Innovation and Commercialisation of Business Growth

TASK 1

P1) Innovation and its importance for the organisation in comparison to invention

Invention : Invention is the process with the help of which new product can be launched in the market for the first time i.e., something that does not existed before, which will enable the organisation in satisfying the customers (Aloini and et. al., 2015). For example: The team of Samsung has invented television that blends into the wall.

Importance of invention: With invention entirely new product or service can be developed and introduced which has unique features that are useful and convenient to the customers.

Innovation: Innovation is the process in which new features are added or changes are made in the existing products so that the experience of the customers can be improved. Such changes are made on the basis of the preferences of the customers and it enables the company to take the competitive advantage (Innovation .2019). For example: Samsung has developed a process of New concept development which enables them to innovate products and services such as introduction of 5G mobiles with unique specification and features.

Importance of the innovation for Samsung is given below:

• Increased productivity: By making the process innovative the productivity can be improved as with improved way of doing things and streamlining the activities efficiency can be increased. This will make Samsung capable of meeting specific demand of the customers. For this they need to keep on update their software, processes etc. as it with they adopt the latest technology so required.
• Competitive edge: With innovation in the products the company can take competitive advantage as this will enable them to offer better products and services. By introducing creativity and putting new designs in the existing products the customers can be connected. For this appropriate marketing techniques need to be used and all this will help Samsung in taking competitive edge over others (Bain and Kleinknecht, 2016). Get Assignment Examples? Talk to our Experts!

Difference between Invention and Innovation

Sources of innovation: The requirement of the innovation can arise due to various factors such as:

• Unexpected occurrences: Occurrence of any event which is not expected can lead to innovation as for meeting up with the implications of such events innovation need to be introduced.
• Need of the processes: Due to requirement of changes in processes of manufacturing the company such as Samsung need to bring innovation.

P2) Organisational vision, leadership, culture and teamwork that shape innovation

Commercialisation: Commercialisation is a process with which new product can be introduced or production methods can be changed. With this the customers can be attracted successfully so that the profitability of the organisation can be improved (Jahn, 2016).

Various elements that facilitate in shaping innovation the organisation are given below:

Organisational vision: The vision of Samsung is to provide innovative products and designs that can enrich the life of the people by adding value to the industry and customers. This encourages organisation to introduce attractive features that can add value to the products. Vision of the company can be made that of the employees which will encourage them to adapt such innovation.

Leadership: Leadership is the ability to motivate and encourage the employees with the help of which they can establish coordination among employees so that they can achieve the goals and objectives. With the help of effective leadership styles such as democratic, autocratic etc. the leaders influence the people working in the organisation to accept the innovation and even to provide suggestions with which effective innovation can into introduced. Leaders in Samsung use different style as per prevailing situation which enables their employees to provide their recommendation with the help of which they can bring innovation.

Culture: The culture of the organisation has impact on the innovation as culture guides the behaviour of the employees working in the organisation. At the workplace if the employees are provided freedom effective communication can take place which can leads to shared belief. With the help of Handy's model, kind of culture that is being followed is identified which can be power culture, task culture etc. Task culture is being followed by the Samsung with which specific purpose and powers can be shifted to other members (Kerschke and et. al., 2015).

Teamwork: With the help of effective team goals can be achieved easily as all the members will have competence that will enable them in understanding the requirement of the changes by way of innovation. Tuckman's theory of leadership focuses upon ways with which teams can tackle the task. This theory is relevant for building challenges for the team which can motivate them to perform better. This forces innovation so that the customers can be satisfied.

With the help of these elements the organisation introduces innovation effectively. The vision, leadership and teamwork motivate the employees to perform consistently and to accept the need of changes as per the requirement of the business. The understanding among the employees leads to collaborative working and coordination among the teams and this shapes innovation as they will better understand the benefits of such change.

TASK 2

P3) 4Ps of innovation and explain the use of the innovation funnel

The 4P’s of innovation can effectively be used by the organisation as it helps them in determining the area where improvements are required. Such 4P’s of innovation includes:

• Paradigm:With the help of this the ways can be identified with which the innovation can be introduced. It enables in making changes in underlying mental modes that facilitates with how and what can be done by the organisation. Samsung can identify various processes that they have to undertake so that they can launch phone with 5G technology (Molnar, 2018).
• Process: Process is related with the way with the help of which organisation delivery their services to the customers. With the improvement in such process the values to the customers can be enhanced as with this the cost can be reduced. Samsung by managing the cost can improve the benefits to the customers.
• Positioning: Positioning strategy determines the improvement in the way they position their product in the market. With efficiency in positioning Samsung can reach to the customers easily and can serve them with new innovative technology.
• Product: Products are offering in which the innovation is to be done. Innovation is done in the existing products and services as per the needs and wants of the employees. Samsung is planning to launch smart phone with 5G technology which will enable the customers to use new latest technology in their preferred brand.

Types of innovation: For the organisation it is important to understand type of innovation that they need to focus upon as on the basis of this they need to arrange funds, analyse the market etc. Various such types include:

• Disruptive Innovation: Disruptive innovation is the one in which new technology is being adopted in the existing market. Samsung is planning for disruptive innovation in which is quite expensive. But this innovation provides the first mover advantage to the organisation (Parker and Van Alstyne, 2018).
• Incremental Innovation: It is very common innovation in which existing technology is being used for increasing the values to the customers in the existing market. In this requirement of the funds and risk is limited but the opportunity to increase market share is not much.

Innovation funnel: It is a process that facilitates a new process and development of the product as per the need and wants of the customers. With this plan for the innovation can be formulated and the best idea can be identified out of various available options. This funnel can be use by Samsung in the following manner:

• Idea generation: In this stage various ideas can be identified on the basis of analysis of the opportunities and changes taking place in the market. In this stage the R&D department of Samsung need to take part as they can determine the opportunities in the market.
• Concept investigation: In this stage all the ideas will be examined and screened by the management of the organisation. Such ideas are then tested on the customers and their resource requirement is determined (Rosca, Arnold and Bendul, 2017).
• Feasibility study: In this stage the technical and economic feasibility of the ideas are tested as with this they can determine the risk which is associated with the innovation.
• Development stage: The final idea is developed at this stage so that the product can efficiently be launched in the market.
• Post release phase: This is the stage in which feedbacks will be taken from the customers and on the basis of which further improvements can be planned.

P4) Developments in frugal innovation

Frugal innovation is a process that helps in reducing complexity in the process by elimination various nonessential steps and features from the products and services so offered. This facilitates reduction of the overall cost of the company which enables the organisation to introduce valuable features to the products. Such process can be used by any organization irrespective of their size and nature such as large organization, small organisation, medium organisation etc. With this the SME can eliminate non-value added features from durable goods or from their offerings (Seok, Han and Kim, 2018). It has various steps which need to be followed by Samsung for using frugal innovation which includes:

• Seek opportunity in adversity: This suggests that the adverse situation must be taken as opportunity so that its impact can be reduced. Samsung realised that with advancement of the technology their product may become outdated so they planned for smart phones with latest technology.
• Do more with less: This means that limited resources must be utilised efficiently so that that innovation can be introduced. Samsung with the same process just launching phones with new technology which is significant in mobile industry.
• Think and act flexibly: It suggest that the culture of the organisation and their structure must be flexible so that changes can easily be incorporated. This will enable the Samsung to make their customers satisfied as their employees will be capable of doing so.
• Keep it simple: This means that plans must be simple so that they can easily be understood and executed with any complications.
• Include the margin: This suggests that innovations so introduced must focus the needs and wants of the customers so that the profitability can be enhanced as it will easily be accepted by them.
• Follow your heart: This facilitate in decision making as if the organisation feels that the innovation will be beneficial they must undertake it which can enhance their profitability as well as market share (Vanhaverbeke, 2017).

TASK 3

P5) Importance of the commercial funnel and the application of New Product Development

Commercial funnel: Commercial funnel is also known as sales funnel which helps in increasing the sales of the company by converting prospects into customers. With the help of this funnel the pricing strategies can also be identified as by prices plays crucial role in attracting the customers.

New Product Development: With the help of process of new process development the innovation can easily be implemented in the organisation. It includes various steps with which te improvement can be made as per the preferences of the customers. The procedure includes following steps:

• Idea generation: In this step, need for development is analysed and on the basis of that various ideas are generated. The research and development department of Samsung provided various ideas with which the customers’ expectations can be met.
• Idea screening: After generation of ideas, they are screened and the most suitable among all is selected that can help in achieving their objective.
• Development concept: In this step the idea is developed so that it can be converted into a product (Wang, 2017).
• Marketing strategy: On the basis of product various marketing strategy such marketing mix etc. are formulated that can create awareness among customers about their product.
• Business analysis: Here, the feasibility and effectiveness of the product is analysed with which Samsung can identify the profitability and increase in market share from such development.
• Product development: In this step the products is being developed by Samsung which converts the idea into a product that can be offered in the market.
• Test marketing: In this the product are tested in the market on the basis of which various segmentation strategies can be formulated.
• Commercialisation: It is the final step with which the product is made available in the market and the customers can be attracted towards it.

P6) Innovation Business Case for an organization

Business case: It is written document in which reasons are provided for introducing the innovation or undertaking any task. With the help of this Samsung can determine the strategy sources of funding etc. that will help them in undertaking the project (Wonglimpiyarat and Chandrachai, 2016). The company is planning to launch 5G mobiles phones with various unique specifications.

Executive summary: This plan includes various strategies with which new product can be launched, which market segment need to be targeted, various sources of the funds and various opportunities for the business. It enables them to attract significant investors to the business.

Background: Samsung offers is a multinational company that offers wide variety of electronic for the customers such as TV’s, smart phones, wearable devices etc. They are committed to improving the standard of living of the society with continuous improvement.

Vision: The vision of Samsung is to provide innovative products and designs so that the life of the people can be enriched.

Needs satisfied by the innovation: The launch of 5G phones will enable Samsung to tap the market segment which is highly tech-savvy.

Strategy: For this product, people from all the age group will be attracted as phone has become necessary part of life. This new phone will be promoted through social media platform and through television, newspaper advertising.

Funding: This is one of the most important factors which are to be considered as with this funds are gathered from various sources. Such sources includes loan from financial institution, equity capital, retained earnings of the company and many more. The Samsung can utilise some part of their retained earning while part funding can be done through loans from the financial institution. This will reduce the burden of interest on the company (Yeo, 2019). Take Coursework Help from professional experts!

TASK 4

P7) Different tools that organizations can use to develop, retain and protect knowledge and intellectual property

Intellectual property: Intellectual property is the creation of mind with the help of which something unique can be offered to the customer in the market. It includes inventions, literary and artistic work, designs and symbols that can be used in commerce. Such intellectual property is protected by various laws and restrictions that are imposed by the government and the legal system of the country. With the help of such various such laws Samsung can protect their innovation from being copied by the competitors. Some of such rights include:

Patents:It is a right which has been provided to the organisation who has innovated some technology for improving experience of the customers. Patents are provided for a specific period of time which has to be renewed from time to time so that their innovation cannot be imitated. The advantage of this right is that with this the right to use lasts with the company who has innovated any process or the product. While its disadvantage includes fee that has to be paid for securing the innovation. This has impact on the overall cost of the company

Trademarks: Such rights are provided to the organisation for distinctive and recognisable designs, symbols, signs etc. With this the company can take distinctive identify for their products and services by making themselves different from the competitors. Advantages of trademark are that it makes the company different from their competitors by protection their designs, symbols etc. from being copied. While its disadvantage includes fee that has to be paid for taking such rights and for renewing it in every 10 years.

Samsung can use Patents for protecting the technology that they are planning to launch as with this they can safeguard themselves from the competitors. Due to this they cannot imitate the technology and thus it will enable them in taking the competitive edge over others. Want to get Assignment writing service? Talk Our Expert Now!

CONCLUSION

It is concluded from the above report that innovation is important for the organisation as it enables them to effectively meet the needs and wants of the customers. Also with this competitive advantage can be taken over by introducing latest technology or by improving the processes. Innovation can be successfully with the help of analysis of 4P’s of innovation, innovation funnel etc. Further it is concluded that various steps of development of new product makes the introduction of new product effective and profitable for the company.

Read Also - Social Responsibility of Business

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