Innovation and Commercialisation Report: Lidl, Organizational Analysis

This report provides a detailed analysis of innovation and commercialization strategies, using Lidl as a case study. It begins by defining innovation and differentiating it from invention, emphasizing its importance for organizations like Lidl. The report explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It then delves into the 4Ps of innovation, the innovation funnel, and frugal innovation, providing examples of their application. The report also examines the commercial funnel, new product development (NPD) processing, and the creation of an innovation business case, including funding access. Finally, it discusses tools for developing, retaining, and protecting knowledge and intellectual property. The report covers topics such as the role of innovation, its sources, and how it can be embedded and measured within an organizational context.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Innovation and determine its importance to organisations in comparison with invention....4
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................6
TASK 2............................................................................................................................................7
P3 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas...........................................................................................................................7
P4 Developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
TASK 3..........................................................................................................................................11
P5 Importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation...........................................................11
P6 Innovation business case for an organisation, including ways to access funding...............12
TASK 4..........................................................................................................................................14
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
.......................................................................................................................................................16

INTRODUCTION
Innovation can be defined as a new ideas or method which viewed as an application of
better solution that help in meeting new requirements, existing market needs as well. This will
help business organization to make unique and quality products in order to attain success in
market place (Anderson, Potočnik and Zhou, 2014). In this context, there are number of benefits
which is gained by company like attaining competitive advantage, enhance profitability, high
involvement of workers an many more. All these directly contribute in capturing large market
share from its rivals. LIDL is retailing company which produce variety of food products to large
number of customers. Mainly, company operates more than 10,000 stores across the world.
Along with this, report discussed about concept of innovation with its importance and
difference between innovation and invention. Contribution of organizational vision, leadership
and culture is also mentioned in process of shaping innovation and commercialisation. Apart
from this, 4P's of innovation and application of innovation funnel and NDP for
commercialisation of innovation is also discussed in this report. At last formulation of business
case with applications of tools towards the protection of intellectual property rights is assessed in
this project.
TASK 1
P1 Innovation and determine its importance to organisations in comparison with invention
Innovation is process or methods of doing something in new way. In business
organization, innovation often results when ideas are implemented and applied by the firm with
the purpose of satisfy customers needs and expectation (Boons and Lüdeke-Freund, 2013). In
this context, company take initiative for creating something new and unique. This will directly
contribute in enhancing the chances of inviting number of customers towards innovative
products and services. Mainly, this process used by business organization to fulfil and satisfy
customers needs and wants by providing quality products and services. LIDL is a retail company
which produce food products to its customers as per their needs and wants. For attaining success
in market place, company adopt innovative approaches within their activities to make their
competitive image. With the assistance of this, company can easily invite large number of
customers towards its offerings. In addition of this, bringing innovation support LIDL to make
their strong brand image at market place. To capture customer's attention, requirement of
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innovation is required in various department like marketing, finance, and many more. By this,
company can easily established their competitive image and capture larger market share from its
rivals (Brynjolfsson, E. and McAfee, A., 2012).
Importance of innovation:
Innovation plays important role in improving the performance level of company because
with the use of innovation concept, firm can easily invite large number of customers towards its
products and services. In this, LIDL wants to launch mobile application within their business
through which customers can easily book their order to its products. This will directly contribute
in improving overall image of the company more competitive. Mainly, the innovation provide
opportunities to business organization to attain their set goals and objectives in stipulated period
of time. In this, there are some major benefits of innovation which is achieve by LIDL:
Attract the best talent: Innovation invite skilled and talented people because every
talented people want to work for those company which implement innovation. In context of
LIDL, concept of innovation encourage workers as per daily basis through which they can easily
invite talented workers. Thus, it is important for business organization to hire talented and skilled
employees in which they develop innovative ways to produce their services for attaining higher
success in market place (Cross, 2011).
Meet customers needs: Customers are important assets for business because they buy
company's products to satisfy their needs. By this, organization can easily increase their
profitability level at market place. In this context, LIDL can easily understand customer needs by
launching mobile application. With the help of this, organization can serve quality services as per
customer requirements. For example, LIDL introduce mobile app to interact with their customers
and analyse their needs and wants. With the assistance of this they can easily meet customers
needs and wants and at the same time also make them loyal towards its offerings.
Competitive advantage: In retail industry, competition is high because number of
companies are operating their operational activities in market to attain success. Thus, it is
important for LIDL to produce quality products to customers as per their needs and wants. At the
time of implementing innovation, LIDL have to determine the market needs and customers
demand towards its offering. With the assistance of launching mobile application, organization
can interact with target customers to provide hem quality products as per their requirements. This
will directly contribute in attaining competitive advantage at market place from its rivals.
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INVENTION
It is a process of creating something new that does not exist before. By using this
application, company attain set results in an appropriate manner (De la Mothe and Paquet, 2012).
For effectively understanding distinguish between innovation and invention, here are mentioned
some differences:
Innovation Invention
Innovation refers to the process of
implementation of ideas of products for first
time.
Invention is an occurrence of an idea towards a
specific product that never been make before.
Mainly innovation add value in already
existing service/product/method.
Invention is an original idea of creating new
products.
Innovation is a practical implementation of
new and innovative ideas within the LIDL.
It implement in business in theoretical way.
Innovation require scientific skills to
implement.
Invention required technical and strategic skills
for implementing.
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Vision, leadership, culture and teamwork play as an essential role in business
organization to shape innovation and commercialisation. Thus, it is important for company set all
these factor clearly to improve their overall performance (Gawer, 2011). In this context, clear
vision of business organization help workers to clearly understand about objectives so that they
can easily perform their task in effective manner. Furthermore, culture is also important for
business organization as it help in bringing the coordination among all the workers by reducing
the conflicts that arise at workplace. This will directly contribute in improving the entire
performance level of the company at market place. In addition of this, leadership and teamwork
has also vital role in organisation as it improve the interest of the workers towards the company
goals and objectives. In context of LIDL, all these aspects are important to bring innovation and
commercialisation within this company. These can be understood by following points:
Vision: This aspect is related with future objectives of the company. With the assistance
of this, manager of the company can easily provide them roles and responsibilities to employees
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at workplace. In this context, main vision of LIDL is to establish their competitive image at
market place in upcoming time by serving best services to customers. Along with this, LIDL also
expand their business operation in new areas in which company is going to launch mobile
application to interact with their customers for influencing them towards its offering. With the
assistance of this, customers can easily order products and services (Gennaioli, Shleifer and
Vishny, 2012). Development of innovation can help LIDL to capture larger market share from its
rivals.
Culture: It is also an important aspect for business organization in which company needs
to focus on their culture appropriately because it help in producing better products at market
place. Thus, it is important duty of manager of LIDL to remove all the cultural differences
among workers. For this, company have to provide values, norms, beliefs which follow within
the business organization with the aim of establishing ethical work environment. By this workers
can easily communicate with each other and share their views to implementing innovation within
the company to improve positive brand image.
Leadership: This factor play an important role because the leader of the company is
responsible for motivating and encouraging workers towards the allotted task and goal as well. It
is important in innovation process because a good leader always ready to accept challenges and
innovation to attain set goals and objectives. Along with this, they also motivate their team
members to perform well. With the assistance of this, LIDL can easily bring innovation with the
company.
Teamwork: Working in group and team is important for every business organization to
attain common goals in stipulated time frame (Gunday and et. al., 2011). To bring innovation
with LIDL, leader is responsible for keeping better coordination among all the workers so that
they can easily take initiative to develop innovation. By this LIDL can easily implement the
mobile application and enhance customers base by providing them quality products and services.
M1 Different sources of innovation and how organization can foster and develop an environment
and culture innovation
Innovation is an effective process of developing something new in existing products with
the purpose of inviting as well as capturing customers attention. In this there are some different
sources of innovation which may contribute in developing an environment and culture
innovation:
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Process change: It is also an effective source of innovation which focus on determining
the effective ways to improve the innovation process. With the use of this, company can easily
evaluate the possibilities to innovate creative and effective aspect that may help in making
culture innovation.
Industry and Market structure: Change in market and sector is provide number of
opportunities to develop innovation. This will helps in business organization to increase their
productivity by developing somt8ing new in their products line to produce quality products.
D1Critically analyse how innovation is developed, embedded and measured in an organisational
context
Innovation comes from the thoughts of taking the business to next level. LIDL can make
some innovative approaches to increase the business levels by applying some ideas in the current
strategies or in new strategies. They can be measure by the outputs of the strategies. With the
assistance of this company can easily enhance their profitability level and also established their
positive brand image.
TASK 2
P3 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
Creativity is an important aspect for every business organization to enhance the chances
of attaining higher success at market place because it helps in influencing workers to think
creatively. Creativity is the term which is intangible in nature and most of the firms in the
industry want to make it as an asset so as LIDL. If organisation is creative and depends on
creating new ideas to promote its product, it is possibly sure that the product would be
successful. This phenomenon includes 4P's of creativity that are defined as :
Person: The person is the one who initiates the idea of creativity and innovates the
product. He/she is the centre of that innovation (Jiménez-Jiménez and Sanz-Valle, 2011). As in
the case of Lidl, the company aims at customer satisfaction and want that there customer do not
go to other rivalries in the market. Lidl has innovated a product that would enable their customer
to order the product sitting at home. They have designed a mobile application which will give the
information of all the products that their store have. The online mobile app will help the
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company in increasing its turnover and would help maintain the potential customer which used to
purchase with them.
Process/Paradigm: It is also an important factor of innovation as it help in making
overall production effective. it is the procedure followed by the organisation which is used for
developing the product. It is the cerebration that an entrepreneur has thought to provide the
solution for the problem. In the context of LIDL, process that is followed by the innovators are
market research and the customers desire. These two things are followed by LIDL while
innovating their mobile app which helps the customer to get products and services With the help
of this. mobile app the customers will get the knowledge of the discount which are available at
the real time.
Product: It is a new type of innovation which is a result of creative process and it is
being built by the persons within a company (Kleinknecht, 2016). It is less studied element in
area of quality. Organisations are setting up their own model and approaches where experts give
their reviews on the product. Customers can make purchases, view catalogues while they are on
the go instead of stopping at a shopping centre.
Position: This will include about the re positioning of the perception regarding the
established product or process which is related to specific context. This will includes all the
descriptions about the changes which are going to happen in product along with their usage. This
will have huge importance regarding effective application of new and innovative product.
Innovation funnel:
The main aim of using this development is to take an idea from reality by converging to a
specific product which can help in meet customers needs. Mainly, it is refers to a new ideas to
reality. As it includes different steps which include in LIDL in the process of innovation process
are as follows:
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(Source: Innovation funnel, 2017) Wide of mouth: It is one of the important step in which organization increase their
information base to implement best innovative idea within the company. Here, LIDL
collect information from market by using primary and secondary sources. Like survey,
questionnaire poll and many more are the best method to gather relevant information to
take best ideas. By this, company can easily improve the chances of better success in
implementation of innovative idea within the company. Narrowing segment of funnel: In this step, it is important for company to determine the
ideas which is reliable in nature. For this, LIDL is responsible for matching the ideas for
screening to ensure whether it is related or not. With the help of this company can easily
improve their quality services and also established their positive brand image at market
place.
 Narrow segment of funnel: It is considered as a last step in which above mentioned ideas
are implemented in the business organization in accurate way. The main aim of this step
is to produce new products and services according to the specific requirement of market.
In context of LIDL, they ensure that launching the mobile application is more effective
for company to meet heir organizational objectives in effective manner.
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Illustration 1: Innovation funnel

P4 Developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation is one of the important and effective process which help in removing
the issues and complexities that arise in production process (Manso, 2011). The result is reducing
the products cost of the company and enhancement of profitability level. Mainly, it is used by the
company with the aim of removal of wastage from the overall production process. It provide
better opportunities to the business organization to produce quality and unique products at
reasonable cost to their customers according to their requirements and taste. In addition of this,
the main benefit of this innovation is to increase sales of the company by producing high quality
of products in low cost and production expenditure. In context of LIDL, company use this type
of innovation to minimize the issues at the time of developing as well as launching mobile
application so that customers can easily book their order and get quality services as per their
taste. This will directly contribute in making customers base strong and also improve their
positive image in front of their competitors as well (Metcalfe, and Miles, 2012).
In addition of this, main aim of LIDL is to invite large number of customer by launching
mobile application. By this, they can easily engage their customers with their services and also
influence them to buy products. It directly contribute in maximizing overall profitability level of
the company at market place. Mainly, mobile application provide all kind of information to its
customers. It also may engage their target customers towards its offering services/products by
providing them special offers and discounts as well. In this context, there are some example of
how it is used in LIDL: Reduction of production cost: It is one of the important aspect of frugal innovation
which help in reducing the cost of manufacturing process by removing wastage
resources. This will help in improving the chances of producing unique and quality
products to target customers for fulfilling their needs and wants. For example, if company
produce their services by analysing market trends and customers behaviour than they
easily reduce their cost because it eliminate the wastage of raw material. Develop new features and offers: This aspect is considers as an important one because
by using mobile application, LIDL can provide information about new and innovative
features of products to customers. By this, company can easily capture larger market
share and also make their image competitive at market place (West and Bogers, 2014).
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 Application of new technologies: It is also an important aspect of frugal innovation
which used in business organization for developing efficiency level. In context of LIDL,
company is going to launch mobile application to increase their advertisement at market
place. By using this, company can easily promote their services and products before front
of customers. This will provide support to company to improve their performance level
by making entire process of production and promotion more effective. For instance, by
launching mobile application company may improve their services quality. By this
company may increase their positive brand image at market place. As it invite large
number of customers towards its offering.
 Customers engagement: Frugal innovation play an important role in reducing any kind
of deficit within the production process. As it increase customers engagement within the
LIDL because it focus on developing new mobile application. This will aid in influencing
customers towards its offering and at the same time also may improve their quality of
products as well. This will improve overall profitability level of the company at market
place (Boons and Lüdeke-Freund, 2013).
M2 Analyse and apply the innovation funnel in an organizational context
Innovation funnel is an important process of determining the steps to developing new
products and process as well. This will help in improving the chances of capturing customers
attention. Innovation funnel is related with strategic thinking this may aligned with the strategic
objectives of the company. The main aim of this process is to increase the overall value of the
organization in most effective manner.
M3 Role of frugal innovation in organization
Frugal innovation is the process of reducing the complexity and cost of good as well.
Mainly it is related with the removing the unnecessary features that are not effective for the
company. It not only low cost bit also evaluate the alternative to attain the set goals and
objectives. With the use of frugal innovation company can easily create high quality products
with the purpose of enhancing the profitability level at market place. The main advantage of
frugal innovation is to minimising the unnecessary cost and maximize the profitability level.
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TASK 3
P5 Importance of the commercial funnel and the application of new product development (NPD)
processing for commercialisation of innovation
Commercial funnel is the process in which initiatives are taken by the company with the
purpose of influencing customers at the time of buying company products. Thus, it can be stated
that commercial funnel is a thought which assist firm in identifying the ways that can help
company in increasing its profitability. Henceforth, in order to make this possible, it is crucial for
making strategies and action which can be executed for getting profits and better results.
Commercial funnel is majorly incorporated by companies in order to enhance sales and
profitability of an organisation. There are certain steps which are required in the process of new
product development and these are mentioned below for better understanding:
Process of new product development
Idea Generation: In order to produce a product there is a chance of getting lots of ideas
and thoughts in the mind so, this is the first step under which concept of making a new product
arise. This is the action which makes commodity unique and different from one another (Process
of New Product Development, 2018). Thus, in order to do the same information is collected from
different sources so that product can be developed. In addition to this, needs and wants of
consumers are also determined so as to manufacture commodities as per their choices and
preferences. Here LIDL wants to launch a mobile application through which online shopping can
be made easier. Other than this, they have incorporated certain features like easy swipe up
transaction.
Idea Screening: In this stage, focus is more on having detailed analysis of ideas, so that
effective strategies can be made in order to make perfect commodity for customers. Thus, in
context with LIDL, they are formulating new and innovative strategies for developing products
and in relation to this; they are taking help of expertise who can guide employees for how work
is to be done and not only this, it will assist workers in performing their future actions and
activities as well.
Concept development: In this, whatever ideas were generated are transformed or written
into a paper so that final report can be made (Lundvall and et. al., 2011). This stage of concept
development will further be used by companies so as to have an idea or to convert the thought
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