Innovation and Commercialisation: An Analysis of Sainsbury's Report

This report provides a comprehensive analysis of innovation and commercialization strategies, using Sainsbury's as a case study. It begins by differentiating between invention and innovation, emphasizing their importance for organizational success, and examines how vision, leadership, culture, and teamwork shape innovation and commercialization. The report then delves into various sources of innovation, the 4Ps of innovation, and the application of innovation funnels to shape ideas. It explores frugal innovation, the commercial funnel, and new product development processes, culminating in an innovation business case for Sainsbury's. The report concludes by discussing tools for knowledge and intellectual property protection and the broader context of innovation within the business environment.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Comparison between invention and innovation and its importance to organisation.......1
P2 The way in which organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation..........................................................................................2
M1 Different sources of innovation used by Sainsbury.........................................................4
D1 Analysis of the way in which innovation is developed, embedded and measured in the
organisation............................................................................................................................4
TASK 2............................................................................................................................................5
P3 4Ps of innovation and the use of innovation funnel to examine and shape ideas.............5
P4 Developments in frugal innovation and examples of its uses...........................................7
M2 Analysis and application of innovation funnel in an organisational context...................8
M3 Evaluation of the role of frugal innovation in an organisational context........................8
TASK 3............................................................................................................................................9
P5. Importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation.........................................................9
P6. An innovation business case for Sainsburys..................................................................10
M4 A detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve...............12
TASK 4..........................................................................................................................................12
P7 The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..............................................................................................................12
M5.Evaluation of different tools in the context of the wider business environment...........13
D2 The nature of innovation and the context in which it is developed...............................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Commercialisation is the process in which a new product is introduced in the market by
using marketing and promotions. Innovation is the process of creating a unique featured product
or services which can fulfil the needs of market and people. Innovation and commercialisation is
very essential for the organisation in increasing the productivity and performance in the market.
The chosen firm in this report is Sainsbury which is a groceries store based in the UK. This
report will explain the difference between invention and innovation along with the value and
importance of innovation to organisations (Ahn and. et. al., 2015). Further, this report will
discuss the different forms of innovation and the four directions of change an organisation can
take and explanation of 4Ps of innovation. This report will also discuss the approaches that the
Innovation Manager can take to process innovative ideas along with the steps the Innovation
Manager should go through to derive a new and innovative product.
TASK 1
P1: Comparison between invention and innovation and its importance to organisation
Overview of the organisation: Sainsbury's is the second largest chain of supermarkets in
the United Kingdom, with 16.9% share of the supermarket sector. It is founded by John James
Sainsbury with a shop in the year 1869 and based in London. This organisation operates with
1415 shops and employee approx 190,000 employees in different branches of the company.
Innovation: It is a process of transforming idea into products and services so that
potential customer can satisfy their needs and demands by using it. Main aim of using innovation
is to modify the existing products so that it would become easier for customers to use it and live
their life smoothly (Ahn and. et. al., 2017). But on the other hand, invention refers to creation of
new products and services in the market. Both factors are essential for an organisation as they
assist companies to gain competitive advantage over others. For instance, if Sainsbury's has
launched their new product which is not produced by any of the other competitors then it would
provide temporary competitive advantage because then the company will be able to compete in
the business world which is a positive sign of company's growth.
In terms of process innovation, it assist organisation to reduce their cost. For instance, if
Sainsbury's is able to improve their process of manufacturing products then it would
automatically reduce cost of product which ends up at enhancing profitability of company to a
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certain level. Beside this, it also assist company to increase their brand awareness in the market
as innovation and invention attracts high number of customers from every brand which is
directly linked with the brand equity of the company (Azarmi, 2016).
Invention: It is termed as the process of creating a new idea which have not yet been
introduced by any other individual or organisation, is termed as invention. The invention process
involves an overall engineering and product development process. It is an improvement in the
existing range of the products served in a particular sector.
As innovation is the process of introducing a range of product in the market that helps to
earn competitive advantage to Sainsbury. Innovation of introducing artificial intelligence in
business will help in becoming highly competitive and cost effective in the long run for business
organisation. Where as Invention is the concept that is introduced a new product or series for the
first time in the world. The process of invention is not simple as high level of research and
development is required with futuristic mind to think for new inventions.
Benefits of new innovation to Sainsbury in comparison to Invention-
 Businesses that are operated in the supermarkets are facing high competition and to
maintain good performance of sales and profits innovations needs to be done on a regular
basis. Innovation of introducing artificial intelligence to serve large consumer base with
minimum cost in long run (Chun, Chung and Bang, 2015).
 Innovation is the process that needs to be taken on regular basis to compete with
competition in most effective manner and when invention is done to deal with
competition it will be effective but it takes time and it is very expensive.
P2 The way in which organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation
Business environment is continuously changing in the UK and to maintain good position
in the business Sainsbuty needs to make innovations on a regular basis. Innovation helps in
making changes in their current products so that changing expectations of the consumers can be
met in the most effective manner. While implementing innovation of artificial intelligence
executives of Sainsbury needs to focus on certain points that will help to shape innovation and
commercialisation (Cunningham, 2013). These are described as follows-
Vision: It is a vivid mental image of business that needs to be achieved at some point of
time in future, these are based on goals and aspirations of business organisation. As increased
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competition leads Sainsbury to introduce some innovation that will help business to achieve its
goals. As future is more of high technology and serving consumers with artificial intelligence
will be cost effective and chances of any mistake can be minimised. As vision of the organisation
is to provide best shopping experience to its consumers and introducing Robots to serve them
will be a different concept that will attract large number of consumer group. When service is
provided with artificial intelligence then more quality services can be provided and that will help
in gaining competitive advantage for businesses. Therefore, vision is an aspirational description
of what an organisation plan to accomplish in the mid and long term goals and objectives.
Leadership: Leaders in the organisation plays major role while implementing any
innovation. As all the subordinates of the Sainsbury are motivated through leaders who work
dedicatedly for achieving all the business objects. Innovation leads to implementing something
new to business that helps in managing business operations effectively. As employees of the
business may resist in accepting changes that takes place through innovation. Leaders make it
possible that changes can be implemented as planned (Hemphill, 2014). Leadership is the ability
of the individual to influence the people in the organisation so that they work in accordance to
fulfil the goals and objectives.
Culture: In Sainsburry hierarchy organisational culture is followed that gives business a
structure which is well formulated by keeping all the business objectives in mind. This helps in
designing a plan to implement the innovation that is going to be introduced in the business at
each level in most productive manner. Organisation culture is concerned with the environment
and surroundings which will enhance and motivate the individual to work with full zeal and
confidence such that business objectives can be attained.
Teamwork: Providing services that helps in gaining satisfied consumers can be achieved
through effective teamwork that helps in achieving planned objectives. When new innovation of
artificial intelligence is launched in the business is supported by team work then business of
Sainsbury will give tough competition to all its competitors.
All the managers of innovative team needs to take care of all the above elements as this
will help in implementing innovation in far better manner (Kutvonen and. et. al., 2014).
M1 Different sources of innovation used by Sainsbury
PETER DUCKER MODEL
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Introducing a innovative product and serving consumers in new manner is one of the
most important tool that helps to deal with competition. As retail market is becoming more and
more competitive and managers of Sainsbury needs to use different sources of innovation that
are described as follows-
The Incongruity: Organisations perform different functions that are performed to
achieve business objectives. Their is difference between what is and what should be done. By
introducing artificial intelligence in stores for providing multiple services will help in achieving
business objects and providing services to consumers that should be provided to be competitive
will help in becoming more competitive (Maritz and Donovan, 2015).
The unexpected:
the market place is one of most important area to look various opportunities and to grab
large no. of consumers marketers constantly research about market. In case of Sainsbury they
constantly observe taste and preferences of their consumers.
Process need:
In process needs includes evaluate factors that work as an weak points of an organisation
and creating or redesign them. In that task oriented solution should be cover under it.
Industry and market structure change:
Industry and market conditions continuously changes and some products shrinks in that
aspect one of their example is deregulation. In case of Sainsbury some kind of circumstances
come in market and deal in positive way.
Demographics:
organisation have to constantly observe the changes that occurs in their industry such as
in population, income level and capital of human and age ranges in positive way so that major
changes should be occurred.
New knowledge:
With the advent of advancement in technology organisation have to adopt them so that
they can welcome the opportunities and widen their market.
Changes in perception, meaning and mood: Over the period of time perception of
people change. Sainsbury provides services to the public at large and while providing services it
is seen that after some period of time due to change in technology consumers preference
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changes. This change needs modification in the process of providing various services. It is seen
that innovation needs to be made on continuous basis to get satisfied consumers.
To develop environment of innovation all the employees in the business needs to
understand importance of innovation and take all the possible steps that will help in applying all
the innovative ideas in most productive manner.
D1 Analysis of the way in which innovation is developed, embedded and measured in the
organisation
Innovation is not an easy task that can be implemented with some decision. When
innovation of artificial intelligence is implemented in Sainsbury organisation then before its
implementation various analysis is required (Mazzarol, 2013). As implementing technology in
the business is very costly and together with this acceptance of this form of innovation by
consumers needs to be analysed. Executive in the top level management of business have full
vision regarding future market conditions, competitors reactions and objectives of business in
long run. When needs and preference of consumers keep on changing then innovation to satisfy
them is introduced which helps in enhancing sales and maximising profits in long run.
TASK 2
P3 4Ps of innovation and the use of innovation funnel to examine and shape ideas
The innovation mix and 4 Ps of innovation model was developed by John Bessant and
Joe Tidd. This process of innovation mix can improve concept of business which helps in
achieving business objects. The innovation mix of paradigm, product, position and process is not
same with market mix (Mohannak and Samtani, 2014). This mix helps to understand current
business position and by considering future aims how innovation should be implemented to
perform effectively. Four innovation mix are described as follows-
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(Source: 4 Ps of Innovation, 2019)
Paradigm: In that context innovation should be used to improve the way of doing
business and the changes should be radical in changes but all changes are not positive. In that
scenario identification is very much potential to reach at desirable goals and objectives. As per
this innovation is used to improve the way in which business is performed (Mazzarol, 2013) .
The change could be radical and it should always be kept in mind that all the changes can not
bring positive results for business. All the results and implications will be analysed in mind of
executives who take decision for implementing innovation in Sainsbury organisation
Product: This tool of innovation mix helps in guiding business organisation regarding
what changes needs to be made in the services offered by Sainsbury. Innovation leads to
improvement in the quality of service offered by business organisation. In this tool of product
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Illustration 1: 4 Ps of Innovation, 2019

various suggestions can be made to business organisation that will make quality of service better
and leads to incremental change.
Process: This does not only include the preparation process of the service provided by
Sainsbury. All the process that is required to implement an innovation is included in this business
process. These steps includes hiring people, training, workflow and supplying of all the required
resources that will help in implementing innovation.
Position: A new method through which services are provided is implemented by
Sainsbury in innovation. Implementing innovation is not enough as a new method of introducing
this innovation to general public is also required in the business. Position innovation guides
business organisations to make required modifications in the method of marketing and
promotions for new products (Pellikka and Malinen, 2014). Therefore, the innovated product or
service can be positioned with the help of various promotional tools like advertisements in news
paper, radio, posters, hoardings, social media, etc.
Innovation funnel: In the process of development of new product an innovation funnel
is a common model used by business organisations to evaluate ideas and conceptualize products.
This can be used by Sainsbury to implement the process of serving consumers with artificial
intelligence. Various steps of this model are described as follows-
Illustration 2: Innovation funnel, 2016
(source: Innovation funnel, 2016)
 Investigation: In this step a research is conducted by Sainsbury that will help in
identifying changes in taste and preference of consumers. This step helps to guide to
make changes required to be made so compete effectively.
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 Development: When appropriate information is collected in the previous step regarding
changes that needed to be made so that buyers of the product and service are willing to
make orders for the services offered by Sainsbury organisation.
 Shipping products: This is the last step of the innovation funnel that involves supply of
the product in the market for sale.
P4 Developments in frugal innovation and examples of its uses
Frugal innovation or frugal engineering is the process of reducing the complexity and
cost of a goods and its production. This method of innovation helps in removing non-essential
features of a durable good. This innovation to the product helps in improving sale of the products
in developing countries. When a product is introduced with high amount of specification then it
is seen that in some countries demand for the product with less specification and more durability
is high. Frugal innovation helps in introducing products as per consumers requirements.
Through minimising the use of resources in development, production and delivery or by
levering them in new ways, frugal innovation results in dramatically lower-cost products and
services. Successful frugal innovations are not only low cost but outperform the alternative and
can made available at large scale (Pollitzer and Schraudner, 2015). For example- Sainsbury is
implementing a new method in providing services to consumers this innovation leads to
reduction of some unessential features of service that will make services offered by company
more attractive to targeted consumers. Their are six principles of Frugal innovation that are
described as follows-
 Engage and Iterate: As per this principal businesses rather then using insular research
and development departments that rely on giving education about consumers needs
enhances chances of consumer satisfaction. For this consumers behaviour in the natural
environment is observed and then relevant product is considered to be developed as per
consumers requirement.
 Flex your assets: New tools such as robotics and 3D printers and new approaches such
as social manufacturing can help operations and supply chain managers “flex” their
production, logistics and service assets to satisfy consumers in better and cheap manner.
 Create sustainable solutions: Research and development and manufacturing managers
helps in developing sustaining solutions that help both businesses and the environment in
which components and materials are repeatedly recycled (Robertson, 2014).
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 Shape customers behaviour: Business organisations can influence consumers into
behaving differently and feeling richer while consuming less.
 Co-create value with prosumers: Research and development in the business whether
taken by an individual and group of persons must add the feature that is highly demanded
by the large number of consumer group.
 Make innovative friends: Products and services that are innovated through frugal
innovations reflects ,ore efficiency by collaborating with diverse external partners then by
working alone.
Frugal innovation plays important role in implementing new method of providing
services to consumers. As artificial intelligence will be an innovation that is introduced by
Sainsbury and this will help in removing unessential process that is used previously for providing
various services in business (Sonne, 2012).
M2 Analysis and application of innovation funnel in an organisational context
Innovation funnel is the combination of three different stages that starts with
investigations regarding needs and demand for innovation (Trimi and Berbegal-Mirabent, 2012).
After this development takes place, in this step what is identified in the first process of
investigation is developed for implementing. All these steps are used by Sainsbury while making
an innovation for introducing an artificial intelligence in the method of service providing. First of
all market research is conducted that will help in identifying requirement and then method is
developed for providing service with new technology for getting better results.
M3 Evaluation of the role of frugal innovation in an organisational context
Frugal innovation method is beneficial for Sainsbury organisation as it helps in
simplifying the process of development and also cost of production is minimised with this
method of innovation. When services rendered by Sainsbury is through artificial intelligence
then it will help in reducing cost of employees and total cost will be reduced for business. As low
cost will help in providing products to consumers at low cost that will attract large number of
consumer group (Theyel, 2013).
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