Analysis of Innovation and Commercialization at JB Global Limited

This report examines the concepts of innovation and commercialization within the context of JB Global Limited, an e-commerce retailer. It differentiates between innovation and invention, emphasizing their importance for firm growth, and explores the application of the 4 P's of innovation (product, process, position, and paradigm). The report analyzes the role of employees, organizational aspects, and the innovation funnel, drawing parallels with Apple's success. Furthermore, it discusses frugal innovation and its impact on JB Global Limited's development, offering insights into how the company can foster innovation to enhance productivity, meet market demands, and achieve sustainable growth. The report covers various stages of the new product development (NDP) process and commercialization strategies.

INNOVATION AND
COMMERCIALIZATION

ILLUSTRATION INDEX
Illustration 1: 4 P's of innovation.....................................................................................................5
Illustration 2: Major stages of NDP.................................................................................................8

INTRODUCTION
In the era of industrialization, every firm needs to be innovative to make growth.
Innovation is the process which does not require any scientific exploration, it is an integration of
technology, research and knowledge (Ke and et.al., 2016). At any phase of space-time innovation
can be done by anyone. Commercialization is the process where basic focus is given to how
product should be launched to market. It is the way by which more and more consumers can be
attracted. In industries and product line, innovation process can vary dramatically. It has become
a priority for every firm to be innovative in order to growth strategy. Such things require good
ideas and existing product which can be transformed to perfection. Firm can make greater impact
on the market and consumers if they are focused on both of these processes. Large established
firms like Apple and Virgin group have started their successful business by adopting these two
things. This report comprises of details regarding the basic difference between the innovation
and invention along with its requirement in the firm development. Various aspects are chosen
which help to provide the shape to both the process. Moreover, its types and innovation funnel as
well as frugal are examined and evaluated. Further, process required to commercialise this
process is discussed and a case study is done. For understanding the process more deeply JB
Global Limited firm is taken.
Company overview:
JB Global Limited is e-commerce retailers in UK which produces home products. The
firms’ main product is sold over eBay and in year 2006 it was the largest retailer by turnover.
Fast track 100 has recognised the company as fastest growing independent retailers.
TASK 1
P1 Compare innovation and invention and determine its importance to employees in JB Global
Limited
The evolution of existing product into new products and process can be done through
using the technological innovation. It is the development of new process, product or services
which needs creativity, space-time and existing product (Van Hemert, Nijkamp and Masurel,
2013). There are many products which are invented but are not available in the market due to
their prices, performance requirement or technological infeasible. However, when it comes about
the innovation it occurs differently in every firm process. Such things are required to meet the
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market demand and consumers expectations. Moreover, it helps in adopting current operational
management methods to maintain the firm and introducing the goods to the customer. Being the
CEO of the JB Global Limited, I required new methods to develop and increase productivity
such as Apple.
World most precious branded company Apple has used the innovation, invention and
commercialization to reach the global market. According to Forbes, the firm is 9th biggest public
organisation at international level. Though, now Apple has invented new technologies and
techniques but their greatest achievement was started due to innovation. Inventor of iPod Kane
Karmer, created first portable music player made of plastic in 1979. Apple innovated the digital
music player by giving it new design and technology and launched it in 2001. The basic
difference in the weight and number of songs made the sale of 1.4 million iPods. It can store
more than 1000 songs, having space of 32MB and weighted only 6.5 ounces. After the launch,
product claimed the number 1 position in MP3 market player. Apple's reckoning performance
made its unit and revenue share to be top most during that period. Till now it is the highest
volume product of Apple.
JB understood the demands of the customers at that period and by using the specific
technical breakthrough they innovated the iPod. Apple has proved that through creativity and
ideas, existing products can be moulded into new novel (Osoro, Kirama and Vermeulen, 2017).
After the innovation, they used commercialization process which contains many stages to launch
the product in market. As a CEO, it’s my responsibility that JB Global Limited should have
innovative goods and services so that consumers can be influenced. The company should adopt
the intense new product, business models and innovation similar to Apple Inc.
There is requirement of the employee's idea as when they are motivated it drive
innovation in the company. This helps to build and create innovative culture. Technology, design
and business practises helped the workplace to be innovative. It helps the business environment
to use the space effectively, increase productivity and satisfy the employee at workplace. As said
by more the innovative workplace the more production can be seen. But, if organisation wants to
use the employees’ creativity they need to take risk which can affect the firm structures. For this
purpose, motivation must be provided to the employees in all the possible aspects. Says that they
even promote their employees if they failed at certain products. Other benefits which are
included in this process are Higher the efficaciousness, lower cost is there and more productivity
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as well as quality. Utilization of the resources will be more sustainable. Employees will be able
to face the more challenges and they will be innovative at their work. They will be able to meet
the business requirement (Yin, Shi and Yan, 2014). It will influence more customers as they the
company will be able to provide new and improved existing product. Most productive assets in
the firm are employees. By encouraging and hiring employees with different perspective can
support the organisation. Due to this different set of ideas and problem-solving ability can be
combined and used.
P2 Introduction of innovation to employees and various organisational aspects which help in
growth of the organisation.
For success of the organisation, all the members of the company must have clear vision
about the goals, mission and values of the firm. All these are the main things which helps to
provide direction to the team and vision of the entity to commercialise their product. For an
effective team leader to require skilled and motivated team mates. Further, they should adapt the
working environment and must focus on the goals of the company. By hiring the employees from
different areas, backgrounds and having various perspective can help the company to grow
sustainably. Moreover, providing them space-time, voice, energy they can be more productive to
the company. They play important role in the business organisation. Through this profitability
and productivity can be increased at the same time. To implement this in the organisational
structure all the members must coordinate with each other (Song and et.al., 2016). Through the
mission employees can be aligned to work in proper aspects they will be able to perform their
task in more specific ways. Further, they will be able to have clear statement about the market
and company's position. Moreover, complete organisation can focus on the particular direction
to gain the organisation success. Vision is required so that the organisation can focus for the
future and can gain the necessary ideas which are required at that time. For this, employees need
to be more imaginative, creative, self-motivated and aware about the surroundings. In order to be
more innovative, the organisation must have the leaders which are the main source of providing
the inspiration to be innovative and creative. Employees are supported by the leaders to be more
innovative and productive to the company. Teamwork helps the company to reduce the workload
and improve the performance of the employee. This develops the better work environment and
efficacious culture in the firm. Combining all the aspects which are vision, leadership, culture
and teamwork will provide shape to the innovation and commercialization. For illustration, in
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Apple vision statement is “they want to provide the high quality of services to their customers
through technology and serve the mankind in all possible aspects. This can be done if our
employees know our vision and contribute to it. In order to achieve this long term, view all
employees must focus on their work, make decision and should be innovative. Further, they must
have use the commercialization methods so that maximum customers can be influenced and
market value of the product can be increased. Such aspects are based on the culture factors of the
company. Ethics, values and collective work is collaborated in our firm so employees will have
to face less work load and they can use their spare time in being innovative (Yu and et.al., 2016).
Moreover, leaders at our group also support the employees to be more productive and creative.
Collective aspects of this will help in gaining more fame, growth and profit.
TASK 2
P3 4P's of innovation and use of innovation funnel
In order to enhance the productivity and explore new things the firm needs to identify the
areas where innovation and creativeness can be implemented. Product Innovation: Product must always be more appealing and better than the existing
ones. They must influence the customer’s and are considered as the incremental changes.
Innovation can help to change the product in entire new way. This can be completed
using renovation, improving and adding new things to the existing products. Upgrading
or modifying the product can help the company to be more productive and achieve higher
market growth.
 Process Innovation: This are the areas where most of the focus is given to the
development of the process. Through this service can be provided by consuming less
time. For the improvement in this area the company needs to focus on the technology,
techniques and new strategies which can help the company to achieve better growth.
Innovation in this stage help to develop following areas like packaging, delivering and
production. Moreover, productivity, quality and quantity can be provided to the
consumers. Better approach to the customers can support in improved sales (Yin and
et.al., 2014).
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 Position Innovation: Generally, the areas where consumers can be easily influenced and
communicated are chosen for it. The overlook of the company and its market reputation
helps the firms to sell their product in any marketplace. Giving broad areas and scope to
the product can help it to reach more customers.
 Paradigm Innovation: It is the way by which business is oriented and can be improved.
Through the changes can completely impact the company in positive or negative aspects.
It completely depends on the imagination, ideas and risk-taking ability of the firm. Such
aspects evolve the business model for illustration, Apple created iTunes which is
complete new personalized entertainment system (Xiao and et.al., 2016).
The tools help to be innovative but they lack in the structured and succession planning.
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Illustration 1: 4 P's of innovation
Sources: Breznitz and Etzkowitz, 2016.

Innovation funnel is coming under the decision support tools. The main aim of any goods
or services development is to choose the ideas from the nature or reality. For this product should
meet the market requirement which are it must be economical and in manufacturable position. It
consists of three stages which are investigation, development and shipping products. Employees
are more focused in this area as they can effectively perform this task. There are two dominant
models for this broad pattern and top down model. The former is for the large firms while later is
for small or start-ups companies. Innovation funnel is collective process of refining, analysing
and implementing the plans and strategies from the surroundings. For illustration, Apple in order
to reach maximum customer’s they investigated the requirement of the public, then developed
the iPod and then marketed it to the global world. This has increased their customer’s, profit,
growth and revenue collection. Further, it helped the company to achieve their objectives and
goals.
P4 JB Global Limited development through frugal innovation.
This is to discourse upon the developments of frugal innovation where one of the recent
development is its low-cost procedure with minimalistic use of resources for the process of
development, delivering and production, etc. As a result, to which, such type of innovation leads
in low cost products and services as an effective mean to attract large number of customers. It
therefore referred to provide a sustainable position to the firm with less investment of costs and
more use of natural resources. Frugal innovation is the way of using the resources in more
sustainable ways. Here limitation to the resources utilization is there. It can be related to the
finance, substantial, organisational or use of various range and avail advantages through them. It
is the way of using the resources at lower cost of production. At JB Global Limited frugal
innovation is highly recommended. Here in the supply of the product is done in the sustainable
ways. Moreover, focus on the packaging and delivering process is given which reduces the cost
and money. They are providing the best quality product with low price (Ghimire and et.al.,
2015). Firm has invested in their R&D department in order to identify the new ways by which
consumers can easily receive their product. Further, if customers are buying the multiple
products they will gain more discount in their products. This way firm and customer’s both get
satisfied. The company is also focused towards the society and are contributing in every possible
aspect to develop the society. They are too eco-friendly and supports recycling process. This
helps their suppliers in producing the goods at lower rates. Such aspects have increased the
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customer’s and market value of the firm. For example, Apple uses the frugal innovation to
develop their product. They also organize social well-fare programs to develop the relation with
customer’s. Also, on considering the 6 principles of frugal innovation, below are the ethics that
should be applied at the time of undertaking frugal innovation.
1. Finding opportunity in hardship. Reframing the issues.
2. Do extra with fewer efforts.
3. Thinking and acting in an amenable way. Being improvisational rather than being stiff.
4. Keeping it simple.
5. Including margin.
6. Following core.
TASK 3
P5 Importance of commercial funnel and application of NPD process for commercialization to
employees in JB Global Limited.
Commercial funnel plays vital role in making the decision. It helps to identify all the
aspects in the market and use them in more sustainable ways. Through this scope, development
and product launching can be done. This helps to make better plan and strategies to make future
investment. Along with this, risk, returns and opportunity can be easily evaluated through this
process. All the ideas which are generated in the organisation can be evaluated and applied in
this stage.
New product development process is way when individual needs to implement their ideas
and creativeness to innovate new things. In JB Global Limited are required for the product
innovation and commercialization. Commercial funnel is the tunnel which represents various
ways by which new product are launched. It is very long-term process and requires all the
organisational members. It starts with the idea generation and ends with review of market
process. For this process company needs to understand the customers, competitors and markets.
NDP consist of 8 major stages which are mentioned below:
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The generation of the idea beings at the organisational internal level where employees
and staff provides suggestion. Further external sources like competitors, suppliers and
distributors are included. Then screening of the best ideas is done which is done by considering
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Illustration 2: Major stages of NDP
Sources: Hausman and Johnston, 2014

the market and consumers. After that possibility of the ideas is checked in terms of suitability to
the consumers and further testing is done. It is followed by the concept development and testing.
Next stage is the market strategy, business analysis and product development process. Followed
by test marketing and commercialization of the product. At last final review is taken from the
customers and product is supplied to global market. If changes are required than then they are
made. There is disadvantage of this process as it requires huge investment, time and risk factors.
P6 Innovation business case study and ways to access funds.
For the development of the new product above methods can be used. At JB Global
Limited innovation was used at the process level where the supply or delivery of the product
time was reduced. For this purpose, various strategies and plans are made so that effective
solution can be carried out. Various activities and functions are performed at the organisational
level to accomplish this task (Paudel, Xiao and Yan, 2015). JB Global Limited also focuses on
the sources for accessing the funds. Bank and their saving are the important areas where fund is
received by the firm. Bank provide loans at the fixed rate to the company so that their business
process continues. In order to survive in market, the CEO must be focus on the areas to
investment. Without funds firm will not able to survive the market and business activities. As the
business sector is small so the major funds can be collected through the personal saving of the
company. As Apple comes under the largest public sector so they arrange their fund through
banks and their savings which comes after excluding all the expenses. This is in order to develop
a new product and service for the users where it is introducing the facility of customised
furniture for its consumers. This is mainly on considering today’s contemporary preferences of
the users where they often demand for some new modifications. Such innovative service by the
quoted entity is expected to raise its sales to a great extent where they will easily attract large set
of consumers towards them. However, it will necessitate them to hire some proficient set of
employees to achieve this objective on a defined time period where at present, the company has
aimed to attain this goal within a set duration of 6 months. The success of this proposed
invention will be measured by referring to the earned profit and comparing the sales rate with
that to the previous numbers.
They can make modification in their structure, modifying their online appearance to the
customers using the cloud computing and Artificial technology. AI is the most advance machines
that has its own intelligence have application in almost all the areas. They can directly improve
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