Assessing Innovation and Commercialisation Strategies for Softwire

This report analyzes the importance of innovation and commercialisation within the context of Softwire, a small UK-based digital design and consultancy company. It explores the significance of innovation, differentiating it from invention, and examines how organizational vision, leadership, cultur...Read More

Innovation and Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of innovation and its comparison with invention...............................................1
P2 Organisational vision, leadership, culture and teamwork influences innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................4
P3 4Ps of innovation and uses of innovation funnel...................................................................4
P4 Concept of frugal innovation and its uses in organisation.....................................................5
TASK 3............................................................................................................................................6
P5 Importance of commercial funnel and application of New product development.................6
P6 Business innovation case.......................................................................................................7
TASK 4............................................................................................................................................9
P7 Evaluation of different tool used by organisation in preserving intellectual property..........9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is considered as a new idea or view of individual which is used for modifying
existing products and services. Whereas, commercialisation refers to avail that innovated product
at market place for attaining monetary benefit. Innovation and commercialisation are important
part of organisation as they both contribute in its long term success (What is innovation and how
can businesses foster it?, 2017). This report is based on Softwire, which is a small UK based
company. This organisation provides digital designing and consultancy services to its
customers. Following assignment is going to discuss about innovation and its importance in
small business. Further, it explains about 4P's and usage of innovation funnel for analysing ideas
at work place. This report will also include importance of commercial funnel and application of
New product development processing for commercialisation of innovation. Along with this,
various tools used by small business in order to develop, retain, protect knowledge and
intellectual property will also to be discussed.
TASK 1
P1 Importance of innovation and its comparison with invention
Innovation refers to new idea which simplify the work by meeting its requirement in
effective manner. In other word, innovation is also termed as the process of translating view and
ideas into valuable products which satisfies needs of customers.
Softwire is the software company which offers digital designing and consultancy services
to its clients in United Kingdom. This organisation is small in size and was established in 2000.
Co-founder of this enterprise are Pete Kenny, San Shavik and Phil Marsden who are
continuously placing their efforts in converting business among top leaders of United Kingdom.
Importance of innovation
Innovation is important in every business as it contributes in growth of the firm. In
addition to this it attracts new customer towards the organisation and persuade them to buy
offered products and services (Clayton, Feldman and Lowe, 2017). In context to small
businesses, innovation has its own importance. some of them are evaluated as below:
 Innovation supports the small businesses in gaining competitive advantage at market
place. In context to Softwire this organisation can use latest ideas for developing
profitability and also help in achieving their financial goals.
1

 Innovation also provides reason to the customers and clients to remain regular toward the
organisation as they are influenced with new products and services.
Difference between innovation and invention
Innovation Invention
 Innovation refers to modification in
the existing product and service
according to the requirement.
 It is the combination of several
products and services. Innovators
introduce modify product at market
place according to the requirement of
the customers. For example:
Innovation can take place anywhere
in the organisation through views and
thoughts of employees which can
guide firm in modifying its products
and services on the basis of market
demand (Dutta and Hora, 2017).
 In relation with Apple they have
implemented innovation for example:
face detection process for unlocking
the phones. As a result it provides
better security to customers.
 Invention is termed as the introduction of
new product or service for the very first
time.
 It is considered as the single process. In
this, inventors introduces new product in
market which is never introduced
previously. For example: invention took
place in research and development
department of an organisation where
researchers continuously work for
introducing new product which will
improve the profitability of the firm and
grab the attention of people.
 In terms of Virgin mobile till now they
are following traditional form of
operating its business and have not done
any innovation and invention.
P2 Organisational vision, leadership, culture and teamwork influences innovation and
commercialisation
Commercialisation refers to the process of introducing new product at market place with
purpose of monetary gain. In context to small enterprises like Softwire, this company introduces
new service at market place and avail them for sale at market place. This helps them in attaining
their financial target for growth purpose. Innovation and commercialisation both are considered
2

as the essential element for business growth. There are numerous factors which influences
innovation as well as commercialisation in organisation. And these factors are evaluated as
below:
Vision: Vision of an organisation refers to the future based expectation of firm from its
activities and also guides employee to achieve their targeted goals. Vision statement of Softwire
states that this organisation emphasizes on creating appropriate working environment in order to
produce effective software that leads to unmatchable customer satisfaction. In relation to this, its
co-founder gives complete liberty to employees for sharing their valuable ideas at work place.
This will support the firm in introducing new software and commercialise it with the purpose of
attaining financial objective.
Leadership: Leadership refers to the ability of individual to influence group of people
for attaining common goal. It includes various qualities of the leader which persuades his
followers to achieve targeted goals and objective. For example: Steven Paul Jobs who was the
co-founder of Apple. He owns excellent leadership skills which supports him in leading
employees and make them work effectively in order to satisfy needs of customers with
innovative products. Along with this, leadership is the essential element which contributes in
organisational success as employees are directed in appropriate manner. This directly improve
the effectiveness of employee’s performance and provides monetary benefit to the firm (Gaddy
and et. al., 2017).
Teamwork: Teamwork refers to the collaborative work of team for completing one
common task in effective manner. Bruce Tuckman have developed team formation theory which
helps organisation in formulating effective team. In context to Softwire, it manager formulates
team on the basis of skills and speciality of employees. This provides the opportunity to
employees to perform their assigned task appropriate manner. Along with this, team work
improves interpersonal relationship of employees and creates mutual understanding between
them. As a result, they perform their work in less time with more efficiency.
Culture: Culture is considered as the social norms and behaviour of human being in the
society. In organisational context, culture of workplace plays essential role in motivating an
employee or whole team. In relation with Softwire, co-founder of this enterprise emphasize on
developing appropriate working culture at work place which motivates the employee to perform
their work in effective manner. Organisational culture also contributes in innovation as well as
3

commercialisation. As the familiar working environment motivates the employees to share their
innovative ideas for modifying products. Further these innovated products are commercialised at
market place for achieving objectives.
TASK 2
P3 4Ps of innovation and uses of innovation funnel
Innovation mix refers to a model which was established by John Bessant and Joe Tid in
order to help a firm in implementing and initiating changes in business organisation in a proper
manner (Mamo and et. al., 2017). It provides four approaches that are Process, Product, Position
and Paradigm through which management can make improvement in business by determining
which kind of strategies are required to be adopted. In context with Softwire which deals in
consultancy sector by providing solutions related to software and digital design to customers.
Therefore, to make improvement in services, 4Ps of innovations are stated as beneath:
Figure 1: 4P'S of Innovation
(Source: 4Ps of innovation model, 2018)
Product: It is considered as an outcomes of business through which a company can
satisfy desires and needs of customers as per their expectation. In this manner, Softwire offers a
large variety of services related to development of software and digital design solution to other
firms of UK sector as per requirement of them. Therefore, in this regard, providing best solutions
to customers with requirement of less changes in system as well as in short period of interval is
considered as best strategy through which this firm can acquire a better position at marketplace.
4

Process: It has identified that for attaining a good position or become a market leader,
Softwire Company emphasises more on delivering best services to end users without wasting
much time. (Perry and et. al., 2017). For this process, it has provided open and healthy
environment to customers through which they can give support in creating innovation in
services.
Position: By introducing process through which demand of customers can be completed
on time by giving them best solution, helps Softwire in grabbing higher retention of them. It also
aid this firm in snatching a better position from rivals at marketplace.
Paradigm: In order to create innovation and gain competition advancement, every
association seeks to develop effective strategies through which it can enlarge customer base (Shi
and et. al., 2017). In this regard, it is necessary for Softwire to make improvement in system by
adopting latest technology in business.
Innovation funnel is taken as a technique by which an organisation can develop a plan as well
as can conducted activities of the same in appropriate manner. In general, innovation funnel
describes three essential steps that a Softwire requires to be concerned while developing
innovation in services that are:-
First step: It assists employers of Softwire to collect appropriate information related to
innovation in order to create an action plan.
Second step: In this phase, managers are needed to stream-line overall processes and
choose a best one from them through which innovation can be done in business.
Third Step: It is considered as final step under which managers acquired best idea for
executing new system in business for development.
P4 Concept of frugal innovation and its uses in organisation
Frugal Innovation refers to the concept which emphasize on reducing production cost by
removing non required products from the work place. This concept emphasizes understanding
the scarcity of resources like finance, raw material, manpower and use them in concise manner
according to most appropriate requirement. In this products and services are manufactured with
the motive of satisfying needs of customers by using minimum resources. This concept is
majorly used by small business as they have limited resources to produce product and services
according to the need of consumers (Lim and et. al., 2017). In context to small businesses, they
5

can have utilised the remaining resources in their innovation from making services more
effective and satisfactory from customers point of view. Frugal innovation is used by many small
sector like transportation, healthcare as well as software companies.
Frugal innovation is considered as the most helpful concept which helps the organisation
in enhancing the needs and requirement customer's. For example: Steve Jobs have used frugal
innovation by rejecting I phone due to its thickness in size. And further waited for new design
which was resulted in effective manner as the new design was just half in size compared to
previous one. This scenario has created various cost related problem to the organisation but at
last enhanced satisfaction level of customer.
Concept of frugal innovation is used by many organisations as it reduces non-essential
features from the product which ultimately reduces the cost of product and also provides high
satisfaction level to the customers. Apart from this, company can use these resources in research
and development department which helps the business introducing new products.
TASK 3
P5 Importance of commercial funnel and application of New product development
Commercial funnel refers to the marketing and revenue funnel which emphasize on
selling product and services to the customer in massive form. It provides idea that every sales
activity must be started with huge number of customer and ends at very number of audience who
actually buy that product. Process of commercial funnel involves various stages like awareness,
interest, decision and action (Mamo and et. al., 2017). All of these stages have their own
importance in achieving targeted goals and objectives. According to commercial funnel it is
essential for the organisation to develop an appropriate marketing plan which helps them to
direct whole marketing team to follow each and every step of this. It guides the employees to use
effective strategies for launching the product in appropriate manner so that it can grab the
attention of targeted audience. Commercial funnel initially emphasizes on spreading awareness
among customers through social media and other modes of marketing activities. Commercial
funnel is important in every organisation as it helps the business by promoting products to the
customers in effective manner and spread awareness between them. This results in persuading
customers interest towards the product and convincing them to purchase it at regular interval.
6

New product development refers to the process through which new product and services
are introduced at marketplace. It refers to the development of the existing product in order to
compete other products which are available at market place (Sheep, Fairhurst and Khazanchi,
2017). New product development is essential for every Softwire as it is compulsory for this firm
to modify its services according to the market trends and customers requirement. This process
involves several steps for maintaining its effectiveness and these steps are evaluated as below:
Idea generation: In this step, business focuses on searching for new ideas from various
sources like its customers as well as employees. And finalises the most effective one. In context
to Softwire, it has opted the idea of providing consultancy services to the customers.
Idea screening: This step emphasize on short-listing all the ideas which are collected by
customers and employees (Shi and et. al., 2017). And focuses on checking its suitability with the
business.
Concept testing: Next step of NPD focuses on testing the suitable shortlisted ideas with
the present customers and takes their advices accordingly.
Business analytical: In this step, it has been evaluated that whether chosen idea is
beneficial for business growth or not.
Commercialise: At this step, organisation have finalised the concept of innovation and
evaluated that it is beneficial in terms of profitability for the organisation. In this product is
finally commercialise at market place so that customers can buy it.
Product development: Final step of this process justifies that after introducing the
product at market place, marketing team of the firm takes the feedback of customer which can
further be modified according to requirement of customers.
P6 Business innovation case
In order to sustain in the market for a longer period of time it is crucial that company
make changes and implement new things on a regular basis. This will further assist firm in
attaining a better position in the market area. In relation with Softwire, company is focussing on
different segments so that effective results can be achieved. To understand this a business case is
mentioned below:
Executive Summary Softwire is a digital software company that is operating its business in
United Kingdom. It is consultancy firm that assist other companies in
getting appropriate information. In this company around 130 employees
7

are working whose main purpose is to provide better services and
facilities to its customers.
Need Innovation is an important element if company wants to gain success in
the market place (Lim and et. al., 2017). In relation to Softwire, through
this company will be able to develop an effective software through
which needs and wants can be fulfilled. For example: with the help of
innovative application company can provide better solutions for queries.
Solution As Softwire is a consultancy firm and provides digital design solutions
therefore, after developing and implementing new and innovative
products Softwire will be able to connect and provide effective solution
for problems.
Consumer Analysis In relation with Softwire services that are provided by the organisation
to its clients are satisfying as they are able to resolve issues and
problems facing by any other organisation (Khan and et. al., 2017).
Thus, for providing better and effective services company are making
changes and modification in their services and adopting new and latest
technologies for giving appropriate results and outcomes. Other than
this, as per customer’s firm must incorporate innovative ideas and
thoughts for making its business unique.
Creation and
Improvement
For gaining appropriate results it is necessary that company make
modifications in its strategies, following the same approach cannot
provide effective results. Thus, Softwire is taking feedbacks and
reviews from its customers so that improvement can be made so as to
get better position at market area. For example, company can develop a
software through which they can communicate with its clients in quick
time. As a result, customers had not to wait for a longer period of time
for getting better outcomes.
Acquisition of funds For small industries like Softwire, not having appropriate funds is the
biggest concern (Henttonen and et. al., 2017). For this, firm
communicate with different financial institutions like bank,
8

stakeholders, investors etc., in relation with Softwire, they are taking
funds from primary sources i.e. is bank and they are getting money in
simple interest.
Benefits availed With the help of implementing innovation in its business company can
provide better services for example: clients can get information of new
updated software with the help of applications or internet sources.
TASK 4
P7 Evaluation of different tool used by organisation in preserving intellectual property
Intellectual property refers to the essential part of firm which differentiate
themself from other companies. It is the responsibility of owner of organisation to preserve their
intellectual poverty from getting misused by someone else. This improves performance of
business and also enhance quality of products which are more beneficial for customers. Along
with this, Intellectual properties also helps the business enterprise in the process of increasing
financial level from banks (Sheep, Fairhurst and Khazanchi, 2017). There are numerous of tools
which are helpful in preserving intellectual property are described below:
Trade Marks: It is considered as the logo or sign through which organisation can easily
identifies its products and services in order to differentiate it with competitors. In context to
Softwire, owner of this organisation have registered its trademark through the legal procedure
which through which they can separate their services from other business. Along with this, it is
also used as the promotional tool which represents the brand value of firm at market place.
Copyright: Copyright is considered as the legal authority given by the government to
owner of business. Major aim of copyright is to provide protection to efforts, creativity, and time
of the creator. In context to Softwire, owner of this enterprise has taken copyright of firm so that
their innovative and creative work cannot be used by any other business enterprise.
Patent: Patent refers to right which prevent owner's work from being exploited by other
firms. It also provides rights to creator so that they can sell their product and services at market
place.
9

CONCLUSION
From the above mentioned report it has been evaluated that innovation is the process of
modifying existing product with new ideas. On the other hand, commercialisation refers to sell
the innovating products and services to the market place for achieving financial goals of the
business enterprise. It has been evaluated that vision, mission, leadership and culture of an
organisation are essential factors which equally contributes in innovation and commercialisation.
In addition to this, frugal innovation also supports small organisation in reducing non worthy
features of products. This reduces their production costing and saved money can be used by the
research and development department for introducing new product.
10

REFERENCES
Books and Journal
Clayton, P., Feldman, M. and Lowe, N., 2017. Behind the Scenes: Intermediary organizations
that facilitate science commercialization through entrepreneurship. The Academy of
Management Perspectives. pp.amp-2016.
Dutta, D. K. and Hora, M., 2017. From Invention Success to Commercialization Success:
Technology Ventures and the Benefits of Upstream and Downstream Supply‐Chain
Alliances. Journal of Small Business Management. 55(2). pp.216-235.
Gaddy, B. E. and et. al., 2017. Venture Capital and Cleantech: The wrong model for energy
innovation. Energy Policy. 102. pp.385-395.
Goble, L., Bercovitz, J. and Feldman, M., 2017. Organizing for Innovation—Do TLO
Characteristics Correlate with Technology Transfer Outcomes?. In THE WORLD
SCIENTIFIC REFERENCE ON ENTREPRENEURSHIP: Volume 4: Process Approach
to Academic Entrepreneurship—Evidence from the Globe. pp. 105-135.
Henttonen, K. and et. al., 2017. Open innovation in SMEs: Collaboration modes and strategies
for commercialization in technology-intensive companies in forestry industry. European
Journal of Innovation Management. 20(2). pp.329-347.
Khan, S. and et. al., 2017. Ultrathin Colloidal PbS/CdS Core/Shell Nanosheets. MRS Advances.
pp.1-6.
Lim, J. S. and et. al., 2017. Market orientation, innovation commercialization capability and firm
performance relationships: the moderating role of supply chain influence. Journal of
Business & Industrial Marketing. 32(7). pp.913-924.
Mamo, T. and et. al., 2017. Analysis of wheat commercialization in Ethiopia: The case of
SARD-SC wheat project innovation platform sites. African Journal of Agricultural
Research. 12(10). pp.841-849.
Perry, S. J. and et. al., 2017. Developing Engineering Leaders: An Organized Innovation
Approach to Engineering Education. Engineering Management Journal. 29(2). pp.99-
107.
Schmitz, A. and et. al., 2017. Innovation and entrepreneurship in the academic setting: a
systematic literature review. International Entrepreneurship and Management Journal.
13(2). pp.369-395.
Shakeel, S. R., Takala, J. and Zhu, L. D., 2017. Commercialization of renewable energy
technologies: A ladder building approach. Renewable and Sustainable Energy Reviews.
78. pp.855-867.
Sheep, M. L., Fairhurst, G. T. and Khazanchi, S., 2017. Knots in the discourse of innovation:
Investigating multiple tensions in a reacquired spin-off. Organization Studies. 38(3-4).
pp.463-488.
Shi, T. and et. al., 2017. Effects of organic cations on the defect physics of tin halide perovskites.
Journal of Materials Chemistry A. 5(29). pp.15124-15129.
Online
What is innovation and how can businesses foster it?. 2017. [Online]. Available through:
<https://www.telegraph.co.uk/connect/better-business/innovation/what-is-innovation-
and-how-can-businesses-foster-it/>.
11

12

13