Unit 8: Innovation & Commercialization - Business Management HND

This report provides a comprehensive analysis of innovation and commercialization within a business context, using Bakers Oven Bakery as a case scenario. It defines innovation and differentiates it from invention, emphasizing the importance of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization efforts. The report further explores the 4Ps of innovation (Product, Position, Process, Paradigm) and the application of the innovation funnel. It also examines frugal innovation, its developments, and practical examples. The commercial funnel and New Product Development (NPD) processes are discussed in detail, along with the creation of an innovation business case and methods for accessing funding. Finally, the report evaluates various tools for developing, retaining, and protecting knowledge and intellectual property.

Unit 8 Innovation &
Commercialization

Contents
INTRODUCTION...........................................................................................................................1
CASE SCNERIO.............................................................................................................................1
TASK 1............................................................................................................................................2
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................2
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation. ..........................................................................................................3
TASK 2............................................................................................................................................4
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. ..........................................................................................................4
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context. ...........................................................................................................5
TASK 3............................................................................................................................................6
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. ................................6
P6 Build an Innovation Business Case for an organisation, including ways to access funding. 8
P7 Evaluation of different tools are used to develop, retain and protect knowledge and
intellectual property................................................................................................................9
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Innovation can be defined as the formulation and implementation of new ideas and thoughts
in order to maximization the value of a business organization and constantly maintaining the
satisfaction level of customers. In order to gaining the advantage of competition, every business
organization wants to implement various new policies or products. Several of organizations are
busy in making new policies and strategies a so that they can maintain a good culture at their
workplace which leads to the boosting of innovation practices. For the same purpose several of
organization in cures a huge amount of cost for research and development. But after
commercialization, the organization gets back money in the form of profit. Answer the success
of any approach of innovation can only be analyzed by commercialization as it presents the real
scenario. It is a very broad concept as all the primary functions of a business organization are
occurred. Innovation and commercialization both are two important approaches of every
business organization. Below mentioned report covers various topics which explain the context
of innovation and determination of difference between innovation and invention. There are
various types of innovation which are to be discussed in this report. Along with this it also
include the discussion of process which is required to commercialize innovation.
CASE SCNERIO
Bakers Oven Bakery was a British Bakery chain which was established in 1976 by Allied
Bakeries. Firstly they had started the business operations in Barnard Castle. In a 1984 the
organization acquires the 64 outlets of Carricks of Newcastle. The Bakers Oven Bakery is facing
various challenges as they are not producing various types of products in order to satisfy the
needs of customers. They are doing the production of only one type of white bread which is not
enough to satisfy the demand. Because of this they are facing a challenge of falling turnover of
business. It has been also analyzed dieter they are producing the products which are not healthy
for customers hence they are reducing the customers who are health conscious. All the above
factors can be considered as the challenges which are faced by the organization.
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TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation refers to the formulation and implementation of new ideas so that the
organization can maintain the level of satisfaction of customers. In simple words it can be
defined as an act of generating new ideas in order to improving the performance of a business
organization. Oven Fresh bakers should depend on the innovative approaches in order to
maintaining the interest of customers. Without doing innovation it is a very difficult for the
organization to hold the existing customers and making new customers as well. Oven Fresh
Bakers are totally depend on the commercialization because it is necessary for them which
ensure successful implementation of the innovative idea at their workplace. They should prefer
invention rather than the innovation as it can be considered as the creation of new product or
services for the first time and the organization has no idea about The Appeal of the product to
their potential customers. Invention can be considered as the second phase of innovation. Below
mentioned table is showing the difference between invention and innovation.
Difference between invention and innovation
Basis Invention Innovation
Meaning It refers to the process of
creation of new product for
the first time.
It can be defined as the
formulation and execution of
new ideas in order to
maximization of value of
business organization by
maintaining the interest of
customers and providing them
full satisfaction.
Generalization It leads to the introduction of
completely new product.
It can be considered as doing
some modification in the
current products or services.
Concept Raw ideas and people are not
concerned about that
Making various ideas in order
to increase in appeal.
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Skill It can be considered as a
scientific approach
Technical, strategic and
marketing skills.
Concern It is concerned about the
unique product or service.
Mixture of various products.
Activities It only leads to the activities of
research and development.
All the parties work for it.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Commercialization can be defined as a process under which an organization introduce a new
product or service in the market. It has been found that there are various elements which provide
a good shape to the innovation in Oven Fresh Bakers which also shows commercialization within
the business organization. Some of them are explained below in detail: Vision: Providing the healthy and quality food product to the customers which ensure the
health of people is the vision statement of Oven Fresh Bakery. For the purpose of
meeting the Vision, they are required to adopt various new practices which will help
them in offering high quality food product which result in the fulfillment of the
requirement of the health conscious customers. Hence, it can be considered as the factor
which gives a proper shape to the innovation and the commercialization with in the
business organization. Leadership: It is found that the Oven Fresh Bakery is following autocratic style of
leadership as Mr. Wilbur is making decisions by own and executing them by making
food and beverages in the organization by developing several strategies and policies in
order to finding the solution that how they can sold their product in large market. It is
suggested to the Oven Fresh Bakery to follow democratic leadership style which will
help the management in getting valuable feedback and suggestions from their employees
and customers so that they can bring effective changes in the organization. Culture: It can be considered as the desegregate aspect of some believes, attitude, norms
and values of the employees. Fresh Oven Bakery is introducing innovation and
commercialization which result in the positive impact over the profile of organization and
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provide a perfect shape of innovation and commercialization. If the working culture of an
organization is easily adoptive, it will also become very easy to adopt innovation ideas
which retain the effectiveness in the operations of business.
 Teamwork: In order to completing all the tasks in an effective and efficient manner, it is
necessary to perform the task by collective working as it also leads to giving shape to the
innovation and commercialization in the business organization.
Furthermore, below mentioned are the various sources of innovation which leads to the
development of environment along with innovative culture which bring new leads to the bringing
change in the organization: Industrial Structure Change: For the purpose of implementing the technology, the
organization change their culture. This change can be considered in the terms of
infrastructure technology. This source support the Oven Fresh Bakery to bring the
innovation in the organization in an effective way. Demographics: Under this source, the changes takes place according to the demographic
aspects of business environment which include Income level, population, human capital
and many more as they allow the organization to adopt the changes effectively.
 Perception: This aspect deals with the needs and requirements of customers. Under this
aspect, the perception of customers have been studied regarding the products and
services. It has been found that the customers of Oven Fresh Bakery are health conscious
as they are looking for health food products items.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
In respect to develop the innovation within an organisation, the 4P's procedure is required to be
implemented that are discussed below:
Product: This is taken as the task where a latest innovation is executed within the
organization, through this the firm gathers some support in respect to satisfy customer needs
successfully. With context to Essence Drinks, the process of innovation helps them in their
task as a pioneer within the sector for their newest innovation through by developing certain
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modifications in their prevailing items or through by launching a latest offerings in their
target market (Marire, 2021).
Position: This is being considered as the method where a market puts their emphasis on
such drinks or services where the target buyers are been interested, but this becomes
challenging at the time when it has a quality of less efficiency or carries only few features
within the items or services. With the look for Essence Drinks, the business launches a new
innovation in their drinks so to have huge competitive advantage in industry through
positioning the item in market with wider reach.
Process: The process is being concerned with certain manner that is accepted by the
organization to offer good quality drinks to their potential customers. This element is highly
supportive for the companies in developing their process of manufacturing, with an aim to
satisfy company's customers at cheaper prices. To the context of Essence Drinks the internal
process of the organization is enhanced so to achieve the objectives within time and generate
huge revenues out of it which could be done by enhancing their supply and manufacturing
process.
Paradigm: This comprises of all such methods that are being adopted by company's
managers in order to have innovation process a easier one. The framework of paradigm
supports the organization sin order to find such ways that are assisting company's
management in successful completion of their activities.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation talks about the procedure that is being applied to mitigate complexness within
the manufacturing process of drinks & services. The main aim of executing frugal
innovation is to launch a cost effective products or minimizing the wastes in the
manufacturings. Frugal innovation is highly supportive in neglecting such redundant
characteristics that are not beneficial for the organization. Frugal innovation procedure is
mentioned as under:
Finding the opportunity within adversity: This procedure aims in finding different
opportunity in such problems which are currently existing with an aim to enhance the
performance of organization. In respect to Essence Drinks the produced healthy mango lassi
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is helpful for maintain good health with a new touch, this results in the enhancements of
organizational performance & to up-grade their actions to maintain their position for long
term business sustainability (Min, Vonortas and Kim, 2019).
Use less perform more: The next step determines for those resources that are present with
scarcity and are adopted by the organization. This helps the company in identifying different
customer needs to have higher level of efficiency. Essence Drinks utilizes their general
feature & to have efficiency in their performances with good productivity.
Think and act flexibly: This entails such strategies that are inflexible & strict with respect
to launch some sort of modification within an organisation to fulfil the customer needs and
demands with development of appropriate strategies.
Use simple methods: This mentions about the company's operations or their workings is
supposed to not to be much complicated or requires to be effective. This is done in order to
develop appropriate understanding form the perspective of company's customers. Also, with
a combination of regular enhancements or simplicity which is highly demanded to have a
good competitive advantage within the market (Neumeyer and Chen, 2021).
Include the margin: This stage mentions about the aggregated customers who all are
considered for the procedure of organisational development. This is done in an order to
support the business in respect to identifying and analysing the customer needs and wants in
a constant manner.
Follow your heart: The last step talks for the business management that is pursued with an
activities combined with emotions or the passion of a business. This is beneficial for the
Essence Drinks management company in modifying their current offerings or developing
market share through fulfilling the customers needs.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
The innovation in any organisation is take place for the purpose of making the product better
or creating the better process in order to adding the values of the customers. It is necessary for
research and development function to properly screen the every innovation and convey that
innovation in such a way so that the organisation can implement in an effective and efficient
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manner. The effectiveness of implementation of innovation also result in the minimization of
cost and the rate of return can be maximized.
Commercial funnel: The main aim of commercial funnel is to gain the profit by performing
various activities from marketing to selling. Commercial funnel include various aspects
which are useful for the organisation as they help them in making the product efficiently
which result in gaining higher profit. Reduction in the complexity of funnel result in the
decrement in the longer phases which result in converting the process shorter. It is found
that there are seven different phases which combine together and make the commercial
funnel.
Importance: The chances of success can be increased only because of this process. The
research and development department always busy in searching the new ways in which the
organisation can do production which leads to the less costing along with creating the appeal
for the customers. This department is also responsible for generating the new products for
their customers which also result in the improvement of current situation of society along
with keeping the current growth stable.
New Value of Customers: If any organisation will add higher values of customers in their
product, it will result in the higher purchasing power of customers. Higher the value of
customer is involved, the more the customers will agree to pay higher amount. Oven Fresh
Bakers will produce the healthy food products which help the organisation in remain the
competitive over other companies of the same industry.
Improvement of the society: Higher quality product always result in the improvement of
living standard of people. Fresh Oven Bakers is continuously performing the search of
several new products which leads to the satisfaction of needs and requirements of customers.
For the same purpose, the organisation add some new features to the existing product so that
they can meet the demand of customers in an effective and efficient manner.
Sustainability for the organisation: In order to remain stable, it is necessary for
organisation to keep the current growth stable. If the Fresh Oven Bakers constantly work on
searching the improved processes and making innovative products, it leads to getting
success over their competitors.
New Product at Fresh Oven Bakers: This company is required to add new products in their
menu as they are doing production of single type of white bread. They can also produce
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brown bread, cakes, pastries, wheat bread and many more. The Fresh Oven Bakers should
increase its product lines in a diversified way. The company is required to focus on various
types of new products so that they can meet the requirements of customers.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
The Oven Fresh Bakers is planning to innovate Mix Fruit Shake to their customers which is
extracted from the organic product and it is found to be healthy for their customers. This
innovation idea will attract the customers on a very large scale which help the organisation in
generating high revenue.
STEPS DESCRIPTION
SUMMARY
The case study is showing the development of their new product i.e.
Mix Fruit Shake which offers a health taste of all fruits to their
customers. But it is necessary for organization to do the research of
all internal and external factors which help them in knowing about
the health consciousness customers and the ways to fulfill their
demand.
OBJECTIVES
Expansion of product line which are produced with the use of health
food items in order to increasing the sales of organization can be
considered as the main objective of Oven Fresh Bakers.
VISION AND
MISSION
The vision statement of the Oven fresh bakery is to provide the
products good in taste for the health consciousness people. The
mission of Fresh Oven Bakery is to create a good brand image by
providing the quality products to their customers.
MATCHING
GOALS TO
RESOURCES AND
CAPABILITY..
In order to moving towards the sustainability, the Fresh Oven
Bakery is using their all resources and capabilities.
ASSESSMENT OF
RISKS INVOLVED.
Perishability: As the company is offering mixed fruit shake so all
the ingredients are perishable so this will considered as a risk for the
oven bakery.
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Demand: As the people in UK is having more influenced towards
their health so there is high demand of mixed fruit shake so they
needs to procure the sufficient amount of resources.
VALUE ANALYSIS
APPLYING
FRUGAL
INNOVATION
It helps in making the effective use of their resources so that oven
fresh bakery can reach to their desired goal in an effective manner.
They are having low budget but with the use of frugal innovation,
they create the product which incurred low production cost.
INNOVATION IN
PRODUCT
Oven fresh bakery is coming with the innovation that they are
offering mix fruit shake that will be made from fresh fruits and all
the flavors will be extracted from the organic products. This will
create a good impact on a people who believe in living healthy
lifestyle by having a healthy product.
FUNDING They are preferring the external sources of funds for arranging the
funds which include bank loan.
BENEFITS
This innovation implies the benefit to the organization as it leads to
the higher generation of revenue by providing health food products
to the health conscious customers.
MONITORING
AND
CONTROLLING
A Key performance indicator has been used by the Fresh Oven
Bakery for the purpose of measuring the standards of services.
Sources of Funds
Oven Fresh Bakery can manage the funds from internal and external sources so that they
can implement their plan of Mix Fruit Shake. They are arranging the funds from: Bank Loan: Under this source, bank give the loan to the business by charging fixed rate
of interest.
 Investors: The Oven Fresh Bakery is attracting the investors so that they invest in their
ideas of innovation of new product.
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P7 Evaluation of different tools are used to develop, retain and protect knowledge and
intellectual property.
It is well known that an organization can develop the test and retain their intellectual. It
has been found that there are several ways which an organization can use in order to develop, test
and retain their intellectual property. In the context of Fresh Oven Bakery, several of tools are
given below:
 Patent: It can be defined as the right given to the inventor in order to bringing any
innovation. In general words, these rights are given by government bodies to inventors so
that they can disclose the details of innovation so that the information can be protected by
the government. It is provided just for a fixed period of time.
Advantages- It gives a security to the inventors along with the right to file the case if they
found any infringement of the rights.
Disadvantages- Such rights are provided by government just for 20 years and these are highly
expensive. Trademark: It can be defined as the set of rights provided to an individual for the
purpose of protecting various products and services which is provided to the general
public. It also provide the various rights to file the case if any unfair activity happens
with in the organization. Trade Mark is also imposed for a certain and fixed period of
time. Oven Fresh Bakery is using the trade mark as a logon or tagline which is beneficial
in meeting the youth competition in the market.
Advantages- It plays an essential role in the creation of strong brand image of organization in the
market.
Disadvantages- It is not sure that the trademark will work in order to placing a good brand image
of organization in the market. Along with this, it is also found as highly expensive.
CONCLUSION
It has been concluded from the above report that the inn0ovation is the creation of
something new in the market and it is necessary to bring something new for the successful
running of a business organization. In order to meeting the demand and needs of customers,
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they are required to use their leadership, vision, culture, teamwork so that they can perform
the process of innovation in an effective manner. In order to implement the innovative ideas
at work place, it is necessary for management to use product, process, position and
paradigm. Commercial funnel can be considered as the important component for an
organization as it provide the information of the innovative product in the large sized
market.
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