademark company must need to submit appropriate documents so that the proper ownership of
the products and idea can be attained in order to banned it from the uses from the other
competitors(Ettlie and Rosenthal, 2012)
Patent: A patent is a right which is render by the government to an inventor for a limited
period of time in term to bring a new invention in the marketplace. An organisation can patent
through patent application in which the all the information related to new invention has
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publicised among the public so that the commercialisation of the idea or invention by the other
competitor can be restricted.
These both helps the business in protecting their intellectual property so that the
organisation does not have to face hurdles in operating all operation or functions
appropriately(Inauen and Schenker-Wicki, 2012)
.
.
.
.
.
.
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Conclusion
From the above file, it can be concluded that consideration of innovation and
commercialisation in the business organisation is essential in order to get higher success and
recognition in the marketplace. These both terms have greatly affected by the organisational
culture, vision, leadership and teamwork so it is necessary for the organisation to maintain the
effectiveness of these aspects in the business. Along with this, the commercial funnel and frugal
innovation is very helpful in successfully developing a new product in the marketplace.
Moreover, in term to maintain the proper balance among all the business functions preparation of
business case is essential as it will enables the management in achieving their pre determines
goals and objectives in limited period of time.
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REFERENCES
Books & Journal
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of technological
innovation: taking stock and moving forward. R&d Management. 45(3). pp.215-249.
Ettlie, J. E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management,. 23(3). pp.440-454.
Hora, M. and Dutta, D. K., 2013. Entrepreneurial firms and downstream alliance partnerships:
Impact of portfolio depth and scope on technology innovation and commercialization
success. Production and Operations Management. 22(6). pp.1389-1400.
Inauen, M. and Schenker-Wicki, A., 2012. Fostering radical innovations with open
innovation. European Journal of Innovation Management. 15(2). pp.212-231.
Ke, W. and et. al., 2016. Employing lead thiocyanate additive to reduce the hysteresis and boost
the fill factor of planar perovskite solar cells. Advanced materials. 28(26). pp.5214-5221.
Marion, T. J. and Friar, J. H., 2012. Managing global outsourcing to enhance lean
innovation. Research-Technology Management. 55(5). pp.44-50.
Rasmussen, T. E. and Eliason, J. L., 2017. Military-civilian partnership in device innovation:
Development, commercialization and application of resuscitative endovascular balloon occlusion
of the aorta. Journal of Trauma and Acute Care Surgery. 83(4). pp.732-735.
Terrile, R. J. and Jackson, B. L., 2013, March. Balancing innovation with commercialization in
NASA's Science Mission Directorate SBIR Program. In 2013 IEEE Aerospace Conference (pp.
1-9). IEEE.
Walsh, P. R., 2012. Innovation Nirvana or Innovation Wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1). pp.32-42.
Yin, W. J., Shi, T. and Yan, Y., 2014. Unique properties of halide perovskites as possible origins
of the superior solar cell performance. Advanced Materials. 26(27). pp.4653-4658.
Yu, Y. and et. al., 2016. Improving the performance of formamidinium and cesium lead triiodide
perovskite solar cells using lead thiocyanate additives. ChemSusChem. 9(23). pp.3288-3297.
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