Innovation and Commercialisation Report: Samsung's Business Strategy

This report analyzes Samsung's innovation and commercialization strategies. It begins by differentiating between innovation and invention, exploring their importance within Samsung's context, and examining the role of organizational vision, culture, and teamwork in shaping these processes. The report then delves into the 4Ps of innovation (product, position, process, and paradigm) and the utilization of the innovation funnel. It further investigates frugal innovation and the process of new product development, including the significance of the commercial funnel. A business case for innovation within Samsung, considering various funding sources, is presented. Finally, the report examines tools for retaining intellectual property. The report provides a comprehensive overview of Samsung's approach to innovation and commercialization, offering insights into its strategic practices.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison between innovation and invention.....................................................................3
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation...4
TASK 2............................................................................................................................................6
P3 4Ps of innovation and use of innovation funnel.....................................................................6
P4 Developments in frugal innovation........................................................................................8
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and the process of new product development.................9
P6 Innovation business case for organisation involving various source for funds...................11
TASK 4..........................................................................................................................................12
P7 Different tool to retain intellectual property for longer period............................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Commercialisation can be defined as the process that exists for introducing a new product
and the production method in a business. On the other side, Innovation is the subset of
commercialisation process which is used to make changes in the existing product and in the
similar market (Bagno and et. al., 2017). Commercialisation process undertakes more risk as it
deals in a new market. Whereas, innovation process is less risky as in the modifications will be
done in the existing products into a similar market. This report is written from the perspective of
the Samsung which is one of the leading organisation in the telecommunication industry. The
main aim for this report is to understand innovation as well as commercialisation process by
making first appearance for a new feature or product. Further, this report highlights on
innovation process, four P's of innovation and utilisation of innovation funnel. Along with this
frugal funnel and new product development will also be focused in this report.
TASK 1
P1 Comparison between innovation and invention
Invention- This is determines as a process or procedure through which fresh ideas are
developed and implemented in the organisation. It governs that adopted changes can never exists
in the market. Invention is developing new product that helps organisation to generate new ideas
in order to attract more number of customers. Like Samsung introduces their new phone which
is also converted as a tablet (Kang and et. al., 2016).
Importance of invention- Inventions leads the organisation to introduces new feature in
their product. So it is easy for management to make the changes in products in order to satisfy
customers needs and wants. The demand for the tablet is increasing on daily basis. Therefore,
with introducing new phone that can work as a tablet also helps the management of Samsung to
gain competitive edge in the market.
Innovation- Innovation is one of the major activity that helps the organisation to
introduce better as well as new products in the market. The main aim of innovation is to
determine the products as per the needs and wants of customers. This results it is east for
organisation to retain customers for longer period in the organisation as it increases the profits
for the company. Like the Samsung is totally focused to improve their processor which
improves the performance of organisation (Molnar, 2018).

Importance of Innovation- In the context of Samsung, management must need to implement
innovation in its products because the competition among telecommunication industry is too
intense. Some of the major benefits related with innovation process is mention below:
To gain competitive edge- One of the most important factor for innovation is to
introduce new product that is not exist in market. It results this is easy for the company to gain
competitive edge. As many new competitors are entering into new market with new
technological aspects. So it is mandatory for existing players to deal with the changes in its
product.
Fast recognise of customers’ expectations- Innovation not assist the organisation to
satisfy the needs of customers. But it also helps the management to make and introduce a product
as per customers expectation. This results it is easy for organisation to make customer-centric
products in order to increase the profitability of organisation (Rosca, Arnold and Bendul, 2017).
Comparison between innovation and invention
Invention is the major function that is related with the development of product by
introducing new idea and process in a active product. The major benefit that helps the
management is to fulfil demands of customers which enhances business area for Samsung.
Moreover, in invention can be done through implement technical and scientific skills. Like the
addition of high camera quality in phones is a major aspect for innovation.
Innovation is the another aspect for the organisation that is related with the improvement
of existing products. This determines that the process to make a product and service will be
changed. So more economic value will be included in the products. For this technological,
strategic and marketing skills must be improved. So better results in the productivity will be
enhances in context of organisation as well as products (Agola, 2016).
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation
Commercialisation- The process for commercialisation is a method by which new
products and services are represented in market. In order to implement commercialisation
process effectively Samsung requires well-developed strategy to make a success for their new
products.
Vision of Samsung- Samsung is one leading organisation of telecommunication that
sales huge number of mobile phones in the consumer market. The vision of Samsung is to
remain in the market for longer period by making innovation in its products in order to achieve

top position in the industry. By making essential changes in the Samsung strategy and its
products it is easy for management to sustain in market for longer period and to increases
customer value about its products (Ales, Cho and Körpeoğlu, 2017).
Leadership- This works as the ability for the organisation that is used by superiors and
top authorities to provide guidance and influencing employee's in order to achieve organisational
goal and objectives effectively. In the context of Samsung autocratic leadership is the most
effective style as it leads management to manage their business at global level. As discipline and
organised management is more important for organisation because it leads management to
complete their operations in effective manner.
Types of leadership Autocratic leadership- Leaders are most essential part for the organisation as it enhances
the work performance through motivating employee's. Autocratic leaders are not so
effective as they force management decisions on staff and workforce of organisation.
 Democratic leadership- In the present scenario, democratic leaders leads management to
increase morale of employee's by involving them all decisions. This results the
performance of the organisation increases (Bucciarelli, 2015).
Illustration 1: Source(https://www.acudemy.com/culture-
management/)
Culture- Organisational culture involves assumptions, beliefs and assumptions that
governs how employee's behave and complete their work. It undertakes five different elements
which are purpose, communication, ownership, community and leadership. Therefore, it is
mandatory for Samsung to undertakes all this aspects to make effective innovation in their

products (Bucciarelli, 2015). Moreover, in the context of Samsung Handy's model of
organisational culture is implemented. Some types of Handy's culture are as follow:
Power culture- In the power culture, decision-making rights and authorities are holds by
some individuals that control and manage overall organisation.
Task culture- The main motive of task culture to implement in a organisation is to
complete task and project with in a particular area by dividing specific task and power among
the employee's (Choi, 2015).
Clan culture- Working environment of culture leads to generate environment through
generating positiveness in the organisation. The framework helps Samsung to involve large
number of employee's in order to achieve their goals.
Market culture- This culture leads management to perform their work as per the needs
due to which it is easy for management to finish their work in appropriate manner. It governs
with the implement of market culture better results and success is gained by management.
In the context of Samsung, task culture is followed by organisation because it helps the
management to complete their projects within a minimum time period. As if employee's are
delegated with equal responsibility and authority then they feel motivated and able to complete
their work in effective and accurate manner (Datta, Mukherjee and Jessup, 2015).
Teamwork- Teams are developed as a group of effective member which leads
organisation to complete their work in minimum time period. The main motive of team work is
to make essential changes due to which management is able to complete their work. Moreover,
most of the team work is integrated and communicate due to which maximize quality of work is
performed by Samsung.
In the last, all the above factors leads the organisation to introduce and utilize innovations
in its product. The vision of Samsung is to achieve top position in market so they focused on all
those aspects which is related with innovating perspective of organisation. Moreover, it is
accomplishing by implementing task.
https://www.sciencedirect.com/science/article/abs/pii/S0048733318302464culture that helps to
make effective teams in organisation.

TASK 2
P3 4Ps of innovation and use of innovation funnel
The mix model for innovation was to understand the process of four P through which
innovation in the firm will be improved.
Product- The product helps to determine those methods by which innovation can be
implemented in the organisation. It helps organisation to satisfy customer's in an accurate
manner. Moreover, innovation process helps to introduce new products in Samsung phone
through making changes in existing products (Hossain, 2015).
Position- With the position aspect market segment focuses on products and services that
helps in determine the interested customers to buy products. But to some less features it is
difficult for them to purchase the product. So Samsung makes regular changes in its products that
helps to attract more number of customer's through attracting them with new feature.
Process- The process factor relates with company that how they deliver their products
and services to the customer's. This helps the organisation for improving their production ways.
This results it is easy for organisation for delivery methods such as by reducing their cost and
satisfy customers. In the internal process, management is able to complete their work by
increasing profits for the organisation (Ke and et. al., 2016).
Paradigm- This depicts the ways through which manager can easily perform their
business by bringing innovation in their products and services. The paradigm model helps the
organisation to complete their work by determining frames which helps to recognise ways
through which management does their work.

Figure 1: Innovation funnel
Source: Innovation funnel, 2019
Innovation Funnel- This defines the steps or methods which take place for the development
of new product and process (Hossain, 2015). Majority of the organisation are able to get long
term benefits through innovation funnel by creating innovative and realistic action plan for
performing their operations. Moreover, this process is controlled and managed by R&D
department in order to examine the products and then launch them in the market. Some stages
that are related with innovation funnel is mention as follow: Idea generation- This activity is performed by R&D department as there are different
ideas are related with innovation of products and services that is generated through
understanding and monitoring the threats and opportunities which are presented in the
environment of the organisation (Kilelu, Klerkx and Leeuwis, 2014). Moreover, this
stages also helps organisation to find out the solutions for particular problems. Concept investigation- The concept of investigation is generated through analysing
various steps that are related with the achievement of goals and objectives. Moreover,
this concept are checked through identifying number of customer's and resources that are
collected with implementation of ideas in order to complete their work effectively.

 Feasibility study- In this stage the profits related with the idea and their evaluation are
done on the basis of technical, analytical and economical aspects. The main motive of
feasible study is to identify that plans are ready to implement and make success for
organisation. Along with this it also management to identify the loopholes through which
management is able to find their solutions (Leminen and Westerlund, 2014). Development stage- The development stage is used to develop new product and services
that are used to launch the product in effective manner.
 Post release phase- In this stages feedbacks from customers are gathered on regular
basis. So that improvements can be done in products and services of organisation.
P4 Developments in frugal innovation
Frugal innovation works as a process that is used to reduce the complexity among the
production of goods and services. The main motive to implement Frugal innovation is to bring
the cost of products by improving the production process such as to eliminate the waste from
products. In the last, it results to improve products and services because the features which are
not beneficial are eliminated. The process for Frugal innovation is mention as follow: Find opportunity in adversity- This process is related with the motive of converting
problems towards opportunity that helps to improve the performance of organisation. In
the context of Samsung mobile phone come handset helps the management to improve
their business performance by adding new feature in the organisation. This results
management is able to enhance their business performance by keep updating their feature
(Lopez-Berzosa and Gawer, 2014). Use less perform more- It determines that there are various limited resources need to be
used by management. So it helps customer's to identify the needs and wants of customer's
in order to perform their work with more efficiency. Samsung utilise their regular feature
and monitor them on constant basis which helps them to perform their work in better
way. On other side, used materials also help the organisation to reduce cost by using
similar resources. Think and act flexibly- This determines that the strategies and policy of organisation are
complex and rigid. So it is difficult for organisation to change them as per the needs of
customer's. Therefore, to overcome from this management need to focus on improving
their products (Park and Lee, 2015).

 Use simple methods- It governs that the operations of the organisation need to be make
simple and effective. So it is easily understandable by all and on the other side constant
modifications are also required by management. This results management of Samsung
easily determines the changes for improving their products. Include the margin- It determines that all customer's must be involved for the
improvement process as it helps management to identify needs and requirements of
organisation on daily basis.
 Follow your heart- This refers that the management of organisation need to follow all
their work with more passion. As it helps management to make change in their existing
products. For Samsung new features are beneficial as it leads management to increase
their market area by satisfying the customer's.
TASK 3
P5 Importance of commercial funnel and the process of new product development
Commercial funnel- This is also known as Sales funnel and its major aim is to convert
all prospects into customer's. As it increases the Gross as well as net revenue for the firm by
generating more leads through introducing new features in its products. This determines that the
journey from a prospect towards a consumer is too large as it requires more time and efforts.
Along with this commercial funnel also helps the management of Samsung to decide the price of
their new products. Moreover, better results will also be gained by organisation such as increase
in sale of their products because of implementing new and unique feature in organisational
products (Qian and Haynes, 2014).

Illustration 2:
Source(https://www.sciencedirect.com/science/article/abs/pii/S0048733318302464)
New Product Development- The process for new product development leads the
organisation to introduce a new product successfully in the market. It determines that the process
for new product development works as an important process (Park and Lee, 2015). So customer's
are able to get products according to their changing preference. Some steps related with new
product development is as follow: Idea Generation- The process by which new product is developed start with the concept
of generating new idea. This results it is easy for organisation to make effective results as
it is related with systematic product idea and its identification will be done to make new
innovating products (Resnick and et. al., 2016).
 Idea Screening- In this stage ideas or thought are generated and filtered to get the best
idea. This refers it is required by organisation to get foremost approach that leads
organisation to achieve their objectives effectively.
 Development Concept- In the development concept most of the ideas are selected
towards the product concept. It governs new ideas will be developed with a way that
helps leads management to boost their products productivity.

 Marketing Strategy- Strategy helps the organisation to gain competitive edge in market.
Such as identification of target market, to decide product price, delivery and production
process that is used to develop overall performance of organisation.
 Business Analysis- Feasibility and effectiveness for a new product is beneficial to
analyse all functions in a better way. This leads organisation to determine the capability
and ability of products (Taddese, 2017). In context of Samsung, it is beneficial as it helps
to increase profitability for business in the market.
 Product Development- Products are essential part for the organisation which leads
management to ensure more profits through developing an effective idea and providing
high marketing working.
 Test marketing- After the development of new products an organisation test all the
market policies that are used to formulate various marketing strategies in effective
manner. This stage helps the management to determine target market and positioning its
products in effective manner through advertising, marketing and selling their products.
 Commercialisation- This is the last stage for organisation that helps management to
gather whole information in order to form final decisions related in context of product.
Along with this it also helps Samsung and other organisation to decide whether the
products need to be fully launched or not.
P6 Innovation business case for organisation involving various source for funds
Business case- The case related with business are detailed and well-structured business
documents that describes reasons to start a project and task. Along with this it also includes the
whole process such as functions and operations which are performed by management. This
results it is easy for organisation to make effective decisions which helps them to make a project
successful (Teece and Leih, 2016) To sell the business products management is more focused to
complete their work in minimum time period. This results with the management of perform their
work in easy manner. Further, to sale Samsung products management adopt effective leadership
style, management and innovative techniques to perform their work effectively. In the context of
Samsung, management needs to develop a business case so the innovation can successfully will
be implemented in the products. Business case steps are mention as follow:
Elements of business plan such as executive summary, competitive analysis etc. are as
follow: