Innovation and Commercialisation Assignment Help

Introduction Of Innovation and Commercialisation

Get free written samples by our Top-Notch subject experts and Assignment Helper team.

Authors like Elenkov and Manev (2009) and Li (2000), have suggested the measurement of new and improved products in the form of direct output of innovation, which is connected to the New Product Development (NPD), while Akgün, Keskin and Byrne (2009) and West et al (2003) have suggested measurement of improvements in the process and methods. On the other hand, Czarnitzki and Kraft (2004) have focused on the market success of an innovation. Overall, several discussions are there in the literature on how the innovation at each phase must be measured and evaluated. When it comes to the improvement or development of products, the innovation manager of an organisation has a vital role to play. The innovation manager is also in charge of the commercialization of new goods, in addition to all of the above responsibilities. A new or improved product is commercialised when it is introduced onto the market for people to easily obtain and purchase their products. In this context, the following report is focused on the first conception of innovation, and analyses the challenges of a bakery business named Oven-fresh Bakery in the operating market. The report then progresses to evaluate different tools to recommend approaches to develop a particular product line forthe organisation to adopt in resolving those challenges.

Section 1

1.1 Background of Oven-fresh Bakery

Established in2016, the business of Oven-fresh Bakery has been assisting various businesses to gain market-leading and distinctive identification fast. The high-quality items from the bakery include only one type of white bread, which is committed towards excellence allowing their consumers to mark the business out amongst the harsh competition in the market. These items produced by the bakery are sold and used in distribution centres like retail shops. The organisation and its owner Mr Wilburbelieve in success that stem from a continuous dedication to delivering better products, services designed in meeting consumer needs and rapid turnaround.

1.1.1 Challenges Facing Oven-fresh Bakery

Being a bakery business of around 5 years, Oven-fresh is quite a successful and reputed business in the market. However, the increasing competition is putting tremendous pressure on the business for diversification of their product lines, which can be capable of addressing the need of consumers in terms of health-consciousness and quality. Due to a lack of diversification in the product line, the bakery is falling behind the competition in the market and experiencing a fall in its overall turnover. The retail stores,which the bakery sold its bread, are demanding upgrades and expansion of the product range that it produces. In such a situation, the Oven-fresh Bakery needs to assess the situation and come up with an innovative idea in their invention of producing bakery items to move forward and grow the business. The challenge in this process is to properly comprehend the market and consumer demand to develop an innovative product range, which can meet both the consumerneeds of quality and healthy food items.

1.2 Differences between Invention and Innovation and Their Importance

Invention and innovation, in the true sense of the terms, can be respectively defined to be the product development or process introduction for the first time, and occurrence of improvement or significant contribution on an existing product, service or process (Wyckoff and Auerback, 2015).These two terms are related, but nowhere to be identical; rather, innovation, which is a competency at the core of an individual or organisation, flows from the invention. As per Timur and Antanas (2017), the inventioncan be explainedas potential innovation or new technical solution to the commercialisation of a product or service that belongs to the stage of “time to market”. The invention, in terms of product development, can be incorporated within an innovative product through the method of production adopted by the organisation (Lane and Flagg, 2010).

1.2.1 Importance of Invention and Innovation to Oven-fresh Bakery

While invention helps Oven-fresh Bakery to the developa new product line like bread, biscuit, croissant etc., innovation indicates to the act of transformation in theexisting product or process through the introduction of creative facts and approaches, like improvement in the product line of white bread and start developing breads with flavours and fillings inside. Oven-fresh Bakery requires the development of a new product, which meets the current demands of market and consumers, andan inventive thought is needed by the business to think out-of-the-box to innovatively expand their product range outside white bread.

1.3 Promotion of Teamwork through Organisational Vision and Leadership for Developing an Innovative Culture for Commercial Process

As the name implies, commercialization is the process of generating revenue by introducing new items and services into the operating market, according to Datta, Mukherjee and Jessup (2015). Accounting, marketing, sales and customer service are all involved in this process. When it comes to marketing status and planning, commercialization assists the organisation. Its culture, vision, leadership and team spirit play a major role in achieving commercial success. For an organisation to be innovative, it must communicate its innovative vision to its workforce in advance (Da Rin and Penas, 2017). Oven-fresh Bakery’s vision is to diversify and expand its product line. They want to develop their products in such a way that would resolve all the challenges of falling turnover and stakeholder pressurisation. 

As per West et al (2003), the leader of an organisation has a great deal of effect on the conduct, beliefs, and attitude of the employees within the organisation. Team leaders must encourage their team members to be innovative in their jobs. They will also provide employees with the correct help and necessary resources for the new product innovation. Employees should be presented with realistic goals and challenges as well (Shams and Kaufmann, 2016). The values that each employee may simply acquire would be the definition of organisational culture. The culture of the organisation as a whole must continuously encourage personnel to take the initiative and create new things on their impulse. In the bakery business, teamwork is crucial to the development of knowledge and expertise. Such notions and ideals can become more inventive if the organisation enables them to flow freely. For his organisation to be more innovative, Mr Wilbur must incorporate all of these organisational principles.

1.4 Support and Advice from 4Ps of Innovation to Capability and Innovation Management

(Source: Akgunet al, 2017; Anderson, 2013; Nguyen, 2015)

1.5 Approaches to Take for Oven-fresh Bakery for Development of Innovative Ideas

1.5.1 Innovation Funnel

In order to be successful, a firm must produce items that satisfy the needs and wants of its customers. Through consumer satisfaction, they will receive value in return. The profit of an organisation is the amount of money it makes. Using various important processes, as per Katz (2011), Oven-fresh Bakery can build a funnel-like system. Investigation, development and shipping products are the three components of the entire process. These three processes can be used by the bakery to develop and deliver its bakery products. Those three steps of the innovation funnel can also be used to improve their offerings of an existing product, like white bread.As per Wheelwright and Clark (1992), the early focus is on the screening of concepts when it comes to the first two components.

• First, the bakery must investigate to increase its critical knowledge and collect data on importance and approach of innovation, along with the market information where it is to be launched, like potential customers, competitors, prospective collaborators etc.
• Secondly, it has to begin monitoring if the adopted innovation approach meets the objectives of the innovation before development.
• Oven-fresh Bakery must ensure its selection ideas are able to deliver anticipated result, followed by launching of the product in the target market.

Fig 1: Innovation Funnel for New Product Development

(Source: Wheelwright and Clark, 1992)

1.5.2 Frugal Innovation

Modern trends of new product development (NPD) are arising from the firms’ operations to reach their target consumers. Frugal innovation is one of the most applicable NPD methods to these new socio-economic circumstances in developing countries. Efficient innovation attempts to develop new products, offering alternatives to existing items, which are incompatible with markets and are affordable, usable, durable and functional. In addition to their effectiveness and suitability for local markets, the diverse approaches adopted by Oven-fresh bakery to the NPD process will contribute to their success. Because of a market-driven process that involves cheaper, easier, and resource-constrained innovation activities, frugalisation technique of NPD are likely to emerge as of utmost helpful for bakery.

Based on intelligent utilisation of resources and great industrial efficiencies, frugal innovation will uncover new business models, reconfigure value chains, as well as re-design their new product line. Affordability innovation, which is the most suitable approach for Oven-fresh Bakery, is a technique of tailoring the proposed item to be developed and their production to meet the needs of the target consumers like children, teenagers and young individuals. This approach transforms every market segment and its associated needs into frugal traits, including “functional”, “user-friendly”, ”robust”, ”growing”, “local” and “affordable”. These are the ones who drives the frugalisation of products and services in the marketplace. Both the product dimension (product layer) and the service dimension (service layer), such as new product line of breads and improved service of supply through online-business,as mentioned in paradigm dimension of 4Ps, are capable of fulfilling these mutually interdependent requirements. For example, the new product line can be priced in affordable range targeting local people, and it can be a robust innovative step to make it as functional and user-friendly as the market demand, which eventually will help the business process to grow.

Fig 2: Frugal Innovation for New Product-Service

(Source: Colledaniet al, 2016)

1.6 Innovation Process Recommended for Oven-fresh Bakery in Developing and Embedding New and Innovative Products

Three very diverse activities go into managing the innovation funnel of product development. Based on the opinion of Wheelwright and Clark (1992) regarding the innovation funnel, to boost the quantity of a new product and new process ideas, the organisation first needs to grow its base of knowledge and access to information. The challenge at the second step is to minimize the funnel neck because ideas created must be scrutinized and resources must be concentrated on the most promising options. The goal of every product or process development plan is to convert an idea from concept to existence by settling on a particular product, which can meet the market needs in an economical and manufacturable manner.

According to the frugal innovation process, selecting one unique product range in the Oven-fresh Bakery can affect the service packages that go with it, and conversely. To define product-services, the bakery must define rules for combining product versions and services. As per Colledaniet al (2016),a multidisciplinary team of professionals can guide the process within the organisation, or it can be automated. It is possible to generate prospective product-services by applying the combination rules. The product plan of the innovative and new bakery item must be examined to determine whether it satisfies the expectations of the regional target market, and then revised if necessary. Product evaluations must include financial advantages for both suppliers and receivers of raw materials for the production and a variety of other considerations. During the verification step, consequently, the final proposals are identified.

Section 2

2.1 New Ideas for Product Development

In order to overcome the low turnover rate, the Oven-fresh Bakery has to focus on its product and needs to take initials to make certain changes. However, the company has encountered frequent economic downturns, which cause the company to lose several potential customers. In this section, there will be a discussion about the product development of the bakery regarding basic customers demand.

Implementation of Latest Ideas for New Product Development: Regarding the current situation, bakery companies have to develop their criteria of different products according to the customer’s need. However, the ultimate trick for bakery formulators will be to maintain customers engaged in their gluten-free brands moving forward regarding the pandemic situation. Focusing on the competitive market the bakery needs to produce one signature product that can differentiate the bakery from others in the marketplace (Cooper, 2019). The products should be based on brown bread with filling inside, especially with chocolate filling. The bakery needs to make sure that the inside filling of this product can be customized or with caramels or cream as per customers’ choices.

Latest Ways to Access Funding:However, the company has encountered numerous losses due to economic downturn and lack of having proper funding (Kahn, 2018). However, the importance of funding is also a significant part considered by the consultant. Without having proper financial support or funding, the bakery cannot improvise its problematic situation regarding losing customers. Governmental support can perform a significant role to provide sufficient financial support as it is the working sector of multiple workers. Through consulting with local banks and getting an adequate amount of loan, theOven-fresh Bakery will be benefittedby manufacturing exceedingly demanded products within health benefits (Cooper, 2019).

2.2 Innovation Business Case for Oven-fresh Bakery

The primal intention of the Oven-fresh Bakery should focus on the subject of scrutinizing its current strategies and their specific modification to maintain perfect organisational performance. The bakery company also requires having appropriate techniques for measuring and testing to accomplish the economic expansion.

Matching Goals to Resource and Capabilities: Several bakery companies are improvising the latest technologies and systems to make the procedure of manufacturing products more efficient and rapid. As a matter of fact, the company requires having the potential for expanding the organisational manufacturing system through few sufficient objectives. Also, the bakery company has to ascertain different goals including various resources like financial resources, technological resources, human resources and physical resources (Anzola-Román, et al., 2019). Therefore, by implementing technologies in the process of manufacturing and achieving goals related to the organisational resources, the company will be capable of developing the product by sustaining innovation.

Assessment Of Risks Involved:the company might face several obstacles including lack of technological resources and financial downturn during the process of functioning of the resources and innovation (Anzola-Román, et al., 2019). However, the management team of oven fresh bakery requires having the ability to bargain with its prospective supplier to acquire adequate service of technological machines and qualities. By improving the product quality, the rate of potential customers will be improved and the bakery also needs to focus on the recruiting system.

Value Analysis Applying Frugal Innovation: The implementation of frugal innovation in the development the innovation process of the bakery will be accommodating to analyse increasing the simplicity, reducing cost, and focusing on the major functions of a product. The bakery needs to implement frugal innovation techniques to enhance the commercial growth of the bakery (Vanhaverbeke, 2017).

2.3 Importance of Commercial Funnel in New Product Development Process

The primal intention of utilising an appropriate commercial funnel is to create superior products, which can provide satisfaction to the customers. The major aim of the commercial funnel is to maintain the increasing rate of commercial success or profitability. It is a very effective procedure with essential techniques (Vanhaverbeke, 2017). Research and development add a lot to this process and it enabling the firm to manufacture new products to maintain the commercial growth of the company.

New Value for Consumers: To compete with other rival companies, the bakery needs to manufacture more products. The increasing rate of value applied to the customers will decide the commercial success of the bakery.

Improvement of the Society: The firm has to maintain the diversity of products according to customers’ basic demands. Developed products will become accommodating to improve the living standards of the individuals (Tasmin, and Shafiq, 2017).

Latest Products: Manufacturing innovative products will become helpful to draw attention to attracting new customers. Oven-fresh Bakery produces white bread only. Hence, making brown bread with chocolate filling inside the bakery can improve its commercial growth. To make the prices of the product more reasonable, the company must start concentrating on diversifying their products (Tasmin, and Shafiq, 2017). In addition, the firm has been trying to boost its organisational performance through manufacturing more healthy products which are gluten and allergen-free, concerning customers health.

Sustainment of Organisation:To achieve organisational value, the organisation is required to seeking for improvement procedures that will be accommodating for economic growth (Ciricet al., 2018).

2.4 Protection of Intellectual Property (IP) Rights of Oven-fresh Bakery

It is indeed necessary to understand the way to protect the business from various obstacles in future. Several IPshave been illustrated to protect the developed products:

Trademarks:To differentiate the products from its rivals, an appropriate brand name or trademark is necessary. For recognition in the current market and for achieving potential customers, a trademark will be helpful. Creating an extraordinary brand name will be accommodating to contain more potential customers for a longer period (Ciricetal., 2018).

Patents: If the business patents its innovative products, other companies cannot do their business with similar products.The rightful implementation of patents will be advantageous to stay in the competitive environmentin the longrun.

Copyrights: The major intention of having copyrights creates a restriction policy so that other organisations will not be capable of duplicate the products (Ciricetal., 2018). The category is also given to those organisations, which invent the latest category of products within academics.

Exclusive Rights: It means having exclusive necessary to maintain prosperity in the marketplace in which the business is operating.

2.5 Evaluation of the Entire Process

The contribution of appropriate innovation on developing the innovation of products becomes necessary in every bakery industry (Del Vecchioetal., 2018). Several business have to face internal confronts which slow down innovative expansion of the company. Theses problematic situations have been found during these processes, given below:

• Health Concerning Issues: Customers have now become more health concerning during the current pandemic situation. However, the product quality is extremely low and the distribution system of the bakery has failed to maintain the COVID protocol.
• Collaboration Lacking: To perform successive innovations, an appropriate collaboration is necessary. Recently multiple businesses have been recognised that the value of effective collaboration outside.
• Lack Of Resources: Without having proper resources, there will be a financial downturn, which can affect Oven-fresh Bakery in further future. It will be a huge obstacle for the industry and a risk factor as well (Mauteretal., 2018). The bakery has to focus on developing its financial support by increasing its commercial growth.
• Workers Are Not Encouraged To Motivate: Motivated staff will be accommodating for conducting multiple services but in the case of de-motivated staff, things will become different. The bakery industry is required to take initiatives about their training and fulfil their basic needs including medical insurance.
• In Sufficient Technological Innovation: Lack of utilising machinery systems is a great issue of the bakery industry. Oven-fresh Bakery has to spend more on their staffs and as a result, the rate of commercial growth has become extremely low or deprived. Technological innovation is the only solution to overcome the situation. By implementing more machinery systems, the industry can save more money, which will lead the company to an economic expansion.
• Poor Customer Communication: Lack of communication among the staff is a dangerous factor for the bakery industry (Del Vecchioetal., 2018).

Conclusion

Organisations are continuously seeking to enhance business growth. Consequently, the marketers adjust their items to meet existing marketing criteria. Processes are also improved by the features of products and services of the organisations. In this report, the difference between innovation and invention in section one hasshowcased the exact need forthe Oven-fresh Bakery, which led to the need for new product development for diversification and expansion of product line. The promotional approach of teamwork through organisational vision and leadership for developing an innovative culture for the commercial process has been described and 4Ps of innovation has supported and advised innovation management for the bakery. Furthermore, the analysis of the innovation funnel and frugal innovation has led to recommending ways for the NPD process for the bakery. On the other hand, section two has utilised all these concepts to formulate a business case of innovation to recommend a new product for the bakery, i. e, the chocolate filled brown bread through analysing commercial funnel and NPDP, as well as elaborating intellectual property rights protection for the new product.

References

Akgün, A.E., Keskin, H. and Byrne, J., 2009. Organisational emotional capability, product and process innovation, and firm performance: An empirical analysis. Journal of Engineering and Technology Management, 26(3), pp.103-130.

Akgun, A.E., Keskin, H., Ayar, H. and Etlioglu, T., 2017. Why companies go positive marketing innovations: a new theoretical prototype for 4ps of innovation. Journal of Business Economics and Finance, 6(2), pp.70-77.

Anderson, T.D., 2013. The 4Ps of Innovation Culture: Conceptions of Creatively Engaging with Information. Information Research: An International Electronic Journal, 18(3), p.n3.

Anzola-Román, P., Bayona-Sáez, C., García-Marco, T. and Lazzarotti, V., 2019. Technological proximity and the intensity of collaboration along the innovation funnel: direct and joint effects on innovative performance. Journal of knowledge management.

Cadeddu, S.B., Donovan, J.D., Topple, C., De Waal, G.A. and Masli, E.K., 2019. Frugal innovation and the new product development process: insights from Indonesia. Routledge.

Ciric, D., Lalic, B., Gracanin, D., Palcic, I. and Zivlak, N., 2018, March. Agile project management in new product development and innovation processes: challenges and benefits beyond software domain. In 2018 IEEE International Symposium on Innovation and Entrepreneurship (TEMS-ISIE) (pp. 1-9). IEEE.

Colledani, M., Silipo, L., Yemane, A., Lanza, G., Bürgin, J., Hochdörffer, J., Georgoulias, K., Mourtzis, D., Bitte, F., Bernard, A. and Belkadi, F., 2016. Technology-based product-services for supporting frugal innovation. Procedia CIRP, 47, pp.126-131.

Cooper, R.G., 2019. The drivers of success in new-product development. Industrial Marketing Management, 76, pp.36-47.

Czarnitzki, D. and Kraft, K., 2004. Innovation indicators and corporate credit ratings: evidence from German firms. Economics Letters, 82(3), pp.377-384.

Da Rin, M. and Penas, M.F., 2017. Venture capital and innovation strategies. Industrial and Corporate Change, 26(5), pp.781-800.

Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of technological innovation: taking stock and moving forward. R&D Management, 45(3), pp.215-249.

Del Vecchio, P., Di Minin, A., Petruzzelli, A.M., Panniello, U. and Pirri, S., 2018. Big data for open innovation in SMEs and large corporations: Trends, opportunities, and challenges. Creativity and Innovation Management, 27(1), pp.6-22.

Elenkov, D.S. and Manev, I.M., 2009. Senior expatriate leadership’s effects on innovation and the role of cultural intelligence. Journal of World Business, 44(4), pp.357-369.

Kahn, K.B., 2018. Understanding innovation.Business Horizons, 61(3), pp.453-460.

Katz, G., 2011. Rethinking the product development funnel. Visions, July.

Lane, J.P. and Flagg, J.L., 2010. Translating three states of knowledge–discovery, invention, and innovation. Implementation Science, 5(1), pp.1-14.

Li, L.X., 2000. An analysis of sources of competitiveness and performance of Chinese manufacturers. International Journal of Operations & Production Management.

Mauter, M.S., Zucker, I., Perreault, F., Werber, J.R., Kim, J.H. and Elimelech, M., 2018. The role of nanotechnology in tackling global water challenges. Nature Sustainability, 1(4), pp.166-175.

Nguyen, Q., 2015. Business Plan For Online Bakery Concept.

Shams, S.R. and Kaufmann, H.R., 2016. Entrepreneurial co-creation: A research vision to be materialised. Management Decision.

Tasmin, R. and Shafiq, M., 2017. Linking business strategy with organisational innovation. MALAYSIAN CONSTRUCTION RESEARCH JOURNAL (MCRJ), p.85.

Timur, K. and Antanas, M., 2017. The definition and classification of innovation. Holistica, 8(1), pp.59-72.

Vanhaverbeke, W., 2017. Broadening the concept of open innovation. In The Elgar Companion to Innovation and Knowledge Creation. Edward Elgar Publishing.

West, M.A., Borrill, C.S., Dawson, J.F., Brodbeck, F., Shapiro, D.A. and Haward, B., 2003. Leadership clarity and team innovation in health care. The leadership quarterly, 14(4-5), pp.393-410.

Wheelwright, S.C. and Clark, K.B., 1992. Revolutionizing product development: quantum leaps in speed, efficiency, and quality. Simon and Schuster.

Wyckoff, A. and Auerback, M. 2015. Invention vs Innovation. [online] Available at: https://www.ineteconomics.org/perspectives/videos/invention-vs-innovation [Accessed on: 28^thJuly, 2021]