Innovation And Commercialization
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This report is all about innovation and commercialization. Every company deal with innovation which leads its growth and development. Commercialization introduces innovated product in the market.Difference between invention and innovation in organizational context has been mentioned in this report to understand the importance of the innovation. 4P’s of innovation is discussed in this report to understand their roles and functionality in any company and how frugal innovation achieved rapid growth of the company.Innovation with commercialization is discussed in third learning outcomes. NPD (new product development)processing is described in detailed form to go through its commercialization innovation.Last but not the least, by using case study of this report techniques and intellectual property of innovation has been cited below in context of Mr. Green’s juice company.This report gives appropriate information about the innovation and commercialization of the any company and which methods, tools and techniques company should used to ahead of the game.
LO1 Explain the context for innovation and determine the difference between invention and innovation.
P1. Explain innovation and determine its importance to organizations in comparison with invention.
Invention- Creation and introduction of any new product and services in the company is referred as invention. Invention deals with the creativity and production of company.
Innovation- Innovation refers to themodification of the inventing product and services. In innovation no invention takes place only existing product gets improved( Beimans, 2018).
o It is about making new items and launching newer services.
o Invention does for the company introduction.
o It started the company with its products and services.
o It increases the company values.
o It requires scientific skills.
o It relies on theory of the product
o It’s about making new things in the existing new product.
o Innovation done to increase theproductivity of the company.
o Innovation deals with current trends and innovated the products into newer forms.
o It increases the business values.
o In its marketing and strategically skills are required.
o It relies on the practical implementations of the product.
It is obvious that any company started on some its products and services but on time to time it manages with the current trends of the business world.All company started with invention but runs through the innovation only.Innovation is very important for every company because innovation exhibited its rival power among the competitors.
Hence above mentioned difference exhibiting the importance of innovation in comparisons to invention in an organization( Katzy, et.al, 2013 ).
P2. Explain how organisational vision, leadership, culture and teamwork can shape innovation and commercialisation.
Commercialization- Commercialization deals with the financial gains by launching the new products and services within the business market.It involves accounting, sales, marketing and customer support. Commercializationhelps the company in dealing with marketing status and planning.Here are below mentioned points discussing the criteria’s of innovation and commercialization in any company.
Vision- Every company has its vision which describes that which product is need to ne innovated and in which ways commercialization of innovated product is done.Company’s vision decides the company growth and innovations range after that commercialization can be done easily (Bain and Kleinknecht, 2016 ).
Leadership-Leadership is very common process in any companies every specialist and leader leads its tem for some specific purpose.If company is leading in market it means it is maintain its lieu among its tough rivals.
Culture-Different companies have different culture like in healthy juice company where they have healthy drinks for their users. Culturedefines that in what way product will going to be innovated and in what terms its commercialization gets affected.
Teamwork-Teamwork leads the company growth and increases its productivity. Teamworkcontributes in the commercialization of the innovated product.Teamworkbrings new ideas and more people engage in more innovation( Anderson, 2013 ).
The above discussed point shape the organization commercialization and increases the innovation of any company.Hence both factors are very vital in increasing the company productivity and meeting all objectives.
M1. You should analyse different sources of innovation, and how organisations can foster and develop an environment and culture of innovation.140
Seven sources of innovation are as follows:-
Unexpected- Innovation is found to be best when innovation is considered as unexpected from everyone’s eyes.Unexpected innovative ideas create more profit for the company and increase its growth.
Congruity-It means how company can make sense to fit innovation system in its process.
Market structure- Market structure defines its commercialization process. Marketing structuring exhibited that how innovated products gets launched in the global market.
Demographics-Demographics decide that where and which product should be innovated in the market. Areas decades the availability of the product.
Necessity- Necessity describes the need of the innovation of the products(Beimans, 2018 ).
Changing perception-Different people have different perceptions, according to different thoughts innovation tools are used.
New knowledge- New knowledge about the market gives idea about the innovation.
Organization can develop the environment and culture of innovation by following the seven sources of innovation.Innovativeculture can be drawn out by practicing it with according to the market standards(Das, 2013).
LO2 Explain the different types of innovation.
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape innovative ideas. M2 Achieved.
Paradigm-Using innovation to improve the ways of business techniques.Paradigm establishes what company must do to make changes or innovation in their existing products and services.
Product-This p exhibited that how can company make its product better by using innovation techniques.Incremental in product successfully added the productivity of the company in innovation terms.
Process- After dealing with paradigm and product innovation P’s, processing of product supplying, workflow; hiring people are all included in this process. Process included all the steps for product innovation (Bain and Kleinknecht, 2016).
Position-This is the main area of the innovation sector, it decides that how company frames the product in front of the market. All factors like employees, public, users’
Above four P’s of innovation build the product and its enhancement in a better way.In fact it symbolises the all questions and their answers in one frame. These four P’s covered all the concerning areas that occurred in the innovation processing.
Innovation funnel describes the process to develop the product and process.As its name indicating funnel describes the whole process to create and meeting marketing needs of the product and services.Funnel of innovation act as a refinery system in product innovation and its launching(Rao, 2013).
Innovation funnel involves three major steps in its journey of modified product and services.The first step involves the wide mouth of the funnel.This means to collect and gather the more and more information about the product innovation and collecting more ideas opens and develops many opportunities for product innovation. Next step concern about the segmentation of the collected ideas that means screening of the collected ideas.Furtherlastmajor step about this is that the chosen idea must deliver the company services properly and meet its all objectives and aims for which company establishes.
P4. Explain developments in frugal innovation and provide examples of how it is used in an organisational context. (M3 Achieved)
Frugal innovation refers to the reduction of unnecessary cost and production of valuable goods in order to achieve higher profit. It reduces the complexity of innovation.Frugalinnovation helps the company in many ways, it provides maximum profit from little resources to attain the sustainability and remove the voids of the company.Actually this frugal innovation works on bottom to top approach in contrary to the top to bottom approach of standard innovation. This is so because it gives more reliability of the products and company attain higher number of customers form minimum resources. Frugal innovation is different from all other innovation processes.
This innovation named as frugal because it’s not confined with particular clients or customers but pick up huge range of users from lowest resources.There is misconception about the frugal innovation is that it is of low quality. actually the main aim of is that is use limited resources and produces large quantity of goods by reducing the unnecessary cost of the items, but it does not mean it generates low quality of products for users and its customers.In fact no company wants to harm its reputation among its customers(Das, 2013).
Frugal innovation has many names which depicts its working like reverse innovation, frugal engineering, cost reduction innovation, resource-constrained innovation.All such defined its criteria and working. Many of the company whether it is local or MNC’s using the type of innovation top attain the maximumprofit for their company.Big dealers and owners of the company dealing with frugal innovation to satisfied their customers. Hence it can be said that frugal innovation is really very innovative and fragile process and it develop maximum profit for the company by covering large range of customers with lost cost and minimum resources with good quality. Like for instance Toyotagroup of company of car manufacturing and automobile company produces many cars within their country first by using this innovation (Bhatt, 2011)
D1. You should critically analyse how innovation is developed, embedded and measured in an organisational context of Mr Green’s healthy drinks.
According to ( Jespersen, 2013 ) In healthy juice drinks innovation is necessary because in its third year company need innovation in its old juice supply chain and needs modification of juice types.However being an innovation consultant first innovation is introduces applied on juice and drinks and at last it is measured in commercialization step so that company gets maximum profitform it.
According to (Rae, 2013) inother hands modification in existing process required serious concerns because modification is done according to the market requirement and seeing the upcoming outcomes.Even sometimes without judging and without trends company produces different types of juices so that customers get inflected by the company innovation and get in touch with the newer things.
Both pros and cons of the innovation are discussed here to understand its concept in context of Mr. Green’s healthy drinks.
LO3 Discuss the process required to commercialise innovation.
P5. Explain the importance of the commercial funnel and the application of new product development (NPD) processing for commercialisation of innovation.
Commercial funnel means listing more about the potential customers and then do the marketing sop that company achieve higher points of their usual and retain customers.Commercialization funnel is very vital in any organization especially if it come in context of healthy juice company which is leading in its third year of runway.The most and main of the commercialization funnel is to lead and lead of the company because commercialization of modified product and services of the companyattractsthecustomers more than usual. In short commercialization funnel opens and wide up the doors for dealingwith maximum customers from single innovation of its product(Li and Moon, 2012).
In NPD process there are eight majorsteps which contribute in the innovation of the company products and services and these are given below:-
- Generating the product
- Screening the ideas from collected bunch
- Testing of selected ides with company concept
- Business analysis
- Beta testing of the launched product
- Product develop by using all thetechniques and all
- Productdevelopment by various measures
- Commercialization of the product is done here
- At last but not the least, perfectpricing and actual proving is done here of the developed product.
Hence it can be said that new product development of the company products helps the company in several areas and helps it to achieve maximum profit to attain the innovation of the product.Innovation without commercialization of product and services is incomplete because without proper commercialization of product decreases the value of the launched product. If customers and users do not get know about the innovated product, innovation process gets failed so commercialization plays very huge and vital role in an organizational context( King and Lakhani, 2013).
P6. Build an innovation business case for an organisation, including ways to access funding.
Companymust rely on clear visions and expectations because without it funding can’t be done( Pitsis, 2013 ).Innovation is the first step but after it funding is the main process.Funding covers most part of the innovation. Measures that should be included in an organization to raises the funds while doing innovation are as follows:-
- Stakeholders involvement
- Clear though and vision of the company
- Involvement of partners in company decisions
- Full and clear plan for raising funds
- Differentprogrammes be launched
- Do not miss vital steps
- Take suggested approach form experienced people
- Chose correct source of funds which giver higher profit in minimum time period
Considering all these points, the business idea for Mr. Green’s juice company is “online retailing of fruit juices”. This idea is promising and effective for the growth of the business of Mr. Green’s juice company because selling juice online and delivering them at a doorstep is gaining traction. Organisation can even tailor their services in accordance with the needs of the health-conscious consumers. Company can focus on delivering health and fruit beverages without charging extra amount. In addition to this, the premium services for the subscribers of this business model. The organisation can build new partnership with local juice vendors and distributors in order to deliver the juices to their patrons. The business will provide large returns because the competitors are less and the market is very vast. People are more aware and concern about their health and therefore, they have started adding juice in their diet plan.
For the initial promotion, company can provide gift cards, t-shirts, cookbooks, discounts, buy one get one offers, and other promotional scheme.
Key highlights of the business plan:-
- Increasing awareness about fresh and healthy juices in the current hectic work life of people.
- Gearing up for new mergers and acquisitions of small businesses, farmers, distributors.
- Competing on consumer values rather than low operating cost.
- Effective promotion through discounts and other promotional methods.
- Tailoring services and products for different customers with different needs. For instance, needs of children, sports person, gymnast, obese, etc., will have varying needs. Company should focus on them.
First of all, the organisation has to decide on the funding structure. The organisation is seeking 70% funds from external sources, such as banks, investors, etc., and remaining 30% from owner’s funds. The company can arrange its funds from many venture capital investors and individual companies. Apart from this, company can take loans from banks at cheaper rates under some scheme. In addition, company can raise funds through equity capital i.e., by selling shares.One of the most important way of raising funds is to attract the foreign and angel investors of now a days because they gives large amount of funds for maximum time period. Stake holders are most common but angel investors playing crucial role in today’s era.Commercialization is incomplete without fundingbecause to make our innovative product reached to maximum customers requires more and more funding.Several ways to access and raising the fund is mentioned above to understand its concept.It can be said that funding act as most important part of innovation and commercialization of the launched product and services in an organizational context( Gronum, et.al, 2012).
M4. You should build a detailed innovation business case which includes how to measure its overall effectiveness using appropriate techniques available to test, iterate and improve.
Thisreport gives detailed information about the innovation and its process. every company relied on innovation business as same with the healthy juice drinks company of Mr. Green’s, but in innovation process several measures has to be undertakenwhich are as given below:-
Test- Testing provides the most effective measure of the innovation business because without testing of collected ideas, screening ideas and selected ideas innovation process can, t is continue. Testing gives innovation appropriate prediction of profitability( NgoansO’cass, 2013 ).
Iterate-Iterate means keep going in same manner to achieve the higher gains from every cycle. Iterationact as refinery process more the product process gets iterate more it gets enhanced.
Improve-Improvement means the tested an iterate product or services gets improved by the use of techniques.
All the process helps in attaining the effectives and clarity in the product quality and its functionality.
LO4 Evaluate the range of methods for protecting ideas and understand their advantages and disadvantages.
P7. Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge and intellectual property.
Intellectual property comprises the unique symbols, names, artistic works, images, technology, creation, and ideas that can provide a company some economic profits. Intellectual Property Protection laws help in protecting their unfair use by the competitors. Mr. Green’s juice company can have four types of IP protections:-
- Patents: A patent provides property rights on a particular innovation or invention. It prevent people other than the inventor to make, sell, or use the inventions. Inventions are important to protect as they can provide a competitive advantage over other.
- Trademarks: it is a symbol, phrase word, or design that helps in identification of one business from a group of similar businesses. A company has to register its trademark with UPSTO.
- Trade Secrets: This is quite different IP. A trade secret is a process, formula, business information, technology or device that an organisation keep private in order to get a business advantage over the rivals. This can be survey results, product formula, customer list, etc. One cannot obtain protection by simply registering in some protection institutions. Instead, organisations have to keep it secret by their own.
- Copyright: It protects the original work from getting copied or distributed or modified or created. While getting the copyright protection, the organisation or individual or a group has to disclose the work in some sort of tangible medium of expression.
There are several approaches and techniques that Mr. Green can use which help his company to attain and gain maximum profit through the use of innovation and commercialization.Healthy drinks are made by using some kind of secret formula. Therefore, there is a need of protection of trade secret. In addition to this, Mr. Green has to take care of the trademarks. Apart from this, some information needs a copyright protection. He cannot use patent because his company has not made any invention or innovation. Several steps and several methods can be taken by the company to develop the innovation system in their company.Some of vital method and measures or tools are discussed below to describe the healthy drinks innovation development system. Theseare listed below:-
- Analyse the market standard
Before innovation its mandatory for every company to get aware from the current marketplace and understand its current lieu and then accordance to that innovation is done in that direction( Pitsis, 2013 ).
Innovations is not confined with or within single sphere, innovation can be done in any areas that leads the company.Never missing out the opportunity helps any organization and company to get enrich form the use of innovation.
Everything should be pre planned because without planning company cannotget its actual results and this directs the uncertain and imbalanced results of innovation.So planning should be done in appropriate direction of innovation should be done in planning directed directions only, this leads better results.
- To understand the current trends
Without knowing the current trendsinnovation should not be done. Innovation does only for current trends and if company’s innovation does not meet the trends requirement it would get failed.
- Applied innovation and encouraged it in system of company
Every started-up and every newly introduced company practices the innovation form very first year of the company. Company should encourage the use of innovation in its culture and business environment(Li and Moon, 2012).
As discussed above funds raiment can be dine in many ways, funding provides support to the innovation process and helps in doing huge level.
- Prepare for uncertainties
Sometimesunderstating the trends and all things innovation process gets failed. This can be happen due to ay reasons and this refers to the uncertainty. Company must ensure that it should not fully dependent on the innovation process only.
HenceMr.Green’s can applied above mentioned tools and suggestions in their company to get remain at top and gets succeed in their vision directions. By doing this all healthy drinks company objectives and aims can be meeting(NgoandO’cass, 2013 ).
This report deals about the innovation and commercialization of the products and services of the company.It can be concluded that innovation contribute to the organizational in many ways.It increases its performance, productivity, growth, employee satisfaction, marketing trends and everything.Commercialization with innovation products and services of the company exhibiting its marketing launching of the product and funding of the product.Four P’s of the innovation describing its framing and innovation funnel exhibited its many stages of innovation processing.New product development process showing the commercialisation funnel and innovation funnel for making.
Hence, it can be concluded that innovation and commercialisation plays crucial role in the company productivity. Alltools,techniques, methods used in this report help in retaining and iteration of the innovation process.Different types of innovation exhibiting different tactics of the innovation.All and all innovation and commercializationplays vital role in an organizational context.
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