BTEC HND Innovation and Commercialization Report - Samsung Case Study

This report delves into the concepts of innovation and commercialization, using Samsung as a focal point. It begins with an introduction to the topic, followed by a background on Samsung, highlighting its product and service developments. The core of the report differentiates between invention and innovation, defining each and explaining their interplay, alongside the concept of commercialization. It explores the importance of both invention and innovation for organizations, analyzes the development of innovation, and examines the influence of organizational vision, leadership, culture, and teamwork on innovation and commercialization. The report also covers various sources of innovation, including their merits and demerits, and discusses the 4Ps of innovation, as well as the innovation funnel. The report aims to provide a comprehensive understanding of how innovation can be effectively managed and commercialized within a business context, illustrated through the case of Samsung.

Innovation and Commercialization

Table of Contents
1) INTRODUCTION...................................................................................................................................3
2) BACKGROUND OF THE ORGANISATION.......................................................................................3
3) DIFFERENCE BETWEEN INVENTION AND INNOVATION...........................................................4
4) TYPES OF INNOVATION....................................................................................................................9
5) PROCESS OF COMMERCIALISING INNOVATION.......................................................................14
6) HOW TO PROTECT INNOVATION..................................................................................................17
7) SUMMARY AND CONCLUSION......................................................................................................20
REFERENCES..........................................................................................................................................22

1) INTRODUCTION
Innovation refers to new idea, thoughts and imaginations in form of the method. This is
viewed as applications of the better solutions and meets new needs and existing market
requirements. This includes the deliberate application of the imagination, initiative and
information in order to deriving the various values from the resources and consists all the
processes through which the new ideas are to be generated and also converted in useful goods.
Innovation takes place by provision of the effective processes, technologies, products and
business models which made available to markets. Innovation is an important topic because it
attracts the people most and helpful in making the business successful (Ambec and et. al., 2013).
In this present era, customers want the unique and different products which help in satisfy their
needs and wants. It helps in develop the positive impact on mindset of the customers and they
can be loyal towards company for long period of time. Under mention report, there will be
discussion about the invention and innovation and also difference between both of them.
Organizational culture, values and teamwork impact on innovation and the commercialization
will be mention here.
2) BACKGROUND OF THE ORGANISATION
Samsung is South Korean multinational conglomerate company. It was founded in
year1938 by Lee Byung-chul. This is flagship firm of Samsung Chaebol that accounting for the
70% of revenue of group in year 2012. Samsung electronics has the assembly plants as well as
sales network in around 80 countries and this has more than 308,745 staff members. This is
largest manufacturer in world of semiconductors and consumer electronics in terms of revenue.
This company is main manufacturer of the electronic components like Chips, lithium-ion
batteries, image sensors, flash memory and camera modules for consumers like Sony, Nokia,
Apple and HTC. It is largest manufacturer of the smart phones, television and mobile phones.
The company sells home appliances, like TVs , computers, refrigerators , washing machines and
main electronic products such as smartphones and laptops. Samsung remains a trustworthy
supplier of key components such as DRAM and non-memory semiconductors (Battistella and
Nonino, 2012).

Samsung has pushed limits of the mobile technology and set standard for what smart
phone can be. Through advancing the mobile technology, developing groundbreaking form of
factors and also providing creative solutions, Galaxy series has helped the millions attain more.
Samsung is dedicated to developing and providing quality goods and services that will make its
consumers around world more comfortable and knowledgeable. By actively seeking ground-
breaking technological technologies and value development, Samsung is committed to
improving the world. Samsung vision is core to our dedication to leading technology, solutions
technologies that empower communities world-wide to unite with our ambition to make the
world better full of smart digital experiences (Burnett, 2017). It is also committed to bringing
new values to sector and to consumers while at the same time upholding shared values between
staff and partners, as it understand our role as a innovative leader in global society. Samsung
wish to build an exciting and prosperous future for all at Samsung Electronics.
3) DIFFERENCE BETWEEN INVENTION AND INNOVATION
Define innovation and invention. Also define commercialization
Innovation- It refers to a mechanism that creates new ideas and benefits and attracts a
large number of customers. The image of the company is positive. Innovations include deliberate
information, creativity and initiative application in derived value from the resources and involve
processes through which the new innovation occurs and turned into the useful goods and
services. In the market, innovation also occurs when the organization applies ideas to better meet
customers’ expectations. Depending on the requirement or desires of customers, companies
develop new products. In this current era, innovation increases the attraction of customers to
services or company products (Calabrese, 2016). It covers the creation process and introduces a
new system, feature or goods. The innovation concept is becoming essential for companies in
today's scenario, where the wants and needs of consumers are changing at fast speed. When
business provides its customers with something different and innovative, it only helps to attract
many customers but also offers competitive benefit. In order to introduce innovation successfully
and also to get all its advantages, a business company has an important part to play in.
Invention- This is novel or unique device, composition and method. Invention process is
process within overall engineering as well as process of product development. This may be

improvement upon new process or product for developing an object. A unique function as well
as resulting invention can represent radical breakthrough. These works are new and are not
evident to other qualified persons in similar area. An inventor will go a long way to achievement
or failure. There may be any patented inventions. A patent preserves the inventor's right to
intellectual property legally and acknowledges legally that an invention asserted is an invention.
The regulations and demands for patenting invention differ by country, and it is often costly to
obtain a patent (Castillod, 2016).
Commercialization- It refers to introducing new goods and method of production in to
the commerce. The process of commercialization is the marketing of innovative products and
services. More extensive marketing involves the production, marketing, sales, distribution,
customer support and other important functions to achieve a new product or service's commercial
success. Commercialization connotes entry into mass market but also involves move from
laboratory into the commerce. The ideation stage is seen by many as a funnel’s head. While
several ideas come into the top of the funnel, only fraction finally goes downwards. Ideation
aims to create new goods and services that match unresolved consumer demands, while offering
great benefits at low cost, and most functioning designs integrate with the business model of
company (Cooper, 2016).
Explanation for both concepts and differentiate between them
Innovation occurs when someone improves and also makes the necessary contribution in
existing process and services. It gives the inventor security and intellectual property rights, and it
is also a true invention. In addition, there are different rules for obtain of a patent in various
countries and the process is expensive. The invention should be new, important and unobvious in
order to be patented. On the other hand, invention is creation of process and a product for first
time. It is an act of creation, design or discovery of the unprecedented device, method and
process (De la Mothe and Paquet, 2012). In brief, this is new scientific idea conceived as a
tangible object through research and experimentation. This can be new method in which a
product is made, or a new product development can be achieved. The difference among
invention and innovation mention below:
Basis Innovation Invention

Meaning Innovation implies first time
that the idea has been
implemented for the product
or process.
The idea for process or
product that was never made
previously refers to the
occurrence of the invention.
Skills required This requires technical,
strategic and also marketing
skill.
Scientific skills
Activities The activities of innovation
spread across the company.
This is limited to the
department of Research and
Development.
Occurs when This occurs when a product
needs to be experienced or the
current product changed.
It occurs when any new idea
strikes.
Related with It is related with the
combination of different
processes or services.
Single process and product.
Table 1: The difference among invention and innovation
(Source: The Difference Between ‘Invention’ and ‘Innovation’)
Importance of both innovation and invention to organizations
Importance of Innovation
Provide competitive advantage to company- If a company produces and offers something
special to its consumers, it differs from several other players on the market. New product assists
to get more customers ' attention and increases sales of the product of the company. This gives
the business competitive advantage and long-term sustainability. In order to achieve competitive
advantage, the continuous implementation of the innovation concept by Samsung is very
important (Díaz-García, González-Moreno and Sáez-Martínez, 2015).
Increasing communication process efficiency- The concept of innovation is a specific
one as various tasks are performed by the organization. This is quite important that businesses
use efficient communication networks to benefit from all developments. It eliminates uncertainty

among clients by letting them know of their duties and responsibilities while raising increasing
conflicts at work. Effective communication channels are used by Samsung organization during
innovation and coordination between different other functions of the enterprise.
Proper use of business resources at optimum level- If an organization executes the
conception of innovation then it offers a chance to use all resources. It helps make it easier for a
company to produce and offer its consumers featured products at reasonable prices, all of which
increase their corporate goodwill. This enables Samsung to sustain its customers themselves for a
long time (Dodgson, 2018).
Importance of Invention
Solve problems easily- To solve specific issues, company must come up with the creative
answers. It faces problems that do not appear to go away many times. To find a response firm
never came with, have to think beyond the box. This you to build product, store your stock and
find an innovative way to boost company.
Compete with competitors- This becomes easy to beat competition when Samsung think
innovatively. It only has to be innovative and can quickly find new ways to develop products
and communicate with customers. In addition, imagination will help firm to determine the
appropriate marketing methods to grow business (Drauz, 2014).
How Innovation is developed
Innovation is mainly developed to focus on meeting needs and preferences of consumers
as well as market requirements. In this, formation of partnership is mainly through needs of
market and product development but viewed with the fear through managers. Innovation
development is based on the type of economic growth that the company develops and its
interactions with the internal and external environments. The conclusion was drawn that SMEs
do not systematically invent, but intuitively and firmly rely on the concept of their founders.
They innovate in order to satisfy customers' expectations and industry requirements. Leaders and
owners continue to look carefully at the formation of partnerships (Genç and Di Benedetto,
2015).

Samsung firm is leveraging technology this knows in better manner such as mobile,
security and the semiconductors to develop the intelligent platforms for the IOT. In context to
this, forwards thinking cities are starting to embrace the technological innovations which leading
to the dramatic modifications in transportation, services, housing, security and safety.
Organizational vision, leadership, culture and effective teamwork influence innovation and
commercialization, and how these factors can make an organization an innovative organization
Timely basis of innovation is required by each company because of increasing consumer
needs and wishes. This is necessary for employers to look at all factors influencing their
implementation in order to achieve all the advantages. The effect of its application is as different
factors. In the formation of commercialization and innovation, teamwork, vision and leadership
play a significant role. They are all elements that make the organization operate smoothly. To
order to ensure that workers will not have difficulties to meeting them within a certain
timeframe, the goal of the company should always be transparent (Gennaioli, Shleifer and
Vishny, 2012). There are various aspects given below which give the shape to innovation and
commercialization:
Leadership- Innovation is a significant consideration for staff members employed in an
enterprise. Samsung Company needs to have sufficient skills and expertise to achieve all its
advantages. Leaders play a significant role in guiding employees and impact their organizational
behavior. The leaders should constantly encourage employees to think innovatively, and they
should be offered to this proper working environment. The leader will increase the commitment
of the employees to the company's success with the right approach to the leadership. Employees
also benefit from personal skills and leadership characteristics. Samsung execute successfully
and concurrently with an overall correct leadership strategy (Gopalakrishnan and et. al., 2015).
Vision- This is an indication of the company's role in the years. It primarily impacts
innovation, as it can accomplish a certain goals and to achieve a competitive position on the
market with the aid of an innovation business. Innovation can be said to contribute to the growth
of the organization. The vision of Samsung is “To inspire world with innovative technologies,
design and the products which enrich lies of people and also contributes to the social prosperity
through developing new future.”

Teamwork- It means the employee work as a team to conduct business tasks and meet
customer requirements. One of key advantages of teamwork is that this creates trust between
employees and strengthens their knowledge and skills. Teamwork promotes and incorporates
creativity in diverse business ventures. In order to achieve all of the advantages of a team, this is
important that all the team members have proper communication, so that they can better fulfill
their duties and responsibilities.
Organizational culture- Culture defines communications flow in the working
environment and emphasizes methods used by companies for other work. Successful corporate
culture encourages and embraces creativity in the right way. This is important to have a positive
organizational culture to allow employees to perform more and more efficiently. Staff members
can change and concentrate on innovation easily in a positive environment. However, culture
should be enjoyable so that every Samsung staff member can contribute through adopted the
advanced technologies and develop unique products (Gutierrez-Gutierrez, Barrales-Molina and
Kaynak, 2018).
All of the main factors which shape innovation and influence the output of innovation.
Manager of Samsung can prepare a plan to ensure that innovation is implemented effectively.
The manager of Samsung firm must analyze these factors very significantly. This allows the
business to offer its customers more and more services while maintaining them for a long period
of time. Main advantage of the innovation is that they give more customers the chance to serve
while helping them gain a competitive market position.
Sources of innovation including the merits and demerits of each source.
Sources of innovation exist outside an organization in its intellectual as well as social
environment. There are different sources of innovation with their merits and demerits given
below:
The unexpected- There can be unexpected innovations. It can happen incidentally.
Somebody could stumble over new idea or product. In human experience there are many
unpredictable developments. Even fire is an unexpected innovation which people have failed to
overcome. However, it is interesting to note that several significant innovations have taken place

unexpectedly in our history. Often, as scientists seek something, they keep stumbling on further
something else.
Merits Demerits
This is related to unexpected innovation. The more cost and resources are involved in it.
It develops the new and innovate products. Chanced of failure is more.
Innovation Based on Process Needs- System incongruities in the main, a "bad" or
"missing" connection is needed in the current process. Innovation opportunities exist if the
process is to be completed. There must be a 'better way' doing something that users receive
enthusiastically (Hakansson, 2015).
Merits Demerits
This requires current process. Without completion process, innovation cannot
be existing.
Customers received something new and
unique.
This takes more time.
4) TYPES OF INNOVATION
4P’s of innovation
4ps of innovation is model that developed through Joe Tidd and John Bessnt. As the
requirements and demands of the consumers change quickly, the process of development is quite
important for companies in order to respond to this change. It is not only helps to fulfill
consumer requirements but also helps to take advantage of market possibilities. To achieve every
advantage of innovation, its effective implementation is very important. There are 4Ps of
innovation that help to better apply innovation. This tool is useful when looking for advancement
in the business of the innovation process. This discusses how every business field can be
improved. There are 4ps of innovation mention below:

Product- It is known as the company's final offer for target consumers in order to satisfy
the requirements of customers. The balance of tangible and intangible attributes is recognized as
well. Samsung offers its customers in a variety of areas around the world different products or
services. This is important for businesses to consider the needs of their consumers and it can be
achieved by means of research to improve the sales of their services. This allows the company to
deliver services to its customers and can keep them for a long time (Hashmi and Biesebroeck,
2016).
Process- Innovation process involves forms and improvements in the distribution of
goods and services. This can combine the production, marketing, delivery and support of or offer
a service with strategies, capabilities and technologies. There are various ways for the customer
to enhance the operation (Datta, Mukherjee and Jessup, 2015). Samsung wants to pursue the
cycle of introducing innovation to give its consumers something better. This is essential that
employees are trained to develop skills so that they can play their job effectively.
Position- It is the market segment currently being targeted for product or service.
Innovation in the position can lead to product being new market segment, which has not
previously or has not been entirely new towards new market segment. Position innovation
underlines the different instruments used by Samsung to make its consumers aware of and
impact them to buy products and services. There are various digital tools available which
Samsung can use to boost sales (Kalaignanam, Kushwaha and Swartz, 2017).
Paradigm- This means that the company provides more features to improve its utility and
a sale, as it supports attracts more buyers. Once again, Samsung switches paradigm. With speed
as well as size, Samsung keeps flashing mobile landscape. For an example, the very same storage
capacity as the desktop / laptop SSD-toting computer was available for phones. The constant
battle for apps as well as data would be gone.
Innovation funnels and explains how they are used to develop innovative ideas
Innovation Funnel is framework for a constant flow of ideas which are feasible. It is a
common innovation method used through several businesses for the development of an
ambitious and practical action plan. This is a common approach to innovation used primarily by
the organizations to create an action plan for innovation. The aim of a project is to realize ideas

through alignment to clear goals that can meet consumer requirements in an economical way.
Innovation funnel is mainly used by companies to effectively integrate and benefit from
innovation. It includes mostly a process in which organization, in order to fulfill their needs,
takes the shape of real life and then transforms it in product to give end users. One of major
advantages is that this offers organizations the ability to recognize and assess current trends of
market. Samsung is able to conduct research to gather additional information on customer
needs; company can sustain customers for long period of time (Kazmi, 2017). There are different
ways innovation funnel develop the innovative ideas mention below:
Wide mouth of funnel- It aims to strengthen knowledge base of a company under this
kind of innovation. The main reason is to collect the several ideas and select new and faster idea
to assists in establishes products and processes. Samsung Company can accumulate research data
and information, organizations, existing partners etc.
Narrowing segment of funnel- Organization is implement concept with screening
assistance. It is about fulfilling ideas with the objectives of its organization. Business and
management have to assess risk as well as returns after their completion and check their products
and services together with their purchasers (Kushwahab and Sharma, 2016).
Narrow segment of funnel- Under this, the organization supports the fact chosen to
achieve the objectives of a company that is expected only at time of the launch.
Funnel discussed to chosen organization and benefits and demerits of innovation funnel
The innovation team of Samsung conducts an investigation before make improvement in
any product and process. This has clear understanding regarding all market trends. Samsung
Company put its efforts into innovation. Its project innovation team is born out of requirement to
have incubator group in order to work with each unit of business to give the high market insight
(Lee, Olson and Trimi, 2012).
Benefits of innovation funnel
Developing product range- Innovation will almost definitely advantages Samsung
business with a single product or a limited range of products. A wider range of products offers a
chance for higher revenue and sales, and also reduces shareholder risk.