Report on Innovation and Commercialisation for Business Strategy

This report analyzes innovation and commercialization strategies for Rowlinson Knitwear, a UK-based clothing manufacturer. It explores the differences between innovation and invention, emphasizing the importance of innovation for organizational success. The report examines the contributions of organizational vision, leadership, culture, and teamwork in fostering innovation and commercialization. It includes an analysis of the 4Ps of innovation (Process, Product, Position, and Paradigm), the application of the innovation funnel for idea development, and the concept of frugal innovation. The report also discusses the use of New Product Development (NPD) for innovation and commercialization, the development of an innovation business case, and the evaluation of tools used for knowledge and intellectual property rights protection.

Innovation and
Commercialisation

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Difference between innovation and invention and importance of innovation to organisation.....3
P2: Contribution of organisational vision, leadership, culture and teamwork in innovation and
commercialisation..............................................................................................................................4
TASK 2.................................................................................................................................................5
P3: Analysis of 4P’s of innovation and application of innovation funnel in development of
innovative ideas.................................................................................................................................5
P4: Development in frugal innovation...............................................................................................6
TASK 3.................................................................................................................................................7
P5: Use of NPD for innovation and commercialisation and importance of commercial funnel.........7
P6: Development of innovation business case...................................................................................8
TASK 4.................................................................................................................................................9
P7: Evaluation of the tools which are used by the organisation to develop, retain or protect
knowledge and intellectual property rights........................................................................................9
CONCLUSION.....................................................................................................................................9
REFERENCES........................................................................................................................................12

INTRODUCTION
Innovation is the process of changing something into new and innovative which
attracts and influences interest and buying behaviour of large number of customers.
Therefore, it is important for every organisation whether small, medium or large to bring new
innovative changes in their organisational structure and exiting products and services in order
to survive in competitive environment for longer period of time. It also makes positive impact
on their profitability as well. Rowlinson Knitwear, a small sized UK company which deals in
manufacturing quality clothing products is taken for the purpose of preparing this report. The
project includes the benefits of innovation and its comparison with invention. The project
report also covers the contribution of company’s vision, culture, leadership and team towards
developing innovation and commercialisation. Analysis of 4P’s of innovation along with the
application of innovation funnel in development of innovative ideas is also discussed under
this report. Importance of commercial funnel and adoption of NPD is also summarised under
this report (Antonelli, 2014).
TASK 1
P1: Difference between innovation and invention and importance of innovation to
organisation
Innovation and invention both are different aspects and its own importance on the
operation of an organisation. Both these concepts help management of an organisation to
achieve competitive advantage market and sustain for longer period of time. Rowlinson
Knitwear is small sized clothing company which deals in manufacturing school wear and
corporate wear garments. Thus, implementation of innovative technology in manufacturing
process enhances the quality of products which directly maximises the satisfaction level of
customers as well (Baily and Chakrabarti, 2011).
Difference between innovation and invention
Innovation Invention

Innovation refers to bring changes in
something with a motive of enhancing their
effectiveness and efficiency.
Invention refers to create something new
which are introduced in market for the very
first time
Its main motive is to get better possible
outcomes through adding value to existing
products and services.
Its main motive is to make typical task easier
through creating new ideas and methods.
Any department can introduce new and
innovative changes in their business
structure,
R&D team of Rowlinson are only liable to
create new ideas for the betterment of an
organisation.
Importance of Innovation to organisation
Innovation is an activity which performed to develop existing products and services
according to the needs and requirements of customers. This will help organisation in
competitive with their rivals though providing value added product in market. This, it is
important for management of Rowlinson to identify the wants and demands of their targeted
customers and accordingly make changes in the quality, price, colour, design etc. of their
products. Generally innovation brings both internal and external benefits. Internal benefits
refer to the development of skills and capabilities of workers through providing them an
opportunity top work on using innovative technology. It brings motivation and self
confidence among them which ensures commitment with company for longer period of time.
External benefits include competitive advantage, higher profitability, strong brand image etc.
Importance of innovation:
Application of best methods: Adopting of innovative technologies in different
department of an organisation help in achieving desired goals and objectives within limited
period of time. Innovation can be implemented in any business operations such as
production, marketing process etc. which helps in bringing efficiency in their work. For
example, implementation of advantage technology in production process help in reducing
wastage and make required changes related with design, colour, quality etc. through which
the Rowlinson Knitwear company can able to shift customers from their rivals to their
products and services (Brettel and Cleven, 2011).
Competitive advantage: The main benefits an organisation gathered after adopting
innovative changes in the business activities is achieving competitive advantage. As
Rowlinson Knitwear mainly produces school ad corporate wear garments Thus, to provide
well designed quality products to customers which helps them in looking more attractive and
professional can easily attracts lots of customers. Implementing changes in design, colour,
button etc. of clothing products which makes them different from their rivals increases the
chances of moving customers to buy their product rather than their rivals products. This will
help in achieve huge profitability as well.

P2: Contribution of organisational vision, leadership, culture and teamwork in
innovation and commercialisation
Organisation vision, leadership, culture and team work all contributes valuable efforts
and role in building innovation and commercialisation in company. Therefore, it is important
for management of an organisation to define vision and objectives to their employees which
help them in giving direction and guidance to perform as per the standards. As the there are
number of employees working in Rowlinson Knitwear which comes from different
backgrounds and cultures Thus, sometimes if becomes difficult for them to work with
different employees at workplace. Therefore, it is the duty of a leader to maintain culture and
provide them healthy environment at workplace which maximises their working behaviour in
an organisation. Determining all such aspect helps management of Rowlinson Knitwear to
implement innovation and commercialisation. It is important for manager and leader to
identify the needs and requirements of employees as well as customers so as to bring
innovation for their betterment. Such aspects are briefly described as below:
Vision: It refers to an objective of an organisation which they want to achieve in
future to attained strong brand identity in market. As Rowlinson knitwear deals in
manufacturing clothing products thus their main vision is to provide quality clothing products
to school and corporate people at effective prices that will help them in attaining strong
position in market for longer period of time. For this, the management need to first forecast
the situation related with changing needs and requirements in near future and accordingly
make an effective decision and plans with new ideas and methods in order to make required
changes in products in terms of design, comfort, colours, pattern etc.
Culture: Every employees working in an organisation are having different cultures
and backgrounds that perform business activities all together. This may causes conflicts due
to having differences in their thought and views thus it is important for manager and leader to
resolve all such conflicts as quickly as possible through creating proper communication
channels and organise different programs. This will help in creating healthy atmosphere at
workplace which makes positive impact on the performance of employees (Filippettin 2011).
Leadership: Leaders plays a valuable role in growth of an organisation as they are the
one who motivates employees to work allotted task in an effective manner that will help in
achieving best possible outcomes. Thus the leaders of Rowlinson Knitwear need to encourage
their workers to think and work freely and develop new ideas and innovative methods in
order to complete activity in more profitable manner.
Team work: Contributing combined efforts guarantees success thus it is important for
manager and leader of Rowlinson Knitwear to allocate their employees into team after
identify the strengths and weaknesses in order r to achieve desired target within given time
frame. It improves the performance of employees as well as removes communication gap
which makes healthy relation with one another. Supporting each other in bringing new and
innovative ideas and concepts helps in overall performance of organisation.

TASK 2
P3: Analysis of 4P’s of innovation and application of innovation funnel in development
of innovative ideas
4P’s of innovation:
Process of innovation: It refers to the changes implemented in the process of
production and marketing which help in producing and promotion quality products for the
target customers. It helps in attracting and influencing interest and buying behaviour of
customers towards purchasing their products and services. This ill enhances the profitability
of company as well. Therefore, it is important for management of Rowlinson Knitwear to
make changes in their production and marketing process through adopting advanced and cost
effective techniques in production process (Flowers and et. al., 2010).
Product innovation: It refers to the changes implemented in the features and
characteristics of products according to the needs and demands of customers. The
management of Rowlinson Knitwear need to focus on changing in their products in terms of
colour, design, pattern etc. which maximises the satisfaction level of customers.
Position innovation: It refers to the changes in interest and perception of people
towards company’s product. It is related with how customer recognised company’s product
and how they feel after consuming product. Therefore, Rowlinson Knitwear need to make
change in their logo, symbol and quality as well which help in identifying themselves in
market by the customers.
Paradigm Innovation: It includes the changes in the business structure so as to create
healthy environment at workplace. This will help in bringing motivation and increase
confidence as well as working behaviour of employees. It can be done through creating
proper communication channel and adoption of innovative technologies so as to maximise the
performance of employees as well as an organisation (Furukawa, 2010).
Innovation funnel
It is the process through which the management of an organisation can implement
new and innovative changes in their existing products and services after identifying the needs
and requirements of customers. There are three steps which includes in this process are listed
as below:
Wide of mouth: It includes the changes made in existing products through developing
new ideas and concepts which enhances the quality and other features of products. It can be
done by management through conducting research on competitor’s product, employee’s
needs, customer’s requirements etc.
Selection of idea: It includes the process in which the management need to select best
ideas and methods among various alternatives which ensures in getting profitable outcomes.
N effective decision regarding changes should be made after analysing the effectiveness of
implementing changes which contributes maximum in profitability of company.

Implementation of ideas: In this final step, the management need to decide to adopt
new changes in their existing products with a motive of attracting large number of customers
and generating huge revenues.
P4: Development in frugal innovation
Frugal innovation: It includes the unwanted changes which the company need to be
removed from their product as per the customer’s preferences. Sometimes, the colour,
pattern, design etc. of clothing product brings disinterest among customers due to which the
sales figure of product goes down. To handle such situation and maximise the customer’s
buying behaviour, the management of Rowlinson Knitwear need to focus on avoiding
unwanted features while producing products which helps in reducing cost of production as
well (McAdam and et. al., 2010). The profitable outcomes received by company after
adopting such frugal innovation are briefly mentioned as below:
Minimisation of production cost: The management of Rowlinson Knitwear need to
first identify the changes which restrict customers to buy their products and accordingly
modify them in order to attract large number of customers. Thus, the features of product
which do not attract interest of customers need to be removed by the production department
which reduces cost of production as well.
Development of new feature: An organisation needs not only to eliminate unwanted
features from their products and also add some value to product through developing new
features which ensures in maximising the satisfaction level of customers. Taking such step
help organisation in increasing sales figure of their products and services and generate huge
revenue.
Application of new technologies: Elimination or adding features from existing
products require company to adopt an effective and advanced technology which brings
motivation and confidence among workers in order to improve their performance as well.
Working on using modern technology increases efficiency of employees through which they
can perform as per the standards (Ripolles Meliá, Blesa Pérez and Roig Dobón, 2010).
TASK 3
P5: Use of NPD for innovation and commercialisation and importance of commercial
funnel
Commercial funnel: It is the process of changing the interests and perception of
customers at the time of purchasing company’s products and services. Thus, to identify
customer’s needs and preferences the management of Rowlinson Knitwear need to conduct
research and collect feedbacks from the customers in order to know what they think while
buying products and services. The management need to allocate amount on adding extra
value to product after analysing the information collected from research. This will help in
retaining loyal customers for longer duration.
Importance of commercial funnel

Rowlinson Knitwear can achieve various benefits after application of commercial
funnel which are mentioned as below:
Improvement of quality: There is big opportunity and challenge as well for of an
organisation to manipulate the mind of customers while buying their products. And it can
possible only when the company offered good quality products with demanded features
which helps in grabbing attention of large number of customers and thus influences their
buying decision as well.
Increases in profit: Application of the concept of commercial funnel also helps
company in achieving huge profit through bringing buying decision of customers in favour of
purchasing their product. The management always need to focus on finding ways and
methods to change buying behaviour of customers which brings them profitable result
(Saunila and Ukko, 2012).
Improvement in goodwill: Providing quality products to customers enhancing their
satisfaction level which brings trust and loyalty among them. It also helps in increasing
goodwill which becomes biggest advantage for small company such as Rowlinson Knitwear.
New product development
It is the process of bringing new product into market with a motive of fulfils
customer’s needs and requirements and achieves competitive advantage in market.
Introducing new product with new features can easily grab an attention of large number of
buyers through which they can achieve huge profitability. To attain all such advantages, the
management need to introduce new valuable product through following steps mentioned
below:
Generation of idea: In the first, the manager need to think critically that which type
of product maximises the satisfaction level of customers and accordingly develop ideas in
order to achieve benefits to them as well as customers.
Screening of idea: In this step, the manager needs to select the best idea among
various alternatives which ensures them in getting success.
Defining concept: In this step, the managers should communicate selected idea to
their employees with the purpose of getting sufficient support from different departments in
an organisation.
Business analysis: This step includes the evaluation of outcomes of introducing new
products. The manager needs to determine the chances of achieving growth of product.
Product development: At this stage, the management need to make decision regarding
implementation of new and advanced technologies in the production process so as to produce
quality product without facing amount of wastage (Toivonen, 2010).

Test marketing: In this stage, the management focuses on adopting marketing
strategies in order to promote their new products in market and attract large number of
customers.
Commercialisation: At this last stage, the management reviewing all the above steps
and on the basis of which they can implement corrective plans and actions in order to make
new product more successful in new market.
P6: Development of innovation business case
Rowlinson Knitwear is small sized company which deals in providing school and
corporate wear garments in UK. Thus, it becomes difficult for them to achieve strong position
in market where lots of competitors are operating their business. The management is held
liable to implement corrective plans and policies in order to implement new and innovation in
business activities. Such policies are explained as below:
Executive summary: Rowlinson Knitwear offered school and corporate wear
garments in UK at an affordable prices. To expand business, the management need to adopt
an effective marketing strategies and plans in order to attract large number of customers. The
main objective of organisation is to provide differ product which is not offered by other
organisations in market.
Need: It is important to identify the customer’s needs and preferences and accordingly
produce quality products.
Solution: R&D team is required to conduct research in order to determine effective
pricing policies which maximises the interest and buying behaviour of customers.
Research on customers: Identifying the interest and perception of customers while
buying company’s products and services.
Designing and development of plan: Formulating plans with a motive of adding extra
value to the existing product.
Investment requirements: Finance department is liable to arrange funds dorm
different sources in order to operate business functions without any interruptions (Tushman
and et. al., 2010).
TASK 4
P7: Evaluation of the tools which are used by the organisation to develop, retain or
protect knowledge and intellectual property rights
The management of Rowlinson Knitwear are liable to develop, retain and protect their
knowledge and intellectual property rights. For this, following are the different tools which
must required to use:
Patent: It is an effective tool used by Rowlinson Knitwear which helps them in
preventing others to copy their design, pattern etc. To use such tool, the company need to

provide an application to government in which they attained all rights to legal action against
others to illegally use their innovations.
Trade mark: It is the process through which an organisation registered its symbol,
work line or tag so that no one can able to use these without their permission.
Copyright: It is also one of an effective tool which helps an organisation to prevent
other to use their brand name in order to sale their own product. The company may give
permission to others as well after getting some amount of payment (New Product
Development Stages. 2017).
CONCLUSION
It has been concluded from the above project report that innovation is the source of
getting success of any organisation. Thus, every organisation whether mall, medium or large
should focuses on creating new and innovative ideas in order to implement on their business
operations in order to gain competitive advantage. Identification of interest and buying
behaviour of customers through conducting research always brings beneficial result to
company and improve their profitability as well.

REFERENCES
Books and Journals
Antonelli, C., 2014. The economics of innovation, new technologies and structural change.
Routledge.
Baily, M. N. and Chakrabarti, A. K., 2011. Innovation and the productivity crisis. Brookings
Institution Press.

Brettel, M. and Cleven, N. J., 2011. Innovation culture, collaboration with external partners
and NPD performance. Creativity and Innovation Management. 20(4). pp.253-272.
Filippetti, A., 2011. Innovation modes and design as a source of innovation: a firm-level
analysis. European Journal of Innovation Management. 14(1). pp.5-26.
Flowers, S., and et. al., 2010. Measuring user innovation in the UK: The importance of
product creation by users.
Furukawa, Y., 2010. Intellectual property protection and innovation: An inverted-U
relationship. Economics Letters. 109(2). pp.99-101.
McAdam, R., and et. al., 2010. Developing a model of innovation implementation for UK
SMEs: A path analysis and explanatory case analysis. International Small Business
Journal. 28(3). pp.195-214.
Ripolles Meliá, M., Blesa Pérez, A. and Roig Dobón, S., 2010. The influence of innovation
orientation on the internationalisation of SMEs in the service sector. The Service
Industries Journal. 30(5). pp.777-791.
Saunila, M. and Ukko, J., 2012. A conceptual framework for the measurement of innovation
capability and its effects. Baltic Journal of Management. 7(4). pp.355-375.
Toivonen, M., 2010. Different types of innovation processes in services and their
organisational implications. The handbook of innovation and services: A Multi-
disciplinary Perspective, pp.221-249.
Tushman, M., and et. al., 2010. Organizational designs and innovation streams. Industrial
and Corporate Change. 19(5). pp.1331-1366.
Online
New Product Development Stages. 2017.[ONLINE]. Available through:
<http://productlifecyclestages.com/new-product-development-stages/>.