Level 4 HND Business: Innovation and Commercialization Report

This comprehensive report examines the crucial concepts of innovation and commercialization within a business context, focusing on the Level 4 Higher Nationals Diploma (HND) in Business. The report meticulously explores the differences between invention and innovation, highlighting their importance to organizations and how organizational vision, leadership, culture, and teamwork shape the innovation process. It delves into various sources of innovation, and how organizations can foster a culture of innovation, and explains the 4Ps of innovation and the innovation funnel. The report also analyzes frugal innovation, the commercial funnel, and New Product Development (NPD) processes. A significant portion is dedicated to building an Innovation Business Case, incorporating funding access, and evaluating the effectiveness of innovation using appropriate techniques. The report concludes with an evaluation of tools for knowledge management and intellectual property protection, supported by evidence-based analysis, and a critical assessment of how organizations can overcome challenges to develop successful innovations, using Samsung and Heinz as case studies.

INNOVATION AND COMMERCIALISATION
For
Level 4
Higher Nationals Diploma (HND) in Business
Name:
Student ID No:
ASSIGNMENT TITLE: Understanding Innovation and Commercialization
Learner’s Declaration
I certify the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner’s Signature:
Date:
Table of Contents
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LO1 Explain the context for innovation and determine the difference between invention and
innovation.............................................................................................................................................2
Introduction.......................................................................................................................................3
P1 Explain innovation and determine its importance to organizations in
comparison with invention..........................................................................................................3
Innovation...................................................................................................................................3
Inventions...................................................................................................................................4
Importance of Innovation..................................................................................................6
Differences between Innovation and Inventions..................................................7
P2 Explain how organizational vision, leadership, culture and teamwork
can shape innovation and commercialization.........................................................10
Organizational Culture and Team work...................................................................10
Leadership impact................................................................................................................11
Organizational vision..........................................................................................................12
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation...............................................................................................13
Sources of Innovation........................................................................................................13
Fostering and developing an environment and culture of Innovation. 16
P3 Explain the 4Ps of innovation and explain the use of the innovation
funnel to examine and shape innovative ideas......................................................20
Innovation Funnel................................................................................................................23
P4 Explain developments in frugal innovation and provide examples of
how it is used in an organisational context..............................................................25
Frugal innovation.................................................................................................................25
M2 Analyse and apply the innovation funnel in an organisational
context...........................................................................................................................................27
The use of Innovation Funnel in Samsung process..........................................28
M3 Appraise the role of frugal innovation in an organizational context.30
D1 Critically analyse how innovation is developed, embedded and
measured in an organisational context......................................................................32
Samsung as a case study.................................................................................................32
P5 Explain the importance of the commercial funnel and the application
of New Product Development (NPD) processing for commercialisation of
innovation....................................................................................................................................36
Importance of commercial funnel...............................................................................36
New product Development Process...............................................................................38
P6 Build an Innovation Business Case for an organisation, including
ways to access funding.........................................................................................................40
Camera.........................................................................................................................................43
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Cover Camera........................................................................................................................43
Front Camera..........................................................................................................................44
.............................................................................................................................................................47
M4 Build a detailed Innovation Business Case which includes how to
measure its overall effectiveness using appropriate techniques
available to test, iterate and improve.........................................................................47
P7 Evaluate the different tools that organizations can use to develop,
retain and protect knowledge and intellectual property.................................50
M5 Present supported evidence-based evaluation of these different
tools in the context of the wider business environment..................................56
LO3 and LO4................................................................................................................................59
D2 Critically evaluate the nature of innovation and the context in which
it is developed, providing evidence-based judgements on how
organisations can overcome challenges to develop successful
innovations..................................................................................................................................59
References:.........................................................................................................................................66
A Report
By:
A Training manager of Creationz
This report is submitted on
Date: 30/04/2020
LO1 Explain the context for innovation and
determine the difference between invention and
innovation
Activity 1
This activity requires you to choose 2 organizations from where you will
get relevant information for this assignment. You need to make a critical
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analysis of how innovation is developed, embedded and measured in an
organizational context.
Report
Introduction
Today’s market competitiveness ensures that company adapt to market
scenario to stay abreast the fluid nature of the business environment.
Innovation, invention and commercialization offer the chance to quickly
improve products that will respond to the demanding needs of consumers
challenge their aesthetics and offer thorough satisfaction in other to
increase the customer loyalty.
In the United Kingdom for example the private sector as reported by
(NESTA, 2009) experience high productivity growth because of innovation.
Aldo (OECD Report in 2010) that the epicentre and focus of growth in
most developed countries is innovation.
The following report is based on the importance of innovation in Samsung
Electronics Co. Ltd. And also, in Heinz the companies are both
multinational companies. Samsung is a company situated in Suwon in
South Korea and is one of electronic companies leading in the industry.
Heinz is a food company base in Europe with a global packages’ delivery.
Both companies represent the example of the application of innovation
and commercialization to create change in their individual sectors. In this
report, we will examine the concept of innovation in depth and its types as
well as implementation within the organization.
The report will consequently discus the disparity between innovation and
invention and also expose the source of innovation and the organization
impact of vision, teamwork, leadership and culture on commercialization
and innovation.
P1 Explain innovation and determine its importance to organizations in
comparison with invention.
Innovation
Innovation is often the process of turning an invention or creation into a
finished product of the type that will pass great value for customers to pay
for.can be defined as the process of converting an invention or idea into
finished good or service that creates value for which the customer will
pay. It is generally the process of executing developing and visualising
ideas in a way that will improve products and create essential value to
consumers.
According to (Ward, S., 2018) Innovation is the way toward making
(something) new or accomplishing something in another way. In business,
development additionally needs to incorporate the idea of progress; to
advance in business isn't simply to accomplish something in an
unexpected way, however to improve.
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Image credited to thestrategyguysite.com
Innovation is an improvement on something. There are two types of
innovations:
Evolutionary Innovations (continuous or dynamic evolutionary innovation)
that are brought about by many incremental advances in technology or
processes.
Revolutionary Innovations (also called discontinuous or radical
innovations) which are often disruptive and new.
Inventions
Invention can be defined as the crude idea of a product. It is safe to say
Invention ids idea without design or imagination. It involves the proven
workability of a product in delivering the basic satisfaction of the function
of its services to the consumers. The idea only needs to be proven viable
and workable before going to be public.
Creativity or invention is the act of turning new and imaginative ideas into
reality. Creativity is characterised by the ability to perceive the world in
new ways, to find hidden patterns, to make connections between
seemingly unrelated phenomena, and to generate solutions (Naiman, L.,
2014)
Image credited to https://em-solutions.co.za/
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At Heinz for example there is a working towards creating an innovation
culture that will in turn encourage the use of new ideas. Heinz initiate its
Invention programs that involves the establishment of objectives and a
continuous evaluation of the process. These includes
 The creation of at least two to five products, over nine-month
period, which were real innovations
 And also, the exposure of Heinz innovators to new processes and
start to make Heinz a more innovative culture itself.
Before 2002 that the programme was introduce it was decided then, that
by the year 2002 the following must have happened to the Heinz product;
 new, exciting products would represent 10% of Heinz's operational
income by the year 2002
 a working culture would be established which had the ability to
switch between measure and madness at the appropriate times
 Heinz would look physically different.
An old look A more recent look
In the case of Samsung Electronics (SE), now the largest electronic firm in
the world from a former emerging economy, Innovative activities have
been the core strength of SE and are expected to continue creating value
for SE.
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The Mission 2020 of Samsung (http://www.samsung.com) states that it
will;
“inspire the world, create the world” through creative and innovative
solutions. This implies that the firm intends to pursue innovation over time
beyond the development of commercial products for short-term returns.
For instance, the Curved LED TV by Samsung Electronics was the first of
its kind. It contributes towards creating a whole new market for the firm
and enhances its customer base.
Products Innovations of Samsung Electronics in U.S.
Importance of Innovation and difference between Innovation and
Inventions
Importance of Innovation
Why Innovation Is Important?
Innovation plays a vital role in any business environment. It leads to the
discovery of opportunities and assist in penetrating the market at a much
faster rate and thus develop a better connection with consumers. The
essence of Innovation is to create a proactive company that takes
calculated risk in ideas investment to ensure that value is created
Below is the list of reasons why a business may need to initiate
innovation;
 A quick Response to Competition and Trends
 A Creative Development opportunity
 Improved continuity in development
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 Reinforce company Brand
 Assist company with a unique Selling Point
According to (Tredgold, G., 2018) innovation is importance to an
organization because of the following;
It helps company to grow the business
New ideas, processes and strategies are often discovered which will in
turn help the company to stand out among competitors.
Values are created and added to products and this allow the company to
meet the consumers’ needs.
Investment in Innovation allow company to focus on attracting the best
talents in the industry and sector that will assist it in achieving its goals
and objectives.
Differences between Innovation and Inventions
Robert Edward (1988) propose that Innovation is the sum of both
invention and exploitation. The invention aspects according to him covers
all aspects of what is termed visualization and brainstorming this is to
allow the creation of new ideas and also processing them to reshape or
shape a product. Exploitation or Commercialization entails all process of
commercial development, applicability analysis and viability checks that
will allow the company to evaluate the market desirability and the
utilizations factors this will then lead to actual production of products and
the disbursement of same the feedback from sale will further be collected
and analysis for consistence upgrade.
Figure 2: Innovation concept according to Robert Edward (1988)
Bhasin, K., 2012) also discus the difference between Innovation and
Invention by defining Innovation as an "improves on or makes a
significant contribution" to something that has already been invented.
Steve Jobs was an innovator
Invention Invention is the "creation of a product or introduction of a
process for the first time." Thomas Edison was an inventor.
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Image credited to https://weareive.org/
Samsung As a case study
Taking the case study of Samsung for example in respect to the field of t
innovation. As there are equal chances to create new product especially in
the globalize process of creation where companies are developing new
product and new invention are often easily copied. Innovation will create
all the difference in companies.
Samsung phones for examples still stood an impresive height as aresult of
innovations although several Android phones are loosing markets due to
the inventions and innovations of the Iphones never the less samsung is
still conisistently promoting Android technology because of it uniques
branded innovations.
Although Invention is all about developing working idea. An invention is
known as when an idea doesn’t need replicable. It is however Innovation
that add value for customers and sepreate a good product from a great
one.
For further expansion, Innovation in Samsung is entrench and divided into
areas of logical developemnt, according to the Samsung news room,
“At Samsung Strategy and Innovation Center, we drive global innovation
for Samsung in diverse fields such as artificial intelligence, digital health,
the Internet of Things, autonomous mobility, data center infrastructure,
security, privacy and more.”( Samsung News room)
In Digital Health
Simband is an open plarform created by Samsung for sensor and
algorithm development so as to assit the researchers in tracking and
understanding through a weaerable technology peopl’s health.
In Technology
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Samsung patner with Procensis to simplify warehouse logistics with
wearable scanning solution. the Wearable Picking Bundle is in
collaboration with ProGlove, Procensis and Ivanti Wavelink. The new
bundled solution is ideal for warehouse picking operations and
management and allows for a more safe and efficient environment for
them.
In AI Technology
Samsung recently demonstrate its Drine base Ai solution for 4G and 5G
network ootimization the New solution automatically measures antenna
rotation and tilt at the touch of a fingertip using a mobile device; improves
tower climber safety and efficiency in network maintenance.
Heinz as a case study
KFC as in recent years sees the need to invest in innovation and transform
to an innovative company. The food company suffered loss of conusmers
due to it laid back attitude to innovation and its promotion of only its
traditional menus. This prompt the managemnt of the comp3any in recent
year to appoint a new research manager to head the new research team
so as to drive innovation in the company. According to Miriam Ueberalla
the new R&D in KFC, she claims that the company is now fully invested in
the need for innovation centered manaegemnt rather than the cost cut
management previosuly.
The most recent and most successful innovation in KFC is the Kraft Heinz’s
big launch which is the Just Crack an Egg, which is a microwaveable egg
scramble in a cup which contains Ore – Ida potatatoes , Oscar Mayer
meat, Fresh vegetables and Kraft cheese ( it doesn’t contain an Egg
consumer use their own Eggs). The product is withnessing a huge
patronage form consumers.
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Robin Ross, second from left, director of culinary for Kraft Heinz, with team members Colette
McCadd, left, Milo Klos and Ellen Cook taste different versions of Just Crack an Egg breakfast
scrambles at the Kraft Heinz Innovation Center in Glenview on Feb. 26, 2019. (Zbigniew
Bzdak/Chicago Tribune)
The product its self is as a result of consumers survey that consumer love
eggs but often have to wait till weekends to prepare it because of the time
it usually takes to prepare it. Just Cr02ack an Egg aimed to solve a
breakfast problem highlighted by survey data: people want portable,
portion-controlled protein in the morning to help them feel sated and give
them energy to start their day.
P2 Explain how organizational vision, leadership, culture and
teamwork can shape innovation and commercialization.
The success of every organization lies in the promotion of innovative ideas
in their products and services. It thus so happens that there are several
factors that are involve in the influence of the creativity of employee or
workers and that of the company towards harnessing it. These factors
include the company’s culture, teamwork’s promotion, organization vision
and mission statement and also company leadership. These factors in
relation to both Samsung and Heinz is further illustrated in details below;
Organizational Culture and Team work
Scholars in the sturdy of Innovation and commercialization are generally
agreed that the two concepts will flourish if a company shows a
willingness to encourage its workers and employee through accessible
means of presenting ideas in the innovative environment development.
Often some of these means of encouragement can appear in form of
motivations, incentives, assistance, trainings and development, incentives
packages and other rewards.
A company expansive resources on research and development will
likewise proportionally relate to the amount of innovative ideas that might
likely spring up from the venture and the likewise commercialization
methodology. It therefore subscribes that the limited investment in this
regard will likewise forestall the development in the area as well.
A collaboration of culture and teamwork helps the firm to reinvent their
services for attracting more customers towards the firm. A sufficient
prove suggest that innovative ideas can often be fuel through individual
interaction with other team members, thus company have often made it
cultural to incorporate team building in their strategic plan.
Heinz for example created an innovation culture which encourages the
development of new ideas. New and different approaches are taken when
tackling issues and time is made available for thinking and experimenting.
Ideas and suggestions are welcomed from all directions, both internally
and externally. Understanding and meeting the needs of consumers is
central to this culture. They also identified barriers to innovations some of
those barriers were;
 a low prioritisation amongst senior management
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 resistance to ideas. New ideas did not always work through the
system because the organisation had become hierarchical with a
top down approach. Over time, therefore, people suggested fewer
new ideas.
 fear of failure in the organisation. People were often reluctant to
take responsibility for new product
Also, the company founder Henry John (H.J) Heinz created a foundation for
company success by instilling values of team building, collaboration,
innovation, vision, results-based operations, and integrity in his
employees. By following his mission statement, “To do a common thing
uncommonly well brings success,”
Samsung as a case study is quite unique their approach in enhancing
creativity in employee is a bit different. They showcase their culture for
innovation through the creation of Culture that plays a vital role in
innovation. It is very important that creative practices get recognition and
encouragement in a company. The firm created a lab called Samsung C-
Lab (short for Creative), in which the company give employee access to
tools that allow them work on their own business idea Such practices
encourage their creativity which contributes to the company’s success.
Samsung as also culturally institute team work in its innovative strategies
Samsung set up a group of thirty business men in 2010 called CNB
( create New Business) they are responsible for discovering technological
and socio long term inventions and imagine or reimagine new products
that will achieve consumers demands. According to (Yian 2005) Samsung
as reaped tremendously from its team-working and strong commitment to
innovation].
Leadership impact
This play a vital role in promoting innovation and commercialization also
in the organization. Leadership is essential in creating opportunities for
team members that will assist in boosting what is term innovation and
also creativity through ensuring a constructive environment for team
members (Shealley and Gilson 2004) discuss that this is often achieve
through motivation and rewarding them after accomplishment. Leaders
also position companies to be innovative through allocation of resources,
funds management, and also management of knowledge, time and
facilities.
Samsung leadership for example is responsible for the creation of
company innovative culture through several allocation of funds in the area
of creativity and promotion. It is the responsibility of the leaders and
mangers to push their individual team members to achieve innovation in
line with the company culture on it.
In 2001, President of Booz Allen and Hamilton Korea stated that Korean
firms need to pursue breakthrough innovations to adapt to new market
environments (Hauwang 2001)
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