Innovation and Commercialization: A Business Development Report

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INNOVATION AND COMMERCIALIZATION

Contents
Introduction.................................................................................................................................................3
LO1 Explanation of the context for innovation and determine the difference between invention and
innovation....................................................................................................................................................3
P1 Explanation on innovation and determine its importance to organizations in comparison with the
invention..................................................................................................................................................3
P2 Explain how organizational vision, leadership, culture, and teamwork can shape innovation and
commercialization...................................................................................................................................4
M1: Analyze different sources of innovation, and how organizations can foster and develop an
environment and culture of innovation....................................................................................................5
D1: Critically analyze how innovation is developed, embedded and measured in an organizational
context.....................................................................................................................................................6
LO2 Explanation about the different types of innovation............................................................................7
P3 Explanation on the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.............................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organizational context..............................................................................................................................8
M2 Analyze and apply the innovation funnel in an organizational context...........................................10
M3 Evaluate the role of frugal innovation in an organizational context................................................11
LO3 Discuss the process required to commercialize innovation................................................................11
P5 Explain the importance of the commercial funnel and the application of new product development
(NPD) processing for commercialization of innovation........................................................................11
P6 Build an innovation business case for an organization, including ways to access funding...............12
M4 Build a detailed innovation business case which includes how to measure its overall effectiveness
using appropriate techniques available to test, iterate and improve.......................................................13
D2 critically evaluate the nature of innovation and the context in which it is developed, providing
evidence-based judgments on how organizations can overcome challenges to develop successful
innovations 300.....................................................................................................................................14
LO4 Evaluate the range of methods for protecting ideas and understand their advantages and
disadvantages............................................................................................................................................15
P7 Evaluate the different tools that organizations can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................15
M5 Present supported evidence-based evaluation of these different tools in the context of the wider
business environment entrepreneurs......................................................................................................15
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Conclusion.................................................................................................................................................16
References.................................................................................................................................................17
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Introduction
Currently, business environments across the globe are considered to be competitive. Hence, in
order to sustain in this stringent competitive environment, the organizations operating at a global
platform are required to become unique and focus on creativity. Regarding this, the specific
report is on innovation and its significance in the business organization's operational and
marketing activities. Besides this, the report drops light on 4Ps related to innovation and it also
produces an explanation on the application of innovation funnel in planning innovative ideas for
the organizations. The organizations use innovation in the business operation as per the business
strategy (Amin, 2017). The report is on the use of innovation plus commercial funnel in
innovative product development procedure.
LO1 Explanation of the context for innovation and determine the difference between
invention and innovation
P1 Explanation on innovation and determine its importance to organizations in comparison
with the invention
Innovation can be said as very useful for organizations. The tastes and preferences of customers
are always changing. The management of the organizations has the responsibility to fulfill the
need and demand of the customers. The innovation of new products can be able to bring
transparency within the organizations. Without innovation, the organizations cannot be able to
sustain for long-term purpose. Innovation can be said as the up gradation of the existing
technique of the organizations. Innovation is a process of enhancing and modifying
organizational products. Creativity and innovation can be said one of the most significant ways
to get organizational success. Competition among the organizations is rapidly increasing. The
organizations have to take significant steps to achieve competitive advantage. Innovation can be
able to provide effective satisfaction to the customers (Cleverism, 2017). The organizations
always try to enhance their customer base. It is very important for organizations to increase their
customer base by providing them significant services and products. Innovative ideas and
products can be able to meet the desire of the customers. Existing customers are one of the most
important stakeholders of the organizations. The organizations also have to attract potential
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customers. The perfect invention of products and services can be able to attract the view of
potential customers. The management of Deliveroo has to take significant strategies to enhance
their organizational operations. The management of the organization Deliveroo has to create
innovative ideas and products to increase organizational productivity. Effective innovation of the
organization Deliveroo can enhance the organizational overall performances.
P2 Explain how organizational vision, leadership, culture, and teamwork can shape
innovation and commercialization.
Vision of Deliveroo
Organizational vision is very much able to shape the innovation and commercialization process.
Organizational vision helps the management of the organization Deliveroo to forecast its
futuristic activities. Organizational vision helps the management of the Deliveroo to identify the
organizational strengths and weaknesses. Innovation and commercialization process of the
organization Deliveroo can bring efficiency within the workplace. Being a part of the Food
Industry, Deliveroo can be able to fulfill the need and requirement of the customers through
innovation and commercialization process (Grasty, 2016).
Leadership of Deliveroo
Leadership can be said as a quality where a leader leads the way with their team members to
fulfill their organizational task. Effective leadership quality can be able to encourage and inspire
other team members. Organizational goal and objective can be fulfilled through effective
leadership quality. Innovation and commercialization process of the organization helps the
leaders perform better. Due to innovation, the organization Deliveroo attracts customers very
significantly.
Culture of Deliveroo
Workplace culture is a very important factor for the employees and management of Deliveroo.
Organizational culture can be able to provide motivation and encouragement to the employees.
Organizational productivity is very much depended on the organizational culture. Organizational
culture helps the management of the organization to take significant strategies for innovation and
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commercialization process. Organizational profitability can be enhanced through an
organizational culture of Deliveroo.
Teamwork of Deliveroo
Teamwork is very important for organizations to get effective success. The employees of
Deliveroo were not coming from the same cultural background. The management of the
organization Deliveroo can be able to get the views of the employees. Effective teamwork of the
organization can be able to bring more success. Due to the effective teamwork of Deliveroo, the
customers can be able to enjoy the food products.
M1: Analyze different sources of innovation, and how organizations can foster and develop
an environment and culture of innovation
The numbers of sources which could bring innovation in the business environment can be
identified as:
 The unexpected- opportunities can be found out by analyzing the market place.
 The Incongruities- there is discrepancy among the things which need to present and what
is present. The fulfillment of discrepancy can enable the business towards successfulness.
 Process need- the company here needs to identify weak spots and providing strategies for
its mitigation.
 Market structure change: the market is always fluctuating by regulations and product
lines (Slaughter, 2017).
The various steps in fostering and developing an environment and culture of innovation can be
identified as follows:
 Innovation can be initiated by acknowledging the qualities of leadership of the company's
CEO. The CEO of the innovative organization requires being passionate regarding their
work. They display an optimistic and positive outlook of the various operations of the
business. The founder of the organization possesses a clear vision and real drive towards
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the goals of the business. This could facilitate in order to develop a workplace which is
more innovative in nature.
 The employees of the organization perform in the organization at greater efficiency when
they were more encouraged and inspired. Through this way, the employees can be able to
outperform from their capability. This enables them to think differently. Thus for
becoming more innovative, the employees need to have independence on their thinking.
 The effective team in the business enterprise consists of a powerful aspect. Thus
innovation and creativity can be promoted through recognition. Every individual in the
origination needs to be rewarded and recognized for presenting creative ideas. This
practice could boost their morale in a significant manner. They should be motivated to
bring out more innovative ideas without the fear of failure.
 A flat management structure of the innovative organization can facilitate in bringing
more opportunities to encourage confidence and open communication network.
D1: Critically analyze how innovation is developed, embedded and measured in an
organizational context
The organization has the responsibility to introduce an innovative product for organizational
enhancement. Innovative ideas of organization management can bring efficiency within the
organization. The organization has to measure the success rate of their innovative products.
Organizational management can be able to measure the success rate of their organizational
innovative products. organizational management has to find out the effectiveness of innovative
products. The innovative product helps the organization to take competitive advantage over the
competitors. Development of the innovation process has consisted of five significant steps. These
five significant steps are idea generation, advocacy and screening, experiment,
commercialization, and implementation. Organizational management has to create a significant
and useful idea. After that, the organizational management has to determine the usefulness of the
idea. Then, the organizational management can be able to implement the innovative idea into
reality. The effectiveness of an innovative product can be judged by showing the sales revenue of
the particular product. Measuring the performance of an innovative product is very important for
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organizational management. Pleasant workplace culture can be able to enhance an individual's
capability to create innovative ideas. Innovation requires very different and critical management
practices. The organizational experts always tried to improve their qualities of the products to
attract the customers. In a competitive market, it is very essential for the organization to provide
innovative products on a regular basis (S, 2016). The management of the organization has the
responsibility to innovate effective products to retain the organizational customer base. Effective
implementation of innovative ideas can enhance the organizational image. Technology is one of
the most aspects of organizational success. Competition among the organizations is rapidly
increasing. Innovative ideas can be able to enhance organizational performance (Neese, 2017).
LO2 Explanation about the different types of innovation
P3 Explanation on the 4Ps of innovation and explain the use of the innovation funnel to
examine and shape innovative ideas
Business needs innovation to concur in the existing market and capture the new market. It helps
to develop the existing environment and structure of the organization. Every organization
concentrates on the development of services and products. This development helps to raise
business performance. The process of innovation comprises of a different structure such as
Product, position, process, paradigm (Anthony, 2019).
Product- The main objectives of the business organizations are to make a satisfactory product
which can meet the demand to the customers. Increasing the demand for the products will help to
generate more revenue for the company. Deliveroo is an online fast food delivery service, which
caters in two hundred cities globally.
Process- it is considered as an activity, where the products are been made better in terms of
quality, shape, and structure. This further process of making the products more developed helps
in increasing the demand for the product and the brand. Distribution of the products to their
specific location according to the demand of the market is done by the distribution team.
Position – positioning of the product is an important tool which makes a unique impression on
the customer's mind. Positioning the product creates a huge impact on the individual minds that
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helps to pull the customer towards the product. Good positioning of a product helps to increase
the demand for the product. Thus indirectly helps in the rise of the revenue of a company.
Paradigm – Business uses many different ideas in order to match with the changes to the
conceptual approaches. Paradigm includes the theory of change. A business organization
sometimes needs certain changes in their terms and policies to achieve the required target
(EgyptInnovate, 2019).
Usefulness of the innovation funnel –
The main focus of the business funnel is to evolve the product with the minimum cost and reach
those products to the customers. It concentrates on the quality of the services and products.
The processes of the innovation funnel are listed below –
1. The investigation of the market and the environment are marketed by various methods
which are associated with the market.
2. Judgment is to be done on the basis of launching service, commercialization, and product
in the market
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organizational context.
The process of adjustment carried out in an operational activity is known as frugal innovation.
Mainly frugal innovation occurs in services, products where there is an involvement of less cost.
The main function of frugal innovation is to transform the complex process into an easier
process. It takes place within a very short period of time. Along with time it also helps in saving
of money. Frugal innovation also supports in delivering the different types of products. It
delivers the products in a nonconventional way by means of a distribution channel. Frugal
innovation main aim is to develop the product. Development of product means the product
planed for the developing countries. This total process involved some activities. In these
activities, the activities that are considered to be of no use are discarded with non-valuable
products. Frugal innovation also supports in competing with the local market those are involved
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in at a very cheap cost. In comparison to other products, the profit margin is very low for this
product. In spite of having a very small amount of profit margins, the developers are still looking
for more sales for its low cost. The product quality has not got hampered for its low cost. All the
above factors have helped this product in achieving a higher profit margin. So, Deliveroo should
involve the process of frugal innovation in their process of delivering food to their customers.
Frugal innovation benefits the company by increasing the sale as well as decreasing the price of
the product (Priyadarshini, 2018).
The word frugal Innovation refers to the process of adjustment which are been carried out in
operational activities. It takes place in various types of services, products, where less cost is
involved in the process of manufacturing. The fugal innovation is a process of converting any
complex process into easier one within the shortest span of time. It helps to save money effort
along with time. Apart from this it also helps in delivering any type of products by the
nonconventional way, through the distribution channel. This helps in reducing the distribution
cost and delivery cost (Frugal, 2017). The main purpose of Frugal Innovation is to evolve the
product which is designed for developing countries. It helps to compete with the local
intervention market at a nominal cost. In this total process, the activity which is considered as a
total waste is been discarded with the unnecessary product. The profit margin of this product is
very low in comparison to the other products. Although these products have fewer profit margins
still the developers are expecting to achieve humungous sale due to its low cost. All these
characteristics led this product very effective with a higher profit margin. The quality of the
product and service will not be compromised with the low cost. It is been analysed that
Deliveroo should concentrate the frugal innovation in the process of delivering food to the
customer. It helps the organization to reduce the operation cost and the difficulty of the whole
process. The frugal innovation also helped in reducing the product price. It helps to increase the
sale which is beneficial for the company.
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M2 Analyze and apply the innovation funnel in an organizational context
Innovation funnel is a kind of mechanism which enables a constant stream of different types of
ideas. This helps to screen for viability. Innovation funnel can be also termed as the funnel
management process. Funnel management process is considered to be one of the popular
approach for any kind of innovation. This is been adopted by every organization or any
companies in order to create an innovative and realistic plan. The innovation funnel helps to
generate many innovative ideas which can be considered to be very effective for every
organization or company. Through this, a huge portion will be converted and refined into a
concrete development. Innovation funnel is an excellent tool in order to prioritize the ideas and
helps to ensure that best will be extracted among all possibilities. The idea of the innovation
funnel originated from the world of sales. The main idea was to accumulate a lot of potential
customers so that they can be qualified to make a deal for the company which takes a lot of
brainstorming sessions and ideas in order to evaluate a new service or product which will be
profitable for the company or organization. Through the help of the innovation funnel, it helps to
describe the steps in the product and process. The aim of this tool is to create products and
processes that help to meet the market needs which can be presented in an economically
profitable way. The mouth of the funnel helps to gather as many ideas as possible. This helps the
organization to expand its knowledge and the availability of any kind of vital decision. In this
gathering, the information is relatively easy. In the narrowing the funnel the screening process
goes on. Narrower part of the funnel helps to ensure the selected ideas are tuned to the company's
objective which has been drawn up when the company was started (Ifm, 2016).
Source- https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/
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M3 Evaluate the role of frugal innovation in an organizational context
Frugal innovation can be said as a set of technique. This technique is applied to reduce
organizational costs. This technique is very helpful for the organization. Through frugal
innovation, organizational management can be able to fulfill the demand of the customers.
Frugal innovation is primarily dealing with quality. Frugal innovation can be able to enhance
organizational operations. in frugal innovation, the organization is involved in producing a high
volume of products at low prices. The organization can be able to enhance profitability through
effective frugal innovation. Frugal innovation helps the organization to take significant
competitive advantage over the competitors.
The quality of the service which is been delivered by the organization requires the fixing of the
requirements of the customers. The distribution of the deals to all these methods are been applied
for making the services which can be easily accessible to the customers. The organization to hire
up their brand. In the market, they accumulate potential customers. Potential customers help in
the growth and development of the brand. With the help of the adaptability to mark the loyal
nurture which makes the firm makes for the practitioners. There are more various aspects which
are related to frugal innovation. The organization believes that once the sale goes through, the
hard work on the real investment begins hence by taking care of each of the factors of the frugal
innovation; the organization strives to reduce the complexities within their selling of the various
practices to the practitioners (Open-ecosystem, 2019).
LO3 Discuss the process required to commercialize innovation
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialization of innovation
The important features of the commercial funnel are as follows-
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