Innovation and Commercialisation: Retail Sector Business Analysis

This report provides a detailed analysis of innovation and commercialisation strategies in the retail sector, focusing on Fresh Direct and Schwan's. It discusses various methods organisations use to source and foster innovation, including developing an innovative culture, leading from the front, and offering rewards and recognition. The report analyses the 4 Ps of innovation (product, process, paradigm, and position) and evaluates the success or failure of innovation in each retailer. Furthermore, it presents a business case for innovation, outlining risks, benefits, and funding options, suggesting funding channels and tools to protect intellectual property. The report concludes with an action plan for innovation, emphasising the importance of innovation for long-term market reputation and customer acquisition. Desklib provides access to similar reports and study resources for students.

Innovation and
Commercialisation
Table of Contents

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task – 1 ..........................................................................................................................................3
Discuss the ways in which different organizations source and foster innovation by utilizing
specific examples........................................................................................................................3
Detailed analyses and discussions on types and processes of innovation in each of the selected
retailers........................................................................................................................................5
A critical evaluation of the success (or failure) of the innovation in each retailer.....................7
Task – 2 ...........................................................................................................................................7
A detailed business case for the innovation of an organisation with risks, benefits and other
ways for funding.........................................................................................................................7
Suggestion of funding channels for the recommended innovation, supported by analysis of
business value for potential investment......................................................................................8
Recommendation of tools to retain/ protect the knowledge and intellectual property (IP),
generated through the innovation process above, complimented with a critical evaluation of
the tools.......................................................................................................................................9
The tool used by me to protect my unique innovation of watches by the intellectual property
protection...................................................................................................................................10
Explicit action plan for the innovation (recommended above), supported by methods to
protect them in a wider environment context............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is the process of developing something new and unique either it is product or
service and idea or methods for a company. It is helpful for any company in overcoming
challenges and beating competition(Wang, Feng, Wang and et. al., 2021). It is also helpful in
increasing customer base and having a bigger market share. There will be the use of new ideas
with the efficient use of minimum resources which is also helpful in increasing productivity of
the firm. After innovation there comes a process of bringing such innovative products to the
market and earning money and benefit from it, is known as commercialisation.
Commercialisation is helpful in providing job opportunities, various choices for customers and
many more ways for marketing(Lea, Yu and Min, 2018). There will be various choices for
customers regarding products and services and by their purchasing there will be an increase in
the per year revenue of the company. Fresh Direct and Schwan's are the chosen organisation for
this report. This report has the aim to provide the description about the processes and types of
innovation, a critical evaluation of the success and failure and recommendation and suggestion
regarding the innovative products of the chosen retailer. It will cover different organizations
source and foster innovation and 4 ps of innovation. There will be an evaluation of success and
failure of the chosen retails as impact of innovation.
MAIN BODY
Task – 1
Discuss the ways in which different organizations source and foster innovation by utilizing
specific examples
Following are various methods which could be used by Fresh Directs as innovation
source and foster the business organisation:
 Development of innovative culture: Individuals are needed to show their efforts at the
time of getting motivation from others in innovation process. Confidence and capacity of
thinking raised in the employees with such motivation. For Fresh Directs, there should be
a positive and adaptable working culture at the organisation for the increment of
performance at higher level.
 Leading from front: Innovation begins when the CEO employs a variety of leadership
qualities. In this regard, people's enthusiasm and interest are crucial to innovation.

Products can easily be produced in the highest possible quality to meet the requirements
and preferences of customers because innovators are highly motivated. In comparison,
Fresh Direct was able to easily maintain their vision, mission, and goals in the market for
a considerable amount of time thanks to their strong focus on the innovation process and
concept(Gobble, 2018).
In context to Schwan, as it is known, it is an online retailer also which assist in
maintaining the quality of goods and services for the customers. The head of this firm has the
main focus at sourcing and fostering innovation in business operations.
 Reward and recognition: It is a crucial and highly effective way to improve workers'
overall thinking and creativity. Because each employee's needs and wants are different
here, the company needs to be able to identify them. It also thanks employees for their
ideas and opinions. In relation to Schwan, management must offer attractive benefits and
rewards to employees to keep their employees' confidence in their jobs for a long time. Taking ownership of consumer problems: The head of the firm is focusing at the
production and offering of high quality of goods and services to the customers for long
time. It is crucial for the management to encourage employees for the improvement of
their working performance. Motivation is helpful in solving various problems and facing
challenges(Wang, Phillips and Yang, 2021).
Different sources of innovation
 Change in perception: During the development of any product, dynamic opinions centre
on a variety of topics. This indicates that when people purchase various services and
goods, their perceptions frequently shift. Because of this, the company must effectively
assess the tastes and preferences of customers to boost sales. Demographics: A large company's focus is on demographics, which include changes in
the population, pay scale, human resources, and age ranges on a regular basis. Dividing
disparate demographic data is a potent strategy for precisely meeting the requirements of
a potential market.
Foster innovation
A method that an organization employs to generate novel concepts and make use of
cutting-edge technology within the organization is known as foster innovation. The company's

success rate can be easily increased at a higher rate by utilizing novel ideas and optimizing its
resources(Tianyi, 2021).
Developing innovation vision, leadership, entrepreneurial teams' innovation networks
Development of innovation plays a crucial role in increasing the popularity of a
company's products and services in the market. In innovation, a company takes a variety of steps,
including technological, product, process, and others, to increase sales.
Through food that serves as the foundation for celebration, bonding, and a connection to
one another's heritage and communities, the vision of fresh direct is to make a healthy difference
in people's lives. However, Schwan's goal is to make their business more innovative by
incorporating technology and other elements. The company is able to maintain its long-term
supply of high-quality products in this manner.
The ability of a group of people or a single person to direct and influence others is
essentially what we mean when we talk about leadership. The employees of both companies are
able to carry out their duties with ease and maximum efficiency thanks to strong leadership.
Lower level employees are able to perform their duties in the workplace area with full efficiency
with the assistance of an effective leader(Fu, 2020).
In the context of entrepreneurial teams and innovation networks, on the other hand, the
term "network" refers to a group of people who use a variety of innovative and advantageous
business strategies to increase a company's success rate. In entrepreneurial teams, work is
distributed equally among employees, resulting in a greater reduction in mental stress.
Detailed analyses and discussions on types and processes of innovation in each of the selected
retailers
4 Ps of Innovation
There are basically four kinds of innovation with the use of which Fresh Direct and
Schwan's could deliver variety of products and services to the customers. Product innovation: Any kind of modification in the goods and services developed by
the company is product innovation. Such developments in the products are helpful for the
company in attracting more customers. Process innovation: Here in this stage the company implement the new idea for
customers. It is the compete procedure in which there is involvement of technology, raw
materials and others.

 Paradigm innovation: It is the movement of an implicit mental model through the
change in business. It is also related to the change in process, techniques and concept for
the generation of innovative and new idea.
 Position innovation: It is a kind of re-shifting of the product or service to the new
marketplace offering the target customers with their desirable product or service. There
should be some kind of unique feature in the product or service to attract more customers.
Fresh Direct should use the position innovation method as this method generally
focuses at the quality of goods and services with the use of new technology. Schwan's company
should focus at process innovation as it will be helpful for the company in solving the problems
of their clients with providing their services(Mason and Botelho, 2018).
The process of producing goods with unique features by the company is known as
innovation process. Following are the stages involved in innovation process:
 Idea generation: Various workers puts their ideas as per their mind set and the most
suitable and unique idea is chosen to be further processed. A good idea will be helpful in
the production of relevant products.
 Screening and advocacy: In this stage, the analysis of the chosen idea take place for
checking its efficiency. It will allow the firm in knowing any thing which is lacking in the
idea and risk identification with the particular idea.
 Experimentation: Here the company find outs the stability of that idea in both online
and offline mode. Different ideas are sequence according to their number of execution.
 Commercialisation: This is the step where the products are bring to the market place so
that the customer can know about that. The company tries to produce good services to its
customers with best quality.
 Implementation: This is the stage in which there will be the implementation of the ideas.
Here the desires of the customers are going to be satisfied.
A critical evaluation of the success (or failure) of the innovation in each retailer
From the above stages it is concluded that the process of innovation is crucial for any
organisation to maintain its reputation for long term in the market place. It is helpful for the
company in pulling more customers with the innovative products and services. Fresh Direct
could improve its services for the enhancement of its performance in market and Schwan could
use innovation through blockchain in their business operations.

Task – 2
A detailed business case for the innovation of an organisation with risks, benefits and other ways
for funding
Following is the efficient action plan for the management for Fresh Direct:
Business case
Executive summary Business case is helpful in the identification of any risk and how to
overcome such risks. Fresh Directs could use technology to approach
final user intended to decline the cost for getting a customer.
Problem statement
and research
The problem of Fresh Directs is that they are not able to get a relevant
customer due to lack of customers.
Resolution Innovation and sales promotion could be taken in consideration to
resolve the problem statement.
Project statement Research an development has the requirement of capital which is
helpful in hiring experts.
Cost benefit analysis Gains and latest needs are shown through graphs and charts.
Financial analysis It is recommended to the company to use peer to peer funding as it will
be helpful in having funding at minimum interest rates.
Following is the recommendation of action plan for the business of Schwan:
Business case
Executive summary Schwan is facing the problem of customer dissatisfaction as there is
lack of resolution for their problems.
Problem statement
and research
Schwan is lacking in competition due to inability of satisfying
customers or target market.
Resolution Sales funnel is recommended for the brand in order to assess their
target market, and innovate solutions such as chatbots to address the
queries of costumers while saving costs.
Project statement There is a need of optimisation of business functions for the reduction

of input expeses.
Cost benefit analysis The benefits and expenses are represent with the charts and graphs.
Financial analysis The company could use angel investor as a source of funding for
investment.
Suggestion of funding channels for the recommended innovation, supported by analysis of
business value for potential investment
Business growth could be based at the loans and capitalism of new project for the
company which could be risky as there is no idea for its success. Following are are channels for
funding:
 Crowdfunding: The method of raising funds from family, peers, relatives, employees
and others who are close ones, is termed to be crowd funding. It is the tradition way for
collecting funds for the business in which the business plan is share with the limited
persons only. It could be available easily and there is no fear of interest rates. It is also
beneficial in having some more ideas for the business as there are a lot of people from
which the fund is going to be collected(Boylan, Nesson and Philipps, 2018.).
Advantages Disadvantages
 Capital could be easily raised using this
method.
 It could be a better source of funding as
there will be collection of more ideas
from the peers and others.
 If the business fails, whole amount of
money have to be refunded back to the
investors.
 Conventional methods are better than
traditional methods.
 Investments by peers, family and friends: This is a method of collecting funds with the
people with the entrepreneur is more comfortable. It is a kind of crowdfunding but there
is no seeking for fund collection from people other than the known ones.
Advantage Disadvantage
 Investors will be more comfortable to  It could harsh the bond with the friend

make funding as they are known and
trusts at the entrepreneur.
 There is no need to pay security
amount and there is no fear of raising
interest rates as per the time.
or other knowns if there is any loss in
the business.
 There is a lack of skills from the
investors as they have no connection
with the business.
 Peer to peer funding: It is a kind of funding in which the funds are borrowed with
putting a request to the friends or colleagues. It is also a traditional way for funding in
which there is the company provide the shares to the investor in return for funding.
Advantage Disadvantage
 There is the exchange of ideas and
knowledge in between the investors and
the entrepreneur which is helpful for
the business.
 There will be reduced interest rates for
the business.
 Is is a kind of regulated form of
investment in UK, Canada and
Australia as there the investments are
controlled by the court.
 There may be a fear of copy of the idea
of the entrepreneur which have harsh
effects over businesses.
 Angel investment: In this source of funding the investors provide funding for small sized
business or start-up and take equity in the company in return. These may be the friend or
family of the entrepreneur.
Advantages Disadvantages
 There is no interest rate for the funding
in this source of raising capital.
 Angel investors also provides ideas and
support to the business.
 It is quite tough to find relevant
investor who could made effective
connections
 The company will have less profit as it
have to share its equity to the investors.
Recommendation of tools to retain/ protect the knowledge and intellectual property (IP),
generated through the innovation process above, complimented with a critical evaluation of
the tools
It is crucial for the company to have innovative ideas and techniques for the company. To
adopt innovation in the company there is a basic requirement of protection of intellectual

property. Protection tools enables the businesses to be protected from the competitors with the
generation of something innovative. Following are the important tools for protection of
intellectual property of the organisation:
 Patents: Patent allows its owner to have legal right to prevent others from making,
using, or selling the invention for a limited time. To protect their rights, the owner of the
patent must file a lawsuit against an infringer. Patents are an essential form of
competitive advantage in some industries;In some cases, they don't matter.
 Copyrights: Copyrights provides its owner to have legal right to copy, adapt, distributes,
displays and others with performing excellent work for a limited duration. It may be art,
education, music or some other. It protects the excellent work not the idea for that
excellent work.
 Trademarks: It is a particular phrase, word, symbol and the combination of all for the
analysis of the products and services of the company. It is helpful for the protection of
the reputation of a company and prevents others companies to trap the property or asset
of the business.
 Trade secret: It is the secrete information which is helpful in providing competitive
advantage to the company in the marketplace. It is also helpful in the protection of
information from the disclosure via maintenance of efforts for its privacy.
The tool used by me to protect my unique innovation of watches by the intellectual property
protection
Patent: It is a legal right of a company to prevent other companies from manufacturing, selling
or offering same product and services as the company is offering. It is for the protection of the
uniqueness of brand of the company. Following are the steps used my me for the protection of
brand for the company:
 I have the requirement to apply for registration for cross licensing and further check if the
invention categorise under the patentable category or not.
 I write the application for the patent.
 After writing the application there will be the need for the application for publication.
 Then after there will be a cross check over the request.
 All these will be responded by setting clear objectives.
 At the last step, patent will be granted.

Explicit action plan for the innovation (recommended above), supported by methods to protect
them in a wider environment context
Innovation is a new way for a business to solve technical problems. It can be protected in
a number of ways by ensuring that the inventor has control over how their innovation is used
This protects investors' interests. Fresh Directs and Schwan are the retail supermarket that wants
to enter the UK market. In order to protect its rights from the public and competitors, the
company needs to create a strategy to safeguard their innovation processes and methods. Fresh
Directs and Schwan trends ought to devise the following strategy to safeguard their innovation:
 Update intellectual property protection: A company should upgrade a number of IP
tools to fit the digital process, optimize the supplementary protection certificates and
encourage the use of new technologies in order to support the unitary patent system and
protect the company's innovation. They ought to construct a robust safeguard for
geographical indicators.
 Better IP enforcement: The company can better protect their innovation system by
establishing a toolbox for protection, clarifying responsibilities on online platforms under
the digital service act and expanding the role of the anti-fraud office and other authorities.
This commission will improve IP rights that are both effective and necessary.
 Encourage the use of intellectual property (IP): Inform management about the
advantages of IP and filing systems to encourage the use of IP in a business. Promoting
the organization's intangibles-based financing and ensuring the availability of essential
intellectual property during times of crisis.
 Encourage the sharing of intellectual property: This is the strategy for safeguarding
intangibles and recognizing the significance of intellectual property in combating
hacking. The company's copyright infrastructure can be improved by better mobilizing
IP-protected data.
Innovation could be a new solution for the chosen companies as it will help them in
overcoming the challenges, cracking competition and others. The determination of how the
innovation will create value for customers and how the organization will capture the value is an
essential part of developing an innovation strategy. In order to innovate at Fresh Directs and
Schwan, a team conducts a survey to find out what people need and want, and the innovation

team then works to meet those needs and increase the value of the product. They ought to
safeguard the patent system-supporting protection of intellectual property.
CONCLUSION
It is concluded from the report that the development of something new idea, product or
service of the company is the process of innovation. Then the transfer of such innovative
products to market or target customers in the process of commercialisation. Both of the process
are necessary for a business and are helpful in achieving success for the business. There are
different organizations source and foster innovation by utilizing: development of innovative
culture, leading from front and others. Change in perception and demographics are the two
different sources of innovation. There are 4ps of innovation: product, process, paradigm and
position which are important in creating innovation strategy. Idea generation, screening and
advocacy, experimentation, commercialisation and implementation are the stages for pursuing
innovation. Crowdfunding, Investments by peers, family and friends, Peer to peer funding and
many more are considered as the sources of funding for businesses. For the protection of
intellectual property patents, copyrights, trademarks and others are the tools which could be used
effectively.

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