Higher National Diploma Innovation and Commercialisation Report

This report delves into the multifaceted concepts of innovation and commercialisation, exploring their significance and relationship to invention within a business context. It examines how leadership, vision, culture, and teamwork shape both innovation and commercialisation processes, using F-drones as a case study. The report further analyzes the application of the innovation funnel and the 4Ps of innovation, while also exploring developments in frugal innovation. A key focus is placed on the commercial funnel, product development, business cases for innovation, and strategies for securing funding. Finally, the report covers essential tools for protecting, retaining, and developing intellectual property, providing a comprehensive overview of the subject matter.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Concept of innovation with respect to its importance and in comparison with the process of
invention......................................................................................................................................3
P2 How commercialisation and innovation gets shaped by leadership, vision, culture and team
work............................................................................................................................................5
TASK 2............................................................................................................................................6
P3 Explain the use of innovation funnel in context with shaping innovative ideas and detail
about 4Ps of innovation...............................................................................................................6
P4 Explain about the developments been done in frugal innovation with examples that justify
how they are used in organisation...............................................................................................8
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and development of new products in context with
commercialisation of innovation.................................................................................................9
P6 Explain a business case of innovation in terms of organisation and also determine methods
to access funding.......................................................................................................................12
TASK 4..........................................................................................................................................14
P7 Different tools required to protect knowledge, retain and develop the intellectual property
...................................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is considered as the procedure of enhancing a new product and implementing
it in a complete different way or applying a new method. Innovation does not include just the
method of developing things but also improving earlier ones. It includes many elements like
creation, enhancement, improvement and so on. Commercialisation means a procedure of
initiating new products to market. It involves account production, sales, marketing as well as
customer support in order to achieve success for new item. The below report includes innovation
as well as its importance as compared to invention, how both innovation and commercialisation
can get shaped through the method of implementing organisational vision, culture, leadership as
well as team work. The report also includes 4Ps of innovation and usage of funnel, developments
in frugal innovation with examples, importance of new developed product and commercial
funnel(Csedő and Zavarkó, 2020). The report involves an innovation business case in order to
access funding and evaluation of different tools which organisations can use. The report is based
on F-drones. It provides aerial transportation services in order to provide supplies to offshore
platforms and ships. The company was founded in Singapore in 2019.
TASK 1
P1 Concept of innovation with respect to its importance and in comparison with the process of
invention.
Innovation is the procedure of developing new products, using different methods of
production. It is considered as an idea in relation with developing into functional reality. In
context with business development it is done on continuous basis so that better productivity can
be done. In an organisation creating new things is very crucial because there are various
competitors who use unique products so with respect to competing with them it is important.
Innovation is important because it leads to growth, meet customer demands as well as attract
talented people. When business innovates their product, introduce something new then it helps
them to grow their business. In comparison with invention, it deals only with creating new things

but innovation also include improving previous things. A product can't be invented without
innovation. So, its importance is been explained as below: - Different from competitors: - When a product gets invented companies don't look at their
competitors. They just try their best to create effective product but when innovation is
done whether it is related to introducing new product or new ideas to make those goods.
So, it is considered more important because while applying new ideas or innovating
something new focus is on competitors also and businesses try to offer complete different
and unique products from those of competitors. Attract talented people: - When organisation is an innovative one so they try to attract
only those people who are talented in that complete area. When an organisation
implements new things they do that while attracting best qualified people so that with the
help of their skills and talents they can improve organisational performance. In relation
with invention the focus is mainly on selecting employees as they want to implement a
new product. (Lin, Xiao and Wang, 2021) . Business growth: - When a company innovates a product or improve existing product
also, their growth gets increased. When any company innovates a new product they
achieve growth because improvements are been done in existing product but in the
process of invention company don't achieve much growth because a complete new
product is invented and they are at initial stage only.
Innovation and Invention :- On the basis of meaning:- Innovation means to make improvements in the existing
product or implementation of new idea for specific product for first time while in case of
invention it means creating a product which has never been made in past. In this process
a complete new product is created. Skills required:- In the case of innovation both marketing as well as technical skills are
been required which include implementing something new or improving existing
products according to customer needs and wants while inventing a product scientific
skills are required. It means observing which product should be implemented in order to
achieve customer satisfaction.

 Concern:- Innovation is concerned with various products as there may be many product
which need improvements and need of new process can also be there and invention is
concerned with a single product. Occurrence:- Innovation occurs when company feels that there is a need of improving
the product and new implementation should be done and with respect to invention it
occurs when all team members initiates a new and unique idea in terms of inventing a
different product.
Importance of innovation:- Competition:- In the market area when there are many competitors companies has to
innovate some new products in order to ensure growth in their particular sector.
Competition forces us to innovate products in order to improve productivity in the
organisation, decrease overall costs and ensure that company is earning more profits.
 Customers:- The needs of customers can change at any point of time so according to that
companies had to innovate their products. There are many changes that arise in the
market and companies can see it from distance so to solve all problems of customers they
need to innovate their products as it forces them.
P2 How commercialisation and innovation gets shaped by leadership, vision, culture and team
work Vision: - With respect to overall vision of organisation it is the most crucial thing to
achieve goals and objectives. If a company has adequate vision, then it will be easy for
them to become successful. It helps in shaping innovation as well as commercialisation
because businesses create such an environment where all individuals belong from various
other backgrounds and gets a chance to discuss and share all their ideas so that effective
innovation is done in company. Leadership: - In today's world, without effective leadership, the company cannot achieve
success. Leadership is considered as the method of managing whole organisation in
accordance with all objectives and their targets. There are various type of leadership
styles like participative, democratic, laissez -faire and many more. In context with f-
drones, they followed the leadership style of been democratic as it leads to both
commercialisation and innovation in a better way. various ideas must be there so that
effective strategies can be made as well as business achieve growth.

 Culture: - Organisational culture refers to the way things are been done in organisation.
It include many things like rituals, power structures, organisational structure, symbols
and many more(Liu and et.al, 2020) . Culture never remains same in every organisation.
There is some sort of differences in culture in each country. It can be different in the form
of values, attitudes as well as what is accepted in one city may not be accepted in another
country. So, innovation and commercialisation both can have an impact because of
culture. In context with innovation, it indicates various expressions of individuals with
respect to their behaviours. When an innovation gets applied in a company they get
influenced by culture. In relation with commercialisation, the process which is there gets
shaped by culture because all procedures are made in accordance with ideas, structure
and so on.
 Team work: - In an organisation effective team work is necessary because they provides
the solution for solving all kind problems and in completing a goal according to planning
been done. There is a specialized team who performs task in order to commercialize and
innovate the product. If a team acts according to objectives and provides new ideas to
customers then organisation can achieve their goals easily and efficiently.
TASK 2
P3 Explain the use of innovation funnel in context with shaping innovative ideas and detail about
4Ps of innovation
In terms of 4Ps of innovation it includes product, process, position and paradigm. It is
further been explained as below:-

 Product innovation: - It refers to development of unique products, improvements and
improvements been done in existing products or even making use of new raw materials
while manufacturing existing products. It is done because organisations want to enhance
their quality and also improve their items when they are using in present. In context with
F-drones, they planned to innovate drones which can deliver 100 kilos over distances of
100 kilometres and offshore platforms also(Beck, 2020). Process innovation: - It is defined as the development of complete new or better
production. It involves changes which are done in techniques, goods . Each organisation
uses the procedure of innovation in a productive manner to ensure that they will be
successful. As per the view point of Ajay, 2020, F-drones fulfilled their first commercial
BVLOS drone delivery which determined around 2Kg of vitamins in perspective of
approx 2.7 Km. The objective behind it is to make usage of proprietary drones which
will be able to deliver 100Kg loads to around 100Km in relation with both ships and
offshore platforms. Position innovation: - It means making change in the way the all items are been
producing and getting developed. The changes are implemented because of perceptions
individuals have in relation with a specific product. In context with company, they are
still at the position of infancy by the made certain changes by breaking all their drones
into the method of traditional barriers in their organisation. It was also been initiated that
all kind of production costs and their workload gets decreased and relation with
consumers gets better. Paradigm innovation: - This type of innovation means a transformation in a complete
different technology. It involve many theories, principles, beliefs. It is also known as
mental model. In accordance with F-drones, they were using their drones in oil as well as
gas industry also by which they were applying new ways as well as approaches in context
with subsurface imaging and geophysical acquisition(Kunicina and et.al, 2020).
About the concept of innovation funnel and its uses
Innovation funnel is considered as a carrying out method which includes regular stream
of better paradigm and ideas. It is used by many businesses to ascertain what type of methods
they should use and what not. There are three main steps which are involved in innovation funnel
which are considered as mouth of funnel, narrowed part of funnel and narrowing the funnel. In

terms of mouth of funnel, the main objective is to collect as many ideas as possible and for this
companies enhance their knowledge as well as availableness of information.
When organisation gets more opinions , it becomes simple for them to get more and
better solutions and at the same time improving solutions. Information can be get from
competitors as well as from institutes. In context with narrowing down the funnel all ideas that
were developed during first stage are screened. It embrace matching all ideas within the
objectives of organisation to analyse whether they have any value or not . When ideas get
selected effective kind of resources must be allocated as per all planned opportunities. In terms
of narrowed part of funnel, businesses ensure that all screened and selected strategies that are
been formed are applicable to businesses objectives. Innovation funnel is applied so that all ideas
which are generated lead to successful execution. While developing a product, all companies use
the model of innovation funnel.
In accordance with F-drones, the innovation funnel which they use is the use of drone
technology which helps in providing various kind of applications to technology. The main
innovative idea which they used was in context with delivery programs which allowed them to
save shipping costs(Astiti, Sakapurnama and Huseini, 2020).
P4 Explain about the developments been done in frugal innovation with examples that justify
how they are used in organisation
In terms of frugal innovation it is considered as a commercialisation in relation with
different factors that includes less resources, effective products as well as services services that
are affordable in nature. It determines complete new entrepreneurial landscape where small
firms that include less quantity of resources to enhance innovations in those areas who have low
income. Frugal innovations are needed in context with environmental constraints, new
technology platforms which reduce cost of certain forms of innovation, caring for rapidly ageing
societies as well as fastest growing markets which lead in developing as well as rising economic
system. Frugal innovation focuses on doing better as well as finding out certain ways to
decrease complexity in business.
The developments which frugal innovation did was increasing demand for frugal
products as well as development in their own processes. Environmental constraints in context
with climate, water and many more also increased demand in context with models of production
and consumption . They can also render extra social and environmental benefits which helped

them to handle certain challenges. Entrepreneurs as well as other businesses can provide frugal
products to establish economic, social and environmental value also. They did development by
providing sustainable business products and practices(Stojčić, 2020).
5 principles of frugal innovation Find opportunity in adversity:- Companies face many kind of problems which
sometimes create a situation of threat to them so it must be turned into an opportunity so
that they can effectively solve all problems. Do more with less:- In a company thinking about new ideas will be more beneficial to
solve problems rather than relying only on one idea. So, they should create something
new in order to find better solutions. Keep it simple:- In an organisation more difficult things will create more problems. If
management would initiate more choices then it becomes typical for organisation so with
respect to this they should implement everything in a simple way so that no problems get
arise in future. Include the margin:- Customers needs can change at any point of time so they should
also be included in solving all problems as management team can ask what they exactly
want so that they can do innovation with respect to those needs.
 Follow your heart:- Companies must be passionate towards each innovation and any new
idea that comes in their mind should be used and experiments must be done according to
that.
In context with f-drones, they applied frugal innovation over the use of technology they
were already engaged with. Cargo drones were being used which ensured that all good and
services are been provided at that place where it is needed.
TASK 3
P5 Importance of commercial funnel and development of new products in context with
commercialisation of innovation
Commercial funnel means a buying process that companies lead customers while
purchasing products. It is important for an organisation because marketing becomes simple as
they use sales funnel and all forecasts are done on which they are on done on accurate basis are
been done are accurate, the conversion rates also gets better and businesses also earns more

revenue with the help of commercial funnel. According to a report it was analysed that f-drones
also used commercial funnel to enhance their sales and earn better revenue from the developed
product.
Concept of development of new products in relation with commercialisation of innovation
In terms of developing new products it is defined as a multi-disciplinary process which
change market opportunities into a complete new product in order to satisfy audiences
requirements. To achieve success companies has to invent new products according to customer
and market demands. There are eight steps while developing new product and it is been
explained as below:-

 Idea generation:- It means a systematic research for new product ideas. There are
hundreds of ideas which come in minds of company but the best idea is selected in the
end. It includes two sources of all new ideas which are defined as external and internal
one. In context with internal idea sources, company generate new ideas while doing
research internally only but in context with external sources, the ideas are generated from
distributors, suppliers and even from competitors(Chen and et.al, 2020). Idea screening:- It refers to pick up good ideas from all kind of ideas been generated as
fast as possible. In case of the stage of idea generation is to implement many ideas but in
screening stage good ones are selected. An organisation select those ideas which will
generate more profits to them. Concept development and testing:- In context with this procedure new and developed
ideas are implemented. In terms of implementing and enhancing a product and testing it a
better physical representation is done so that customer value is created. Marketing strategy development:- When a product gets developed its time to design a
new marketing strategy for inventing new product in market. It includes description of
target market, product planned price, marketing budget and marketing mix strategy.

 Business analysis:- It involve a review of all costs, sales and profit predictions to find out
whether customer will be satisfied or not. If they gets satisfied then product can get
developed. To analysis sales, organisation should view at overall sales history in terms of
similar kind of products and for that surveys should be conducted. Product development:- If testing is successfully is done then it must be implemented in
terms of physical product to assure that it is effectively been developed and can be
offered can to consumers. Before developing a product testing is done so that they
perform effectively. Test marketing:- In relation with this phase product and marketing programme are tested
and also gives an occurrence with marketing the product. It allows a company to test
specific product which include packaging, advertising ,distributions and so on.
 Commercialisation:- It basically means to introduce a brand-new product in marketplace.
In this stage, increased amount of costs are been involved and company has to spend on
sales promotion and advertising. (Artemyev,Kokhno and Lépehin, 2020). Before
commercialising a product proper timing as well as place should be considered. If the
economy is down then in that specific period product should not be launched in market
and place factor should also be considered where company should focus on where they
should launch their product whether in particular city, international market or a specific
region.
F-drones carried out first commercial drone delivery at night to a vessel. The drone navigated an
anchorage which helped in delivering a critical element. Due to this, company's drone system
now can carry 5kg to a distance of 50km. As per today's situation of Covid-19, the delivery of
supplies which they were doing can decrease costs.
P6 Explain a business case of innovation in terms of organisation and also determine methods to
access funding
Business case:- It is considered as an enhanced structure document which involve task
and various other activities. In context with company , they are also implementing an innovation
business case in order to implement a product and commercialise it successfully. The company is
planning to develop 100kg – 100km drone which is initiated as Hyper launch and can deliver
5kg loads till the distance of 50km to ships( Nieto Cubero, Consolación Segura and Adebayo
Gbadegeshin, 2020).

Executive summary: - The business case plans which are made to enhance their product
are involved in such a manner that it receives better resources so that they can effectively
develop their policies.
Background of f-drones: - The company is implementing whole world's first transition
drone which will provide aerial deliveries to all ships as well as offshore platforms also. The
product which will be established involve the heavy payload as well as enhanced range
capabilities which will be threat to other drone companies.
Vision: - The company vision is to is to be a leader in context with payload
Mission: - The main mission of organisation is to generate aerial transportation of all
products and enhancing drones that can fly even with more heavy loads.
Satisfaction of need from innovation: - By implementing new product development,
they can attract and include more buyers in their listing.
Opportunities in market:- There were many opportunities for f-drones as they can save
80% of their costs, time as well as carbon emissions in both offshore logistics and marine.
Competitive edge: - The technological advancements in electronics like micro-controllers
were modernizing drone products which helped companies to develop measurement tools.
Size and growth possibilities: - In relation with market size it has planned to reach $100
billion. In context with possibilities of growth it was estimated that they will reach $43.1 billion
till the year 2024 as they were at $14.1 billion in 2018
Target market: - The target market for f-drones was to increase their R&D investment as
well as initiates better funding for military programs to assure growth in their business.
Strategy: - Company used the strategy of price skimming so that they can innovate their
product in effective manner.
Promotional strategy: - F-drones used the strategy of 3D mapping as well as surveying
sites to do promotion.
Funding: - The source of fund was done with the help of drone revolution as it was in
partnership with Government. They also receive funds from Singapore Government who provide
foreign investments and get indulged into shaping development of their business. (Sukhatme and
et.al, 2020).
Ways to access funding

 Internal source of fund:- In context with internal funds that are used as a finance source
it means that they are implementing within the organisation with the use of present
activities. External source of fund:- It creates finance from all the available sources which arev
outside the business. Bank loan:- It is also a way to analyse all funds which means to pay a determined
specific amount of money each moth which is considered in relation with amount of
interest. It is the money which bank gives to another party and they had to give it back
with interest. Plough back profit:- It is defined as a management policy in which all profits are not
been distributed among shareholders but a particular part of those profits is retained in
organisation.
 Crowd funding:- It is defined as a procedure of increasing money from various number
of audiences so that people can fund a project or a company for any specific reason. It is
also been considered as a part of alternative finance and crowdsourcing.
TASK 4
P7 Different tools required to protect knowledge, retain and develop the intellectual property
In terms of Intellectual property is considered as a part of property which include creation
being intangible in nature in context with human intellect. It includes various elements like
copyrights, trademarks and so on.
As per the view point of Alyson Behr, 2019 there are certain elements which retain and
protect intellectual property. In case of patents, it is considered as a legal right which does not
authorise other people to do manufacturing and marketing in the same way that your company is
doing. In case of trademarks, there are different names as well as symbols which are in relation
with that company. It creates a connection with the brand quality through which they built up the
reputation. In context with copyright, it means to have an authority to copy. It determines a
permission to to be copied. If a company has a copyright then nobody else can copy it without
seeking the permission.

In context with f-drones, patents were more helpful to them because as their new developed
product was very efficient so it was needed that items should be protected and no other drone
industries copy them.
CONCLUSION
In context with above report it is concluded that innovation as well as commercialisation
is very important for any kind of business. When innovation is done then businesses can earn
more competitive advantage and at the same time they can earn more revenue. Companies
should focus on innovating a product rather than inventing a product.

REFERENCES
Books and Journals
Csedő, Z. and Zavarkó, M., 2020. The role of inter-organizational innovation networks as change
drivers in commercialization of disruptive technologies.International Journal of
Sustainable Energy Planning and Management,28, pp.53-70.
Lin, S., Xiao, L. and Wang, X., 2021. Does air pollution hinder technological innovation in
China? A perspective of innovation value chain.Journal of Cleaner Production,278,
p.123326.
Min, J.W., Kim, Y. and Vonortas, N.S., 2020. Public technology transfer, commercialization and
business growth.European Economic Review,124, p.103407.
Liu, R., and et.al, 2020. Solution‐Processed High‐Quality Cesium Lead Bromine Perovskite
Photodetectors with High Detectivity for Application in Visible Light
Communication.Advanced Optical Materials,8(8), p.1901735.
Beck, L., 2020. Carbon capture and storage in the USA: the role of US innovation leadership in
climate-technology commercialization.Clean Energy,4(1), pp.2-11.
Kunicina, N., and et.al, 2020, November. What a prototype is: the first step for
commercialization of scientific ideas. In 2020 IEEE 61th International Scientific
Conference on Power and Electrical Engineering of Riga Technical University
(RTUCON)(pp. 1-6). IEEE.
Astiti, Y.M., Sakapurnama, E. and Huseini, M., 2020. The challenges in research
commercialization lessons from bandung institute of technology Indonesia.
Stojčić, N., 2020. Collaborative innovation in emerging innovation systems: Evidence from
Central and Eastern Europe.The Journal of Technology Transfer, pp.1-32.
Chen, C., and et.al, 2020. Arylammonium-Assisted Reduction of the Open-Circuit Voltage
Deficit in Wide-Bandgap Perovskite Solar Cells: The Role of Suppressed Ion
Migration.ACS Energy Letters,5(8), pp.2560-2568.
Artemyev, A.A., Kokhno, P.A. and Lépehin, I.A., COMMERCIALIZATION OF
INNOVATION: THE BOTTOM LINE.ТВЕРСКОГО ГОСУДАРСТВЕННОГО
ТЕХНИЧЕСКОГО УНИВЕРСИТЕТА, p.68.
Nieto Cubero, J., Consolación Segura, C.M. and Adebayo Gbadegeshin, S., 2020.
Commercialization process of disruptive innovations in corporate ventures and spinoff
companies: a comparison.Advances in science, technology and engineering systems
journal,5(2), pp.621-634.
Sukhatme, N.U., and et.al, 2020. The International Intellectual Property Commercialization
Council’s 3rd Annual US Conference: The State of Innovation in the Union.Catholic
University Journal of Law & Technology,28(2), pp.1-34.
Online
Ajay, 2020, F-drones completes first commercial beyond visual line of sight drone delivery in
Singapore [Online] Available Through:
<https://www.f-drones.com/post/f-drones-bvlos-singapore>
Behr, 2019, Intellectual property protection: 10 tips to keep IP safe [Online] Available Through:
<https://www.csoonline.com/article/2138380/intellectual-property-protection-10-tips-to-keep-ip-
safe.html>