Analysis of Innovation and Commercialisation: Red Apple Group Report

This report, prepared for Red Apple Group, a company in business for around 20 years, examines the company's innovation and commercialization strategies. It begins with an introduction to innovation and its importance compared to invention, emphasizing the role of organizational vision, ...Read More

Innovation and
Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to the company in comparison with invention................1
P2. The way organisational vision, leadership, team work and culture can shape innovation
and commercialisation............................................................................................................2
M1. Different sources of innovation and the organisation can foster and develop an
environment and culture of innovation...................................................................................3
D1. The way innovation is developed, embedded and measured...........................................3
TASK 2............................................................................................................................................3
P3. 4P's of innovation and the use of innovation funnel to examine and shape ideas to
employees...............................................................................................................................3
M2. Analysing and applying the innovation funnel in an organisational context..................4
P4. Developments in frugal innovation and examples to use it in an organisational context 5
M3. Role of frugal innovation in an organisation..................................................................6
TASK 3............................................................................................................................................6
P5. Importance of commercial funnel and the application of New Product Development....6
M4. Detailed innovation business case which includes ways to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve.................6
P6. Innovative business case for organisation to access funding...........................................7
M5. Measurement of overall effectiveness of organisation by using appropriate techniques7
D2. Critical evaluation of the nature innovation and the context in which it is developed....8
TASK 4............................................................................................................................................8
P7. Different tools of organisation that are used to develop, retain, protect knowledge and
intellectual property................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation refers to a new method, idea or process. Adaptation or production of new
ideas for the growth of company is innovation. Commercialisation is a process of launching a
new product or service in the market. It involves production, distributing, market, sales and
customer requirements. Red Apple Group is the selected organisation in present report that has
been business for around 20 years and is dedicated to develop new technologies with making
new relationships and devising it is easier for the mortgage brokers and IFAs to have a broad
choice of quality insurance products for their customer. As a CEO of Red Apple, in this report, I
am going to explain company’s innovation and commercialisation and their benefits since 12
months. Its vision and leadership, its different sources of innovation, how innovation is
developed, analysing and applying innovation funnel in the organisation.
.
TASK 1
P1. Innovation and its importance to the company in comparison with invention
Innovation is a process of converting a new idea or invention into a product or service
which creates value for customers. In business, when ideas are applied in order to satisfy the
need of the consumers, it results in innovation (Mastrogiorgio and Gilsing, 2016). For an
innovative idea to be helpful, it has to be applied without being too costly and it has to solve a
particular need.
Innovation is important because it maximises the globalisation connectivity, increases
consumer’s expectation, gives organisation an edge in penetrative markets faster as well as
provides a better connection which results in grabbing bigger opportunities. When an
organisation has an innovative idea, it will grow easily. It is very important to be creative and
innovative because creativity is connected with innovation and an important element of
creativeness is diversity .
Invention Innovation
Invention refers to the undertaking of an idea
for a process or product that has never been
undertaken before.
Innovation refers to a new idea for product for
the first time.
1

Invention is making of a new product. Innovation is adding something new in the
existing product.
Invention occurs when new thought strikes. Innovation is done when a need is felt for
improving the existing product.
Limitation of invention is till research and
development of company.
Innovation is distributed all over the company.
Invention considers a single product. Innovation considers the collection of several
products.
P2. The way organisational vision, leadership, team work and culture can shape innovation and
commercialisation
1. Company's vision statement is all about its future, it is about where the
company is going. A plan description of what a company would like to achieve in
the future. Red Apple vision statement serves a guidance for selecting current and
future courses of action (Arditti, Arksey and Asche, 2017). Red Apple Ltd. vision
statement answers all key questions,’ Where our company is going?' and 'How we
will get it?’ Its vision is to be world's most customer oriented company; by
serving the best technology at best possible prices, to have a commitment to
excellence, be innovation and passionate, provide service with honesty and having
as much fun as possible.
2. Leadership statement elements are: goal, vision, mission, values, strategically
objectives and an action plan. I can prove to the following benefits that have
resulted from shaping our leadership statement:
 Unity: - the entire team is going in one common direction.
 Focus: their path forward is clear
 Business growth:- resulting from focusing intensely
 Employee engagement: in addition to employees working together, joining together to
help each other as well as helping those who are in need locally and abroad.
To serve as a leader, live a balanced life and apply right principles to make a difference.
2

3. A team often has a team leader, who guides all members of a company to reach its
expectations.
The organisation performs well when all the members work effectively as a team. This is
because good teamwork creates synergism. The process of our work increases efficiency. One of
the greatest advantage of working in a team is the production and ideas that can result from team
discussions (Bird and Mendenhall, 2016). The workload is divided among all team members,
when working as a team to achieve a common goal.
4. Company culture refers to the environment in which employees work. It includes company
mission, worth, ethics, expectations and goals.
M 1. Different sources of innovation and the way organisation can foster and develop an
environment and culture of innovation
Creating new and unique idea of service or products which attract numbers of customers
is called innovation. There are various sources of innovation that Red Apple can follow in terms
of developing new product or service. Some sources are given as below: The unexpected: - Opportunities often come from unexpected sources. There is a list of
unexpected sources. Even fire is considered to be an unexpected creation that humans
blunder upon (West and Bogers, 2014). Many times, in the company members looking
for something else, but they come across something else. Incongruities: - When the need is dis-consonant with supply, innovation might take
place. In an effort to resolve the existing incongruity, people might innovate. Market structure: - An existing market structure may also provide rise to chances to
innovate. Modification in customer preferences, tastes, etc. often result in the changes in
market structure.
 Demographic: - Another source of innovation is the company's lifestyle. This is where it
sometimes finds major opportunities to innovate. The organisation pay attention to
changes in demographics. Demographics in the United Kingdom are changing (West and
Bogers, 2014). Company adapt these changes in demography before its competitors does
it.
3

D1. The way innovation is developed, embedded and measured
Innovation process, is that which is best managed with a long term aspect, it is not
necessary to measure in long term increments (e.g., months, years), rather in completion of
targeted goals (Ciabuschi, Dellestrand and Martín, 2015). Innovation is measured in three steps
i.e. identification of goals and expedition activities, short term transfer and development.
Successful innovators find new ways to manage the delicate equilibrium of investing in the
future. There two factors to make innovation existent at an organization: concepts and culture.
Some concepts might be enough to make a lot of sales. Others will be even stronger, allowing
the organisation to reframe what a concept means to consumers and locating them as the leader.
TASK 2
P3. 4P's of innovation and the use of innovation funnel to examine and shape ideas to employees
The 4Ps model was developed by John Bessant and Joe Tidd, which unable the company
to discover how to improve innovation process. The innovation mix of 4Ps involves the
following:
 Product innovation: The most common benefit to the market is the innovation of the
product, i.e. to improve a product or service (Bali, McKiernan, Waring and Vas, 2016). It
is a change given to users. It has 3 main characteristics i.e. novelty (refers to original
product, process or services), resolution (it must be performed according to the current
needs of customers) and last is elaboration (easy to modify, customer friendly and well
designed). This helps organizational executives to consider how to raise or change
product’s attributes for making it more consummate and innovative. Process: - Innovation also focuses on the process by which products are created or
delivered. It is an important part of every company. In my opinion, the most important
thing in business is focusing on customers.
1. Clarify: To solve the problem
2. Idea: Initiation of new ideas
3. Develop: Polish ideas into strong solutions
4. Implement: Converting plan into action
5. Review: For improvement
4

 Position: - The third part of 4Ps mix is position innovation which focuses on framing and
communicating with products. Position based innovation relates to the changes that how
a process or product is recognised and the way they are used.
 Paradigm innovation: - Finally, the last innovation is paradigm which is a simple
change in the basic mental model. Such as issue related with people activity, leadership
and responsibilities. Leadership is necessary for sustainable innovation. Red Apple needs
to make the technologies from their innovative products or services.
M2. Analysing and applying the innovation funnel in an organisational context
Innovation funnel enhances company’s structural activities in terms of getting more
consumer satisfaction. It is a type of research for the organization which helps in presenting new
products and services. Funnel development process is a positive process that works on the basis
of market research (Mount and Martinez, 2014). Through this research, the company can get new
market demands. It helps in getting the best and effective process for development growth.
Innovation funnel is the term which helps to grow customer satisfaction by expressing
innovation and inventions. Building the company's innovation funnel begins with strategic
thinking. In this way, it can be sure that its technologies of innovation are fully aligned with
company,s strategic objective. It helps to shape the organisation feasibility and development in
the competitive market.
P4. Developments in frugal innovation and examples to use it in an organisational context
Frugal innovation is a concept which reduces the usage of resources whether financial,
physical or institutionalized and convert these into innovative ideas.
Benefits through frugal innovation:
 New ways of technology, design and developments
 Innovative models to make solution accessible
 Systems thinking at a large level
 Investing in modern technologies to present low cost solutions
The UK Innovation company, Red Apple Group, gives details of why the organisation
need frugal innovation in UK:
 Uninspiring growth and funds cutting to reduce liability in developing economies which
will increase demand for frugal products and innovation processes.
5

 Environmental limitations around climate, energy and other resources will also increase
demand for more frugal process of production and consumption (Vnhaverbeke and
Chesbrough, 2014).
 New technology is reducing the cost of some innovative formation creating huge and new
opportunities for frugal innovators.
 Demand for frugal services and products is high in today's developing economies and the
fastest growing markets.
Development in frugal innovation gives better market opportunities for Red Apple in
terms of popularity (Gavira and Quadros, 2016). Through this, organization can easily adapt the
new ideas. Frugal innovation process of development is the non-stop process in order to continue
effective management of tools and techniques. Moreover, another step of innovation
development is the selection of analysed frugal innovation. It provides innovative working and
process in terms of effective process.
M3. Role of frugal innovation in an organisation
It is an ability to create new products or services in terms of acquiring the best effective
sources. This process of working enhances the employee's motivation which results in effective
working. Frugal innovator focuses on customer needs, brings the most of what we already have,
identify and defeat potential obstacles as well as finds an inspirational leader.
TASK 3
P5. Importance of commercial funnel and the application of new product development
It refers to the purchasing process that organisation lead customers through while buying
products. Each divided part of the funnel is called a phase. To improve commercial funnel of
company; use multiple marketing transmission to attract customers, analysing the effectiveness
of our market, listen to our prospects and consumers and adapt accordingly, raising company's
prospective. It helps in the measurement of actual position and company’s share in market. In
order to form a new product, organisation also needs to choose effective technology in order to
accomplish the main objective. There is immense importance of commercial funnel in order to
produce the new technologies. It helps to compete with other market competitors and give tough
competition to them. Innovation of new technologies is required these days due to rapid changes
in the demand and needs of customers (Aloini, Pellegrini and Talonen, 2014). This provides the
6

advanced services for company’s enhancement. Without a proper commercial funnel and proper
tracking, company will not be able to find out where it stand on massive opportunities to
efficiently and effectively change its strategy.
M4. Detailed innovation business case which includes ways to measure its overall effectiveness
using appropriate techniques available to test, iterate and improve
In order to measure innovation plan effectiveness, is to ascertain the actual performance
of the organisation. CEO need to supervise the business activities to make it easy to perform the
business tasks. One of the most important key measure of innovation is how many ideas per
month are getting from all of our employees (Gavira, Portilho Ferro and Quadros, 2016). In my
education, the most important thing is to keep the measures simple and focused. The next
important step is to link these measures with reward and acknowledgement.
P6. Innovative business case for organisation to access funding
There are many funding sources that are accessed by big companies like Apple or Virgin.
The given organisation has its new start up with their new products and services. They will try to
take few innovative funding sources that may prove to be effective for their growth and
development. The two main important funding sources are chosen by the Red Apple Company.
Venture Capital: This funding accessibility by this source is appropriate for the
company because it mainly deals with company that is engaged in the development of
technology, communication and biotechnology. Red Apple company is one of the dealing
company in field of technologies with its innovative products and services. This is right for this
because the support of new companies with high growth potential (Yu and et.al., 2016). A
healthy return is expected by this venture capital because it focuses on major interventions of the
high potential company. It is always ready to support such companies who have more chances of
good refund value. The ventures' capital is given for 3 to 5 years. They also ask for the return
value of at least 25 to 40% of overall portfolio investment. This is the best to support small
growing companies because it gives fund to buy and manufacture of different parts of the
products. Credit cards and complete information related with loans should be under taken.
M5. Measurement of overall effectiveness of organisation by using appropriate techniques
The total quality management of the organisation with its dimension of quality is
measured. The main tools and techniques that are used in improvement of organisation are
7

planning and assessment of all the factors of market. It is very important to identify the weakness
and strength of that very organisation. Apart from this, the government laws and regulations
must be followed properly so that the hindrance factors will be reduced.
Business incubators
This source is preferable by the given organisation. These business incubators are also
known as the accelerators because they are involved in various stages of development of
organisational products and services (Wang and et.al., 2017). This has extra features like it will
help company in creating jobs, revitalization and hosting of services. This also provides different
premises and labs to work in their sectors so that the developed products can be tested easily at
cheaper rates. This is mainly done for a limited period of time and that is only two years. Once
the product is prepared and tested, the given organisation can leave the premises and labs that is
offered by business incubators.
D2. Critical evaluation of the nature innovation and the context in which it is developed
The fact is that the particular definition of innovation does not exist. Innovations are not
made they are created by using the available resources and creative ideas in different ways.
There are more failure actions are occurred during innovator process so sometimes it is also
known as creative destructions process. This is evaluated by different accessible methods like
Production of new good with new quality development of new market, new
organisational change and many more (Chun and et.al., 2015). Innovative products get faster
recognition than the general products. Innovative ideas are preferred by most of the people
because everyone wants some change in running trend. And this is only possible with new
innovations of ideas and services.
 During the work of new changes, the worry and tension of failure should be ignored and
it should be continued.
 Other people must be involved in innovative works that may helpful in bringing new
ideas.
 Middle managers are needed to be empowered for new strategies and proposals.
8

 Reward innovation may be one of the way to overcome the challenges of innovations
Companies should provide experimental compensations for new experiments.
TASK 4
P7. Different tools of organisation that are used to develop, retain, protect knowledge and
intellectual property
During development of small business, various business ideas are developed to protect
the knowledge and intellectual property of their products. There are different methods to secure
the quality, importance, amount and value of intellectual property. These are the legal rights to
protect relevant information because if it is not done then innovative and creative ideas would be
stolen and it can be pirated. This may lead to make the value of products and services lower.
Copyright: It is one of the recognised intellectual property by UK government. This is
automatically applied to the original work. It may include the literary work, music, art and film.
This also includes a variety of range of things like the layout and content , marketing materials
that are written by company, images and videos that are released, logos, diagrams, instructions
manual, computer programmes and many more.
Trade mark: It is the representative symbol or sign that provides a recognition to the
products or services that come from particular source. This is mainly located at the building of
company. This trademark gives a particular identity to the products. This is displayed on the
package, voucher and label of the products. Every patented product has its own trade mark.
Patent: The exclusive rights are granted by international organisational to an inventor for
a limited period of time in exchange of public disclosure. The new inventions are protected by
both; national and international laws. This limits the leakage of information and ideas of
products so that it cannot be copied by any other organisation. Various documentation processes
are needed to be completed by the international law forming organisation. This makes the
product different from other sources. This shows the uniqueness of goods and services.
Trade secret: It may include various things that are used during the development of
products. It may be formula, process, instrument design and different patterns of commercial
methods. These are not disclosed because secrets information are very helpful in gaining
advantage for business among competitors (Ke and et.al., 2016).
9

CONCLUSION
Innovations are the changing trends of society. New technologies and techniques are
discovered by using innovative ideas and thoughts. Red Apple is on the small high potential
company whose funding resources have been discussed here. It has been assessed from the report
that commercialisation is the main tool of marketing of goods and services. Innovative processes
are expanded in all over the world. Innovations can make the speed of commercialisation faster
than normal marketing. Evaluation of different types of innovations with the help of various
techniques also have been discussed here that are helpful in overcoming the challenges of
innovations.
10

REFERENCES
Books and Journals
Aloini, D., Pellegrini, L., Lazzarotti, V. and Manzini, R., 2015. Technological strategy, open
innovation and innovation performance: evidences on the basis of a structural-equation-
model approach. Measuring business excellence, 19(3), pp.22-41.
Arditti, R., Arksey, H. and Asche, A., 2017. Alternative consciousness, see Ingalsbee, Timothy;
Oppositional consciousness, alternative Alto de Boa Vista Vision Statement. Knowledge
as Resistance, 193, p.292.
Bali, A., McKiernan, P., Waring, P. and Vas, C., 2016, December. Demystifying the 4Ps in
Singapore SMEs: does the government hold the key to open innovation?. In 3rd Annual
World Open Innovation Conference.
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
Chun, D. and et.al., 2015. Labor union effects on innovation and commercialization productivity:
An integrated propensity score matching and two-stage data envelopment
analysis. Sustainability. 7(5). pp.5120-5138.
Ciabuschi, F., Dellestrand, H. and Martín, O.M., 2015. Internal embeddedness, headquarters
involvement, and innovation importance in multinational enterprises. In Knowledge,
Networks and Power (pp. 284-317). Palgrave Macmillan, London.
Gavira, M.D.O., Portilho Ferro, A.F., Simm Rohrich, S. and Quadros, R., 2016. Technological
innovation management: Analyzing the application of the innovation funnel in a
consumer goods organization.
Gavira, M.D.O., Portilho Ferro, A.F., Simm Rohrich, S. and Quadros, R., 2016. Technological
innovation management: Analyzing the application of the innovation funnel in a
consumer goods organization.
Hakkarainen, K. and Talonen, T., 2014. The innovation funnel fallacy. International Journal of
Innovation Science, 6(2), pp.63-72.
Ke, W. and et.al., 2016. Employing lead thiocyanate additive to reduce the hysteresis and boost
the fill factor of planar perovskite solar cells. Advanced materials. 28(26). pp.5214-5221.
Mastrogiorgio, M. and Gilsing, V., 2016. Innovation through exaptation and its determinants:
The role of technological complexity, analogy making & patent scope. Research Policy,
45(7), pp.1419-1435.
Mount, M. and Martinez, M.G., 2014. Social media: A tool for open innovation. California
Management Review, 56(4), pp.124-143.
11

Vanhaverbeke, W. and Chesbrough, H., 2014. A classification of open innovation and open
business models. New frontiers in open innovation, pp.50-68.
Wang, C. and et.al.,, 2017. Understanding and eliminating hysteresis for highly efficient planar
perovskite solar cells. Advanced Energy Materials, 7(17).
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management, 31(4), pp.814-831.
Yu, Y. and et.al., 2016. Improving the performance of formamidinium and cesium lead triiodide
perovskite solar cells using lead thiocyanate additives. ChemSusChem. 9(23). pp.3288-
3297.
12