Analyzing Innovation and Commercialization Strategies

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INNOVATION AND COMMERCIALIZATION

Table of Contents
INTRODUCTION.....................................................................................................................................2
LO1........................................................................................................................................................3
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE TO ORGANISATIONS IN
COMPARISON WITH INVENTION.......................................................................................................3
P2 EXPLAIN HOW ORGANISATIONAL VISION, LEADERSHIP, CULTURE, AND TEAMWORK CAN SHAPE
INNOVATION AND COMMERCIALIZATION........................................................................................4
M1 DIFFERENT SOURCES OF INNOVATION AND THE WAY THE ORGANISATION DEVELOP CULTURE
OF INNOVATION................................................................................................................................5
LO2........................................................................................................................................................7
P3 & M2 EXPLAIN THE 4PS OF INNOVATION AND EXPLAIN THE USE OF THE INNOVATION FUNNEL
TO EXAMINE AND SHAPE INNOVATIVE IDEAS AND ANALYZE AND APPLY THE INNOVATION FUNNEL
IN AN ORGANISATIONAL CONTEXT...................................................................................................7
P4 & M3 EXPLAIN DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE EXAMPLES OF HOW IT
IS USED IN AN ORGANISATIONAL CONTEXT AND EVALUATE THE ROLE OF FRUGAL INNOVATION IN
AN ORGANISATIONAL CONTEXT........................................................................................................9
LO3......................................................................................................................................................10
P5 EXPLAIN THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND THE APPLICATION OF NEW
PRODUCT DEVELOPMENT (NPD) PROCESSING FOR COMMERCIALIZATION OF INNOVATION........10
P6 & M4 AN INNOVATION BUSINESS CASE FOR A COMPANY IS BUILT, ALONG WITH THE METHODS
OF ACCESSING FUNDING AND TO DETERMINE HOW TO MEASURE ITS OVERALL USEFULNESS
USING APPROPRIATE TECHNIQUES AVAILABLE TO TEST, ITERATE AND IMPROVE..........................12
LO4......................................................................................................................................................15
P7 EVALUATE THE DIFFERENT TOOLS THAT ORGANISATIONS 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.......................................................................16
CONCLUSION.......................................................................................................................................18
REFERENCES........................................................................................................................................19
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INTRODUCTION
The report discussed the theory of innovation along with describing the distinction between
invention and innovation. The relevance of innovation in the industry and the business
organization is analyzed in the report. The importance of innovation is compared with the
importance of invention within the organization. Various types of innovation that can be
used by the company to shape innovative ideas are examined. The report further discussed
the concept of innovation funnel along with the part played by frugal innovation. The
developments in the frugal innovation are evaluated with the help of appropriate examples.
The significance of funnel both commercial and innovation along with the process of new
product development for commercialization of innovation is discussed. At last, the report
explained the advantages and disadvantages of different methods used for protecting ideas.
An evidence-based evaluation is made for different tools for developing innovative ideas for
the business.
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LO1
P1 EXPLAIN INNOVATION AND DETERMINE ITS
IMPORTANCE TO ORGANISATIONS IN COMPARISON WITH
INVENTION
THE CONCEPT OF INNOVATION
The method of implementation of the advanced business process or new business practices
with a motive to improve current operations is known as innovation. It is the use of new
means, new idea, new method, new design, new product, etc. within the business
organization (Ward, 2018).
Commercialization is the process of conducting an activity with the main purpose of earning
a financial gain. It includes the methods of bringing something new in the market in order to
make profits (Business Dictionary, 2019). Just Park is the most innovative company and
widely known for technological development. The company won many rewards for its data
research and services for improving parking for drivers and space providers.
RELEVANCE OF JUST PARK INNOVATION
Innovation is known as the lifeblood of the company which is essential for the growth and
success of the business. The culture of Just Park is mainly concentrated on developing the
environment of innovation. Just Park has an environment where creative and innovative
ideas are promoted by the management for giving them shape (Caines, 2019). The company
keeps asking from their customer about any changes required by them or any
improvements need to be done in the current procedures, products or services. Thus, this
quality help Just Park in maintaining strong customer relationships and earned their loyalty
over the years of providing successful services.
COMPARISON OF INNOVATION AND INVENTION
INNOVATION INVENTION
The method of improving an idea or
thought of creating something new or
improving the current product or processes
The invention is the process of getting an
idea for the first time which was not though
before by anyone and implementing the
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is innovation. same.
Innovation is creating something new and
making it available to the end customers or
users.
The invention is only creating a new idea,
product, and processes which is not
concerned with the availability of the same.
Innovation is difficult than invention
because it is a combination of invention
and exploitation.
The invention is a comparatively easy
process which is the primary attempt to
bring the idea into practice.
The innovation is concerned with the
amalgamation of various products, services,
and processes.
When the focus is just on the single
product, process or service it is covered in
invention.
P2 EXPLAIN HOW ORGANISATIONAL VISION,
LEADERSHIP, CULTURE, AND TEAMWORK CAN SHAPE
INNOVATION AND COMMERCIALIZATION
Innovation and commercialization are two important pillars of a successful business in the
modern competitive world. Innovation and inventions are carried out by the business to
commercialize the products and services in the industry.
Vision
Just Park is focused on making smarter mobility choices for its customers and promoting the
vast area of network for the company. Just Park has won many awards which had a motive
of providing convenience, certainty, and better-connected future on road. The company has
the vision of bringing innovative ideas into practice and serve its customers in a better
manner (Just Park, 2019).
Leadership
The leadership of Just Park plays an essential role in promoting the aims and objectives of
the company. The parking assets are managed more effectively by the management of Just
Park to use it for the best purpose (Shead, 2015). The leadership of Just Park includes CEO,
founder, co-founder, and president which are responsible for the operations of the
company.
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Culture
The culture of Just Park encourages innovative and creative ideas and provide them an
appropriate shape. The company has a culture of empowering people to determine their
own growth and work (Wilson, 2015).
Teamwork
Just Park provides a work culture which promotes teamwork and development within the
company. The company provides opportunities for employees to develop formal as well as
the informal relationship with each other.
M1 DIFFERENT SOURCES OF INNOVATION AND THE WAY
THE ORGANISATION DEVELOP CULTURE OF INNOVATION
Innovation is the opportunity for considering creative ideas for improving business
processes and to gain a competitive advantage over rivals. Following are the sources of
innovation which are used by the management of the company:
The Unexpected
The managers can look for the opportunities for innovation in the market place for a
particular product and service of the company. The unexpected success of the company can
be ensured with the help of opportunities in the market.
The Incongruity
Incongruity is the distinction between the organization assumptions and reality where the
need for innovation is developed. The difference between customer needs and the
delivered products and services arises the situation where the company needs to make
innovation for delivering products as per the demands.
New Knowledge
New knowledge and technological advancements are other sources that drive the process of
motivation. Constantly keeping a record of the latest technologies and other information to
build innovative.
Process Need
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By identifying the weak points of the current process and allow the company to make the
necessary innovations. The current capabilities and process of company can serve as the
major source of innovation.
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LO2
P3 & M2 EXPLAIN THE 4PS OF INNOVATION AND
EXPLAIN THE USE OF THE INNOVATION FUNNEL TO
EXAMINE AND SHAPE INNOVATIVE IDEAS AND ANALYZE
AND APPLY THE INNOVATION FUNNEL IN AN
ORGANISATIONAL CONTEXT
The 4Ps of innovation mix is a method introduced by John Bessant and Joe Tidd which is also
known as the innovation mix model. This model helps in discovering the need for creating
an innovation strategy for the business. The innovation mix with the use of 4Ps are
discussed as follows:
Product
The products and services offered by the business organization to the customers are
included in the product of the innovation mix. Just Park is a service provider company which
provide various car parking services. The company undertakes many innovations to provide
web and mobile-based parking solutions.
Process
The process includes all the activities required for the preparation of products and services
of the company. Just Park conducts the various process in the house with a motive to
automate many of its processes. The onboarding process and services of the company are
very helpful for growing the business. The employees are provided access to these process
to simplify the manufacturing process.
Paradigm
The change or improvement brought in the company for achieving the aim of using
innovation within the company is to include in the definition of paradigm. Just Park has won
many awards for introducing innovation for its customers which include British Parking
Award for bringing innovation for its Predictive Availability Tool.
Position
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The position is the tool which is the perception of customers for the company and
communicated in the form of products and services. Just Park has a market-leading position
due to its innovative strategies. The company has invested heavily in technology and in a
position to accelerate its efficiencies significantly (Cooper, 2017).
THE INNOVATION FUNNEL
The innovation funnel is the method of evaluating new ideas and giving them the shape of
products and services (Soresina, 2017). This process is also known as the Funnel
Management Process which enables the company to introduce various ideas which can be
screened for viability. The three main steps involved in the process of innovation funnel are
described below:
Generating ideas
The innovation process starts with the process of searching for new potential areas where
innovation can be carried out by the company. The idea can be generated by Just Park with
the help of market research, problem, and feedbacks of customers, new technical solution,
and knowing the unfilled customer requirements (Martin, 2016).
Screening the idea
The ideas generated in the first step are put in the next process of screening where the
goals and objectives of the company are matched with the required need for innovation.
Resources are allocated to the innovative process for getting greater returns. The selected
ideas must be in line with the objectives of Just Park which will help it in conducting future
projects successfully.
Final selection of idea
The final stage of the innovation funnel includes assessing that the selected ideas fulfill the
required objectives of the company. The stage releases the new product or services in the
market as the result of successful innovation (Hengsberger, 2018). Just Park can create
systematically innovation processes and products with the help of an innovative funnel.
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P4 & M3 EXPLAIN DEVELOPMENTS IN FRUGAL
INNOVATION AND PROVIDE EXAMPLES OF HOW IT IS
USED IN AN ORGANISATIONAL CONTEXT AND EVALUATE
THE ROLE OF FRUGAL INNOVATION IN AN
ORGANISATIONAL CONTEXT
Frugal innovation can also be called as frugal engineering which is a process of reducing the
expenses of manufacturing of products and services. Frugal innovation is the development
of new ideas which results in producing goods and services at faster, cheaper, and better
production processes. It includes ‘reverse innovation', ‘inclusive innovation', and ‘constraint-
based innovation' process and promotes technological advancements. The products are
customized for making them available at low prices and high volumes with the help of frugal
innovation.
The resources which are limited in number are utilized effectively with the assistance of
frugal innovation method. The concept of frugal engineering is most common in mainly the
developing countries where the resources are limited and need to be utilized without any
wastages. Frugal innovation is not only about making things work but to make things work
better. Frugal innovations are confined to technological improvements in the products and
services. Various entrepreneurs and multinational companies are using frugal innovation for
capitalizing new ideas and bringing innovative trends in the market in the form of new
processes, products, and services.
Just Park can use frugal innovation to gain a competitive advantage in the market among
the competitors by bringing cheaper services for the customers. The resources can be used
without any wastage and more efficiently for innovating processes with the help of frugal
innovation. Research and development can be used by the company to develop innovative
means to bring more focused strategies for frugal innovation. This will result in high-speed
innovation by considering the feedback of customers and providing suitable solutions.
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LO3
P5 EXPLAIN THE IMPORTANCE OF THE COMMERCIAL
FUNNEL AND THE APPLICATION OF NEW PRODUCT
DEVELOPMENT (NPD) PROCESSING FOR
COMMERCIALIZATION OF INNOVATION
The method of introducing new products in the market for the consumers with the help of
innovation is known as commercialization funnel. The commercialization process is also
known as commercialization funnel which includes different stages and steps that has three
main aspects. These stages which are included in commercialization funnel are discussed as
follows:
The first step in the process of commercialization funnel is known as the ideation phase
where a number of ideas are gathered for further screening. Best suitable ideas are selected
from the gathered idea for further processing. The first stage is the mouth of the funnel
where ideas are entered. In order to determine the products that are to be manufactured,
the marketing mix technique is used which include 4Ps. Manufacturing may occur in-house
or can be subcontracted to the third party. The ideas which best fit the goals and objectives
of the company are taken into consideration. The promotional activities are assessed for
advertising manufactured products in the market.
NEW PRODUCT DEVELOPMENT PROCESS
The method of developing innovative products and services of the company according to
the needs and demands of the market and customers is known as new product
development. Eight steps are involved in the process of product development which is
described as follows:
Generation of idea.
In the initial stage of the process of new product development, the idea is generated for
further consideration form different sources such as market research, suggestions of
customers, and suggestions of employees, new product ideas, and data of competitors.
Idea screening.
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This step involves removing the ideas which are not suitable and which are not worth taking
further in the development process.
Concept testing.
The concept testing is done after idea screening where the specification is considered such
as technical feasibility, product design, and market potential. The customers are provided
with information about the new products and services developed by the company.
Business analysis.
The profitability of the new product is analyzed in the market and the alignment of product
development to the strategic goals of the business are evaluated. Demand, cost, profits
margins, sales, revenues, and competitors are analyzed in this stage.
Product development.
The newly developed product is introduced in the market along with taking different steps
for distributing new product into the market.
Test marketing.
The new products or the service developed by the company are introduced first on a small
scale in the market to test the response for the product. If the product is successful in the
market then the company introduce it on a large scale.
Commercialization.
The next step in the process of new product development is commercialization where
products are introduced at larger scale after getting success in the market. Huge
investments are made on behalf of the business for promoting and developing new
products of the same category.
Review of market performance.
The performance of the product in the market is evaluated for analyzing the acceptance of
products and services by the customers.
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