Analysis of Innovation and Commercialisation Strategies: Tesla Report

This report delves into the concepts of innovation and commercialization, using Tesla as a case study. It defines innovation and invention, highlighting their significance and exploring different sources of innovation such as new knowledge and unexpected occurrences. The report examines how organizational vision, leadership, culture, and teamwork shape innovation within Tesla. It explains the 4 P's of innovation (product, process, paradigm, and position) and discusses the innovation funnel. Furthermore, it analyzes frugal innovation methods, emphasizing cost-effective production strategies employed by Tesla. The report covers benchmarking and key performance indicators as tools for measuring innovation, and provides a comprehensive understanding of Tesla's innovative strategies.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
LO 1............................................................................................................................................................3
P 1 Innovation and invention...................................................................................................................3
P 2 Organizational vision, leadership, culture and teamwork can shape innovation................................4
LO 2............................................................................................................................................................6
P 3 Explain the 4 P’s of innovation.........................................................................................................6
P 4 Frugal innovation..............................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
There is a growth in the globalization in the entire world which can increase the
efficiency of the businesses which have a huge potential in market. There is a need of innovation
and invention in organization so that they can capture the market. Tesla is an American
organization which gets a lot of changes in the organization related to trends and demands of the
customers. The report consists of innovation and inventions, 4P’s of innovation, Funnel and
frugal innovation methods which the organization uses for a better market capture and
processing of the company to be smooth and effective.
LO 1
P 1 Innovation and invention
Definition
Innovation is the process of getting new ideas into services and products of the company
for the first time in the market. This is an addition to the products or services which can also be
called improvement in the products so that the customers can have a high satisfaction level. This
requires a lot of research and study for getting these changes (Dincer, 2017). Invention is getting
a new product and services which has never come in the market before at all by anyone else.
Significance
There are loyal customers which will come in the company when an invention is made by
the market which no one else is able to provide to the customers. Inventions make a better
reputation of the company in the market and innovation helps the company to improve the
customer satisfaction. The trends and demands of the customers change towards a product which
has to be innovation by the company from time to time so that they can have a better functioning
for themselves which is going to be very helpful for a long run of the company (Huang, Farrukh
and Shi, 2018). In innovation to take place there are a lot of technological changes which have to

be got in the organization so that there is a better functioning of the company which is going to
be very helpful for a long run of the organization.
Different sources of innovation
There is a requirement of resources for the innovation to take place in the company like
battery in this case for Tesla because Tesla is coming up with electrical car which requires long
lasting batteries so that the satisfaction of the customers can be increased.
 New knowledge
The employees of Tesla have a huge role to play in this because they got in this idea and
helped the organization to implement the changes in the company accordingly. The motivation
level and involvement of the employees is high in the company which is why the organization is
being able to have a better functioning for them which is good for the brand image in the market.
 Unexpected occurrence
The organization allows the employees to give their inputs and decisions for the company
which can help the company to get more creative and innovative in nature which is going to help
the company capture the market better. There are a lot of unexpected outcomes if the employees
also give their view in the company which will make them motivated and the company will be
able to come up with better understanding of the customers as well.
P 2 Organizational vision, leadership, culture and teamwork can shape innovation
There are a lot of new products and services which are coming in the market with the
help of commercialization which is going to be a competitive advantage. Innovation can get a lot
of customers in the company and there is a better functioning of the organization. The needs and
demands of the customers are met and so are the trends followed in the business which can be
profitable for the company (Svensson and Persson, 2016).
Leadership

There is a high need of leaders in the company like Tesla has a lot of leaders in the
company so that they can function effectively by spreading motivation. There are experienced
and skilled employees as leaders in the company so that they can train and develop the
employees which can make the productivity of the company increase. Conflicts can be solved by
the leaders and healthy environment can be maintained in the company so that there is a better
functioning. Leaders of the company have to make sure that the changes which have come in the
company are being followed and implemented correctly in the company so that there is a better
functioning.
Culture
Tesla is a very modern company which is why the culture also has to be supportive in the
organization so that the internal environment of the organization is not spoilt. In case of the
culture not being positive then the outcomes of the company will also be negative and the
company will not be able to have a better reputation in the market. Communication is a very
important element in Tesla which is being followed strongly in the company so that the changes
in the company can come in easily.
Teamwork
Tesla is having a very strong team in the organization and they help each other so that
they can help the organization to achieve their objectives and goals. The company is taking
experienced and talented employees in the organization so that they can make the tasks of
innovation be completed from time to time (Rus and et.al., 2019). There are a lot of troubles
which the employees can have but teamwork in the organization will be able to hand those and
maintain the functioning of the organization smooth.
Innovation is developed and measured in the organization
 Benchmarking
There is a measuring of all the employees of the company so that the company can find out
as to how much they have been functioning in the organization (Bandarian, 2018). Targets of the
organization have to be completed on time so that they can make the organization have a better
market share.

 Key performance indicator
The changes in the organization are going to have an impact on the performance level of the
employees which has to be controlled by the organization so that there is a better functioning.
There is a very important that the organization monitors that aspect so that they can make the
organization have a better implementation of the changes in the organization and be able to plan
for the future accordingly.
LO 2
P 3 Explain the 4 P’s of innovation
There are 4 P’s which are considered for planning an innovation in the organization
accordingly which are process, product, paradigm and position. This marketing max has been
given by John Bessant and Joe Tidd which helps the organization to innovate and invent new
products in the market so that they can have a better market share in the market.
 Product
Tesla has made a lot of changes in the company which has attracted a lot of customers and
the company has come up with electrical vehicle which is going to be a great benefit for the
company. This is a very environment friendly vehicle and is good for a long run in the market.
This product is going to be appreciated by the customers and is going to be promoted by the
government as well.
 Process
There are a lot of products which are given by Tesla for the benefit of the customers and their
comfort (Ferasso, 2018). The product matches the standards and expectations of the customers
from time to time. Trends in the market are being followed in the organization and there is a lot
of motivation in the market which is a great sign for the organization to adapt to the changes.
 Paradigm

There are a lot of improvements which have to be made in the product so that it can capture
the market effectively. Changes in Tesla come in easily because there are a lot of changes which
are happening all the time. The products have to meet the needs and demands of the customers
and match the lifestyle of the customers as well so that the product can reflect positive on the
company’s portfolio.
 Position
The company does not have to promote themselves in the market because there is a strong
communication between the customers and the company about the inventions and innovation
which the organization is getting in the market (Schot and Steinmueller, 2018). There are
improvements which are taking place in the new product of the company so that the company
can satisfy all the targeted customers in the company and match the standards of comfort
expectations of the customers as well.
Innovation Funnel
There are four stages in an innovation funnel which are ideas, criteria, fine-tuning and
external environment. There are a lot of ideas which Tesla is having in the organization which is
a great advantage for the organization but there has to be a planned and systematic way to adapt
to this approach. Ideas generate in Tesla from time to time because there are new employees and
young employees hired in the company so that they can come up with better ideas which is going
to be very profitable for the company. The ideas have to match to the criteria of the company
which will then be processed further if they match the standards of the company and the aims
and objectives of the establishment (Loya and Rawani, 2016). The ideas have to be practical and
implementable in the organization so that the organization can have a better functioning. There is
a lot of creativity and innovation in the young employees of the company which can make the
company have a advantage in the market. There are a lot of risks which are taken by Tesla so that
they can capture the market which is going to be very good for the company and the organization
will be able to have better profit margins.

P 4 Frugal innovation
Frugal innovation helps the organization to have a lesser complicated process and cost
friendly methods for the production. This method helps the company to make products which
are going to be very beneficial for the organizations. There is a requirement of unnecessary steps
which are not required in the production of the products so that there is cost saving in this
process which is a very important factor. There are new technological changes which are got in
Tesla so that the production level of the organization can be saved and labour cost can be reduce
in Tesla (Nabulsi, 2017). Tesla has come up with a very good product for the market which is
going to be very helpful for the organization to get more customers in the company which is
going to increase the profit margins. This is going to save the non renewable resources and use
the renewable resources which are electrical cars. This is going to reduce the pollution in the
world as well which is good for the company and the customers as well. All the automobiles in
the industry will shift to this product sooner or later but till then Tesla will have experience and
will be able to lead the industry.
Tesla has always thought of the future which is going to be very helpful for the company.
The company will not be able to meet the expectations of the youth with the product because the
luxury in the model is missing which has to be improved so that the company can capture the
market even better (Azarmi, 2016). The company has improved the product a lot which is adding
comfort in the car and battery which can last for a long run. Carbon footprint in the company has
reduced and the company has been disposing off their waste in a systematic approach so that the
environment can be saved by the company and this is another step which has been taken by Tesla
so that there is a better functioning of the organization.
CONCLUSION
From the above report it can be concluded that there is a need of innovation and invention
in all the organizations so that there is a better functioning which is going to make the
organization have a better market share. Innovation can make the organization match the
expectations and demands of the customers which is going to make the profit margins increase of
the organization.

REFERENCES
Books and Journals
Azarmi, D., 2016. Factors affecting technology innovation and its commercialisation in firms.
Bandarian, R., 2018. Developing a strategic research and technology management model based
on strategic entrepreneurship approach. International Journal of Research, Innovation
and Commercialisation. 2(1). pp.58-76.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Ferasso, M., 2018. The representativeness of exportations for local development: evidences from
family-owned SMEs. International Journal of Research, Innovation and
Commercialisation. 2(1). pp.38-57.
Huang, Z., Farrukh, C. and Shi, Y., 2018. Commercialisation journey in business ecosystem:
From academy to market. In Entrepreneurial, Innovative and Sustainable
Ecosystems (pp. 129-148). Springer, Cham.
Loya, M.I.M. and Rawani, A.M., 2016. Strategic framework for commercialisation of fly ash
innovations. Technology Analysis & Strategic Management. 28(5). pp.555-567.
Nabulsi, S., 2017. Innovation, collaboration and commercialisation. Australasian
Biotechnology. 27(1). p.17.
Rus, D and et.al., 2019. Workplace innovation: a review and potential future
avenues. International Journal of Technology Transfer and Commercialisation. 16(3).
pp.208-227.
Schot, J. and Steinmueller, W.E., 2018. Three frames for innovation policy: R&D, systems of
innovation and transformative change. Research Policy. 47(9). pp.1554-1567.
Svensson, R. and Persson, L., 2016. The advantage of selling an invention instead of turning it
into a business. LSE Business Review.