Innovation and Commercialisation for Organisation


Innovation and commercialisation is very important for every organisation. As it helps in providing innovative and new products in market. Innovation is a process or action to identify new solution of problems (Ke  and et. al., 2016). Commercialisation is introduction of new goods and services or new process for production in market and making it available to the target consumers. Present report is based on Amazon Go, it is grocery store which is a subsidiary company of Amazon and founded in 2016. It provide services by using computer vision, deep learning algorithms and sensor fusion for making the purchase and payment automatic. This report includes difference between innovation and invention, importance of innovation for the organisation. Role of vision, leadership, culture and teamwork in innovation and commercialisation. Use of innovation funnel in creating innovative ideas, development in frugal innovation and its use for company.  It also includes importance of commercial funnel and new product development process commercialisation of innovation. Innovation business case and ways of funding for given organisation and tools for protecting innovative ideas a

P1 Explain innovation and determine difference between invention and innovations

Innovation refers to several activities which can be related to product, process and organizational routine. It focuses on acquiring profitability by more attention of potential customers in target markets (Osoro, Kirama and Vermeulen, 2017). Business entities can catch latest trends, access relevant information and ensure product availability on customer's fingertips. Customers enable for better experience by different choices on shopping way. In respect of Amazon, this is count in most innovative companies in 2017 survey. Organization has developed many platform of shopping and lifestyle by considering culture. These insight increase 60% users in potential market. Amazon Go has opened first store but that time they didn't considering on differentiation prospects. Nowadays it interacts to consumers with amazing digital platforms for instance: convenient store by using digital cart and payment through their account. This refers to fastest transactions, machine learning and computer cloud systems which make it smart shopping on these stores.

Innovation has significant role for every business plans which ensure to its long term success in the market.

Difference between innovation and inventions:

Basis of comparison




It refers to new development in existing product and technical processes.

It implement for new product or different process for increasing growth.


It based on new professional ideas for practical procedures.

This concept based on working theories and original opinions.

Required skills

It shows combination of marketing and technical skills.

Invention can be feasible only by scientific skills.


Innovation concerns on more activities across the company.

These process focuses mainly in research and development department for new process and product.


Innovations consider on a combination of similar product or services.

This works on particular product or procedures.

Importance of Innovation in retail industry:

There is a wide difference between innovation and inventions already discussed above. Both processes are important for developing a product for a company's success yet innovation has an edge over invention. Innovation in terms of development of existing processes is more important than invention as it requires lesser funds and efforts. Amazon Go also brought innovation in  retail industry. It is following sensor technique, those fundamentals changes retail sales thoughts in customer's mind. In this grocery store doesn't have credit card machines and no need of cash and ATM cards for payment. Through this system, company is enabling for tracking consumer's behaviours during shopping activities. On this basis, it provides discounts on related prior buying behaviour. Thus, it can be said that innovation has a major role to play in retail industry as described below:-

  • Maintain customer relationship: Innovation leads to creativity by providing new featured product or services in existing operation (Du and et. al., 2017). These kind of ability is established better quality along with unique systems. People always seeks new reliable functions in shopping centres and services. It helps in raise company's standard by facilitating new functions in existing process. So throughout new creative programs Amazon can maintain harmonium relationship with their customers.
  • Develops new technologies: Innovation mostly occurs during research and developing efforts to fulfil consumer requirements. It provides new methods of selling, transactions, distributions and product operational functions into an organization. Amazon Go can easily adopting those techniques to fascinate their potential customers. Innovation facilitates for adding new features and creates differentiation with rivals.  

Thus, innovation plays major role for every organization whether it is selling or technical support. Moreover, company uses invention for introducing new device in target market. This term refers to an act of designing or discovering some new methods and something that doesn't exist before (What is innovation and how can businesses foster it, 2017). These activities are only based on scientific  ideas and experiments which convert into tangible products (Yin, Shi and Yan, 2014). Amazon also consider on this aspect for market growth so they approach for footprint process for online giant. It includes to nine stores in UK market, by collecting knowledge of high street retail. All these things are happening in new invention in technologies sector which providing number of products within a single store. Amazon Go has introducing new technology in their grocery stores which known as 'just walk out'. It includes mobile application process so payment is received by amazon account with a buying receipt. Company has attached sensor fusion technique at entryway that presenting a barcode for tracking entries at store. This advance technology helps in identify consumer move for  picking products. Thus, a relevant invention assist to increasing sales within an organisation. Although innovation and invention have many differences in it's framework that elaborating here:   

As per Peter F. Drucker, innovation has seven sources those are describing here:

  • The Unexpected: Market plays dynamic role which leads several modification in existing process on bases of customers demands. These unexpected circumstances directly supports to innovation (Uprety and et. al., 2018).
  • Incongruity: Innovation takes place where incompatible situations occur. For instance: some people prefer only car but facing many problems in parking area shortage, so smart cars had taken place.
  • Market structure: Existing structures directly affects to company's product sale which gives many probabilities to innovation.
  • Necessity:customer's necessary requirement also gives chances of innovation for fulfil their desire timely.
  • Demographic changes: In today's era, people consider on trendy products to look better. To satisfying consumer's need according new lifestyle it gives birth to innovation
  • New knowledge: In market, new relevant information always create something better along with new functions into a product (Clayton, Feldman and Lowe, 2018).
  • Changing Perception: Everyone has their own observation according to different health perspective and preferences. customer's mindset emphasize to product sale which force to make changes in existing services.

P2 Explain how organizational vision, leadership, culture and teamwork can shape innovation and commercialisation.

 A company vision provide a clear image of working purpose and insight about goals. These goals clarification encourage to employees for effective work performance on time. In respect of Amazon Go, managers should clear their vision to attaining futuristic goals. Secondly leadership power, a good leader faces many challenges with team members and resolve critical situation smoothly. They understand company's culture and treat people accordingly by encouraging to teamwork. These aspects are discussing below statements:

  • Organizational vision: This aspects clear all objectives and futuristic goals to every people who is working in an organization. Amazon Go has solid vision which is based on deep learning algorithms and computerized techniques. This allows buying activities without facing public queue and checkouts to their customers. New sensor fusion technique is fascinating to new customers as well existing people. Company must know about customer preference and demand so they can easily think about for further modification in services. Thus,  under-stable vision open the doors for invention and assist to financial growth (Stojcic, N., Hashi, I. and Orlic, E., 2018).

  • Leadership: It is the power of a person which comes by their personality, knowledge and experience within an organization. Good team player gives contribution in counselling, coaching, learning support, conflict resolution, strike for employees rights and so on. In respect of Amazon Go, manager observers to customer's convenience and makes strategies on services. They always willing for understanding the concept of  people's need so they can work for innovation. These initiative techniques enable to high profitability and create a better image in market segment.

  • Culture: This refers to work experience, assumptions, policies, norms and procedures within an organization. Every company has different targets along with its policies and beliefs that mandatory for employees. Amazon Go should follow better working environment which has no discrimination between employees. A positive atmosphere provides assistance in increasing enthusiasm at working station. So members will more willingness to give their best performance by supporting to each other in supportive manner. Collaborative behaviour and positivity in working environment lead to creative idea during employee's performance ( Stojcic, NHashi and Orlic, 2018).
  • Teamwork: This process involves an agenda of  professionals to accomplishing a target or particular project. Team counts as a  part of business which encourage to people wok together by best contribution in all circumstances in company. Under Amazon Go, managers should follow teamwork strategies for acquiring desired outcomes. When people collect in a group, several innovative ideas come with best results which directly contribute for invention.

Thus, all functions take shape into innovation and commercialization by different results.

Amazon Go should consider on these activities for increasing market growth as well as innovation in their grocery stores. Those above aspects help to attaining selected goals through fascinate more consumers in potential markets.

Developing an environment for Innovation culture: It can be foster through leadership qualities and working experience of founders who is passionate for optimistic outlook. Amazon Go should works for employee's interdependency for effective and creative performance. Managers need pursue on innovative ideas in open environment that happens naturally. This attention conducts brainstorming techniques for creating unique ideas for supporting new features. It involves super performing candidates to explore various requirements  at a single place. Here a team takes place who' will performing in effective manner along with clear objectives. Senior mangers should promote to employees during their performance by following reward system (Cano-Kollmann  and et. al., 2018). They have to tolerate with mistakes and gives suggestion or training session to failure. Moreover, company's CEO can take advice for changes in working environment which decreasing their progress. This process provides assistance in acquiring innovative ideas and efforts for developing a new techniques. Employees are more encouraged through supportive behaviour, it also addressed to high morale with enthusiasm towards their jobs. By following this creative environment Amazon Go can conduct more innovation into their stores.

P3 4Ps of innovation and innovation funnel for Amazon Go

  •  Press- It deals with those factors which refers to the environment and climatic change in the the various operations of an organisation. So amazon Go uses different innovation in the field of technology. As Amazon Go uses the automation process which helps in eradicating the human involvement in the different operation. This also helps in limiting the wastage of paper and various natural resources. They uses the different types of advanced machinery which uses sensors in the machine while transporting material so it is required make concern to the environmental condition so that damage to the ecosystem can be limit (Henttonen and Lehtimäki, 2017).   
  •  Product- The innovation in the product is now become compulsory for the company as there are higher demand of creative and innovative product in the market. So it is very important for the company to create  innovative product, which can meet the demand of customer's desire. Through this Amazon Go can become able create the brand image in  customer. This helps the company in getting better position in the market when compared to rivals
  •  People- In any type of business the employee and the workers are  main assets, as they carry all the operational activity within an organisation. So innovation can be done on the human factors also. By giving them training regarding each and every skill through which worker can innovate in there work culture while doing the operations. Workers  of Amazon go can use there creative mind while solving different types of problem in distribution of product in stores.  
  •  Process- The several steps through which a task can be completed is known as process. The manager of Amazon go makes the innovative plan through which the delivery of different product and services can be done in a new way. The process involve all the operational activity like selling, marketing and promotion of the product. The innovation can also be done on the various promotional activity like through selling the product through  digital marketing, social media plat form etc. (Lim, Darley and Marion, 2017).

Innovation funnel

It includes steps for development of product and process. Aim of innovation funnel is to convert idea into a product or service to satisfy the market demand. In this process many ideas are collected at initial stage and at the last stage few ideas are considered for developing a idea or concept. Amazon Go needs to develop a new idea and for this they use innovation funnel. It has three steps for developing an innovation funnel. These steps are explained as follows:

(Source: Innovation Funnel, 2018)

  • Investigation: In this first stage organisation or management collect and enhance information and knowledge for collecting various ideas as much as possible. If company has many ideas then they will have chances for developing more products and concepts. Amazon Go has to develop strategy for gathering large amount of information as it is very important part of this process. Company can collect information from external as well as internal sources like employees, competitors,  by conducting research and from other institution etc. for this they management has to have clear goals and objectives for development of new ideas. It needs to have deep knowledge and understanding to convert ideas into realities (Sexton and Ligler, 2018).

  • Development: After collection of data next step is to screening of data. This process includes identification of relation among  selected ideas with the goals and objective whether they are related or not. Assessment of associated risk and return related to the goals and objectives. This stage includes testing of ides of  in actual target marketplace. Required resources are allocated for converting goods for utilising opportunities.

  • Shipping products: This stage ensures that ideas which are selected fulfils goals and objectives of company. Then new products and ideas are introduced in the market to satisfy the needs of consumers.  For Amazon Go, this will help in developing strategies to achieve future objectives. This a easy concept for companies for developing their ideas by using creativity as ideas or products are already tested in market then release in actual market.

P4. Critically evaluation of role of frugal innovation in the development of Amazon Go

Frugal innovation is consider as a process that is used for minimising the complexity of cost which is basically applied on a product. Thus, it can be said that it helps company in reducing the cost of production with the help of different strategies and action plan. Therefore, it assist company in providing better services and facilities to its clients. In frugal innovation firm can usually remove the features which is not adding value in the product hence, this activity automatically reduce the cost of the commodity. This is applied by each and every company as they wants to gain profits which can further lead firm into a superior position.

Frugal innovation is not an easy task as it requires a lot of planning in terms of making strategies so that cost can be reduced for their potential customers. Amazon Go, has worked on  frugal innovation and adopted a concept of reducing the congestion of queue in billing process.

As a result, entire activities are performed in no time. Therefore, this has worked in limiting the number of people in waiting line (Cohen, 2017).

It has been critically evaluated that every single business organisation like Amazon Go keep its focus on innovation for their future so that they may gain competitive advantages. Innovative strategies can help Amazon Go in reaching to an all new level where they can give excessive rivalry to its competitors. But, it has also been analysed that frugal innovation may bring complex situations as well for the company because making changes in any department focusing on innovation, organisation may reach to an all new level. Amazon Go, if it is talked about this company they have done delivery of products with the help of a drone. This helped them in grabbing attention of customers in a long run and aid them in enhancing profit margins. Some of frugal innovative among work place are given beneath:

  • Identify improvement area:This is being considered as a step where organisation needs to keep its focus on different areas at workplace where the actual improvement is required. Here, it has been critically analysed that manager of Amazon Go needs to keep its focus on making modifications as per their own needs and requirements.
  • Make alternative solution: Just after identifying where the problem is, Manager of Amazon Go needs to keep its focus on pulling out right and alternative solutions through which issue can be resolved rightfully.
  • Choose most appropriate solution: Form all available solution selection most appropriate one according to their needs and wants.  
  • Sustainable solution: Away with this, in this phase it is required for the manager of Amazon Go to make effective decisions and if they do not find it out relevant in nature, then company may easily take or make other determinations as well.
  • Shape clients behaviours:Through this process firm are able to provide quality of goods according to clients needs and wants.
  • Engage and iterate:Lastly, it is required for manager of Amazon Go make effective strategies which will help consumers in that are not demanding for a service more then make modifications in them so that sales can be enhanced. So that, company want to Engage potential customers with their product in order to full fill demand effectively.

Amazon's strategy of supplying goods by using drones is an innovative approach and potential factor for its success in this dynamic environment. This strategy can give the company a competitive edge in the market as no other firms of this sector has such unique inclination towards such fine use of technology. However, it has received mixed reactions from the customers. While some customers loved this idea and found it a game changer, others showed some negative perspective towards this strategy (Snihurand and Wiklund,  2018.). This means that there is still a wide scope for improvement in this strategy which would help the firm to influence more customers towards their innovations. They could also use recommendations online about their developing strategies which can be fruitful for the company in future as the strategies will be accepted by its customers removing any possibilities for rejections.


From the above report it is concluded that innovation and commercialisation are needed for every organisation to be competitive and get advantage in market. Innovation and invention are two different aspects as innovation is provides processed and reformed processes and products, Invention is creating new products from the ground. Vision, leadership and culture influence the level of innovation to achieve goals and objectives of company in an effective and efficient way. Commercial funnel is a process which starts from attracting buyers and ends when customer buys those products and services. Innovation business case explains executive summary, need for innovation, solution by innovative ideas and acquisition of funds from different sources.  Use of different tools like patent, copyright and trademarks by organisation to protect their innovative ideas, knowledge and intellectual property. It also motivates companies to get legal rights and ownership by discovering new processes and innovative ideas for achieving competitive advantage. If you want to get any type of assignment help to complete your work on time then our experts available all time.


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