BTEC HND Unit 8: Innovation and Commercialization Report, Analysis

This report delves into the concepts of innovation and commercialization, using Ford as a primary example. It begins with an introduction defining these terms and highlighting their importance in a business context. The report then explores the comparison between innovation and invention, detailing their differences and significance. It further examines how innovation shapes and influences key organizational aspects like vision, culture, teamwork, and leadership, referencing models like Charles Handy's cultural model and Bruce Tuckman's teamwork theory. The report also covers the 4Ps of innovation and developments in frugal innovation. It then moves on to discuss the commercial funnel, new product development (NPD), and innovation business models. Finally, the report addresses the crucial aspects of developing, retaining, and protecting knowledge and intellectual property. The report incorporates PESTLE analysis to assess the external environment and concludes with a summary of key findings. This report provides a comprehensive analysis of innovation and commercialization within the context of the Ford Motor Company.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONATENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Comparison of innovation and invention..............................................................................3
P 2 Innovation shapes or influence vision, culture, teamwork and leadership............................5
LO 2.................................................................................................................................................7
P 3 4Ps of innovation...................................................................................................................7
P 4 Developments in frugal innovation.......................................................................................8
LO 3.................................................................................................................................................9
P 5 Commercial funnel and NPD (new product development)...................................................9
P 6 Innovation business.............................................................................................................10
LO 4...............................................................................................................................................12
P 7 Developing, retaining and protecting knowledge and the intellectual property..................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is a new idea, new imagination that is put in a device and creative thoughts so
that the company can get unique selling point. This can support an organization to achieving
great results in the market and a better place for itself within the market. The two factors which
are innovation and invention are not the same and they have different working in an organization
but the impact of the two is on the society and the market in which they happen.
Commercialization is when there is a new product or production technique has projected
in an organization. A lot of products and services which the research and development team are
producing which are not good for the practical growth of the product in market. There is a lot of
investment which organizations are doing in this department so that the organization has a
unique product in market. The products have to be customer friendly who is going for fulfilling
the various demands or expectations of different customers.
Ford belongs to the automotive sector which was founded in 1903 by Henry Ford. The
company is having its headquarters in Michigan, United States which is a public organization.
There are 190,000 people or employees putting their huge efforts within the organisation and the
net income of the organization is US$47 million.
The report would consist of the changes that has taken place in to a company or busines,
because of commercialization and innovation. A business come up with the electrical cars in the
market that requires many of methods, ideas, process and thinking etc. factors which has been
mentioned and discussed in this report.
LO 1
P 1 Comparison of innovation and invention
There is a change in the needs and various demands of different customers which needs
to be followed by the company which helps the business to gain huge competitive advantage.
There are many of features which are upgraded by Ford all the time which helps the company to
grow their sales in the market. Ford is coming with electrical cars which are the new feature
which would be very good for the growth in the sales of the company in the future and that
would also contribute to the environment and save the world from disaster. The company does
not give out default technologies to the customers and tries to give the best of services to them,
in which this thing will be positively affect to the company (Mollick and Robb, 2016). There are

a lot of companies which have already adapted to this new invention but there are a lot of
innovations which are being done in this invention so that there is a unique feature with Ford
which can attract more customers.
Basis Innovation Invention
Definition The products which are existing
or invented requires innovation
so that those products can be
improved, in which this will be
support to the company for
having an excellent market for
themselves.
Invention means discovering a
new product for the first time
within various market segments.
This is too necessary important
factor to the organizations
because it gives great
competitive advantage to this
company.
There is a requirement of
strategic, technical and
marketing skills so that the
products can be accepted by the
customers. To make the products
look better to the customers
therefore there is a need of
having innovation in the
products.
There is a requirement of
science skill because only when
there are experiments in the
organization will take lead to
the new products. Invention is
basically to provide the
customers with more options in
the products in the market
(Amiri and et.al., 2017).
All the departments have to be
involved in an innovation which
is taking place because more the
ideas the better outcome of the
product in the market is going to
be.
The research and development
team is mostly responsible for
the inventions which are taking
place. There are feedbacks taken
by all the departments so that
the product can be improved
further before it enters the
market.
There is a feeling to the product
which needs to be improved, in
The market competition in
rising in market and an

which the company can easily
achieve excellent profit. and the
sales of the particular product
can be improved so it can gain
better results.
invention can support to the
company for having a strong
competitive advantage because
invention gets in a unique
quality in the company and
more customers as well.
Customers need varieties in the
products which have to be given
by the organization which is
why invention is essential.
Ford has already got a unique
feature for branding their
products in the market which is
that the customers have safety
and luxury while driving. The
company is focusing on
providing the market with luxury
vehicles but as well as a product
which is not harm on the
environment and is eco-friendly
and is excellent for the long run
in the market (Prokopenko and
Omelyanenko, 2018). The
portfolio is very strong of Ford
which is why the product has to
be measured effectively in the
market so that there is the best
product which is being served to
the customers.
There are a lot of inventions
which are going to be present in
the electrical car which are
comfortable seats, auto
sunblind, LED headlights,
ISOFIX, air bags, emergency
breaking, etc. There have to be a
lot more inventions which have
to be made by Ford so that they
can compete with the other
companies which are getting in
this new change in their
organization. Since the company
promises to provide the best of
services the product is being
tested by the organization so
that the best can be given to the
customers. The performance of
the invention is still not up to
the mark of the organization
which is why the product has

not been launched in market.
There are a lot of frameworks which can be used by the organization to understand the
competition and, customers, external and internal which can make the organization have a better
functioning. The organization will have to find ways through which they can make the
organization have the maximum profit so that they can invest it in other factors which are going
to make the organizations productivity and function more effective.
PESTLE Political factors
The political power has to be stable in the market only then there are decisions which can be
made for the benefit of the organization. There are a lot of changes which have taken place in the
organization due to Brexit which have to be maintained. Economic factors
Ford is having a stable economic factor which is being used for a lot of changes which have
to be got in the organization for a better functioning. The GDP of the country is also improving
because there is a reduction in the unemployment rate of the country. Social factors
There is a lifestyle of the customers which is high and Ford is being able to maintain that
factor in the market for them. This is getting in a set of loyal customers for Ford and that helps
the company to have a long run and get competitive advantage as well. Technological factors
There is a requirement of a lot of technological aspect in the company because of the demand
which is increasing and for lesser of human errors in the organization. Ford is getting in the right
measures for the changes which are taking place. Legal factors
Ford is following the laws and regulations in the market effectively which is why all the
information and awareness is provided to the customers and the employees from time to time. To
have better functioning and healthy environment for workplace the employees are treated right
and there is no discrimination of any sort. Environmental factors

To reduce the environmental harm which the fuels car produce therefore Ford is coming up
with battery vehicles which work on electricity for the better experience of the customers and
makes Ford have a better reputation in the market.
P 2 Innovation shapes or influence vision, culture, teamwork and leadership
Culture
There are a lot of factors can have an impact on the innovation which is taking place on a
product like vision, culture, teamwork and leadership. According to Charles Handy there are four
stages which are present in a culture model which are person, task, role and power which would
be discussed further.
The power is in the hands of few people who are responsible for the decision-making in the
organization. Employees have been measured on their performance in the organization
accordingly those powerful people take decisions. The employees have a say within the decision-
making in the organization which is good for the ideas generation and also all the employees are
treated equally in the organization which makes the company get a competitive advantage as
well.
The employees are the backbone of the organization which has to be maintained to the
standards of the company all the time so that company’s reputation and quality of the products
are the same or improved (Wang and et.al., 2019). The employees who feel that they are unique
and have an attitude are going to make the organization have a negative impact which is not
good for a long run. The talented employees share their knowledge and skills with the team
which is a very good factor for the functioning and operating of Ford in the market.
There are a lot of roles and responsibility which are being given to the employees so that
there is a better functioning. There is a strong leader who has communication skills which make
the objectives and distribution of the task for all employees equally so company can achieve very
proper workforce (Moeslein and Fritzsche, 2017). There is a good team work without many
conflicts which makes the company have higher profit margins and that is good for the
reputation of the company.
All the employees are allotted equal task. The employees are trained and developed in the
organization so that they can match the expectations of the organization. This is good for the

company as well as the employees and leaves the employees motivated so that they finish their
tasks.
Teamwork
Teamwork theory is first presented by Bruce Tuckman which was in year 1965. This is a
very effective model to understand the team work which is required in an organization. This
model has five stages which have been mentioned below. In this stage the team meets each other
and the project is discussed with all the members of the task (Mahdavimazdeh, Falkenberg and
Stackhouse, 2020). This is done so that the group can have a direction to follow and the tasks and
responsibilities are shared to all in this stage. There are a lot of challenges in this stage like
conflicts and issues because the project managers and team members challenge each other. This
is done so that the teams give their best in the task and the organization and the employees can
benefit from it. To reduce the conflicts the team members try to understand each other so that a
common path can be drawn by the team. There has to be unity and focus of the group in one
direction which is going to make the task get completed fasters and effective in its nature. The
team members have to understand each other’s drawbacks so that they can help and achieve the
objectives. The sync is good in the team and the performance of individuals and the team
increases because of this factor (Singh and O’Hagan, 2019). The employees have to be motivated
therefore when the task is completed then there has to be a celebration from the organization so
that there is an encouragement in the employees to take another task.
Organization vision
The vision of Ford is to achieve very huge return in the market. The company is getting a
lot of innovations in the company, so this will be able to systematically run its business
operations. An electrical car is also a part of innovations which the company has taken which is a
very practical decision for the future. The team has to have synergy so that they can help the
organization to have better functioning which is going to be very helpful for a long run. The
objectives and goals will be achieved faster and quicker which is good for the organization.
Leadership
Leadership can make the organization have better be able to have better functioning and the
organization be able to have higher productivity and operations in the market. Culture is going to
make the organization have healthier environment for the organization to have so that there is
going to be a better functioning. This is also going to make the company have better quality of

products and the organization will be able to maintain their reputation in the market. There are
right leaders in the organization so that there is going to be a better functioning which is a great
factor for the organization because the sense of direction is going to be present.
LO 2
P 3 4Ps of innovation
It is very important for the organization to understand the marketing mix so that he planning
for the product can be done effectively. Marketing mix model has been given by John Bessant
and Joe Tidd which are the 4P’s of innovation. This model is also can support to the organization
to improve their products before they enter the market. The 4P’s of mix are product, position,
paradigm and process (Onken and et.al., 2019). This model will help the company to know
where they stand in the market as of today and what they should be aiming for in the future. The
competition in the market is increasing which has to be competing with by the company so it will
be able to gain huge profit. This is good for the company because there is a sense of the direction
which comes in the organization which will help the company to be able to grow in the market.
 Paradigm
Ford will have to get a lot of changes in the company and change the innovation methods
which were being used from a long time. The changes do not come in easily in any organization
but it is too necessary to the company for getting those factors so that it can achieve better
results. The innovations have to be practical in nature which is going to be good for the
company. The portfolio of the company has to change so that they can get a lot of competitive
advantage and by changing from gasoline to electrical is a very good decision which is being
made by the organization. Position

The company will have to position their new product within the market effectively so that the
company can get the attention of the customers. The company will have to have a strong
communication and also take feedbacks so that they can gather more information. There has to
be an improved product for the image of the company within the market. The feedbacks should
be taken from various customers, employees and management for the best of the company
(Street, 2016). The company is targeting for all age, gender, etc which is a large segment. There
is latest technology which is being used in the organization so that there is an improved
functioning and the demands of the customers are going to be met soon. There is a lot of
confidence of the organization in converting from gasoline to electrical cars in the market
because automotive industry will need this change sooner or later. Process
In this stage the company will have to plan out their measures so that it is easy for the
organization to be able to achieve their targets on time. There must be a strong workforce which
is by training the right people for the task. This thing will be supported to the company be able to
follow the trends and gain profits in the market. This is the main stage where product is going to
be manufactured and distributed to the customers effectively. Product
The product has to be improved and the employees of Ford have a great experience which is
why the company must question the employees so that the product can be improved. There have
to be more discussions in the organization so that the product of the company can be matching
the standards (Wooten and Ulrich, 2017). The company will have to understand the innovation
which has taken place in the gasoline products and the product which needs to match the
expectations as well of the company.
Innovation Funnel

It is very important for the company to be able to have a innovation funnel in the
organization so that the changes they are getting in the organization are not risky for the
company. The company has to be able to have a profit and not loss from them which is why this
strategy is used by the company so that there are unnecessary ideas and steps which can be
ignored so that the company can have a better reputation in the market.
Positive impact of Innovation funnel
Innovation funnel is a very useful framework which organization can use so that there is
a better functioning which is going to make the organization have higher profit margins. The
organization will be able to have a better framework and the company will be able to get a
competitive advantage. The organization will have a lot of investment which can be done
effectively for the productivity to increase and methods to be used for the organization for better
framework.
Negative impact of Innovation funnel
The organization will have a lot of experienced and skilled employees to work on this
factor. This is going to be a time consuming process in the market which is going to make the
processing of the organization less effective. Though there is a long term objective which can be
achieved but the present is going to be very slow when this framework is used.
P 4 Developments in frugal innovation
Frugal innovation is used to remove the complexity in the working and production of
products in the organization. There are a lot of unnecessary factors which have to be removed
from the working so that the company can have better functioning. It is too necessary to the Ford
for using frugal innovation in their production because this is a model which will help the
company to reduce their complexity in processing and also cost friendly methods would be
suggested for the manufacturing purpose. This is a very good method which can be helpful in the
production of a car or phone. Ford is a multinational organization which has a great experience
in this field that’s why they this company can able for functioning effectively for so long because
they use this frugal innovation method. The demand for the products of Ford is increasing in the
market because of the safety and luxury which the organization is providing to the customers
from so many years. There are a lot of parts which are being used in vehicles which are not so
important and are costly which can be eliminated by the organization so that the company can

achieve effective results (Ampuja, 2016). This is thing can help to this company to have low
productivity but high profits because the products of Ford are priced high in the market because
of their services and the facilities in the vehicle. The developing countries are a good target for
the organization and for manufacturing the products as well which is going to make the sales and
the demand increase of Ford products in the market. For example, Mercedes started producing
trucks but the company went for a loss because the pricing and the production did not match for
the customers. Tata took over that company and with the support of the frugal innovation the
company was able to find ways through which the pricing of the products and the satisfaction of
the customers can match. It is very important for the organization for understanding the actual
market so that they can make the changes in the product accordingly which will definitely
support to the company have a lot of competitive advantage and the profit margins can increase.
This made Tata get a lot of advantage and the company got a lot of profit in the market and is the
best company in the world for trucks because of the right method which the company has used
for the promotion of the company which is too necessary factor (Liu, 2019). There is a lot of
electric improvement which Ford will have to get in the company, so it will be able to gain huge
profit. This step is really too important to the company. There are 6 principles which are present
in this innovation frugal which are think and act flexibly, keep it simple, include the margin,
follow your heart, do more with less and seek opportunities and adversity. It is very important for
the company to be to use this framework affectively so that there is a better functioning. Frugal
innovation helps in having cost substantial cutting which is being used by a lot of organization
like Tata Nano, Mitticool, etc organizations in the market to get higher profit margins. The
quality of the products is going to increase which is going to be a great factor for the company’s
reputation in the market.
LO 3
P 5 Commercial funnel and NPD (new product development)
There are a lot of essential factors of commercial funnel for organizations which can help the
company to be able to capture the market which can support to the company for having a better
reputation in the market. The competition within the market is continuously increasing, that’s
why it is too important for the organization to be able to capture the market effectively and have
the right measures and strategies for themselves.