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Unit 08 Innovation and Commercialisation

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Contents
Introduction...........................................................................................................................................3

Part-1.....................................................................................................................................................4

Explain innovation and determine its importance to the organisation with intervention. (P1)...........4

Explaining how organisation vision, leadership, culture, and teamwork can shape innovation and
commercialization. (P2).....................................................................................................................6

Explaining the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas. (P3)........................................................................................................................8

Explaining developments is frugal innovation and provide examples of how it is used in an

organisation context. (P4)................................................................................................................10

Part-2...................................................................................................................................................11

Explain the importance of the commercial funnel and the application of New Product Development
processing for commercialization of innovation. (P5).....................................................................11

Building an innovation Business Case for an organisation, including ways to access funding. (P6)
.........................................................................................................................................................12

Evaluating the different tools that organisations can use to develop, retain and protect knowledge
and intellectual property. (P7).........................................................................................................12

Conclusion...........................................................................................................................................13

References...........................................................................................................................................14
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Introduction
Business organisation success depends on customer satisfaction. To make customer
satisfaction organisations must need a quality products and also upgraded products. To make
upgrade product organisation must adopt the innovation and also its commercialization. To
make an innovation organisation must know the vision, leadership, culture and teamwork
activity and how it makes shape the innovation. The organisation must understand the 4Ps
innovation or innovation funnel. Moreover, the organisation also knows about the
commercial funnel and new product development process. Besides, it also understands the
business case and how to fund the business case. Again, the organisation also understand the
tools of protecting intellectual property. In this report, all those things will discuss.
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Part-1

Explain innovation and determine its importance to the organisation with intervention.
(P1)
Innovation: Businesses can success when it can satisfy its customer by their product. If the
product quality is good then the customer will satisfy. But the same quality product will not
hold business success every time. Organisation must upgrade its quality or fix some parts
which will increase its performance and this upgrade and fixing some parts are called
innovation (Innovation, 1991). Innovation is an inevitable part of every organisation. Without
this, an organisation will not sustain for a long time. Big Belly is an innovative organisation
that does not operate based on the previous product rather it continuously upgrade its product.
There are given some importance of the innovation:

 Help to make an easy solution: In the business, there are seemingly many types of
critical problem and those problems make obstacles to grow the business. Thus the
organisation must need a solution. If the solution is hard then it will tough to solve the
problem quickly. Innovation gives the opportunity to invent a new strategy that will
show an easy solution. To achieve this easy solution a person must be thought out of
the box. This also helps to make a better business strategy where an organisation can
easily understand the market.
 Increase Productivity: If a company holds the current production only, the
organisation will not sustain its current place or cannot improve in the future. Besides,
if a company thinks that it has done everything but cannot achieve anything then it is
the time to increase productivity. If the customer satisfaction with the product, then
the customer wants to buy more and more. If the product is not available in the
market, the customer will dissatisfy and satisfy the demanding customer who will buy
the competitor's product (Morris, 2012). As a result, the company will not hold its
current position.
 To make Brand: To stand in the market from the crowed zone organisation must
need innovative ideas and strategies. This is a perfect use of the small business
marketing project. To make the company as a brand organisation must do something
which will remember the scene of the customer's mind. Nowadays, peoples are so
much concerned about environmental issues. The organisation can work for the
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natural environmental issue and also create a sentence that will comply with the
positive environmental issue. As a result, peoples will remember the organisation's
work and their beliefs. This thing can help to take the place in the customer's mind.
As a result, the organisation's name will be a brand.
 Beat the Competitors: In the business market competitors are the most crucial
elements which will present now or in the future. Those competitors create obstacles
for the business performance in the outside which will decrease the performance of
the internally also. To beat the competitors an organisation needs two things on is a
product and another is marketing strategies. A unique and quality product can take the
market and also can take place in the customer's mind. To introduce the unique and
quality product organisation need innovative ideas and techniques. Besides, to attract
the customer organisation also needs unique and accurate marketing techniques for
the targeted market. Moreover, it also opens the gate to increase organisation
production.
 Develops new technologies: Innovation is based upon the research and development
efforts. This thing helps to introduce new strategies to sell, buy, making transection,
distributions, and production in the organisation. BigBelly is one kind of organisation
that is able to adopt the innovation in the organisation and make them a large waste
and recycling company.

Difference between Innovation and Invent.

Innovation Invention
To upgrade the present product or enhance To invent totally new products or new
the performance of the current product services is called invention. It is the opposite
innovation use in the organisation. of the innovation (Shrader et al., 1997).
Innovation works base under the new On the other hand, invention use working
professional ideas where it generates theories and original opinions.
practical procedure.
A business skill such as technical skill and The invention needs scientific skill to apply
marketing skill is required to apply the the invention method.
innovation perfectly.
Innovation is concern about organisational New products and the development of the
performance and activity. department are the main tasks of the
invention.
Innovation work to satisfy current customers. The invention works to satisfy the new
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customer.

Invention: Invention refers to the invents a new product which is launched for the first time.
The invention is taken for discovering new products. This is tough than innovation. There are
some reasons which make this easier.

 Cost: To invention something organization must make a higher cost than the
innovation caused invention is based on the unknown platform is mean invention has
no previous information about a product but in the case of innovation it is opposite.
Innovation allows providing the previous information about a product which reduces
the cost.
 Research and Development: Innovation offers an organization to make research upon
the current products which are easier rather than make a new product.

From this aspect, it can state that innovation is better than the invention of an organization.
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Explaining how organisation vision, leadership, culture, and teamwork can shape
innovation and commercialization. (P2)
Vision clears the organisation's objectives and goals to the customer. Employees can take
motivation through their goals and vision. Based on these employees go forward to achieve
the objective and goals. In this aspect, the organisation needs a leader to lead the team and
department to remove the obstacles. To make discipline the organisation follows the culture.
Commercialization is the activity for achieving the financial goal by launching the new
products and it includes sales, marketing, customer relationships, accounting, financing, etc.
There are given the ways of vision, leadership, culture and teamwork shape the innovation
and commercialization:

Organisation vision: Organisation vision is the most crucial element which will show the
future road map. Organisation vision must be realistic. Only realistic vision can help to gain
customer satisfaction. Customer satisfaction will come when product quality can meet
customer demand. So that the organisation must understand customer demand. In that case,
the organisation uses many types of strategies to understand customer demand. As a result,
the organisation focus on the invention to creates those strategies which can easily understand
customer demand. Besides, it also helps to innovate a new product and develops the existing
products. Customers always want new products and upgrade products. Thus here innovation
is an inevitable part of the organisation's vision (Kourdi, 2010). When an organisation can
satisfy their customer, it can easily grape the whole market. After grape, the market
organisation can sell their products as a monopoly. As a result, the organisation vision also
makes the commercialization. For example, BigBelly vision is the world’s most leading
solution for digital and smart cities specializing in smart waste and recycling. Based on this
BigBelly introduces new products such as bin, solar power, etc.

Leadership: The leader leads the organisation and faces many problems such as customer
complaints, strong competitors, product quality, employee conflicts and so on. To solve those
problems a leader must understand where the problem is going on (Lopes Henriques et al.,
2019). After identifying the problem leader will provide a solution that will solve the problem
easily. To ensure perfect solution leaders must need to innovate new strategies or new
solutions. If the solution is perfect to solve the problem, then the organisation's performance
will enhance. As a result, an organisation can easily gain the commercialization aspect of the
product and also easily gain financial goals.
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Culture: Organisation policies are part of the corporate culture. Policies help to fulfill work
in a distinct manner. To makes accurate policy which will comply with the market as well as
organisation performance. To innovate like those policies organisations must practice
innovation methods in the organisation. Innovative policies also increase the organisation's
productivity which will help to succeed the product as commercialization. Besides, it also
concerns about how a product will make sure the quality (YUN, 2018). In this aspect, how
the innovation of the product will take place in the production line. Besides, how the product
will commercialize in the market it also defines in the culture.

Team: Team is a process to engage many people in distinct projects. More contribution helps
to enhance organisation performance. As in the teamwork, there are lots of people, the
employee feels a competition scenario in the organisation to make some unique which will
help to make the promotion (Uphill and McMillan, 2007). From this aspect, teamwork can
innovation new ideas and new products which will help to increase the sale. Besides, it also
offers a huge invention as there are lots of employees. All this aspect can help to succeed the
commercialization.
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Explaining the 4Ps of innovation and explain the use of the innovation funnel to
examine and shape innovative ideas. (P3)
To invent new ideas and new products the organisation should use some tools such as 4Ps
innovation tools. 4Ps innovation tool consists of product, process, position, and paradigm.
There are given a brief of 4ps innovation:

Product: Product is the main element that can bring the success of the business. 4Ps
innovation helps to understand how the product will change its feature and what is the way?
But at first, the organisation must understand what is the innovative product? According to
the Oxford dictionaries innovative means a process makes which is new or unique to make a
new product or develop the current product's performance (Clark and Wheelwright, 1993). If
the existing products are changed some little bit, it also called an innovative product.
BigBelly introduces new products such as the largest space recycling project in New York
City. To make neat and clean New York City they set a unit with three components such as
cans and bottles, paper, garbage which can easily destroy or can convert into any other
necessary things.

Process: Innovation mainly concerns the organisation's profitability. In that aspect, the
process focus on the production line. The process also uses in terms of customer distribution
such as distribute the product channels. How the customer will get the services or products is
also concerning the issue. In this aspect, innovative techniques and tools need to ensure
proper processing. Nowadays, the retailer company such as ASDA, Sainsbury’s, Walmart, etc
can use the online delivery system which will make more profitability and also it is easy to
reach the customer.

Position: Position means that the company stands in the target market position currently.
Innovation can use in this place to target a new segment of the market with new products. A
company never targets the whole market in a once time rather they segment the market and
target a particular segment (Harmsen, 2013). This particular segment market consumes a new
product or those products which comply with the segmented market. When an organisation
can make a position in this segment organisations move to the other segment to expand their
activity. To expand their activity, they come with a new product in a new market organisation
must understand the customer demand what is the demand of this segment customer.
Segmentation can create based on geographical, age, gender, personality, lifestyle, etc. For
example, in the developing countries peoples are very much interested to spend their money
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in a productive place. Thus in the developing country smartphone is so much demandable.

Cellphone company such as SAMSUNG, iPhone, Huwaei, etc can expand their operational
activity to a developing country.

Paradigm: Paradigm helps to understand the organisation leader how they will do the
business. To make improvement of the organisation change must need but it also bears in the
mind that all the changes will not bring positive for the organisation. Paradigm helps to
identify all the possible changes which will make a positive effect on the profit. Business
model, beliefs, culture all those things are includes in the paradigm. For example, the BIC
company was a ballpoint pens manufacturer company that stands on the market after some
aggressive marketing campaign. After that, they see the company completely from a different
angle and started disposable plastic products company which changes their paradigm.

Every organisation will be an innovative organisation when it follows 4Ps perfectly. Thus
Bigbelly should follow those elements.

Innovation Funnel of big Belly: Innovation funnel is a process to invent new ideas or e
products by using three steps. In the first stage, Big belly will collect the information related
to the ideas and that information can gather from different sources. The more ideas gathering
will provide more products (Shrader et al., 1997). In the second stage, the organisation will
evaluate the idea and find the idea which will be the best for the Big belly. This evaluation
takes place based on the risk and return, resource allocation, etc. In the last stage, Big belly
will launch the product to increasing the selling.
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Explaining developments is frugal innovation and provide examples of how it is used in

an organisation context. (P4)
Frugal innovation refers to the production process where unnecessary costs will demolish and
make sure the maximum productivity. For this aspect, frugal innovation has a unique feature
that it can produce a large amounts of goods from limited resources. As a result, production
costs decrease and the profit increase. Frugal innovation makes an opportunity to maximize
profit and also sustain the profit for long time (YUN, 2018). But some time it hears that the
frugal innovation produce a low quality product but it is totally false. Frugal innovation
focuses on the necessary cost to produce a large amounts of products. This frugal innovation
can use in those organisation who has lots of customer but has limited resources.

Frugal innovation needs in every organisation. UK innovation organisation, NESTA provides

a brief why frugal innovation is so much necessary.

 Invent new technology: The aim of frugal innovation is to reduce unnecessary costs.
In this aspect, new technology helps to reduce the production cost and can produce a
huge quantity of goods and products. Artificial Intelligent can easily understand the
command of what amount need to produce good or products. As a result production
costs low down.
 Environmental issues: Today general peoples are more concerned about the
environmental issue. Environmental issues include energy, climate, water, geography,
and other natural resources. The organisation should innovate those types of product
which is a positive impact on the environment.
 Demand for Frugal products or services: Today the world economic system is an
open market economy system. As a result, there are lots of competitions and the
market is now developing its position (Staff, 1998). In this situation, the organisation
must need those products which can reduce the production cost and help to reduce the
product price. As a result, the customer will attract to buy the products in large
numbers.

The most significant example of Frugal Innovation is Southwest Airlines in 1967. Their price
value is less than 60% than any other company. But their market value is higher than other
companies such as Delta Airlines or United, American. Moreover, they fly new airplanes by
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the trained pilots at a lower cost and this airline is the world's major safest company. All
things happen for their frugal innovation business model.
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Part-2

Explain the importance of the commercial funnel and the application of New Product
Development processing for commercialization of innovation. (P5)
Commercial funnel is a process which helps to engage with lots of customers. It has another
name is the sales funnel (Harmsen, 2013). This tool is used in four steps:

Attract: Customer will come to the product when he or she will attract for the products. In
that case, the organisation must analyze customer feedback, customer demand and wants, etc.
To attract the customer Big-belly can use many strategies.

Convert: In the converting option, organisation takes some strategy to convert the general
people into the customer. Sometimes people have no interest to buy a product but he or she
began customers for product features and quality.

Close: When the product sales for some days then the organisation should analyze the market
and identify the demand of the product. If it seems that the demand for the product is growing
less then it is time to close the production and find another product.

Delight: Delight will help to hold the current customer by upgrading the current products.
Big belly uses the techniques to hold the current customer.

New Product Development Process:

There are given some major steps to invent new product development:

Idea generation: To generate a new idea organisation first analyze customer demand. In that
case, Big Belly will find what needs to make a smart city? Products will produce base on this
idea.

Concept definition: Big belly will demonstrate the performance of the product in this stage.
As a result, the customer will more specific and can differentiate the products.

Market analysis: Before introducing a product publicly organisation should research the
market perfectly. As a result, Big belly will understand that the product will meet the
customer demand or not (Clark and Wheelwright, 1993).
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Product Development: Product development needs to upgrade product quality and its
features.

Commercialization: In this stage, Big belly will show the products in the market.

Building an innovation Business Case for an organisation, including ways to access

funding. (P6)
The organisation faces many problems in its day to day life. To solve the business problems
or make easy of the business work organisation can use business case (Marcousé, 2003). The
business case includes price strategy, product development process, customer awareness.
There are given below:

 First step-Confirm The opportunity: Big Belly will describe the situation which
will include the investment logic, high-level business requirements and the
background of the project.
 2nd step-Analyse and develop shortlisted options: In this step, Bigbelly will identify
the alternatives for three or four options and collect information to d3evelop the
shortlisted options.
 3rd step- Evaluate options: In this step, Bigbelly will evaluate the alternatives and
find out is those alternatives meet the organizational objectives and make a proper
profit.
 4th step-Implementation Strategy: After all this evaluation Bigbelly will make an
implementation plan to implement the strategy. It includes project risk, accountable
for project objectives.
 5th step- Recommendation: After all this Big belly will make a recommendation
where those they collect and present to their board of directors or investors.

In this situation, Bigbelly needs funding. To make finance Bigbelly uses some new finance
strategy. There are given some finance strategy:

Venture Capitalism: Venture capitalism refers to some peoples, business firms or individual
that invests in new and growing firms in exchange for ownership.

Angel Investors: Angel investors who are wealthy individuals who invest money directly in
new ventures in exchange for equity, are a large source of investment capital for star-up
firms.
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Bank Loans and issues share: Bigbelly can take loans from banks where Bigbelly must pay
the capital amount with interest. The share issue is another major finance tool where
company small share is sold in the share market and this selling money will make finance.

Those steps can easily make a business cases for the Big Belly.

Evaluating the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property. (P7)
There are some tools need to protect intellectual property. Trademark, patent, copyright are
those tools. There are given a discussion about these:

Patent: An inventor only produces his or her invention when he or she makes a patent of his
or her invention. A lack of patent invention will be produced by others. In that case, the
inventor cannot do anything. The patent will protect the invention for 20 years (Walter,
2014).

Trademarks: Trademark use for organisation logo, sign, expression, letter, digit, etc. For this
trademark on one can use the same logo. This trademark helps to differentiate from other
companies (Port, 2007). If anyone uses the trademark registration organization logo, the
organization has full authority to sued against the user. As a result, organization can take
compensate.

Copyright: Copyright includes songs, films, shows, computer software, etc. This copyright
system helps to produce the product only its inventor. This tool is also the same as a
trademark. If anyone uses a person's innovation and the person has copyright for his or her
innovation, the user can be sued by the inventors.

Conclusion
It is stated that innovation is an inevitable part of the organisation. Without this innovation,
an organisation cannot sustain for a long time. If the organisation cannot sustain for a long
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time organisation will not commercially successful. Thus the organisation should know the
difference between the innovation or invent. The organisation should follow the new product
development process and also use innovation funnel. Besides, the organisation should apply
4Ps innovation. Moreover, the organisation should use the copyright, patent, and trademark to
protect their intellectual property.
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References
Boateng, S. (2014). Application of the 4Ps in Emerging Markets. SSRN Electronic Journal.

Clark, K. and Wheelwright, S. (1993). Managing new product and process development.

New York: Free Press.

Harmsen, J. (2013). Industrial process scale-up. Oxford: Elsevier.

Hirtle, P. (2008). Copyright Renewal, Copyright Restoration, and the Difficulty of

Determining Copyright Status. D-Lib Magazine, 14(7/8).

Innovation. (1991). Boston: Harvard Business School Press.

Kotler, P., Kartajaya, H. and Young, S. (2004). Attracting Investors. New York, NY: John
Wiley & Sons.

Kourdi, J. (2010). The Economist. London: Profile Books.

Marcousé, I. (2003). Business case studies. Harlow: Longman.

Port, K. (2007). Trademark Extortion: The End of Trademark Law. SSRN Electronic Journal.

Shrader, G., Lento, E., Gomez, L. and Pea, R. (1997). Inventing Interventions: Cases from
CoVis. [Place of publication not identified]: Distributed by ERIC Clearinghouse.

Walter, D. (2014). Patent-to-patent versus patent family-to-patent family citations and the
impact of an invention. Pharmaceutical Patent Analyst, 3(3), pp.219-221.

YUN, J. (2018). BUSINESS MODEL DESIGN COMPASS. [S.l.]: SPRINGER.