Unit 8: Innovation and Commercialization Strategies at Hyundai Motors

This report examines innovation and commercialization within Hyundai Motors, highlighting the importance of innovation compared to invention and how organizational vision, leadership, culture, and teamwork shape these processes. It explores the 4Ps of innovation, the use of the innovation funnel, and the developments in frugal innovation with examples from Hyundai. The significance of the commercial funnel and the application of new product development (NPD) for commercialization are discussed. Finally, the report evaluates various tools that companies can utilize to develop, retain, and protect intellectual property and knowledge, providing a comprehensive overview of Hyundai's approach to innovation and its commercial realization.

Unit 8 – Innovation and
Commercialization

Table of Contents
INTRODUCTION................................................................................................................................3
LO 1......................................................................................................................................................3
P1 Explaining innovation and its importance to organizations in comparison with invention...3
P2: How organizational vision, leadership, culture and teamwork can shape innovation &
commercialization.......................................................................................................................4
LO 2......................................................................................................................................................6
P3: 4ps of innovation and utilize of innovation funnel...............................................................6
P4 Developments in frugal innovation and providing examples of how it is utilized in Hyundai.
.....................................................................................................................................................7
LO 3......................................................................................................................................................8
P5 Significance of commercial funnel and application of new product development ...............8
LO 4....................................................................................................................................................11
P7 Evaluation different tools that companies can utilize to develop, retain and protect IP and
knowledge.................................................................................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
Innovation and commercialization are the basic key forces that are contribute to increase my
productivity, turnover and profit margin of the business. Innovation is termed as an innovative skills
that have transformed into applicable reality while commercialization are termed as the procedure
of converting thoughts and inventions into higher wealth for the business. The present report are
based on Hyundai, it is termed as best automobile business that's headquartered is in South Korea.
The organization covers the scenario of innovation and its significance in relation of the business in
comparison with innovation. It will referred that how organizational vision, culture, leadership &
team work shape commercialization and innovation. Furthermore, the report will justify 4ps of
innovation and use of innovation funnel to examine & shape creative ideas. It will describe the
development in frugal innovation and example relate to how it is used in company context.
The following report covers the discussion that is significant of commercial funnel and
application of NPD for commercialization of innovation. Moreover, the study will explain
innovation business case and varied tools that companies can utilize to retain, develop and protect
knowledge as well as intellectual property.
LO 1
P1 Explaining innovation and its importance to organizations in comparison with invention
Innovation can be understood as actions required to create new ideas, procedures and
products implemented which leads on positive effective change with high scale ideas imperatively
on longer scale operations. It also implies value system which derives positive outcome from
competitive efficiency, on which innovation plays crucial role to evolve towards new revenue
targets actively.
Invention is unique or novel experience where procedures and overall well-being product
development process, for improving products and services creatively. This factor explains
invention achieves completely unique function to create the best radical breakthrough, for improved
developed connectivity towards new productive domains.
Comparison between innovation and invention
 Invention refers to occurrence of idea for products or procedures that have not been used till
now, also there is vast level of extended functional parameters to improve productive usage.
For invention scientific skills are required, where new idea strikes enables to bu id smart
progressive efficacy among working scenarios. Invention is often linked with single product

and process which is also one step procedure, where scientific application brings on varied
growth towards varied productive efficacy operational scenarios. Invention may be success
or failure, on longer scale usage where there needs to be analysis developed towards
functional horizons actively.
 Innovation on other hand is bringing advancement in already invented methods, products
and services where set of creative marketing, technical and strategic efficacy diversity is
demanded. The procedures of innovation is occurred when need is felt for improving
functional capabilities in already invented products. Innovation occurs to whole company
operations for bringing on varied range of diversity among competencies, rise on new
advanced scale domains and expand towards the best revenue targets. Innovation adds brand
value to product, for raising informative functional work reach actively, enhance keen
domains actively towards new directive domains for varied scale growth. It can be
understood innovation has shaped business productive diversity effectively and generate
larger scale technical growth, to yield on specific rise on performance parameters
competitively.
P2: How organizational vision, leadership, culture and teamwork can shape innovation &
commercialization
Hyundai may shape its innovative idea and commercialization by using key resources that
are mention below-
Organizational culture-
Positive culture at the workplace always enhance the productivity of workers and drive them
towards creating an innovative idea, which management after evaluating may implement into
practical manner (Wang, Phillips and Yang, 2021). In term of work collaboration and coordination,
the culture of Hyundai motivate and encourage applicants to bring creativeness in their
performance. Furthermore, by changing the way they direct a team, a leader in firm drive attention
of employees towards doing creative and innovative practices.
Teamwork-
Just like above component, team work also shape innovation & commercialization in term
of conducting collaborative practices and sharing new ideas that help to promote new feature in the
car which is self drive mode. Team work enhance innovation in two manners, first it changes
cognition, effective experience and competence of individual worker, which in return boost their
creativity and attitudes to solve issues effectively (Hadjielias and et.al., 2021). Furthermore, group

work also contribute to innovation etc, as it associated with structural modifications to firm such
that flow of knowledge and creative ideas is enhanced & company become more flexible.
Vision-
Hyundai vision statement contribute to shape commercialization and innovation in term of
guiding and directing workers to be a creative person that supports business to achieve set aims and
promote new offering in market (Ardiansari and et.al., 2020). Organizational vision is the main
source that guide workers how to work and what need to do, for making venture and its products
more popular at international level.
Leadership-
By using current source along with above three, Hyundai may shape innovation, which is
essential as well as commercialization in term of advertising new feature and innovation all over the
world, which in return increase profitability of company (Scott, and et.al., 2020). Leadership styles
allow leader to motivate and inspire workers through their behaviors, actions and words, which
influence the mind of each applicant the most.
Sources of innovation-
It involves two sectional term that are as follows -
Unexpected- innovation occur by chance, such as, a team discussion is the fundamental
source of innovation as it allow individuals to share normal data with each and drive their attendion
towards creating new sections in term of products (Philipson, 2020).
Market structure- A present market structure may also offers a company an opportunity to
innovate some new item or facilities.
Incongrity- When requirement is incongruity with supply, innovation may be brought on.
For example, in order to satisfy the needs of customers, company may innovate new feature of self
drive mode that may make the driver relaxed to drive the car on its own.
Changing perception- A change in context of buyers perception regarding products/service
also give birth to innovation.
New Knowledge- After obtaining knowledge about using advance technologies in context
of producing new innovation in car of self drive mode, Hyundai drive its attention towards
innovation concept.
Demographic changes- the lifestyle of people may also consider as source of innovation, as
it drive the work and practices of individual person towards creativeness.

Activities that may foster and develop an environment of innovation in organization-
Each company may foster and develop a culture or environment of innovation at workplace
where number of applicants are working. It may create by using appropriate form of leadership,
which help to boost the performance and morale of staff members and drive their thinking towards
conducting creative things to achieve common aim.
LO 2
P3: 4ps of innovation and utilize of innovation funnel
Paradigm-
It concerns modification in the way something is done in Hyundai such as product
manufacture operation, as it help to manufacture a new feature of self driving in the car (Kim,
2020).
Product-
It exhibited that how Hyundai make its car better than rivals by using creative machines,
technologies and tools. Incremental in items successfully added value in term of productivity of
firm in innovative goods.
Process-
After dealing with above two P’s of innovation, here company may deal with current one
where hiring, selection, supplying, training etc. activities are included.
Position-
To influence customers and gain their attention towards purchase, Hyundai firstly set its
brand image in mind of each buyer, which is possible when it may use social media and other
positioning approaches.
Innovation funnel-
It considered as execution which means an uninterrupted flow of creative thoughts and
model may be screened for practicality. Innovation funnel concept encompasses five phases that
help Hyundai to shape innovation after examining it in effective manner (Franken and et.al., 2020).
Stage 1-Idea generation
Hyundai may examine innovative idea by driving the attention of workers towards
conducting work activity and then shape it in effective manner. It enables firm to obtain a hundred
of ideas.
Stage 2- Rough concept

After above step, by selecting one idea among many in context of new self driver mode,
now firm shape it in productive manner.
Stage 3-Detailed concept
The innovation idea in statement of new innovation that has been designated in above
points, which now may continue in functional manner. Now its time when individuals will
concentrates on manufacturing new feature in the car of Hyundai that helps in making customers
easy and relaxed while traveling.
Stage 4-Market launch
After product production, Hyundai may concentrates on marketing tactics that help to
commercialize new feature in market and maximize the sales level of firm (Mamasioulas, Mourtzis
and Chryssolouris, 2020).
P4 Developments in frugal innovation and providing examples of how it is utilized in Hyundai.
Frugal innovation is developed when small companies with their limited assets attempt to
produce new services or products that help to satisfy customers needs and fulfill their expectations
(Hossain, 2020). The aim of this concept is to offer valuable goods or service which may produce
by using necessary and available things. Hyundai company may use this concept in term of using all
Illustration 1: Innovation Funnel
(Source: Stages of Innovation Funnel, 2021)

the available assets, including machines, wires and other electronic items, which enable firm to
produce a new innovation.
In recent time, frugal innovation is used by many companies in term of Jugaad, which is
quite beneficial as it saves money and requirements relate to human resource. It emphasizes utilize
of less material and financial assets to product a new feature that add value for consumers and
contribute to achieve aim. It helps company to reduce unnecessary cost and production of essential
items in order to gain higher profits (Lu and et.al., 2020). Frugal innovation successfully used in
Hyundai with the support of leaders, as they contribute to innovate new item by using accessible
resources in term of guiding workers and directing a team at workplace. The approach works on
bottom to top method in contrary to top to bottom of standard innovation. It is so because frugal
innovation gives more reliability to firm in context of its new feature and to attain attention of
customers. It is quite beneficial and useful process that help in varied terms such as help to generate
revenue, increase profits margin etc. It has named because of specific reason, for example it is not
confined with particular consumers, but pick up wide range of buyers from the lowest resources.
Role of frugal innovation in company-
It plays vital role in Hyundai in term of saving efforts and most importantly money. It helps
firm by reducing complexities of innovation and offering maximum profits from few resources to
attain sustainability. It contributes to save money by reducing the unnecessary requirements of non-
essential elements or features in the car. Frugal innovation enable organization to compete in market
by producing and launching new item which is quite different from other brands products.
LO 3
P5 Significance of commercial funnel and application of new product development
Commercial funnel is defined as marketing tool through which many organizations in the
business world find, qualify and trade their products to target customers (Teixeira, Benedet and
Velasco, 2020). It is quite essential and advantageous for Hyundai in term of generating awareness
among buyers and determining issues which enable firm to solve it by producing quality items.
Commercial funnel is used in term of sales funnel, which takes organization target customers on
journey of purchasing procedure, which in return increase the profit's margin of firm.
New product production-
Idea generation-
NPD procedure starts with idea generation phase, where all the individuals in Hyundai
might coordinate and arrange to produce many ideas among which they may select the appropriate

one.
Idea screening-
Before commercializing innovation, organization may choose the specific idea and that is
new self diver mode feature, which bring several benefits for its customers.
Concept testing-
As per to this stage, management may test the reliability and sustainability of selected
thoughts before continued it in term of creating a new feature of self-driving mode or auto pilot.
Business analysis-
After passing above phases, organization may concentrate on analyzing selected idea in term
of determining its match with strategic aim and objective of firm. Overall analysis covered cost of
production, expect sale, profits and market demand.
Product development-
When the selected idea is fit into strategic term of company, organization may think to
someone it into new feature like auto pilot mode.
Test marketing-
After creating new feature in its car, firm may take the most important action and conduct
practice in statement of testing it before launch, which allow organization to determine where
enhancement is required.
Commercialization-
Above stage assure Hyundai that its new feature of auto pilot mode is ready to promote in
market where many firms seeks to purchase it for the purpose.
P6 Developing an innovation business case for Hyundai, including ways to access funding
Executive summary-
By having high competitive environment, each management has taken attempts regarding to
the gaining advantages and maximising of the sales that is quite effective and important. Hyundai
also do so in term of producing a new feature of auto pilot mode, which is much stronger than
earlier features of its car as it involves self-driver mode to the customers to help them enjoy their
journey and travel. By using venture capitalist option, company has get success in term of launching
the new innovation.
Mission-

The mission of Hyundai is to set mark of their management, through which customers get
influenced towards their new products.
Vision-
The vision of firm is to gain higher competitive edge by offering top category automobile
car to consumers.
Satisfaction of innovation-
The fundamental factors that offers full satisfaction of innovation in term of new feature to
make journey of customers easy and relaxed.
Opportunities in market for new item-
Hyundai have develop opportunity in market in regarding of its new goods as because of the
number of challengers that are accessible who are not able to create this sort of innovation.
Competitive edge-
Firm have chance to develop its venture and get success in term of maximising the
profitability and sales divisions after selling new car of auto pilot feature in market.
Target market-
By using STP model, company may target those brands that seek to transport their products
from warehouse to shiping area successfully, without paying much for transportation vehicles. It
may use demographic and behavioural segmentation strategies to target these people as traget
customers. For positioning purpose, company may use digital marketing channels and tools, which
help management in trem of influencing mind of buyers.
Marketing strategies-
Social media marketing is an effective as because it supports them to spread any data with
second at worldwide level, that is quite advantageous in term of securing time and money.
Ways of findings-
Equity financing-
It considered as process of rasing capital via selling shares in the field of the market (Fu and
et.al., 2021). Most of the companies in recent time raise money because they may have a short term
need to innovate something new etc.
Venture capitalist-
It is one of the most commonly utilize and easiest form of fundings. Venture capitalist is
termed as private equity investors that offers cost to those management that are exhibiting high

progressive and effective sections in exchange for an equity stake.
Bank financing-
It is the most common and traditional finaning approach, where a company may take loan
after applying it and getting their approval.
From above discussion, it can be said that bank financing is the best option for Hyundai,
through which it may receive money to produce the best car every.
Budget-
Resources Amount (£)
Employees salaries 2000
Collecting new electronic tools and
equipment's
2500
Conduct Market research 1200
Marketing tactics and usage of channels 1800
Selling 3000
Total 8700
LO 4
P7 Evaluation different tools that companies can utilize to develop, retain and protect IP and
knowledge
Patent-
It is an exclusive right provided for an invention, which is a service, process or product that
caters (Grzegorczyk, 2020). In general a new way of producing somethings of offer a unique item
that satisfy needs of customers and fulfill the expectations of business as well. This IP tool gives
companies legal right to exclude their rivals from making and selling an invention, which may
innovated by them.
Copyright-
Just like above, copyright is also included in list of IP tools that protect work and important
information of companies from their competitors (Chatterjee, 2020). Works covered by this tool
range from paintings, books, and sculpture to computer systems, advertisements, database, technical
drawings and maps. It helps to provide rights to exclusive publication, usage and distribution of
things. It usually originates with creator for a work, but may sold, or inherited by others.
Trademark-

It is a kind of intellectual property that consist a recognizable sign, expression or design
which determines goods/ services of specific source. Over duration, it becomes synonymous with a
firm name, so that customers do not even need to consider the name to recognize a specific firm.
Evaluating different tools in regard to wider business environment-
Basis Strengths Weaknesses
Patent The key strength of patent as IP tool is
that it protect for a pre-identified
period, permitting user to keep rivals
away from its valuable and precious
resources.
The negative thing about patent is that
it consume a lot of time and might be
lengthy while a person conduct it into
practical manner.
Trademark This tool helps companies in term of
protecting them against infringement.
The most negative fact about
trademark is that its registration fee
and renewal fee is quite expensive,
which is not affordable for some
ventures.
Copyright The best thing about copyright is that
it protect a organization broachers,
important documents and annual
reports for longer period of time.
The main drawback for this tool is
that it protects aspect of idea, not idea
itself.
CONCLUSION
By summing up above analysis, it has been inferred that innovation contribute to boost the
growth of company and increase its sale level even better than rivals. By supporting and motivating
workers, leaders have built effective workforce that contribute to increase the productivity and
performance level of venture. Furthermore, from above discussion, it has been concluded that by
using innovation funnel and frugal innovation, company has gained competitive edge and leading at
top position in market. By taking loan from bank and using the most appropriate IP tool,
organization has successfully protecting their knowledge and retaining workers for longer period of
time.