Innovation and Commercialization Report: Strategies and Analysis

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on their critical role in business growth and development. It begins by highlighting the importance of innovation and how it contributes to competitive advantage, attracting customers, and entering new markets. The report explores how organizational culture, vision, and teamwork shape innovation. It then delves into the 4 P's of innovation (Process, Product, Position, and Paradigm) and the concept of frugal innovation, illustrating how companies can reduce complexity and costs to increase revenue. The report also explains the importance of the commercial funnel and the new product development (NPD) process, including strategies such as awareness, interest, action, and decision, and the generation of value. A case study on Trunki, a children's accessories and suitcases company, demonstrates how to implement innovation in a plastic-free product line. The report concludes by discussing various tools and strategies for retaining and protecting intellectual property (IP), such as patents, copyrights, trade secrets, and trademarks, ensuring that innovative ideas are safeguarded from competitors.

Innovation and
Commercialization
1

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Innovation and its importance to organisation.......................................................................3
P2 How culture, vision, teamwork, shape innovation.................................................................4
P3 4 P’s of innovation..................................................................................................................4
P4 Development in frugal innovation..........................................................................................5
P5 Importance of commercial funnel and NPD process..............................................................6
P6 Innovation case.......................................................................................................................7
P7 Tools to retain and protect knowledge...................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
2

INTRODUCTION
Innovation in business helps in growth and development. It brings changes in operational
process or in products through which competitive advantage is gained. Also, it is useful in
attracting people and entering in new market. Successful innovation leads to bringing new
technology, techniques, etc. in process (Abdul Razak, 2016). The report will describe about
importance of innovation in business. Also, how culture, teamwork, etc shape innovation.
Moreover, 4 P’s of innovation are explained along with frugal innovation. In addition,
importance of commercial funnel and tools used for protecting IP will be discussed.
P1 Innovation and its importance to organisation
Innovation refers to producing something new or making changes. For a business
innovation support in competing with rivals and sustaining for long term. Also, it brings
creativity in product or way of performing tasks. Through it, employee performance is enhanced.
The importance of innovation is as follows :-
Modern and advance tool – Innovation provide modern and advance tools for employees to
work. With this their efficiency is improved which is useful in working in effective way.
Alongside, by working with advance tools they gain knowledge and learn skills. Moreover, tools
are used to reduce errors and maintain quality of work. Thus, new goals are developed and
accomplished.
Building future – Innovation helps in building a future for business. It means to survive in
market for long term and establishing a large customer base. Besides, organisation is able to gain
competitive advantage as they come up with something new (Kim, 2016). Also, by developing
new products high revenue is generated.
High quality goods- When innovation is done it benefit in improving quality of products. The
business process or method are changed. It is done by identifying loopholes and eliminating
them. Beside, resources are utilised in efficient way. Hence, higher quality of goods are
produced.
Distinguish between innovation and invention
Innovation Invention
It means developing a new product for first
time
It means occurrence of new idea for product.
3

It requires technical and strategic knowledge It requires scientific skills and knowledge
For example – Tesla new electric car For example – OLA business concept
P2 How culture, vision, teamwork, shape innovation
In order to successfully implement innovation, it is necessary to maintain positive culture,
team work, etc. this is because it enables in implementing change in effective way. Moreover, in
company vision, leadership, etc. are elements through which innovation is shaped.
Innovation require effective team work to be followed. It enables in performing task in different
way (Agwu, Logvinovskaya, and Phetchpinkaew, 2017). Team work plays crucial role in
shaping innovation. Each employee is assigned different task or duties. Furthermore, different
goals are formed and allocated to team. In that, member contribute by performing activities and
tasks. However, teams are formed in various department on basis of function and innovation
type. Along with it, diversified people contribute in unique way. So, this leads to bringing
efficiency in accomplishing goals and objectives.
One of the major factors which can help in shaping the innovation of the company is
leadership. Type of leadership style which is adopted by the company plays an important role is
shaping of innovation in the company. Innovation may result in change in the organization with
in processes, methods, procedures, duties and responsibilities of employees, etc. which may lay a
huge impact on the employees and the business operations. So, it is leaders of the organization
which can help the company in bringing and establishing this change in a workplace that can
help in shaping the innovation of the company.
P3 4 P’s of innovation
There are basically for 4 P’s in innovation that is been implemented in it. Here, many
companies have done innovation with different types of P’s. An example can be taken of Apple.
Furthermore, there are two categories in it that is radical and incremental. When new products
are developed it is called radical. On other side, change in procedure, process or method is
known as incremental. The radical approach is mostly used by business. 4P’s are as follows :-
Process – As name depict this innovation is related to bringing change in process or method. It is
done to improve productivity and attaining goals. Here, errors and faults are identified in process
and then that area is improved (Paudel, and Yan, 2016). This change in brought to make things
4

easy and get it done in effective way. It entirely changes overall process. New tools and
equipment’s are used.
Product – this P is related to development of new product and services. The main purpose is to
provide new product to people. Also, to generate more revenue. This type of innovation helps
business to gain competitive advantage and compete with rivals.
Position – in this organisation the identify new markets to expand. It is done in order to reach
target customers and offer them products. Thus, market research is conducted to find out more
customer. Through it, sales and revenue is increased. However, large customer base is also
developed.
Paradigm – This P suggest that innovation is done for future. Here, company set short and long
term goals. It includes implementing innovation in process, methods, etc. that gives insight of
how and where innovation can be done. Along with it, new products are also developed.
Innovation funnel is process of idea generation. There are many steps followed in it that
are mentioned as :-
Mouth of funnel – In this phase the ideas are gathered. Here, solution of problems is identified
and then innovation is done (Dziallas, and Blind, 2019). The ideas shows what type of
innovation can be done and how it will benefit in future. Here, normal ideas are dropped.
Narrow funnel – At this stage ideas are evaluated with particular goals and objectives. There
are several criteria followed in it. Besides this, many other things are included in it that is cost,
risk, time, etc. required in innovation.
Narrow part- it is last stage where idea is executed. The new product is launched or process or
method is changed. Therefore, the goals are accomplished.
P4 Development in frugal innovation
It is necessary for business to maintain smooth flow of operations so that productivity is
improved. In order to do so, frugal innovation can be done. It refers to reducing complexity in
business and decreasing production cost. Thus, it is useful in increasing return on investment and
revenue. Trunki deals in children accessories and suitcases. It offers various types of products
such as swimming bag, neck rest, etc. so, by making change in product the company will be able
to expand. For this various strategies can be used. Furthermore, with help of frugal innovation
cost of product can be reduced. There are many real life example which is as follows :-
5

Apple used this to reduce cost of their product. It enabled them to provide high quality
products to people. For this they used IOS software in Ipod, laptops, etc. so, it resulted in
creating a distinct image of company among its competitors (Zahra, Kaul, and Bolívar-Ramos,
2018)
Similarly, Trunki can also provide new products like children cloths and other
accessories. It will help in attracting new people and generating sales.
P5 Importance of commercial funnel and NPD process
Commercial funnel refers to process which allow customers to buy product. It helps in
understanding their behaviour and overall process of purchase decision. The organisation
determines interest of customers and then develop strategies. It is useful in attracting new
customers in the market. Moreover, decisions are taken to make them aware and reach target
audience. Basically, there are 4 strategies in it that is awareness, interest, action and decision. For
each one various approach are used. It enables in effective marketing of products in different
market. However, the approaches are as defined as :-
Awareness – Here, awareness of people is generated through their attention. It is done via
marketing and promotion of products.
Interest – In this interest of people is taken which makes it easy to determine their way of taking
decision to purchase product.
Action- this is a phase where customer take relevant and final action to buy products.
Decision – in this customer gets ready to buy products that business offers to them at best
suitable price (Setiawan, and et.al., 2018).
It has been stated that new product development is common strategy for company to
grow. It enables in attracting new customers. Besides, the elements are described below :-
Generation of value- NPD is a way to generate value in a product or service. It is done by
adding new and unique features in product. So, customers also get attracted if they find out that
something new is offered by Trunki. Hence, it leads to rise in market value of business.
Long term growth- This is another element of NPD. Here, company focus on long term growth
by developing new products. Furthermore, it helps in retaining customers for long time. With
help of it business is able to compete with others.
6

Rise in living standard – NPD provide advance and new products to people to fulfil their needs.
In addition, NP consists of additional features that attract people. Therefore, in this way living
standard of people rise. They start demanding new products.
P6 Innovation case
It is necessary for Trunki to develop new products without use of plastic. For this they
require innovation either in product or process. The company is offering plastic free products to
children of age 2-8 years (Kim, and et.al., 2019). This will allow customers to buy them for their
children. However, company can also offer gift to customers on trail basis. Therefore, Trunki is
going for innovation where they will not use plastic. Thus, it will allow them to go for plastic
free goods. In market there are many companies providing those goods. So, in order to survive in
market, it is necessary for them to go for innovation.
By offering plastic free goods, high revenue can be generated. It will also result in decrease
in cost of product. Moreover, they can attract more customers who can purchase that. It will be
useful in creating awareness among those parents who want plastic free goods.
P7 Tools to retain and protect knowledge
In innovation new method or process is implemented. New tools and techniques are used.
So, it becomes essential for business to protect knowledge so that rival’s do not copy it. This
benefit them in developing new products. To protect IP basically computer and server are used.
But apart from it, various other tools are available as well that are described as :-
Patent – They are basic IP right which allow company to protect their innovation. It restricts or
prevent other company to do similar type of innovation. Patent can be done in three forms that
are utility, design and service. The utility is that patent which cover process, ingredients, etc.
Copyright – This is not related to business but it provides right of work such as art, picture,
music, etc. the other person can take permission to copy work from copyrighter. For this a
specific fee is to be paid to copyrighter. But only he or she is having right to create, modify, etc.
of that work (Lau, and Lo, 2015).
Trade secret – with help of it business can prevent their unique symbol, sign, design of logo,
etc. through it, people are easily able to distinguish product or service. So, trade secret prevent
other firms not to copy that
7

Trade mark- They include formula, process etc. of producing a product or delivering service.
For instance, algorithms. Besides, it consists of steps or procedure that is used by business. Thus,
it prevents other firms to copy that steps.
So, by using all these IP tools businesses are able to protect their confidential info. It also
provides them legal right to use new formula, ingredients, process, etc. in operation. Besides, IP
restrict competitors to copy those method or process (Ding, Eliashberg, and Stremersch, 2016).
Through it, they are able to create a distinct brand image in market. Moreover, innovation can be
either radical or incremental.
CONCLUSION
It can be summarised that innovation leads to changing process and developing new product.
The importance of innovation is it provide high quality products, new and advance tools, etc.
Also, the 4 P’s of innovation are process, product, paradigm and position. Moreover, the NPD
process includes awareness, interest, action and decision. In addition, there are many strategies
followed in it like generating value, long term growth, etc. also, there are different tools used by
business to protect their IP like patent, trade mark, copyright, etc.
8

REFERENCES
Books and journals
Abdul Razak, A., 2016. Advancing social relationships in innovation networks and their
commercialization success in Malaysian public universities (Doctoral dissertation,
University of Southern Queensland).
Agwu, U.J., Logvinovskaya, A. and Phetchpinkaew, G., 2017. Innovation and commercialization
potential of university-developed arctic ice-tethered platforms. A case study of research-
based technology (Master's thesis, UiT Norges arktiske universitet).
Ding, M., Eliashberg, J. and Stremersch, S., 2016. Innovation and marketing in the
pharmaceutical industry. SPRINGER-VERLAG NEW YORK.
Dziallas, M. and Blind, K., 2019. Innovation indicators throughout the innovation process: An
extensive literature analysis. Technovation, 80, pp.3-29.
Kim, M., and et.al., 2019. Bridging the Gap in the Technology Commercialization Process:
Using a Three-Stage Technology–Product–Market Model. Sustainability, 11(22), p.6267.
Kim, Y., 2016. Essays on Innovation and Technology Commercialization (Doctoral dissertation,
UC Berkeley).
Lau, A.K. and Lo, W., 2015. Regional innovation system, absorptive capacity and innovation
performance: An empirical study. Technological Forecasting and Social Change, 92,
pp.99-114.
Paudel, N.R. and Yan, Y., 2016. Application of copper thiocyanate for high open‐circuit voltages
of CdTe solar cells. Progress in Photovoltaics: Research and Applications, 24(1), pp.94-
101.
Setiawan, A.A.R., and et.al., 2018. Innovation readiness assessment toward research
commercialization: Case of surfactants for food processing. International Journal of
Innovation: IJI Journal, 6(2), pp.180-193.
Zahra, S.A., Kaul, A. and Bolívar-Ramos, M.T., 2018. Why corporate science commercialization
fails: Integrating diverse perspectives. Academy of Management Perspectives, 32(1),
pp.156-176.
9