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Innovation and Commercialisation

University: MONT ROSE COLLEGE LONDON

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages 12 / Words 5000
  • Paper Type: Assignment
  • Course Code: M/508/0494
  • Downloads: 0
Answer :
Organization Selected : Amazon Go

INTRODUCTION

Innovation is a process that is used for converting idea or thought into reality so that any company can be sell its goods and services in order to create value. They must also look for needs and values that customers can agree to pay (Chun and et. al., 2015). Thus, innovation includes deliberate application of knowledge and resources which can be incorporated by companies for manufacturing products according to the choices and preferences of customers. In context with business, innovation can give better outcomes when all the ideas are applied in a effective manner so that it can satisfy the needs and wants of customers.

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Invention is considered as a new scientific and technical idea which can be used for creating an object or a result. There can be many areas in which invention can be done but basically it can be categorised into three scientific-technological, socio-political and humanistic.

Furthermore in this report, Amazon Go, is the company in which entire assignment will be based and its parental company is Amazon. Report will throw light on various aspect of innovation and commercialisation like comparison between innovation and invention in context with chosen company. Organisational vision, leadership, culture and teamwork for shaping innovation and commercialisation is included (Clayton, Feldman and Lowe, 2017). Further importance of commercial funnel in order to make a new product development is mentioned in this report. Lastly, proper knowledge of retaining and protection regrading intellectual property right is included.

TASK 1

P1 Innovation and its importance in context with company and in comparison with invention

Innovation can be simply define as a new and innovative ideas that are formulated in order to get better solutions so as to meet needs and preferences if any company wants to remain in the market for a longer period of time. Innovation, most of the companies adopt in order to make quality services which can add value to its product. Therefore, with the change in course of time new technologies have made entire process of innovation easier as company can now use latest machineries for making more effective goods and products. Thus, by innovating new things or making modifications in existing products company can improve their brand image in front of its customers. In terms of Amazon Go, they are doing lots of innovation in their products so as to meet all the required needs and wants of customers(Cui and Wu, 2016). In context with innovation for example: company are using different concepts of technologies that includes computer vision, algorithms, further Amazon Go is using sensor fusion so as to automate and maximise purchase performance. Therefore, concept of store is a revolutionary for them as it is enabling them in incorporating geofencing technology in their smartphones through which they are able to streamline experience of customers and inventory management as well (Cunningham and Porter, 2011). Other than this, they have developed an application for iOS and Android form where customers can purchase their products and avail the best offers available.

Therefore, in terms of invention For example: Amazon, has invented a large amount of products that have made life of humans more easier like fire TV stick invented by Amazon which is a micro-console remote that work as a network appliance through which people can watch online streaming videos in High Definition. In terms of Amazon Go, they have establish a system through which customers can buy products without getting into a line and entire task is done by scanning.

Some of the difference between innovation and invention are explained below:

 

Innovation

Invention

Meaning

Innovation is done by an organisation in their existing products so that it can be re-launched in the market for gaining maximum benefits.

Inventions is not an easy task as it requires skilled persons along with this it needs ample amount of money. So, an individual with excellent knowledge of the field is required.

Ability Needed

A person must be skilled that are in context with management which will help him/her in having a proper control on resources.

An individual who is doing invention must be very sound in scientific and technological as well.

Activities

In order to get effective results company distribute all the task in different departments so that it can be completed in speculated time frame.

For doing invention, the entire work is done an expert who can perform the work in a better manner and in a suitable way (Dahlander and Gann, 2010).

Significance of innovation in comparison with invention

Innovation plays an important role in every organisation as it allows company in growing in a rapid speed. This also helps them in expanding their business in an effective manner and creates more beneficial opportunities for people and company as well.

M1 Different source of innovation which can be used for developing an environment and culture of innovation

Measure what that is meaningful: In today's world there is a possibility that an individual comes with numerous thoughts and ideas which can help them in transforming ideas into something which can deliver an impact on them. For this, it is important that company measure what is important and essential for them (Dutta and Hora, 2017). Other than this, customer-oriented number are clearly necessary so that they can drive internal innovation.

Give worthless reward: Recognising and giving rewards is crucial for companies as it will help them in establishing a mutual understanding amongst employees and superiors. This will help them in encouraging and motivating workers so that they can perform their task in a better manner.

Create structure for unstructured time: Business can be affected with a sudden change in environment of market area and so on. So, it is crucial that company have appropriate plans and strategy which they can implement in their business operations. Further having control over work pressure will give them effective results in return (Edquist, 2010).

D1 Development of innovation in context with organisation

Amazon Go, has bring an innovative concept can this has become a revolutionary action in the market area. They have opened a store from where they can purchase grocery items and just walk out without standing in a queue. They only have to pay at checkout, the purchased item will be automatically billed by scanning process through their Amazon Prime account. Sensor will help company in scanning the products that have been purchased or items they have picked.

This is a new concept that was adopted by Amazon company and through the leaked data it has been evaluated that company is now going to open around 2,000 stores across country, whereas store that are to be opened internationally will be opened at 2018 (Eesley, Hsu and Roberts, 2014).

P2 Organisational vision, leadership, culture and teamwork for shaping innovation and commercialisation

Now a day's there are various kinds of mediums through which company can incorporate innovation in their workforce in order to increase their commercialisation. In context with Amazon Go, senior managers of this firm are helping organisation in identifying vision and mission based on which enterprise can execute their innovation practice (Gaddy and et. al., 2017). Further through this, higher authoritarian tries to introduce approaches by looking at all the aspects that can create problem in future proceedings. Therefore, some of the factor that can have an impact on business operations are mentioned below:

Vision: In context with Amazon Go, their vision is to make the process of billing more easier through “Just Walk Out Shopping experience” in which customers are no more longer had to wait in long queue for billing purpose.

Leadership: This is an important characteristics that must be incorporated by an individual in order to guide and showing the right path to employees. As a result it helps company in achieving desired goals and objectives. Leadership quality is important for leading a team as squad needs guidelines for completing the task without any issues and problems. This is a unique feature that must be included by an individual for operating a better operations in their business (Ge and et. al., 2016).

Teamwork: In order to achieve set targets and goals it is important that company builds a strong team. For making a team it is essential that people sharing same mentality. This will assist them in maintaining a mutual understanding amongst employees. As a result an active participation can be seen in a company. Therefore, teamwork plays an important role in accomplishing work in effectively as it enables everyone who are members of team in expressing their views and thoughts which for completing the task in an appropriate way.

Culture: Amazon Go, is a big company so there is a possibility that different people of different culture are working in this organisation which is a very good thing. As a result an individual will get to know about various cultures that are present in society. Further, it is crucial that managers of company maintain a healthy environment at workplace. Therefore, by sharing a mutual understanding company will enable employees in working for a common goal. This will help them in performing the task under speculated time frame and in a better manner (Goble, Bercovitz and Feldman, 2017).

TASK 2

P3 4Ps of innovation and use of innovation funnel for shaping innovative ideas

4Ps of innovation is used by most of the companies as a tool that helps an organisation in analysing success of innovation in order to get a better results. This model was basically given by John Bessant and Joe Tidd and in this they first classified the process of innovation into various segment and these are explained below for better understanding:

Product innovation: This concept basically focus on making innovation in company's existing products so that they can make some kind of modifications in order to increase their sales and profitability (Henttonen and et. al., 2017).In terms of Amazon Go, they have not develop a new product but company has incorporated a sensor machines which can scan purchased items and with a scan bill can be paid. Mostly company manufacture goods that in order to increase their sales and productivity. In this category they try to implement innovative ideas that are unique in nature as this will help them in attracting more and more clients towards their organisation.

Process innovation: For manufacturing goods product has to go through a procedure from where they came out as a final commodity. Thus, in context with Amazon Go, company has made the process of purchasing more easier. As now people doesn't have to stand in a long queue for billing. It is possible that company uses the same process for manufacturing goods and products what important is that they optimised in a better manner in order to get effective result.

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Position innovation: This step is taken into consideration so as to re-launch products by making some changes if it has not added any kind of value to company. Further company has included some of the spices and herbs that can be rarely found (Ke and et. al., 2016).

Paradigm innovation: Although till now the concept of shopping like this is going good but company must also have other plans if in future strategies fails. As change in time can bring lots of new technologies that have an impact on business operations.

Concept of innovation funnel:

Innovation funnel is a process that is used by companies in order to choose an appropriate idea which can give them effective results in return. Thus, innovation funnel majorly use for describing he steps which can be taken for developing a process or a products. Therefore, innovation is applied in order to manufacture goods so as to fulfil the needs and wants of customers in speculated period of time (Khan and et. al., 2017). Further refining of new ideas and thoughts are being done so that best possible ideas can be utilised in order to increase the sales and profitability in given period of time. Basically it can be classified into three steps which are explained below:

  • First step is the basic step in which thoughts form various sources are collected which can be used for expanding their business operations. Thus, gathering information is very important and this can be gained from competitors, research, university connections or existing partners. Further company must have a clear vision and perspective about what objectives are need to be fulfilled. Therefore, person must have better understanding of capabilities so that they can execute the plan and ideas in a better manner.
  • Second one is comparatively narrow and it helps company in getting ideas that can give them effective results (Lim and et. al., 2017). Thus, it works as a chimney through which all unnecessary thoughts are eliminated. Along with this, company must be able to carry out the risk and returns for the ideas firm have selected. Further in this stage, it is required that they test products or services before actually implement them for gaining effective results.
  • In the last step, company gets refine thought that are ideal and potential enough in achieving desired goals and objectives. As a result by applying this company can increase their sales and profitability in speculated time frame. It is not effective sometimes as it discourages creativity and new ideas a person has in his/her mind.

M2 Implementation of different kinds of sales structures in organisations

Sales structure in organisation provides about that how a sales department of organisation uses strategies and tactics in improvement of sales figure and attaining sustainable growth (Mamo and et. al., 2017). It is important aspects which has direct link with the different aspects of organisation such as strategies, tactics, marketing and culture. The structure of sales based on different aspects defined below:

  • Geographic marketing:This will includes adoption of promotional methods within particular geographic area as per the characteristics which are present there. This will enables in application of such approaches which helps to satisfy the needs of particular segment of society.
  • Product sales:Here, more emphasis is provided on promotion of the products through explanation of their features. This will provides the opportunity about assessment of the preferences of customers and provide products as per their needs (Schmitz and et. al., 2017).

P4 Developments of frugal innovation along with suitable examples

Frugal innovation is a concept that is incorporated by firms so that they can use limited resources in a better manner without wasting any of the resources. This will help them in utilising all resources in an effective manner. Concept of innovation came into being when a company wants to increase their sales and profitability or to relaunch their non-profitable products in market area so that it can add value in the sales of market. Innovation funnel helps company in reducing cost of the production process because of which a decrease in prices of commodities can be seen (Shakeel, Takala and Zhu, 2017).

In context with Amazon Go, they are using frugal innovation for limiting their cost price, other than this, they are purchasing goods in a bulk that is helping them in reducing cost. Other than this, company can prepare a time management system through which they can manage entire task in an effective manner and right on time.

P5 Importance of the commercial funnel and the application of New Product Development (NPD) processing for commercialisation of innovation

Importance of commercial funnel: Management of the company has implemented strategies related to create awareness of product and services among clients through this firm are able to achieve goals and objectives in limited period of time. Amazon go is a new services in which individual person has can not stand in line for billing process they are purchase goods and scan their card. Bill of the purchasing commodities has automaticity came in their Amazon prime application. By implementing commercial funnel, firm are capable to enhance their work activities as well as performance through this they achieve goals in given time frame appropriately. It help to attract large number of clients toward their goods and services resulted gain higher market position as compare to competitors in the same industry (Sheep, Fairhurst and Khazanchi, 2017).

For this, they advertise commodities on different channel like website, social media marketing, newspapers, magazine and many more thus help to convert leads into clients. Management of Amazon doing efforts in which they are achieving goals and objectives in limited time period. Through sales funnel, enterprise are develop quality in their goods and services so that consumer are happy and satisfy with their purchasing. In order to develop develop new product, company has follow some step which are explain as follows:

Idea generation: It is a first step of idea development in which entrepreneur has create new idea of working by observing surrounding environment issues (Shi and et. al., 2017). For example, Amazon has analysis that person has difficulties in bill at grocery shop so that in order to reduce issues they open store where on line has been made for billing.

Idea screening: From all available alternatives ideas, individual has select best one to implemented. For this, they are doing feasibility analysis of each one idea accordingly choose one best from all.

Market evaluation: Marketing manager of Amazon GO has conducting market research for analysis clients needs, preferences, attitude, perception and many more accordingly they are develop prime application to reduce efforts of buying grocery product. Thus help organisation to attract large number of consumers toward their services as well as commodities.

Analysis competitive situation: When idea of product and services has new then no one competitors are available in market but their substitute those used by clients are available which are create negative impact on Amazon Go. So that, company focus on grocery market accordingly develop strategies to implemented new idea (Yu and et. al., 2016).

Prepare for launch: It is a last step of idea generation, in which manager has implemented all these stages in reality and launch their new product and services at market place easily.

P6 Innovation business case for an organisation and the ways to access funding

Successful innovation is all about reinforcing and learning from the mistakes. In regard of having any issues and problems associated with some products and service, innovation case is being organised to execute the market strategy with opting numerous process and steps. In the case of Amazon Go. i.e. an online grocery retailer stores operated by Amazon which is recently situated in Seattle (Henttonen and et. al., 2017). The company is recently preparing to build a proper checkout-free stores of grocery in Britain after managing a UK trademark for their format of Amazon Go. Here are discussed a proper business innovation case of organisation mentioned beneath:

Executive Summary:Amazon Go is a retailing stores functioned through the Amazon as an e-commerce business. This is partially automated body with consumer able to carry out purchase without opting checkout station or cashier. This was founded in 5 December 2016 i.e. expanding its reach each and every day make the process of buying more accessible and convenient. The organisation is recently developing a proper open checkout-free stores of grocery in Britain after the trademark registration of UK for their Amazon Go structure. In order to provide consumer a walk out and better goods pick up.

Requirement: Organisation is looking for business expansion for the service and product technologies in the existing system. Considering the distinct circumstances, organisation should look over new features and methods through which company can developed open checkout-free grocery stores, firm should launch proper phones with new features as this can deliver distinct practices and activities availing organisation the business objectives.

Solution: The issues resolution is launching a proper open checkout-free grocery stores with modified technologies in more cost-efficient cost for achieving customer (Clayton, Feldman and Lowe, 2017).

Need of Service Innovation: It is fundamental for business development and evolution of organisation along with attracting more buyer potential by which latest technologies. Amazon Go frugal; innovation to decrease the production cost and open resource of organisation in more effective manner. Henceforth, organisation have make use of different successful approaches to expand their business effectively.

Consumer Analysis: The modification in checkout system of grocery stores is assisting in the most effective business preservation along with the implementation of organisation in relation of attaining better results.

Improvement and Creation: This concept which has been outlined by the company through the communication assistance in relation of managing more creative and effective open checkout-free grocery stores in more disciplined manner y (Goble, Bercovitz and Feldman, 2017).

Acquisition of Funds: As Amazon Go is small and new company, it is fundamental for business to outlines the merging financial funds in numerous sources in relation to selection right approaches. The primary sources to manage the finance requirement of organisation of business. Also, Amazon Go persuade more sponsors and investors for investing ideas of business in context of funds management.

Availed Benefits: At the final stage, the organisation avail benefits from customer is recognises in relation of managing standard and actual advantages achieved through organisation. By this, company can simultaneously improving consumer experience in more significant manner (Chun and et. al., 2015).

TASK 4

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

Every business organization wants to protect their rights in market place with the purpose of attaining success at market place. In addition of this, it directly contribute in protecting new ideas, name, goodwill and many more. All these are major aspects for firm to enhance their positive performance in wide market. As it can be said that each firm tries to make their process innovative for enhance their brand image as compare to its rivals (Clayton, Feldman and Lowe, 2017). For this various tools and techniques are develop by government with the purpose of protecting intellectual property rights in order to establishing competitive image. In addition of this, various laws are implement by Amazon Go to increase the chances of attaining better success at market place. All these are as follows:

Trademarks:It is one of the important tool which help company to protect their products and services. As it is a symbol form which used by Amazon Go to make their unique products from other companies. With the help of this customers easily identify the products of company in market place. This can be done for a particular time frame in which company can easily protect the company products for any kind of harm.

  • Advantages: One of the main advantage of this tool is that it helps in recognising products from another companies. This will lead in increasing the profitability level of the company.
  • Disadvantages: The main drawback of this is that, company have to pay fees in every year to maintain it effectively.

Copyrights: As it is another tool which protect the original work of company as it can be applied in activities such as any kind of printing, advertisements logo and many more. This will directly contribute in establishing positive brand image at market place (Cui and Wu, 2016) .

  • Advantages: This tool is quick as there is no need for any kind of registration. This will save cost of the company.
  • Disadvantages: As it does not take any kind of rights from the work which increase cost of the company.

Patents: It refer to the rights which protect the company so that no body can not copied company ideas in market place. If any body do this than they have to take permission for company and its owner. With the help of this company protect the rights in effective manner.

  • Advantages: One of the main advantages of this us that it reduce the chances of copied of company ideas.
  • Disadvantages: It take time and cost as well this will increase the overall cost of the company (Cunningham and Porter, 2011).

Trade Secrets: Under this company keep their data and information confidential with the purpose of maintain the positive image of the company.

  • Advantages: The main advantage of this is that it helps in protecting rights of the company and at the same time also reduce the chances of any kind of misuse of this at market place.
  • Disadvantages: As it increase the chances of arising issues at the time of implementing business activities.

M3 Appropriateness of techniques and methods applied at different stages of customer decision making

Consumer decision making process is the process of recognition of buying behaviour. There are many methods which improves the strength regarding effective completion of consumer decision making process (Dahlander and Gann, 2010). The five different stages of consumer decision making process is defined below:

Need recognition:It is most important step in the process of consumer decision making. This will provides the opportunity regarding assessment of their preferences. The need in between the customer is generated through two aspects such as internal and external stimuli.

Information search: This will includes assessment of buyers effort regarding search of internal and external environment to make their effectively central buying decision.

Evaluation of alternatives: This will includes the process of assessment of alternatives such as different brands and products which provides the best benefit of customer.

Purchase decision: This will includes decision making regarding purchase of product.

Post purchase behaviour: Here, comparison is done of purchased product with expectations to identify satisfaction level (Dutta and Hora, 2017).

D2 Nature of innovation in context with company in order to overcome with challenges

Innovation is an important concept and it gives effective results to companies in terms of sales and profits. Along with this, it helps companies in overcoming challenges effectively. Further Amazon Go, for overcoming challenges are as they are adopting new technologies for providing better services to its clients. For overcoming technological problem they can give training to their employees so that they can increase their skills and knowledge which will be beneficial for future proceedings. Other than this, they are adopting different kind of strategies and making plan B as a backup plan if their strategies fails (Edquist, 2010).

M4 Detailed Innovation Business Case for measuring its overall effectiveness using appropriate techniques

The different aspects which are covered under innovation business case includes executive summary, objectives, funding, need, solutions etc. To formulate effective business case required to follow the appropriate procedure which includes steps such as test, iterate and improve which are defined below:

  • Test: This will helps to check the aspects which are mentioned in business case is of optimum nature or not. This will provides opportunity to assess the issues present in new business case (Eesley, Hsu and Roberts, 2014).
  • Iterate: It is the continuous process which includes the process of taking the feedbacks and bring changes.

Improve: It is the last step where final amendments are done in the business case as per issues.

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Purpose of Resources in Teaching and Learning

M5 Supported evidence-based evaluation of these different tools in the context of the wider business environment

The different tools which provides the opportunity regarding securing the intellectual properties of companies are known as trademark, copyright and patent. All these aspects ave different functioning but serves the common objective of protection of property rights (Gaddy and et. al., 2017). These tools are defined below:

  • Patents: It is tool which is commonly used for the purpose of securing new inventions. For ex., Amazon Go uses this to protect the technologies which are used regarding payment.
  • Trademark: This will is mainly used regarding registration of product. It provides opportunity in making different identity in market.
  • Copy right: It is effective tool which allows the third person to use particular invention to carry their activities. This will enables Amazon Go to expand business (Ge and et. al., 2016).

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CONCLUSION

From the above report it has been included that, innovation is a unique process that must be included by companies in order to have better results. Along with this, it helps organisation in making some kind of modifications fin order to increase their value in market area. For implementing innovation it is required that company have a proper knowledge about different elements that are present in the market area. For making innovation firm must develop a business case which they can follow for performing entire task in a better manner. In this report, importance of commercial funnel are explained in order to have better understanding and in context with company for implementing innovative ideas they have incorporated new and innovative machineries Other than this, frugal innovation is also included for having better outcomes in implementing ideas that can give effective results. Apart from this, innovation helps an organisation in introducing existing products by making some changes in them as it will enable them in enhancing sales and profitability of a particular commodity.

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