Detailed Report: Innovation and Commercialisation at Samsung

This report provides a comprehensive analysis of Samsung's innovation and commercialization strategies. It begins with an introduction defining innovation and commercialization, emphasizing their importance to an organization, and contrasting innovation with invention. The report then delves into the organizational aspects that shape innovation, including the role of vision, leadership, culture, and teamwork. It explores the 4Ps of innovation (Product, Process, Paradigm, and Position) and discusses developments in frugal innovation. Furthermore, the report examines the commercial funnel, the application of New Product Development (NPD), and the construction of a business case. Finally, it evaluates tools for protecting intellectual property. The report uses Samsung as a case study throughout, providing practical insights into how these concepts are applied in a real-world business setting.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the innovation and its importance for the organisation as compare to invention.....3
P2 How organisational vision, leadership, culture and team work can shape innovation and
commercialisation.......................................................................................................................5
TASK 2............................................................................................................................................7
P3 Describe 4Ps of innovation....................................................................................................7
P4. Developments in frugal innovation.....................................................................................11
TASK 3..........................................................................................................................................12
P5. Importance of commercial funnel and application of New Product Development (NPD).12
P6 Build a business case...........................................................................................................13
TASK 4..........................................................................................................................................15
P7 Evaluate the several tool of protecting the intellectual property.........................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Innovation refers to the ways or activities of an organisation in order to launch a new
product in the market. It is essential for the organisation to adopt some innovation in their
processes so that all the operations or activities can be operated as per the current market
situation. Whereas, commercialisation depicts as a process which is helpful in converting
something into a product and service. It includes various activities like production, distribution,
marketing, sales, customers support and many others. The chosen organisation for this file is
Samsung which is a South Korean multinational conglomerate. The company has current decided
to expand its business by launching new product that is a new mobile phone which has both
features like QWERTY keyboard along with the touch system. This assignment will cover about
the innovation and its importance, 4Ps of innovation and innovation funnel in term to shape the
innovative ideas. In addition, the detailed explanation of commercial funnel, application of new
product development and business case which will help the business to achieve their objectives.
TASK 1
P1 Explain the innovation and its importance for the organisation as compare to invention
Innovation: It is considered as a most effective approach of the business which lead the
organisation towards success and growth (Definition of innovation, 2019). As it refers to the
converting an idea into productive goods and services which will be able to create value for the
customers so that they can easily pay for it. In other words, innovation is not only related to bring
some changes in their processes and methods but it also concerned for innovate something new in
the marketplace in order to attain higher profitability and recognition in the marketplace. For
example, earlier Samsung has its phone with the facility of back camera only but later on the
company has launched innovative feature of front camera also.
Importance of innovation:
It is beneficial for the Samsung as it enhance the creativity within the organisation which
will help them in attract a range of customers in their products (Abdul Razak and Murray, 2017).
This also helps them in getting the competitive advantage from the marketplace. Moreover,
Innovation render sustainability to the organisation while implementing constant improvement
and re-branding.
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Invention: It is the act of developing or inventing new ideas and methods which has
never utilised before any of the business organisation (Invention, 2019). Other, it is the process of
developing an effective product or service in the marketplace which has never been introduced
before. For example, Samsung is a highly recognised and luxurious brand due to which the main
focus of them on inventing some new in the marketplace which have never been seen in the
marketplace. Due to this they are always able to stay ahead from their competitors and able to
attain higher profitability in the marketplace (Ahn, Minshall and Mortara, 2015).
Importance of invention:
Inventions helps Samsung in staying advance as compare to their competitors like lenovo,
Sony, ASUS etc. and also it enables them to teach their future generations. It also helps in
expanding the edge of human experience, abilities and knowledge. This also contributing in
professional development which creates a unique and separate device (Ameka, 2013).
Difference between invention and innovation
Basis Innovation Invention
Meaning This refers to implement some
modification in existing products and
services.
It is related to the occurrence of a new
idea which is introduced for very first
time.
Activities It considered as the combination of
several products and services.
The main focus of the invention is on
inventing a single product and service.
Skills required The marketing, technical and
strategic skills are necessary for
innovation.
In this aspect, a person must posses
scientific skills.
Occurs It occurs only when some changes is
required in the existing products and
services.
It happen only when a new idea comes
in the scientist mind.
Example Samsung give their focus on
innovating a new feature in their
mobile phones i.e. QWERTY
keyboard which enables the
customers to use the facility of both
Invention keyboard in phones by
Samsung enables in reducing the
inconvenience of using the touch
system in mobile phones who does not
have knowledge that how they can use
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touch and keypad facility. it.
Definition of commercialisation:
Commercialisation depicts as a process of introduce a new product or manufacturing
methods in the marketplace. This concept consider three important factors which includes
foremost is funnel which pertains that an organisation before invent something must go through
from various ideas (Commercialization, 2019). In the second phase, it described various level in
which each have their own importance and goals. At last, it stated that while inventing something
the business organisation needs to give their emphasis on including all the stakeholder so that the
effective methods and appropriate plan can be made (Dries and et. al., 2013). For example, before
introducing new QWERTY keyboard in their mobile phone they must go through from various
ideas and make their decision by involving their stakeholders so that best decisions can be made
up within limited period of time.
As the main vision of Samsung is to attract a range of customers towards their new
service so that the higher level of profitability and huge share of the market can be covered. This
vision is able to promote innovation and commercialisation as the achievement of this vision
depends on innovating their new feature in their phones that is QWERTY keyboard with tough
facility which promote the innovation in an effective manner as this facility enables customers to
experience the new technologies at the same time.
P2 How organisational vision, leadership, culture and team work can shape innovation and
commercialisation
Innovation is a crucial element of an organisation as it give a range of ideas to execute an
activity in an optimal manner. The both concepts includes innovation and invention very
important as these both helps in commercialising products in the market. In order to drive these
both factors in an effective manner a business require to give their focus on their vision,
leadership culture and team so that the all the activities can be operated in a systematic way.
Vision- It is the core element of the business as it depicts to that what an organisation
seeks to achieve in future time period. The vision of the Samsung is to enhance the innovation in
their products (About Samsung, 2019). For this, Samsung innovating new feature in their mobile
phones which enables the people to use the both facility keypad as well as touch system. Due to
this, it becomes essential for them to identify all the challenges and opportunities related to their
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new development so that they can operate all the activities accordingly and can shape up their
innovation in an effective manner (Gobble, 2013).
Culture- This factor plays a most crucial role in achieving the desired goals as it refers to
the belief, behaviour and value of the organisation in the employees as well as customer’s mind.
If the aim of the business is to become a leader in the marketplace through its innovation then
effective communication an effective culture is required. In order to stay competitive with the
help of their innovation in their products manager of Samsung needs to adopt effective culture
like cultural web as it consist six components within which help them in determining that which
things is better working or which not so that the necessary changes can be implemented. These
factors include Stories, rituals and routines, organisational structure, power structure, symbols
and control systems. The consideration of all these factors are very beneficial for example, if the
organisation will understand culture and adopt hierarchical structure then they will be able to
inspire their employees to adopt effective changes and can establish control on them (Hang Do
and et. al., 2014).
Leadership- It can be defined by the activities of leaders which they are operating in
order to influence and guide a group of people. A leader must have some skills like humility,
integrity, vision, delegation, positive and many others so that they can operate all the operations
optimally. The leaders of Samsung must focus on adopting effective leadership style like they
should focus on adopting like Steve jobs and democratic style so that they can enhance the
motivation and encouragement of the employees towards participating in introducing new
innovation and can also can insist them to come up with better ideas and thoughts so the the
betterment in products can be made (Abdul Razak and Murray, 2017).
Teamwork- In term to increase the innovativeness in the organisation manager of the
Samsung needs to give their emphasis on encouraging employees to do team work so that the
advantage of each individual skills and talent can be utilised in order to achieve the organisational
goals. In order to enhance the motivation of employees towards adopt new innovation the manger
must consider various components such as contribution, commitment, cooperation, conflict
management, change management and communication. As this will enable them to attain their
desired outcomes behind adopting innovation in their organisation which results higher
profitability and succession of the business. Moreover, team work will help manager of Samsung
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in bringing innovation in their existing products by working together in a define structure (Dries
and et. al., 2013).
Hence, it can be concluded that innovation and commercialisation plays a huge role in
increasing the customer’s satisfaction, gaining the competitive benefits and enhance the overall
profitability. In this aspect, all the above defined aspects give their huge contribution in shaping
the innovation and commercialisation. .
TASK 2
P3 Describe 4Ps of innovation
Innovation is the most crucial term for the organisation in order to make sustainability of
the business in the current marketplace. There are various types of innovation like incremental,
disruptive, architectural and radical. Here is explained two types of innovation like increment
innovation refers to the some updates in existing products and services with the help of
innovative technologies and processes so that some value can be added in existing products. For
example, Samsung can make some innovation in their existing product like they can add a new
camera in their mobile phones in order to enhance the convenience of the customers. Other,
disruptive innovation refers to the implementation of new processes and technologies in
developing a new products like Samsung develop a new mobile phone with the facility of touch
or keypad. So in this case it is necessary for the firm to formulate effective strategies and plans
which can be determined by using the 4Ps of innovation method which is describe below:
Product: It is related to the product and service of the company which pertains that
management of an organisation must focus on that how they can innovate their product and
services so that higher customer’s attention can be attained. Management of Samsung can
determine the needs and wants of the customers in this aspect which enables them to bring new
innovation as per the current market scenario (Hausman and Johnston, 2014).
Process: In this, the management of Samsung must give their focus on their processes
which are linked to the delivery of services to customers. In this aspect, they must assure that the
process which are followed by them is simple and effective and their service are rendered with
best quality so that customers interest can be maintained.
Paradigm: This component of the model depicted that management of Samsung require
to track the performance and implied needful changes on the regular so that they can operate all
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operations as per the market condition so that the success and growth of the organisation can be
ascertained. For example, if they will give the new feature in their mobile phones as per the
customers then they will able to gain higher profitability.
Position: It has the main focus on the position of new product and service in the industry.
In this aspect, the management of Samsung needs to introduce their new QWERTY keyboard
features in their mobile across those people who are seeking to take advantage of new technology
or techniques.
Innovation Funnel
Innovation funnel is a most appropriate approach which is used by the various
organisation to develop an innovative and ideal action plan. It has great significance for the R&D
department of Samsung as with the help of this they can evaluate the many products ideas and
screening them which helps them in selecting a best product to innovate in the marketplace.
Samsung can utilise the phases of innovation funnel in terms to improve their existing products
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which help them in providing best experience to their customers (Kutvonen, Savitskaya and
Salmi, 2014).
 Idea generation : This is refers to the activities of R&D department in which ideas
related to innovate a new product and service are making by assessing the available
opportunities and threats in the present internal and external environment. Herein,
Samsung also identify the solution for their problems (The Five Stages of Successful
Innovation, 2019).
 Concept investigation : In this stage, screening of the ideas included which have made in
first stage so that the best can be selected in order to successfully introduced innovation in
the marketplace. These ideas tested as per the customers, resources etc. in order to
implement idea effectively.
 Feasibility study : Herein, the profitability of the ideas determined and also technical and
economic feasibleness is tested. At this stage, Samsung will also recognise the risk and
opportunities which are attached with the ideas so that the best ideas can be formulated.
 Development stage : In this stage, the idea finally convert into innovative product and the
product is released in the marketplace. For example, here Samsung will ultimately launch
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their new product or service in the market for gaining the higher customers attention and
success.
 Post release phase : At this stage feedbacks from customers are collected so that
improvements can be brought in the products and services. This is the last stage where
Samsung organisation will take feedbacks from their customers so that the required
modifications can be made up in order to provide higher satisfaction to the customers.
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P4. Developments in frugal innovation
Frugal innovation: It is the process of discovering new ideas, models, value chain etc. It
is used to redesign product or present in front of customers through adding some unique features
which make it better from the previous one(Marion and Friar, 2012). This process will be done in
scalable or sustainable manner. This process also used in manufacturing process where it helps in
reducing product cost and try to eliminate the defects which affect the demand of products. It is
play important role in the business operations through following various principles. Some of the
principles are mention below:
 Find opportunities in hardship: This principle provide opportunity to the business to
take advantage from the situation which create various problems. It helps many
organizations to cope up with difficult conditions which further reduce overall cost. It
further maximise the profit margin of the company. In context of Samsung, company face
the various difficulties in the operations so manager have to make sure that company
identify opportunity from the tough situations.
 Do more with less: Organization have to understand that resources are limited so they
have to done maximum utilization of their resources which provide more output. This
principle help the business to allocate resources and used in effective manner which
further maximise the production as well as profitability. Manager of Samsung follow this
principle and make sure to use resources in optimum level that increase the demand of
mobile phones in the market.
 Think and Act Flexible: Every organization have to enhance their thinking process
which helps in developing strategies. Along with this, manager have to make sure that
company not in rigid nature but it can be improvisational. Organization must be flexible
with the situations and have to formulate strategies accordingly. In context of Samsung,
manager of the company have to change their operational activities according to the
market situations and requirement which further helps in meeting customer's expectation.
In addition, by using this principle company able to achieve their business goals &
objectives. For example: Samsung have to analyse technology market and identify the
current trends and it will used in the future decision making process in order to maximise
productivity as well as profitability. Change in the technology also provide huge
opportunity but in order to grab it company have to think and act flexible.
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 Keep simple: Under this principle management have to understand that simple process
will helps in maximising individual performance as well productivity of the company.
Manager of Samsung have to follow simple process in the production unit rather than
complex because it will generate more confusion and create conflicts among the people
who working in the organizations(Paradkar, Knight and Hansen, 2015).
Above mention principles help the Samsung company to maintain sustainability for the
longer period and provide various benefits through minimising cost of product or reduce the
errors as well as defects from the products. It further helps in achieving business goals &
objectives through increasing productivity or profitability.
TASK 3
P5. Importance of commercial funnel and application of New Product Development (NPD)
Commercial funnel also called sales funnel which is related to the buying process when
organizations lead customers at the time of purchasing goods. This function used by the sales
department in order to analyse the sales as well revenue of the company and make sure to
convert individual into potential customers. It is also very important for Samsung organisation as
it helps the company to promote their products in the market. Manager of Samsung company
follow this function in order to increase their product demand in the market among the customers
(What’s A Sales Funnel, And Why Is It Important?, 2019). For example, with the help of this
funnel manager of Samsung organisation can increase the awareness of the customers towards
the new innovation so that their interest can be developed at higher level which will provide
benefit to them as in increasing their sales and recognition.
New product development (NPD): It is the process which used by the organization
when they introducing new product in the market and it is based on the customer's requirement.
In context of Samsung company, before developing any product in the market manager have to
done this analysis which help them to identify key factors which is important to consider at the
time of executive their plan. Process of developing new product is mention below:
 Idea generation: It is the first stage where management have to develop idea regarding
new product and it will possible through analysing entire market. Research will be based
on customer's needs, taste, preference etc. Samsung company focus on enhancing mobile
features which make them different in the competitive market.
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