Unit 8 Report: Innovation, Commercialization, and F-Drone Case Study

This report analyzes innovation and commercialization strategies, focusing on a case study of F-Drone, a company specializing in drone logistics. It begins by defining innovation and commercialization, highlighting their importance and differentiating them from invention. The report then examines the impact of organizational vision, leadership, culture, and teamwork on fostering innovation and commercialization. It delves into the 4Ps of innovation (Paradigm, Product, Process, Position) and explores the application of an innovation funnel. The report also discusses frugal innovation, new product development (NPD), and the creation of an innovative business case for F-Drone. Finally, it addresses the development and retention of intellectual property (IP) within the company. The report covers topics such as the 7 sources of innovation, and how innovation can be shaped by organizational elements.

Unit 8- Innovation and
commercialisation

INTRODUCTION
Innovation refers to improvement in an existing products by new techniques and
establish successful ideas in order to create new value. Whereas, commercialization is a process
of bringing new products and services to market with an aim to enhance the production and sales
of a business. In the same way, current study will shed a light upon importance of innovation
and its advantages for a company. The report is based upon a case study of F-drone who offers
drones to their customers at affordable rates. The aim of a company is to become a leader of
heavy payload drone logistics for every industries within next 5 years.
The present report will explain innovation and its importance for quoted firm, also
determine the difference between innovation and invention. Further, study will explain how
organizational vision, leadership, culture and teamwork will shape an innovation as well as
commercialization. It explains 4P's of innovation and examine the usage of innovation funnel
pertaining to the innovative ideas. Also, it describes the importance of frugal innovation within
companies by quoting examples and then examine the process of new product development
(NPD) for a commercialization. Moreover, study build an innovative business case for a
company and then apply tools for developing as well as retaining Intellectual property (IP).
Presenting innovation and its importance by comparing the same with invention
Innovation is all about development and application of ideas that assists to improve the
existing products/services within an organization. It can be related to introducing new
technology, changes in existing products or many more (Zimmermann, Ferreira and Moreira,
2019). Therefore, it is stated that to gain competitive advantage, company focused upon
innovation which in turn boost its productivity, growth as well as profitability. The importance
of innovation within F- drone is as mentioned below:
Increase productivity: Innovation assists business to enhance the productivity of a
company because it focused upon those things which affect the growth of a business. Therefore,
failing to improve products and service can put a business at risk of losing customer. That is
why, companies are focused upon innovation because it helps to improve sales and customer
relationship. Whereas, invention is all about to offer new product and services within an
organization and there is no surety of improve in productivity. Similarly, F-drone is also focused
to introduce new drones (changes in existing one) in market which might affect the sales in
positive manner.
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Reduce waste and cost: Innovation also help to reduce waste within business and this in
turn improve profitability as well (Shin, Kim and Yang, 2018). Such that every company's goal
is to constantly remove the wastage and improve profit margin, so focusing innovation is
considered the best way to solve business problems. In comparison with invention, it provides
new product which might leads to waste and increase in cost as well. This improves customer
service and increased competitiveness as well.
Boost market position: Innovation help business to anticipate changing trends within
market quickly and provide opportunities to present differ from their competitors. This is come
by analyzing the market trends, identify the need of customers and implement strategy
accordingly. Thus, through innovative ideas, F- drone also spot opportunities which in turn
improve market share as well.
Improve employee relation: An innovative workplace is stimulating for workers, such
that employees have to use their critical thinking abilities in order to produce innovative items
(Zhu, Habisch and Thøgersen, 2018). Along with this, employee prefer to work in a team so
that it assists to improve the working culture and maintain employee relation as well.
Difference between innovation and invention
Innovation is a process that helps to turning a new concept into commercial use, whereas
invention is all about creation of new ideas or concept for a business. Invention is a practical
implementation of a new idea, but innovation is original idea that is working in theory. Apart
from this, marketing, technical and strategic skills are needed for an innovative idea and
invention required only technological and knowledgeable skills are required. Innovation can be a
combination of a various product and process while invention is deal with single product and
process. When company felt that there is a need of improvement in an existing product,
innovation occur and in the case of invention, new idea strikes by the experts that can be
introduced by a firm. For example, in innovation, Introducing payload drones by F-drone with
an aim to provide new items that helps to enhance the profit of a firm. In the case of invention
Implementation of a new technology that may assists company to improve business operations.
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M1
As per the Drucker 7 sources of innovation, there are different sources used by the
company that assist to provide new opportunity to raise the profit of a firm. These are as
mentioned below:
Unexpected sources: Unexpected situations is considered one of the powerful influence
which inspire an organization to think in different manner. With the help of this source like
globalization, chances of failure increases and there is no assurance of success.
Incongruities: It is used when reality does not meet with an expectation, at this time
company discover new perspective. In this, company considered customer's expectation in order
to generate new ideas (7 sources of innovation, 2020). This is not used by many companies
because there is no data required to develop idea.
Process Needs: Through this, company identifies the weak point within an organization
and through innovative idea, company is able to improve the performance. In this stage,
innovation is based on task-focused rather than situation. Therefore, F-drone is also uses this
source in which it innovates new idea in order generate profit and satisfy the need of customers.
Industry and market changes: It is necessary for every company to analyze the need of
an industry in order to explore new ideas that helps to meet the changes effectually. This in turn
assists to adapt the changes quickly and sustain the brand image at international level. This is
deal with Pestle and competition that encourage company to innovate continuously.
Demographic changes: it is all about changes in population, size, age structure,
employment and educational status. Therefore, these are the most reliable indicators of future
trends that helps to provide opportunities for an innovation. Thus, it is all depend upon the need
of customers who buy products by considering these indicators.
Changes in perception: The current era is keep changing i.e. evolution of technology
might affect the business performance in opposite manner. It is deal with the technological
factor under Pestle analysis which force company to offer innovative product.
New knowledge: Gaining new knowledge in any field is a source of innovation which is
a sign of progress.
P2 Organizational vision, leadership, culture and teamwork shaping innovation
For managing innovation, it is very essential for business to manage innovation as it
leads to success and growth. For this vision of company plays an effective role in innovating
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within company. In innovation vision of company plays a major role in development and growth
of company. The reason underlying this fact is that vision of company assist in providing
direction to employees where they need to bring innovation. For instance, the vision of F- Drone
is to offer a large scale and on- demand air delivery of goods with help of innovative drones
which can fly even heavy load. Now this vision of company motivates employees to work in
more effective and efficient manner. This is particularly because of the reason that when
ultimate goal of company is to make new and innovative drone then this will eventually result in
employees doing innovation as they have to attain mission and vision of company.
The culture of F-Drone is based on its future goals and the objectives which the entity
desires to accomplish. It is important to understand that the culture has the potential to change
the shape of the nation and its viewpoint. But in contrast to this, it is imperative to know that the
impact of innovation in one nation will differ from another as one can take it to be positive while
for other it can be void.
From the various forms of management and leadership styles, the F-Drone have
implemented democratic leadership style. It is because of the reason that under this style, leaders
would be in the position of making most of the opportunities which it can easily grab pertaining
to the target market. This results into bringing creativity.
The employees of F-Drone are highly specialized in the various field which is of much
value to the company in terms of improving and commercialization of the items. The groups
within the organization works as per the set targets and goals through the way of encouraging
creative and innovative thoughts pertaining to the new product. In this way, F-Drone is
accomplishes success in an effective way. Thus, teamwork plays a key role in innovation and
commercialization.
LO2
P3 Examining the 4Ps of innovation and the use of innovation funnel
Innovation deals with the procedure through which the administration creates new ideas
pertaining to the development of the new product and services. The 4Ps of innovation refers to
the innovation mix which is utilized by the business entity, a detailed explanation is given
below.
Paradigm: It accounts for the planned process through which the organization faces the
change of implementing innovative ideas pertaining to how all the jobs will be carried out in
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regard to the new challenges (Mat Jalaluddin, Othman and Harikrishna, 2019). F-Drone requires
planning on how to do the business under the situation of change and for this, F-drone providing
new ideas and facilities to its customers.
Product: This refers to the main item which is being offered to the clients which is
valuable to the organization if it has the capability to add value to the business. In the case of F-
Drone, it has launched the new drone which will be able to products valuable services to its
customers and bringing competitive advantage to the business. Thus, the product is the main
item to the of 4Ps through which the innovation and commercialization is done.
Process: It refers to the system or the procedure by which the product is offered to the
clients and this can be a critical content since if the delivery procedure is long it leads to
reducing the possibleness of success and if the delivery procedure is shortened then the success
will be enhanced.
Position: This is dependent on one's perception or in other words by which the
organization wants to accomplish the position. F-Drone desires to grab large scale and on-
demand aerial transportation of goods market.
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Il
lustration 1: (Source:
https://innovationmanagementsite.wordpress.com/2015/09/07/innovation-
space-4ps/)
Innovation funnel of F-Drone
It accounts for the process of developing new ideas through the way of describing the
steps by which the idea can lead to providing better and improved services to its customers.
There are various types of ideas and thinking and in addition to this, there are different types of
funnels through which the idea can be driven and fully processed. This helps in effectively
accomplishing the desired goals and objectives (Andrusiv and et.al., 2020). The first steps in
case of F-Drone pertaining to the innovation funnel is the collection of information, which deals
with how the suggested idea will be best fitted for effectively meeting up with the needs and
demand of the customers. After this, the process of screening the idea from the bulk of ideas that
cropped up which is considered to be the right for the idea execution. Then the question arises
which are the best endurable to the organization's outcomes and the opportunities and then
finally implementing the idea into action.
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Incremental innovation accounts for the innovation procedures that seeks to improve the existing
systems and products for making them better and faster. The radical innovation is focused on the
developing new technologies and business models that changes the world.
P4 Development in innovation frugal innovation in the context of organization with example
The frugal innovation is the process of invent of the product and services idea in respect
to the scarce resources of the nation. It is dependent upon the various factors such as the
political, environmental, social and so forth, which are basically the driving force of the frugal
innovation. These factors or the aspects are very important in shaping the innovation process
(Teece and Linden, 2017). In addition to this, it is also considered as the process of producing
the product through the way of reducing the expenses at a low level which will help the business
in attaining the position of win-win situation through the way of decreasing the poverty from the
society and the institution as well.
Along with that, it is also provides importance to the product or service by providing it to
the consumers or the clients at the lower price and it acts as the procedure of minimizing the
expenditure of product and the difficulty pertaining to the production process and mode by
which the product is reached to the end consumer which is not right for the well-informed
buyers as they are leats interest in the complex process. In case of F-Drone in respect to the
frugal innovation process, it is essential for the company to take into account these factors which
are critical in nature (Hillemane, Satyanarayana and Chandrashekar, 2019). For instance,
Samsung which is a renowned brand within producing different smart phones for its customers
in India and UK. The company has followed frugal innovation system as the customers of these
countries are very contrary in respect to the preferences, demands and choices. In respect to the
customers of UK, they are highly well-informed and enlightened, therefore, Samsung launched
the phone in UK by implementing new and complex features and functions, and they are willing
to expense more than India. In respect to India, the customers are poorer than the customers of
UK, therefore, in India it is beneficial to use frugal innovation for carrying out the business by
developing products with the least complexity and easily approachable to the guiding road map
for the citizenry of India. On the other side, people residing in India are less literate and wealthy
for supporting the cost of new production, thus, in case of frugal innovation, Samsung helps in
entering into vast marketplace of India. F-Drones by implementing the frugal innovation would
be able to effectively evolve on the new affordable products supply domain over which the new
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scale potentialities have to be worked on. Through this, F-Drone will be able to develop the
goodwill among the new customers base by targeting the training skills and increasing the
efficiency towards the competitive industry. The company has taken into consideration the
principles of frugal innovation and based upon which initiated its development and innovation. It
has taken into consideration, engage and iterate and the flexibility of the assets, developing
sustainable solutions, determining the customer behaviour and thus, making innovative trends.
M2
The innovation funnel is bifurcated into 3 segments which initiates from the opening of
the funnel pertaining to the idea of development, the second step is in respect to the concept
development and the last is the narrow segment which is related to launch (Chirazi and et.al.,
2019). F-Drone can utilize the innovation funnel for its business expansion and growth by first
developing the new idea which is needed to be created while the second step is in regard to the
development which involves the discovering of new product in relation to the idea and then
finding the scope which is supportable to the product and the last step within the narrow segment
which incorporates structuring the business case for the company and then processing and
testing the goods and in ending introducing of the product.
M3
The role of frugal innovation pertaining to the F-organization is being done by F-Drone
which is expected to be highly profitable if it is used for it. The organization can easily put
forward the survey and collect feedback from its clients and customers in respect to the new
product or innovation and determine the point at which it can cut the cost (Hossain, 2020). With
the help of feedback collected, the organization would be able to utilize it to point out the
various ways through which it can minimize the cost and expenses of its product at various
levels. This will help in enhancing the goodwill of the company as well.
LO3
P5 Importance of commercial funnel and the application of the New Product Development
(NPD)
The commercial funnel is referred to as the marketing tool with the help of which the
business entities find, qualify and commercializes its goods to its consumers. It is basically the
breakdown of the entire consumer journey starting from the awareness stage to the ending
purchase stage. It is the systematic method of grabbing the consumers towards the product and
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convincing them to purchase it (Van Norman and Eisenkot, 2017). The commercial funnel will
assist F-Drone in forming a competitive strength in regard to the wide scale commercial growth
and expansion, in this, NPD steps is having a huge influence within the organization in terms of
product development.
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Illustration 2: (Source: https://fairmontconcepts.com/3-funnel-segments-of-
your-commercial-engine/)
NPD accounts for the process in which the wide range of new products is brought within
the market in order to implement change and grabbing the customers. It simply refers to the
processes and the procedures which are competitive in nature which differs as per the
preferences of the customers. The rapid up-gradation in the technology and emergence of
innovation leads to the imperative growth in order to capitalize the new opportunities for the
higher growth. The application of NPD for commercialization in innovation will result into new
market positioning and the different stages in relation to it are expressed below.
Inception of idea
In this stage, the firm determines the product's functional and performance needs as per
the buyer's personas. Then the customers needs and the innovative functionality designing ideas
are stated and further in-depth evaluated in order to find out the right solution in respect to the
market needs (Isckia, De Reuver and Lescop, 2018). F-Drones under this, will work on
determining the key needs and wants of the target customers based upon which the new idea is
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