ICON College of Technology and Management

Pearson BTEC HND in Business

Innovation and Commercialisation

Submitted by:
Full Name: Diana Todea
ID No: 17535
Session: February 2021

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Innovation and Commercialization

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Table of Contents
Introduction.....................................................................................................................................4
LO1. Explain innovation and determine its importance to organizations in comparison with
invention..........................................................................................................................................5
Explain how organizational vision, leadership, culture and teamwork can shape innovation and
commercialization...........................................................................................................................7
LO2. Explain the 4P’s of Innovation and explain the use of the innovation funnel to examine and
shape innovative ideas....................................................................................................................9
Explain developments in frugal innovation and provide examples of how it is used in an
organizational context...................................................................................................................11
LO3. Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation..........................................13
Build an innovation business case for an organization, including ways to access funding...........14
LO4. Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property............................................................................................17
Conclusion......................................................................................................................................18
References.....................................................................................................................................19

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Introduction
In today's world, innovation and commercialization have become essential ingredients for
business success. Commercialization is the process of turning new and innovative concepts into
profit for the benefit of the company, while innovation is the incorporation of new ideas and
thinking into the production of new products or services. In the next task, we’ll look at a variety
of facets of creativity in the sense of the enterprise, as well as how structural culture and image
influence commercialization and innovation. Far along in the task, the meaning of both
innovation and commercialization will be addressed.

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LO1: Explain innovation and determine its importance to organizations
in comparison with the invention.

“Innovation” can be described as the development of developing original products or facilities

through the application of new thoughts and information. Exploiting emerging technologies is
what innovation is all about, and it necessitates outside-the-box intelligence in order to
produce a new invention or service for society. In a sense, it provides society with a new
product or service that is needed by using information. As a result, the formula is Innovation +
Commercialization.
The invention, on the other indicator, mentions the development of a completely new
invention in the world. While the two words seem to be somewhat similar, the concepts are
vastly different. Although the invention is the process of creating a completely new product,
creativity is the process of turning a new concept into an authenticity. Several studies have
shown that creativity is extremely important for business organizations. Nearly 90% of
companies who want to be creative regard innovation as of top importance. In today's world,
the value of innovation is growing by the day, as it has an impact on business strategy. New
business innovations emerge as a result of innovation, resulting in technological revolutions.
Only if the goods and services developed as a result of innovation can survive the difficult phase
of commercialization are they measured appreciated. In the absence of creativity, the company
begins to deteriorate and lose significance. As a result, each company must concentrate on
improving its capabilities in order to be able to modernize. Today's main driver of innovation is
the market's fierce rivalry, which necessitates high claim. Innovation encompasses new
management techniques and company processes in addition to new goods and services, all of
which have an impact on the company's development. As a result, the demand for creativity
has risen in recent years, as it adds value to the enterprise. Innovation has the potential to
make the planet a better place for future generations.
Importance of innovation to organizations
 Innovation Helps Companies Grow
There are a few options for growing a business to make it more successful and profitable.
Though it will be a long road ahead, the individual may prefer to continue on his current route,
gaining slowly as he perfects his present items and business models. Instead, the person may
decide to expand the company by merging with or acquiring other companies, which is a
speedier but often more expensive route to take.
 Organizations stay relevant through innovation
The world around us is continuously changing, and businesses must adapt to be relevant and
successful.
 Organizations may differentiate themselves through innovation

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At the most basic level, creativity means doing something different from anyone else in the
business. If the corporation uses modernization to create or bring up-to-date its goods, for
instance, the goal line is to progress or update the product until it is the only one on the
marketplace.
If your business is using creativity to boost its operations, it is since it will be excluding your
period, currency, or other properties, as well as deliver you a modest benefit over other
businesses that are fixed in their schemes. Since the status quo isn't occupied in any situation,
the organization is taking the opportunity to try something new.
Invention vs Innovation
 The invention is the development of a novel knowledge that has never been realized
before, however, creativity is the transformation of a completely new concept into
authenticity.
 Creativity results in the creation of an original product, while innovation enhances worth
to a current product on the marketplace to improve it.
 Invention necessitates scientific services, while imagination necessitates technological
and planned services.
 Invention occurs when an expert has a new perception, while the need for a change of
an existing product necessitates creativity.

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Explain how organizational vision, leadership, culture and teamwork
can shape innovation and commercialization.

Each association requires a clear vision of the mission, significances, objectives, and ideologies
it wishes to accomplish in the upcoming to be positive. The corporation can easily navigate its
way to commercialization with the aid of these elements. When the vision is pure, it is simple to
translate it into an approach, and the approach is simple to integrate into the organization's
culture. This leads to the emergence of new concepts and ways of thought. In today's
competitive environment, companies must prioritize innovation as one of their top priorities in
order to remain viable. In today's world, vision and imagination are essential ingredients for
success. By the practice of imagination, creativity contributes to the development of new ideas,
resulting in a revolution. Creativity entails a shift in corporate culture as well as a clear vision,
management, and collaboration, all of which contribute to innovation and commercialization. It
is common knowledge that in order to achieve organizational success, a leader must always
deliver a successful team with the requisite skills and ability to work together. This results in a
safe and productive work climate, which fosters revolution. When workers from various
backgrounds are given the time and liveliness to experiment, innovation may occur. Strong
teamwork contributes to workplace innovation, which is then paired with the organization's
strategic hard work and principles to the company's product becoming commercialized. As a
result, the open corporate culture encourages different workers to share their points of view,
and with successful management and collaboration, those thoughts can be turned into real
products or facilities, and with pure vision, valuable products and services can be extracted,
leading to Innovation.
Commercialization- Commercialization is concerned with gaining financial benefits from the
introduction of new items and services into the corporate market. Accounting, sales,
promotion, and customer service are all involved. Commercialization facilitates the company's
marketing position and development. The following opinions describe the conditions for
innovation and commercialization in any organization.
Vision- Each business has a dream statement that explains which products want to be
innovated and how those products will be commercialized. The company's vision determines its
development and innovation spectrum, after which commercialization is simple.
Leadership- Leadership is a fairly typical activity in any corporation. Each expert and leader
guide his or her team toward a specific objective. When a company is leading in a market, it is
defending its spot against fierce competitors.
Culture- Various productions have various cultures, such as a healthy juice company that
provides its consumers with healthy beverages. The way a product is innovated, as well as how
it is commercialized, is determined by culture.

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Teamwork- Teamwork is an important factor in a company's growth and productivity. The
promotion of the innovative product is aided by teamwork. Teamwork generates fresh ideas,
and more people are willing to try new things.
The above-mentioned factors influence an organization's commercialization and boost its
innovation. As a result, these aspects are critical in enhancing firm productivity and achieving all
goals.

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LO2: Explain the 4P’s of Innovation and explain the use of the
innovation funnel to examine and shape innovative ideas.

There are four different kinds of creativity. Product innovation, method innovation, place
innovation, and concept innovation are the four types of innovation. We'll go into each of these
four forms of the invention in more detail below:
Product Innovation: Original services or goods are offered or delivered to the company by
product invention. The marketplace landscape is always shifting. As a result, in order to remain
competitive, each company must either develop existing products or provide new products to
consumers. However, a major challenge is that rivals will enter the market with new and
improved goods. As a result, organizations must launch new products ahead of their rivals by
product innovation in order to stay ahead of the competition. This will also allow the
organization's product image and dedication to modernization to be strengthened.
Process Innovation: Method modernization is all about determining how fair the procedure is
for the invention to go completed. As a result, we can argue that development innovation
encompasses both the product's production and delivery processes. The phase by which the
product is supposed to go must not be too extended, otherwise, the product will misplace its
commercialization chance because the currency will be lost due to the lengthy development.
Position Innovation: Situation Innovation refers to who the product's goal purchaser is, what
the product's main market is, and wherever our original goods and services can be traded. It is
not necessary to generate an original product every period; rather, it is necessary to change the
way people perceive the creation.
Paradigm Innovation: It's all about how to surround behaviours to reach new markets with new
goods, and that's what paradigm invention is all about. To maximize profits, one should use his
or her imagination to the fullest extent possible. It's possible that the reforms would
necessitate a shift in the current business model.
Innovation Funnel and its use: To turn an idea or vision into a real product, an invention must
go through a phase, and an invention funnel is used to define the phases of that process. Each
innovation's goal is to develop a product that meets the market's anticipated needs. As a result,
in order to produce a product through creativity, ideas must first be gathered before being
refined. Just a few thoughts are left after this method, which is then enforced by the
organization (Bessant, 2015). The resulting three stages of the innovation funnel form new
thoughts.
Stage 1: The knowledge base is expanded during this stage. This stage's main goal is to gather
as many ideas as conceivable. This is why a company with a large number of thoughts will
produce several goods. The evidence should be gathered by analyzing the business in order to
improve knowledge and proficiency. To get the most out of this opinion, the area should be
strong.

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Stage 2: The thoughts collected in the first stage are screened during the second stage. In order
to determine feasibility, a balance is made between the proposals and the company's goals.
Following this, an evaluation is conducted to determine the returns and hazards related to the
concepts.
Stage 3: During this time, the company ensures that the proposals are in line with the
organization's goals. As a consequence, the product developed as a result of a revolutionary
concept is out into the marketplace in order to satisfy anticipated demand.

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Explain developments in frugal innovation and provide examples of
how it is used in an organizational context.

Frugal Innovation is the method of lowering the total cost and difficulty of an invention, as well
as its manufacturing (Info Entrepreneurs, 2018). Non-essential structures are omitted from the
product during this phase in order to make it affordable to developing countries and low-
income consumer sections.
Frugal innovation refers to lowering needless costs and increasing the production of
appreciated commodities in order to increase profits. It simplifies the process of innovation.
Frugal innovation benefits the company in a variety of behaviours, including providing
maximum profit from limited resources, ensuring the organization's long-term viability, and
eliminating the firm's voids. In fact, in contrast to normal innovation, frugal innovation the
whole thing from the bottom up. This is because it increases product dependability and allows a
business to reach a greater number of customers with fewer resources. All other forms of the
invention vary from frugal innovation.
This innovation is referred to as frugal since it appeals to a broad range of users with limited
resources rather than a select group of clients or customers. There is a mutual misperception
that frugal innovation is of underprivileged quality. The fundamental area is to employ limited
resources to manufacture a high number of things while lowering unnecessary costs, however,
this does not imply that its products low-quality goods for operators and clients. In reality, no
business wants to jeopardize its status with its clients.

These markets need high-quality goods and services that are also inexpensive. The following
constraints shape frugal innovation development:

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Resource Scarcity: Human needs are limitless, while the world's resources are finite. As a result,
it is a serious issue (Bhatti, 2012). It means that society lacks the necessary resources to meet
all of humanity's wants and needs. As a result, it necessitates frugal creativity in order to offer
new goods and services with limited resources.
Market Affordability: The willingness of the consumer to buy new goods is referred to as
market affordability. Healthy Juice should also place a greater emphasis on cost-effective
innovation in order to gain a competitive edge over its industry rivals. When a business
considers a new product or service, it considers the customer and the retailer's perspectives.
Good Juice will come up with cost-effective innovations like "Tetra Pak." Tetra Paks are
becoming increasingly popular among customers. Other creative packets, such as the "samosa
box," are available for nutritious juice. The Samosa Pack is an excellent example of frugal
creativity that Healthy Juice can employ.

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LO3: Explain the importance of the commercial funnel and the
application of new product development (NPD) processing for the
commercialisation of innovation.

Commercial funnelling is gathering more information about potential customers and then
implementing marketing strategies to help the company reach higher levels of success and
retain clients. The commercialization funnel is crucial in any organization, but it is particularly
important in the case of a healthy juice business in its third year on the runway. The most
significant and most vital portion of the commercialization funnel is the company's main and
lead because the commercialization of the corporation's changed products and facilities draws
clients more than traditional. The commercialization funnel expands the opportunities for trade
with a vast range of clients from single product innovation.
There are 8 important steps in the NPD process that donate to the company's invention and
facility innovation, and they are recorded below: -
 Generating the invention
 Sorting through the concepts that have been gathered
 Business analysis
 Challenging of particular ideas with company concept
 Beta difficult of the newly released product
 Product development by all available approaches and resources
 Product development through a variety of methods
 This is where the product gets commercialized
 Last but not least, precise pricing and actual proving of the developed goods is done
here.
In today's world, the commercial funnel is a must-have if you want to stay modest and succeed.
A company will sell more goods than average by using the commercial funnel. As a result, it
increases the organization's benefit. The key goal of the commercial funnel is to make goods
created by consumer innovation accessible to the public. It subsidizes the commercialization of
the product, which generates profit and proceeds for the company. As previously stated,
invention is the development of new goods and services based on creativity or concepts that
did not exist previously. Since the market's appetite for new and creative goods and services
continues to grow, the company must recognize successful products and introduce new ones.
The quality of the new product or service is critical to the organization's long-term success. The
creation of new creative goods contributes to the organization's development and confirms
that it continues to thrive (Martin, 2016). As a result, the organization's potential success is
dependent on new product development (NPD) through innovation. Skype is a prime example
of this, as it continues to sell and deliver new goods. Meeting calls, video calls, desktop
distribution, and other creative products are among them.

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Build an innovation business case for an organization, including ways to
access funding.

Any type of innovation project needs a strong business case. It may be necessary for the
development of a new creative concept for a new company or the preparation of a suggestion
for the provision of funds to a larger association. The business case entails combining different
forms of knowledge and communicating it to others in such a way that they can get a sense of
the project's potential achievement or failure and determine whether or not to participate their
money in it. One of the most difficult aspects of innovation is making a business case (Mintel,
2011). Making a business case necessitates a distinct and systemic approach capable of
addressing real-world issues while also fostering creativity.
How to Develop a Strong Business Case
The business case development process is critical; a well-executed process allows you to create
a credible business case that boosts advantages and value while lowering risks. This also
increases the chances of gaining backing to proceed with the investment.
The following are the five important steps in developing a business case:
Step 1: Confirm the opportunity
Explain the circumstance and how your plan would affect the business potential. This resolve
the project's olden times, asset logic, and high-level corporate needs.

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Step 2: Analyze and develop shortlisted options
Recognize the various ways and choose 3 or 4 to investigate. Gather evidence about each
choice, analyze the alternatives, and produce the possibilities that have been narrowed down.
Step 3: Evaluate the options
Examine how the options will meet the company's goals, then choose the best choice based on
the strategic and financial value provided as well as the risks.
Step 4: Implementation strategy
Generate an implementation strategy for the chosen choice, outlining how to meet business
goals, who will be responsible for each milestone, and how project risks will be mitigated.
Step 5: Recommendation
Authorize the suggested course of action. Prepare the business case documentation and deliver
the approval to the board of directors and management team for support to progress.
The Business Case Document
 Important goals;
 Make a list of the company's requirements;
 Put the investment in context by providing important background and supporting facts.
 Describe how the investment fits into the organization's long-term business strategy.
 Provide a reliable estimate of the investment's total lifetime costs and financial
advantages;
 Calculate the investment's non-financial advantages.
 Describe the strategy to be taken, including dates, resources, procurement strategy, and
governance;
 Evaluate the characteristic risks thoroughly, including how they are possibly to affect the
investment and devise mitigation solutions;
A successful business case necessitates the answers to the following questions before
embarking on any new venture.
 What needs will your company meet, and what prospects do you see for your company
in the future?
 How and with what idea can you fulfil the necessary needs? What if you outlined such
concepts?
 How can you start your recent company and who will support you? Classify the key
companies who would be able to assist you with your new venture and learn about their
skills and knowledge?
 How can you stay modest in the industry, and how is your company unalike from the
competitions?
 How can your company impression appeal to others, and what marketplace forecasts do
you have?

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  Who are the business's target market and customers? What marketing and advertising
tactics would you employ?
 How can you reach out to your target audience? What is the initial cost of your company
and how much does it cost to keep it running? Can you give me an idea?
 How are you successful to make money?
 What properties would the company essential to get started, and anywhere will those
properties come from?
 What is the industry's long-term development ambitions, and what do you anticipate
happening next?
Funding Innovation:
There are numerous behaviours for a company to economics its expansion through invention. It
might use its reserves or seek exterior funding in the form of loans, for example. However, in
the case of external financings, such as advances, a high-quality business strategy is needed,
which should forecast the project's future development. To collect funds for its operations, the
company may also apply for assistance from any government program.

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LO4: Evaluate the different tools that organisations can use to develop,
retain and protect knowledge and intellectual property.

Each company, like Mr Green, has its unique ideas and goods, which are the organization's
intellectual property. Knowledgeable staff improves a company's development, achievement,
and attractiveness, especially for technical businesses (Sarros, 2011). As a result, each company
must work to preserve and protect its information and intellectual property. Mr Green may use
a variety of strategies to defend their goods from rivals in a similar market for this reason, as
deliberated below:
Patents safeguard an organization's intellectual belongings, such as its innovations and
enhancements to current inventions.
Trademarks are terms, phrases, photographs, and devices that are used to distinguish the
origins that are applied to the products of companies and their different goods and services
(Drucker, 2006).
Copyrights safeguard an organization's interests as well as its concept manifestations in
literature, music, and other artistic works. As a result, Mr Green must take the following steps
to save and defend their information and intellectual property:
 Patent expertise and information that is valuable to rivals as well as yourself.
 Take the time to instruct yourself and your crew about symbols, patents, and rights, as
well as their secrets.
 Reduce your costs by using Google to conduct your intellectual property exploration.
Mr Green can use the tools and methods indicated above to keep and defend their expertise
and intellectual property.

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Conclusion

Various aspects of invention and commercialization have been examined with regard to the
organization in the aforementioned project. We've talked about the importance of innovation
for the company, as well as how the company's culture, vision, and mission influence
innovation. The various styles of innovation have been addressed in the above assignment, with
a particular emphasis on the advancement of frugal innovation. The role of the invention and
commercialization funnels was also addressed, and Mr Green was given some
recommendations to defend his intellectual property from rivals.

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References
Bessant, J. a. T. J., 2015. Innovation and Entrepreneurship. 3rd ed. s.l.:s.n.
Bhatti, Y., 2012. Challenges of Frugel Innovation and Role of Business Models. [Online]
Available at: http://www.frugalinnovation.com/challenges-of-frugal-innovation-and-role-of-
businessmodels/
[Accessed 23 5 2021].
Drucker, P., 2006. Innovation and Entrepreneurship. In: H. B. Reprint Edition, ed. s.l.:s.n.
Info Entrepreneurs, 2018. Use Innovation to grow your business. [Online]
Available at: http://www.infoentrepreneurs.org/en/guides/useinnovation-to-grow-your-
business/
[Accessed 23 5 2021].
Martin, 2016. Innovation Funnel. [Online]
Available at: https://www.cleverism.com/lexicon/innovation-funnel-definition/
[Accessed 23 5 2021].
Mintel, 2011. Mintel. [Online]
Available at: http://www.mintel.com/press-centre/mintelcorporate/mintel-reveals-consumer-
packaged-goods-trends-for-2011
[Accessed 23 5 2021].
Sarros, J. C. B. a. S. J., 2011. Leadership Vision, organizational culture, and support for
innovation in not-for profit and for-profit organizations. Leadership and Organization
Development Journal,, Vol. 32( Issue:3,).

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