Innovation and Commercialization Strategies: F-Drones Case Study

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on the case of F-Drones. It begins by differentiating innovation from invention and highlights the importance of organizational vision, leadership, culture, and teamwork in fostering innovation and commercialization. The report then delves into the 4Ps of innovation mix (paradigm, product, process, and position) and the utilization of the innovation funnel to shape ideas. It also explores the concept of frugal innovation, its applications, and examples within organizations. Furthermore, the report emphasizes the significance of the commercial funnel and the New Product Development (NPD) process. A business case study of F-Drones is presented, followed by a discussion on tools for protecting intellectual property. The report concludes with a summary of key findings and recommendations.

INNOVATIONS AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Innovation and its importance to organizations in comparison to inventions........................3
P2 Organizational vision, leadership, culture and teamwork in shaping innovation and
commercialization........................................................................................................................4
P3 Innovation mix 4P's and utilization of innovation funnel to recognize ans shape up ideas of
innovation....................................................................................................................................6
P4 Developments of frugal innovation and examples to identift its uses in an organization......7
P5. Importance of Commercial Funnel and NPD Process - ........................................................8
P6. Business case of F-Drones...................................................................................................10
P7. Tools to protect intellectual property...................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation and commercialisation are two critical aspects that every organisation needs to
regularly integrate in their working and systems in order to remain competitive and ahead in the
race towards excellence (Bessant and Tidd, 2016). F- Drones, with its unique idea of conception,
is working towards development of transition drones that will be providing services of their own.
The present report will evaluate the importance that innovation has over invention and
contribution of vision and leadership towards it. The report will also identify what are the 4 P’s
of innovation and concept of frugal innovation mapping its criticality in innovation. The report
will further ascertain the importance of commercial funnels and New Product Development and
further, the multiple tools which can be used to retain intellectual property will be identified.
MAIN BODY
P1 Innovation and its importance to organizations in comparison to inventions
Innovation
Innovations are the plans and procedures of new ideas which are turned into action plans
and are implemented and developed in businesses to obtains success (Kahn, 2018). It is the
essential concerns of F.drones and its role in the development and coordination is inviolable. It
includes tackling and handling the activities that are required to introduce something new and
modern as per the requirements of new generations. Innovations develop effectiveness to achieve
competitive advantages and hold great position in the scale of economy (Yun and et.al, 2020). It
can help in terms of economic growth and jobs and it is estimated that the size of the worlds
economy could be double by 2050.
Importance of innovation
Innovations are essential to because it can effectively achieve goals of business growth. It
supports in maximizing the productivity and thereby increases the required profitability (Bag,
Gupta and Telukdarie, 2018). Innovations respond effectively to disrupters of industry and
maximize market share and respond quickly to the external challenges by developing the
efficiency of technological as well as human resources to do activities uniquely.

Comparison of innovations importance and inventions.
Innovation Invention
Innovations is the act of improvement to the
existing product or making a contribution that
is significant to a current product.
Inventions are the introduction of a procedure
for the first time or creation of brand new good
(Watson, 20170.
Concept of this is to make practical
implementation done for adding value to
something which is already present.
Concept of invention is to create an original
idea to work on a theory.
Innovation requires strategic, marketing and
technical skills.
Inventions require scientific skills.
Innovation occurs when an organization feels
to make improvements and it is concerned with
combination of different procedures and
products and its activities are limited to R&D
departments.
Invention occurs when a idea strikes in
scientist mind. It is concerned with single
process or product and its activities are spread
among the organization.
P2 Organizational vision, leadership, culture and teamwork in shaping innovation and
commercialization
Commercialization
It is the procedure of transforming knowledge, inventions and ideas to higher wealth for
businesses (Aarikka-Stenroos and Sandberg, 2012). It is a subset of the broad procedure of
innovation. it deals with the gains of finance by launching the new goods and services within the
market. It involves sales, customer support marketing and accounting. Commercialization helps
F.drone in dealing with marketing standard and planning. Some points to discuss the criteria of
innovation and commercialization in F.drone.
Vision

Every organization has its own vision that describes product is required to be innovated
and commercialization of innovated product has to done. F.drone vision decides its growth and
think about some modification and innovations should be done that impacts on innovations range
then the process of commercialization is done easily. This vision terminate and direct the
invention and innovation process of F.drone.
Leadership
It is the way of organizing F.drone according to its objectives and goals. Organization
leaders are aligned for specific purposes and helps organization to achieve success by improving
behaviour and norms of an organization. Different method of leadership are acuired in
organizations. So, by using autocratic leadership F.drone can obtain success in innovation in
order to process commercialization in the industry.
Organization culture
These are the aggregate attitudes of workers, norms and values of an organization that are
preserved for years. It sometimes changes because the cultural values are different in every
countries. Difference in culture puts impact in the process of innovation and commercialization
of a good or service to shape them effectively.
Team work
Team work is for growing company's efficiency and maximize its productivity. It brings
new ideas and support more people to engage in the procedure of innovations and
commercialization to meet all the company's objective.
Some best sources of innovation which supports F.drone to foster and develop its environment
and culture of innovations occur unexpectedly and exploitation of this occurrence is required
because success is the unexpected symptom of innovation that is also a source of inspiration.
Innovative unexpected ideas can build more profits to F.drone and helps in increasing its growth.
Innovation comes from the source of congruity that means the sense of F.drone to fit its process
in innovative system because if there is a discrepancy between present and expectations an
opportunity suddenly occurs. A critical process that led to substantial improvement is also a

source of innovation. Decision of market structure describes its process of commercialization.
Modifying demographics are the richest source of idea to develop new goods and services
(Rogers, Lambert and Knemeyer, 2004). Sources of innovations includes making modifications
by learning new knowledge of technologies that completely change the market and industry
could have the highest lead for commercial developments. These sources are rich and can create
innovative thinking in f.drone.
P3 Innovation mix 4P's and utilization of innovation funnel to recognize ans shape up ideas of
innovation
Innovation is to deal with the procedures that create new thinking and ideas for
organizations. 4P's innovation mix is used to manage innovation and innovations are classified
by Tidd and Bessant that are paradigm, product, process and position (Shams, 2018).
Paradigm
Using innovation of paradigm in organization is related to the model that redefines the
methods of F.drone to do its business and to improve the methods of techniques in organizations
(Howaldt, Domanski and Kaletka, 2016). Paradigm establishes what things must be done to
make modifications or innovation in their current goods and services.
Product
This p of innovation mix includes criteria of improvement describes that F.drone offers
and improve its existing product by using techniques of innovation to replace with the innovated
product. Increments in product can successfully add productivity of an organization in
innovation terms.
Process
Process improvements or modifications includes process of manufacturing process of
product and its process of supplying. Hiring people and giving training to them is also included
in this process (Najafi-Tavani, and et.al, 2018). It is also a scope of consideration for better
recognising efficiencies of processing methods.
Position

Innovation in positioning can not considerable to influence the functions and structure of
product. This innovation mix re-position the existing product perception for consumers in the
specific context (Piazza and et.al, 2019). It is the major part innovation sector that decides
f.drone process of framing the product in the market. All elements such as, public, employees
and users.
Above four P’s of innovation create the product and its enhancement in a way of betterment for
the F.drone. In fact this mix symbolises all questions and their answers in one framework. These
four P’s covered all the concerned parts that are necessary in the process of innovation.
Innovation funnel
Innovation funnel describes the procedure to develop the process and product. As its
name indicating funnel defines the entire process to build and meet marketing needs of the goods
and services (Anzola-Román and et.al, 2019). Funnel of innovation act as a system of refining a
product launching and innovation. Innovation funnel includes three major steps in its journey of
changed product and services. The first step is to involve the wide mouth of the funnel that
means to gather and collect the more and more information about the innovation of product and
collecting more ideas that can open and develop many opportunities for product to make
innovation. Next step is concerned about the segmentation of the gathered ideas that means
screening of the gathered ideas. Further, last major step of innovation is that the chosen idea
must deliver F.drone services appropriately and meet it's all aims and objectives.
P4 Developments of frugal innovation and examples to identift its uses in an organization
Frugal innovation is referred to minimize the cost unnecessary products and organize production
of valuable products in order to achieve F.drone objectives and make higher profit. It decreases
the innovation complexity of an organization. Frugal innovation supports the organization by
utilizing many methods, it gives maximum profit from small resources to acquire the
sustainability of F.drone and remove the voids from the company (Albert, 2019). Actually this
frugal innovation works on top to bottom approach in contrary to the bottom to top approach of
standards in innovation. This is so because it gives much reliability of the products to

organizations for attaining higher number of consumers form minimum resources. Frugal
innovation is dissimilar from all other processes of innovation.
This innovation is named as frugal because it’s not confined with specific clients or consumers
but it picks up a lot range of users from the small resources. There is misconception about this
frugal innovation is that its quality is low. actually the main objective is that is use limited
resources and produces huge quantity of products by minimizing the unnecessary cost of the
items, but it does not mean it entertains and generates low quality products for users and its
consumers. In fact no organizations wants to harm its reputation in the market and among its
customers.
Frugal innovation has different names which depicts its working like reverse innovation,, cost
reduction innovation, frugal engineering, resource-constrained innovation (Tiwari, R. and
Kalogerakis, 2016). All such defined its working and criteria. Many of the organizations whether
they are local or multinational utilizes this type of innovation that top attain the maximum profit
for their company's. Big dealers and owners of the organization's deal with frugal innovation to
satisfy their consumers. Hence, it can be defined that frugal innovation is the fragile process and
is really very innovative. It develops maximum profitability for F.drone by covering huge range
of consumers with lost cost and minimum resources with good quality.
Many companies utilize innovative funnel method to initiate an process of innovation by
collecting different opinions and ideas of R&D department and the marketers that come from
the market and behavior of consumers
filtering them step by step in order to obtain a perfect innovated product that will be
economically viable and suitable for the consumers in market. This innovation is about
delivering more value at lower costs to more consumer. It adopts extremely low cost value
without making sacrifices in the quality of the user experience a mindset of simplicity. It is about
stripping away the extra things and delivering less resource-intensive simple and hard products
with good quality.
P5. Importance of Commercial Funnel and NPD Process -
Significance of Commercial funnel :
Ease in Marketing – When the company uses sales/ commercial funnel, it can have records that
how many leads entered the funnel versus the one finally converts (Cooper, 2019). From this F-

Drones, can calculate that how many more leads are required to attain the target and then can
invest its money on various platforms that offer better returns.
Improved Conversion Rates – The empty funnel means that F-Drones need to do more targeted
marketing which will bring more leads in return. And the sales team will 360 degree view that
how every leads pass and help them to personalize and improve sales pitch.
Accurate sales estimates – F-Drones can predict many drones can sold in the future, which will
not only help in planning for the upcoming quarter but can also help in estimating projected
target for the upcoming fiscal year.
Accountability in Sales – Commercial Funnel helps in tracking every single activity and F-
Drones can now know the best sources for selling the drones, platforms, sales team who has
overstepped the expectations and the geography of most of company's paying customers.
New Product Development Process -
Idea generation – This is the initial stage for the new product development, F-Drones
continuously and conscientiously search for new product development opportunity after doing
analysis of internal, external environment by analysing market trends (Sattayaraksa and Boonitt,
2016).
Idea Screening- In the second stage, company screen all the ideas generated and differentiate
them on different basis such as poor, suitable and attractive by considering factors such as
strengths weakness, ROI, competitors product etc.
Product Concept – In the third stage, detailed idea related to product is presented in form of blue
print. F-Drones came up with the blue print of the product i.e. to build aviation- grade drones that
enables aerial deliveries to ship and offshore platform.
Concept Testing – After the product idea is developed, F-Drone test that with the target
consumer group to know what is the response of the product whether they understand and what
are their reviews and any need of improvement.
Business Strategy Analysis & Developments – In this stage, initial business and marketing
strategy are put together. Different teams in F-Drones does analysis of the techniques and
determine different strategic areas such as value of product, target market, distribution budget,
marketing platforms and long term goals.

Business & Financial Analysis – Before finally diving in development of the product company
at this stage, F-Drones investigate the financial potential and implications (Сарbас, 2019). It
ensures that it can afford the business and outlined promotional ways.
Test Marketing – This is stage is bit similar to the concept testing stage. F-Drones takes
customer feedback for the further changes if needed, this stage is utmost essential for the
company as it validates whole concept and makes corporate ready for the launch.
Commercialization – This is the final stage, where the company launches its Aerial drone by
implementing full marketing plan and production process.
P6. Business case of F-Drones
Product description:
The industry decided to build a drone which have unique and advanced technological
features which enables to carry and deliver products, tools, machinery to ships, and off the shore
locations. They wanted to build it with advanced technique that it will outrun all the available
devices in the market (Bremner and Eisenhardt, 2019). The product will be strong and have wide
capacity to store and transport heavy tools to long distances with ease. They wanted the products
design to be more like a aircraft and ability to land on moving stations like on moving ships or
cruises etc.
Promotion strategy: The advertising, promotion and marketing of their aviation drones can be
done at very high scale like between the organisations , the product launch will be done with the
combine association of government bodies and various aviation and shipping companies, big
scale machinery and infrastructure manufacturing industries, IT establishments etc. The
advertising will be done through print media and advertising on televisions and circulating ads.
on social media platforms etc.
Pricing strategy: The pricing strategy will be cost -plus-pricing, they are selling a premium
product with the most advanced technology and they can also use value based pricing as the cost
of the Ariel drone is very high and not affordable by the upper middle class segment, as this
product is basically target the business class customers (Velenturf and Jopson, 2019). As the
functionality of this drone is also focused towards the industrial use and not for the personal
utilisation.

Target market: The targeted customers for these drones are government institutions like defence
and military services, aviation industries, shipping industries, commercial organisations and
manufacturing companies.
Financial plan:
Classification Cost
Raw material £800,00,00
Licensing cost £190,00,00
Airline traffic direct cost £185,00,00
Machinery £500,000,00
Marketing £23,50,00
Engineering and maintenance £182,200, 0
Other expenses £100,000
Total £63,907,000
Source of funding:
Boos-trapping: These are the savings and personal credits. For the initial investment or in the
case of crisis these funded will come in handy.
Crowd funding: collect funds from this source can be beneficial at the starting stage as it is
process of raising huge amount of financial benefits from several commercial enterprises or
small business and firms. This can be a productive source of finance with a large possibility or
raise funds.
Angel investors: These are individual entities which provide economic support to the companies
to start their business operation and sometimes they demand for companies shares and
possession or ownership of some assets of the industry in exchange (Wang, 2020).
Bank loans: These are the easiest form of financial support a company can get and it is more
safe and secure than other options but it requires large paperwork and documentations. In bank

loans a fixed amount is lend by the bank on pre-determined rate of interest. The most beneficial
part about that is bank does not demand for any ownership and share in the profit or business.
Key performance indicators:
Marketing: They can attain competitive advantage in the market with their product
innovativeness and efficiency and as huge companies are promoting these drones and their
launch programme will also be conducted at large platform.
Sales growth: Their overall sales will increase rapidly as they have manufactured on of the best
drones in the industry which have largest carrying capacity and can cover huge distance. They
cater to the elite buyers like government entities, aviation and military and defence services and
they purchase drones in large quantity at a time (Whelan and Fink, 2016).
Innovation spendings: expenditure on the research and development of the product will turns
out to be a beneficial and advantageous in terms of profit and market acquisition for the drone.
As the industry focuses on attaining competitive advancement by outrunning their rival
companies and their technology as well.
P7. Tools to protect intellectual property
In the present era of piracy and theft of rational holding is common and it causes huge
financial loss to the organisations, because in developing a product or technology or any business
plan is very complex and consumes huge amount of time and money so to prevent that from
copying and stealing essential tools should be used by the establishment.
Copyright: It protects all the creativity and innovation the creator use to manufacture or produce
their drones designs and pattern etc. Copyrighting that creativity should be done as soon as it is
created as it will prevent the efforts and creative thinking from being copied or imitated.
Trademark: This establishment have a symbol of tail of aircraft which form a F that stand for F-
drones, industry uses various signs, symbols and tag lines which differentiate them from others

in the market and through that they connect to their customers. They can authorised their
trademarks from USPTO agency, so that no one can use their symbol for their gain or they can
use company logo for negative use and tarnish their image. Organisation is advised to designate
lawyer for their firm.
Patent: Patenting of this Ariel drone should be done on priority basis as the establishment wish
to make a drone which is highly advanced with exceptional feature and high load carrying ability
which is totally distinct from the other drone manufacturers in the market. So there will be huge
chances that competitors can stole their ideas or technologies and use them in their own
machinery and distribute in the market before F-drones. Patent registration will restrict others
from using or copying the technology and technique or the pattern a company used in their
products.
Create a non- disclosure agreement for the employees: The industry should create a written
agreement which will be signed by every single employee of the establishment that they will not
disclose or share the information regarding the processing and production outside the workplace
or also within different department personal (Zhang and et. al., 2018). If any of the worker is
found guilty and caught indulging in such activities will be fired on immediate basis and strict
legal actions will be take against them.
CONCLUSION
The research done in the report above helps in critically concluding that how integration of
innovation with the unique idea of F- Drones has helped them in gaining excellency. The report
identified the understanding that why innovation is not redundant unlike invention and further
the vision of F- Drones was also analysed to understand their positive attitude towards
innovation. Further, the entire process of new product development was analysed along with the
key role that commercial funnel plays in commercialising an innovation and the key sources of
funding for F- Drones were also critically evaluated and selected. Lastly, the multiple tools that
F- Drones can potential use in protecting their intellectual property and its unique value were
also discussed and presented in the report.

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