Comprehensive Report: Innovation and Commercialization in Business

This report provides an overview of innovation and commercialization, defining it as the process of inventing new products and bringing them to market. It explores the differences between innovation and invention, highlighting how innovation improves existing ideas while invention creates entirely new ones. The report covers the frugal innovation model, the new product development process, and the importance of intellectual property in protecting and promoting goods and services. It also discusses the 4P's of innovation (Product, Process, Position, Paradigm) and the innovation funnel as tools for strategic business development. The document emphasizes the role of an innovative culture within organizations and its impact on competitive advantage and overall business success. Desklib provides students access to similar solved assignments and past papers.

Innovation and
Commercialization

Executive Summary
The report has discussed about innovation and commercialization that can be define as the
process inventing new product. Furthermore, the study has covered on frugal innovation model
and process of new product development. Lastly, it has thrown light on intellectual proper used
in business in order to promoter the goods and services.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Innovation and invention.............................................................................................................3
Innovation process and techniques..............................................................................................6
Explaining commercial funnel and application of new product development............................8
Presenting the different tool that organization can use to protect and retain intellectual
property......................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation deals with having various processes within the business of an organisation
that includes introducing new ideas within working procedures and products and services.
Innovation in business helps in improving the existing products and services that will solve some
problems and attain new ways of reaching customers. Successful form of innovation helps in
adding value to the businesses by increasing its profits. Innovation helps in staying ahead of the
competition and working well within the rapidly changing market conditions (Gross, and et.al.,
2018). Commercialization is the process of introducing new products and commerce them in
making the same available within the market. It consists of many critical functions that are
important in achieving the commercial success of the launched new product. Innovation
encompasses the development of new products while commercialization helps in making profit
from this innovation. This report deals with innovation strategy of the organisation and different
aspects that are related with innovation and invention. There is discussion regarding various
techniques used as a part of innovation (Kahn, 2018).
MAIN BODY
Innovation and invention
Innovation and intervention can be considered as the same processes however, are
technically different. Business innovation is process of introducing something different and
invention is about creating something new. Innovation consists of improving upon the already
existing ideas. This difference between innovation and invention matters to the organization as it
impacts is business strategy. Innovation is a wrongly assumed new word for invention. The work
innovation has created a buzz around in the corporate world while invention has dropped out
from the business. These two are closely connected but are two very different things. Innovation
helps in forming a connection between different inventions (Dincer, 2017). Innovation provides
improvement that is helpful in filling the gap within market and is combines with inventions that
in turn helps in attracting customers to generate commercial success. Invention is something that
is never made before and even the process to create something new. Invention is related to things
that are never done before and discover new things. Innovate means introducing something new
in the market. It includes manipulating the existing inventions and make the product use in real
world. Invention creates something that is completely original such as technical idea or
scientific process. Moreover, inventions are supposed to have a proof and to show the success

made by it. Innovation does not necessarily mean coming up with new idea but is a practical
implementation of new ideas. It requires set of skills such as, marketing, technical along with
strategic skills. Innovation is done when a need is felt for that particular product or even
improvement in the already existing products. Innovation is combination of different products
and processes and includes within the activities that are spread across the organisation. On the
other hand, invention refers to occurrence of certain ideas leading to creating new product. Here,
the original idea works in theory with the help of scientific skills (Flohr, 2021). It is usually
concerned with single product and the associated activities are limited to research and
development.
Innovation is a significant factor that helps organisation to attain competitive advantage
and organisation with innovation will sustain in the highly competitive market. The ability to
innovate is the key to drive the success factors within the overall performance of the company.
Various aspects with innovation includes, resources and skills such as motivation, proper training
and quality products that will help in bringing out the innovation from the company. Innovation
is the primary aspect involved in organisational policies and its growth and development.
Companies that embrace these aspects of innovations gain advantage in meeting the demands of
their customers. Innovation helps the organisation to grow and become successful and profitable.
Innovation allows the company to grow by merging with others and at quick pace (Gross, and
et.al., 2018). It helps the company to re- think its product that is not working within the market
and allows expansion to grow the business very quickly. It helps the companies stay ahead of its
competitors and adds positive value as the impact of innovation.
Innovation drives technology and leads the changes within business and market. In order
for the company to stay relevant and profitable, it will adapt to new realities. Technology drives
changes and allows businesses to enter within the markets (Daemmrich, 2017). Innovation
allows organisation to break into the markets or different industry while remain relevant in the
changing environment. In addition to this, innovation helps the organisation to differentiate itself
by develop the goal to update the products. Innovation helps in saving time, money and other
resources thus, giving competitive advantage over other companies working within the same
industry. Innovation is a powerful tool in an oversaturated industry. It helps in delivering values
to customers and works as a standout element that help in brand identity and building the
business strategy. Moreover, innovation helps in shaping the market and reviewing the needs of

customers through various channels for communication. It ensures competitive success with the
best ideas and strategic level planning (Andersson and et.al., 2019).
Innovation brings in various benefits and thus, it makes it important for the organisations
to develop the culture of innovation within its business operations. Innovative culture is now a
part of corporate culture and determine extent to which innovation is supported and promoted by
the management of the company as well as its employees (Anzola-Román, and et.al., 2019). In
order to develop innovative culture, company must motivate and inspire its employees to engage
within innovative ideas and support other for the same. It is important that the organisation
provide these employees with the necessary information, tools and equipments that will help
them to innovate. However, there are some steps that the organisation can implement to develop
the culture of innovation. It begins with communicating the strategy related to innovation to its
employees.
Innovation strategy is beneficial in setting a particular direction and clear expectations of
the company. This is followed by developing various workshops to make its employees stay
active and involved in these processes. Communicating the strategy for innovation helps in
raising awareness about the role of innovation and its related processes (Gavira, Mand et.al.,
2020). Allow the employees to be creative and innovative by supporting and inspiring them by
setting great examples. In the process of developing an innovative organisational culture, it is
important to understand that failing is fine. Moreover, it is essential to use proper approach for
innovation. Company must not be afraid in taking actions as a way of creating culture of
innovation. It is important to encourage the actions and ideas within the new product
development. It must provide time to make an informed decision and chose a way that will boost
confidence.
Leadership sets right people in the right place with the intention of building and retaining
talent that leads to innovation. It helps in setting processes that are clear while observing how
ordinary people can thrive in. Teamwork leads the company to grow while increasing its
productivity and shapes commercialisation. Organisational culture of creativity has lead to
increase innovation in the business activities. This culture helps the employees grow and lead the
path of innovation.

Innovation process and techniques
4P's of innovation is a tool that is used to have innovative space within the organisation
and lead the direction towards innovation . It helps in focusing all the resources towards it. It is
important for the business to stay in business to lead in the competitive league. The four P's of
innovation includes:
Product: This related to the ways to create a new product and making the already
existing product better. Innovative product is the idea of having a feature involved with various
new methods that allows advancement. Innovation helps the existing product that is being
improved or producing something new out of it. This is define as creating a product that is new
and improved version of old one. This new product is of enhanced quality and has an improved
overall performance. It includes having technological innovations. Product innovation is
generally associated with the customer satisfaction and results in greater demand for that
particular product (Wuryaningrat, and et,.al., 2019).
Process: This is regarding a shift and creating an innovative environment because of the factors
such as liberalisation and competition, the rise in global markets as well as increased demand
from the side of customers while having a growth in technology (Albert, 2019.). This leads to
have change in the process regarding production within the business of the organisation. Process
innovation is related to help other companies to align their process with the expectations of the
customers as well as to make sure that the business runs successfully in the long- term process.
Process innovation includes having process deliverables, flow, management along with
technologies. Process oriented organisations are able to adapt easily to the changes within the
business place. Digitalisation is one such example of change of process while having the main
focus on meeting the needs of customers and leading the market with the help of technologies.
Position: Every business will work by targetting a certain set of audience, however, might
change this target to expand for wider audience. Position innovation is about repositioning and
involves the products and services that the company will offer in the new market. Innovation
based on the position are related to changes within specific process or even product that is in use.
Position innovation leads to new market segment where the organisation will find different ways
that are not being used before. In the case of marks and Spencer, company is targetting women
between the age group 18- 45 but can shift and position to other age group (Ramírez-Montoya,
and Lugo-Ocando, 2020).

Paradigm: It is possible that business can shift its paradigms when the working sector is not
generating the desired profits. This form of innovation is about the shift within the underlying
model of change in the business status. It includes changes based on where and how the product
will be used and consists of theories, principles and other beliefs. It is related to mental methods
that are associated with the business models (Hossain, 2018). This innovation is a tool that helps
in understanding how various things work and market operates to have a good development
process. This category within innovation is hard to handle as it involves the expression of
understanding that the customer must appreciate.
Innovation helps in establishing a strong foot within the market and develop a foundation
that will help the future of business. It is important that the organisation is careful regarding
innovation strategies including the time and process that are included within the research and
development aspects. These 4P's help in laying innovation strategy for the company and making
smart choices as well as decisions that will help the organisation to grow and sustain within the
market. Innovation funnel helps in building a continuous stream of innovation and related ideas
while screening them for viability. This approach helps in determining what is ideal and what is
realistic.
Innovation funnel
Innovation funnel is the simple idea and a mechanism that will allow having continuous
stream of motivation ideas that is viability. It is a type of funnel management process and is a
popular approach that is used by the company in the process of generating ideas that are realistic
while developing strategies and action plans that can be finalised. The funnel process is
developed including the investigation and shipping products. During the manufacturing process
of the company, there are various steps involved in transporting the products and services. This
funnel is used to upgrade the existing products.
Investigation: It is done before entering the market and is an analysis of competitors working
within the same market and offering same product time. It also analysis he current performance
of its competitors as well as the response of customers towards the company.
Development: Once the analysis is done, it is followed by company to produce products based on
its nee within the market. It includes product features and designs that are developed according
to the demand of the targeted audience. Innovation funnel helps in maintaining the product
development process.

Shipping products: After the development of the product, and its design and processes next is the
shipping process. It includes transferring of goods and products from the place where it is
manufactured to the place of customers. It is important that the company focus towards the
shipment process and considers transportation system, capacity of transport and related processes
that will prevent from having any unnecessary damages of the products.
Figure 1
Source: Innovation Funnel.,2021
Frugal innovation
Frugal innovation is also known as frugal engineering is a process that is related to
reduce the complexity as well as cost involved in products and its production. It is about
removing the features that are not important to make a good product. This process is important
for the company to produce quality and be more effective while offering cheaper prices range for
its products and services. Frugal engineering helps in developing a business model and mind-set
that is not found in the emerging economies. Consumers of the organisation are more millennials
and adding value to the buy products from the company while being socially responsible. It is
important for the company to do more than just better. Frugal innovation helps in creating values
from values and meeting the needs of customers regarding quality, affordability and their
preferences. The principles of frugal innovation or engineering includes engaging and iterating
and providing continuous customer engagement. Organisation must find an opportunity within
the adversity to reframe the issue and taking the treats to turning into opportunity. It includes
trying to do more with less resources, while avoiding asking for more. It is essential that the

company thinks and works with the resources it already has towards creating better solutions.
Another principle is to think and act flexibly as in being more improvisational rather than being
rigid. It is important to include margin where know the customers and include them in the
problem solving process. Main principles of frugal innovation include creating better experience
and adding value to the customers. It allows having innovation with the fewer resources that
helps in enhancing the ability to innovate of the company. For example, Vichy has resealed 3
new product that is essential for the skin. Such as Sun cream and ideal soleil daubable usage
after sun cream at the cost of 29$ that has helped in attracting more and more customer.
Explaining commercial funnel and application of new product development
Sales funnel can be describing as marketing tool that help organization in identifying the
quality product and sell that to their customer. In other words, it can be defining as the process
that allow organization in enhancing their revenue by attracting more and more customer.
Moreover, this framework benefits the organization by allowing them to identify the taste and
preference of the customer that contributes in making the product according to their needs. Thus,
it results in increasing the overall sales that helps company in sustaining in the competitive
environment (What is sales funnel? 2021). Sales funnel also helps company in knowing the
insight of the market that allow firm in investing in the right channel and marketing activities
thus it helps in creating more prospect for serving the consumer. There are four main steps of this
framework that VICHY company can follow for getting the full advantage of this tool.
Figure 2
Sources: Elements of funnel.,2021

 Awareness: In this stage company use marketing tetchiness for creating awareness in
market. VICHY can make use of direct and indirect marketing activity for advertising the
new product in the market.
 Interest: VICHY technological tool that allow the organization in knowing the taste
and preference of their targeted audience (Sergeev and Kirillova., 2019). Thus,
organization is making product according to their interest.
 Decision: In the third stage the company is allowing their audience to evaluate their
price and packaging compare to their other competitor. By making use of sales webpage
and digital technology.
 Action: In the last stage the organization make plan for increasing their sales as well as
check the amount of purchase made by the customer monthly or yearly (Liu and et.al.,
2020).
New product development: This marketing process helps organization in finding insights of
market and benfits the company in developing new product or design in market. This process is
use by the company in the emergency time so to enhance the productivity of the firm in the
competitive market. Moreover, VICHY is making use of five steps of this framework for
improving their market position (Paschen, Wilson and Ferreira., 2020). The company is using
this process for launching their organic make product. That are explained in details below:
 Generating innovative idea: To increase the demand of product the organization has to
identify the taste and preference of the customer so that it can produce the items
according to them. Moreover, VICHY is manufacturing the product according to
demands of youth and female but for growing the business can introduce the product
according to the middle age and male gender. That will contribute in increasing the
revenue of the organization.
 Definition of concept: In the second stage VICHY has define their product material to
the audience that has allowed firm to distinguish themselves form the other competitor.
 Market investigation: In this stage business investigate the market condition in order to
known the current trend going in the market and the demands of the audience
(Mauerhoefer, Strese and Brettel,2017). Hence, VICHY is making use of innovative
technology that helps the company in identify the market trend.

 Product expansion: In the fifth stage the business uses the stagey for design their
product that helps in attracting large customer.
 Commercialization: VICHY is making use of social media marketing as well as
official and e-mail marketing for promoting their product.
Business case:
A business case is a written document that include short and long term planning for achieving the
organizational goal. The case structure generally consists of budgets, risk and mitigation and
their positive and negative impact on the business. Along with this, it helps the company in
evaluating their overall position in the market and provide them with the idea of dealing with the
conflicts (Shanafelt, Goh and Sinsky, 2017). The organization is making use of this case to
promote their organic make product in the market. VISCHY cosmetic is one of the famous
cosmetic dealer of the UK so for making the business case the company should include pricing
strategy, promotional activity and product expansion.
Executive summary
The company has many competitors and because of that it is facing issue related to maintaining
their stability the market. So for achieving the organizational goal the company has promote their
product in the market as it will contribute in overall development of the firm furthermore, the
company has introduced the new organic product that will meet the demand and needs of the
consumer.
Background
The company is facing threat like high completion so for solving such issues the company has
introduce new product as well as attractive packaging style that has contribute in making the
organization differentiate from the competitors.
Solution outline
The organization has introduced the new product for solving the issues such as high competition
as well as for increasing the overall profit by launching the new product and targeting middles
age group.
Cost and Risk: the company has decide the budget up to $3000 that will increase by $5000
that will be profitable for the firm.
Risk such as political and legal will be faced by the organization (Norbash and Kadom, 2020).
Assumption and resource: