Innovations is the process of creating a new idea to make modification in existing products, services and method so that business can be expanded on a broad level. Commercialisation refers to the process of running business primarily for the purpose of acquiring higher profits. These elements are required for the achievement of long term goals. It is essential for the companies to make effective policies to implement innovation to achieve long term sustainability (Abebe and et. al., 2013). Proper and effective market research may help to evaluate the needs and demand of customers and this may lead to a successful innovation which is going to be implemented by business entities in future. Company chosen for this project report is C & K holdings which is a developing company of building projects and operating business activities in UK.
Various topics are discussed under this assignment such as overview of the company, importance of innovation as compare to invention, different types of innovation and detailed discussion of the process which is required to commercialise innovation. Evaluation of different methods for protecting ideas and their advantages and disadvantages are also done under this project report.
P1 Explanation of innovation and it comparison with invention
Overview of C & K Holdings: The organisation is a development company of building projects and established in Slough, Buckinghamshire, UK. It is currently operating business effectively and gaining higher profits in the market.
Innovation: It refers to the process of launching a new idea in the market by modifying existing products or services. As C & K Holdings is a construction company and it is using effective techniques in the construction process so that higher profits can be acquired in long term (Avimanyu, Reed and Jessup, 2012).
Invention: launching a new idea in the market for the first time is invention it helps to attract large number of customers toward the organisation. C & K Holdings can use invention in machinery that are used in the construction process in order to expand the business. An invention can lead the organisation toward success or failure.
Both the elements are very important for the organisation and importance of both of them are shown in the form of comparison in the table below:
It is important for the organisation as it may help to save cost because modifications are made in existing products.
It is beneficial for the organisation as it may help to grab attention of customers by launching a new product in the market.
It helps to retain existing customers and attract prospect customers by proving them innovative products by using innovative methods.
It is an effective concept that help organisations to expand their business.
Professional skills are required for innovation that may be acquired by the employees who are working in field.
Technical skills are required for invention and organisation have to hire experts form outside of the organisation.
Innovation and invention both are very important for C & K Holdings as they may help to attract new and retain existing customers (Batkovskiy and et. al., 2015). These two elements may also help the employees top attain their personal goals by putting their efforts in the organisational processes and business activities. If organisational goals are achieved than it may help the workers to acquire higher benefits according to their activities that are performed by them while contributing in the organisational goals.
P2 Vision, leadership, teamwork and culture can share innovation and commercialisation
Commercialisation and innovation both are such type of concepts that may help a business entity to deal with all its challenges because they helps to attract large amount of customers with the help of modified products that are offered to them. Organisational culture, vision, teamwork and leadership helps to shape the process of innovation and commercialisation. All of them are explained below:
Organisational vision: Vision is the long term view of future in which organisations plan to be in a good situation in future. Vision of C & K Holdings is to expand its business in upcoming years by acquiring higher market share. The company may reach to its vision with the help of innovation because the modification in the process of construction my help the organisation to attract large amount of customers. This may also clear the organisation when innovation is required so that business can acquire the growth (Budzianowski, 2016).
Leadership: Leadership refers to the activity of leading a group of individuals. Id leaders of C & K Holdings are able to motivate their subordinates than they will put high efforts to perform their duties. It will help to run the process of innovation and commercialisation because employees will be able to work effectively for the growth of the company.
Organisational culture: It is the combination of values, beliefs and values of the employees who are working in the organisation. In C & K Holdings task culture is implemented by the managers and leaders at their work place in which different teams are formulated to find solutions for organisational problems. It help to shape the commercialisation and innovation because team members make efforts to deal with each problem that may be faced by an organisation. All of them provide their opinion so that effective strategies can be formulated in order to attain goals (Cho and Lee, 2013).
Team work: If all the employees of the organisation are working together and cooperating with each other than it will help to achieve success. In C & K Holdings all the workers are supporting each other and working effectively. This will result in successful introduction of innovation and commercialisation of the business entity.
M1 Various sources of innovation
There are various types of innovations that leads to the process of innovation and also guides the organisations to make effective strategies to effectively implement the modification in their products or services. These sources are development in knowledge, modification of market structure, changes in perception of customers etc. all these elements guide the companies for innovations because it is not possible to operate the business with out making appropriate changes in the products or services that are offered by them to the society. In the situation of introduction of a modified product may help to attract large number of customers and also enhance the market share.
P3 Detailed explanation of 4ps of innovation and innovation funnel
Innovation method which involves various activities to uncover the new ideas or invent new things. There are 4Ps of innovation which was discovered by Joe Tidd and John Bessant (4Ps of innovation, 2015). These 4Ps help the organisation to do effective innovation in services and product. C&K Holdings used these 4Ps – product, position, process and paradigm to get competitive advantages in marketplace. 4Ps are mention below:
Product: Product is the essential element delivered by the organisation and changes made according to the consumers needs so that they acquire high market share. C&K Holdings use this element to attract the consumers, for that they have to formulate the new strategies and the innovative ideas for the product (Datta, Mukherjee and Jessup, 2015).
Position: Position is the elements used by the company so that they increase the market share by making new strategies and innovative products. This elements helps the C&K Holdings to improve position in the market so that its provide effective quality of product to the customers and increase its sales and profits.
Process: Process is the execution of improved production and method of delivery. In C&K Holding, use this elements to decrease production unit cost and increase the quality so that they deliver and produce the new products.
Paradigm: Paradigm is the elements use by the company to formulate the policies which is used to monitor the organisational activities. C&K Holdings use paradigm elements to show the management capability to make business plans and think innovative.
From the above innovation elements, C&K Holding prefer the process innovation so that it helps them to think about all steps such as hiring, supplying and training which should be enhanced for profit maximisation and current trends to carry out those processes (Datta, Reed and Jessup, 2013).
Innovation funnel is the management capability which is used by the organisation to determine and describe the method used in product and process development. So that product and process are made according to customers needs and wants. This is the combination of three essentials such as researching, development and delivering products. In C&K Holdings, innovation funnel is used so that they implement the plan to modify and deliver the products. In researching, company gathered the whole market information. In development process, all the modification made that are required into the competitive market. In delivering process, innovative products and services are delivered into market which are offered to the customers.
P4 Development in frugal innovation and their use
Frugal innovation: It is a technique which is used by different organizations to reduce cost of different products that are sold by them. It is done with the help of modification and removing such type of features that are not required by the customers. This helps to reduce complexity in production process. In C & K Holdings frugal innovation can be used in the process of construction in which buildings are made according to demand of customers. It can help to remove any old features form the manufacturing process and add any new and innovating feature according to the need of buyers. Higher profits and sales can be attained with the help of this type of innovation. It guides the organisation through out the process of success. Attention of large number of individuals can be grabbed with the help of this technique as it enhances the attractiveness of products and services that are offered by the business entities (Dereli and Altun, 2013).
It can be used in C & K Holdings to modify its process of manufacturing buildings. For example, organisation may use a new techniques in the construction process and remove any old process. The new technique may be related to the process of mixing the material with the help modified equipment. The organisation may change some parts of the equipment and than use new parts so that it may result positively for the organisation by enhancing its profitability and market share with the help of modified product. There are five different principles of frugal innovations are as follows:
Find opportunity in adversity: According to this principles organisations should make effective strategies so that all the threats can be turned in to opportunities.
Do more with less: In this principle the organisations think to create an innovation in the existing products so that cost can be saved.
Think and act flexibly: It is suggested to the companies that they should act and think improvisational rather than inflexible.
Keep it simple: The product should be modified with simple innovations rather than complexities as it can cause problem.
Include the margin: The organisations should gather information about their customers and than include their decision in the process of problem solving.
Follow your heart: The managers of the organisations should remain passionate as it may help to generate innovative ideas (Grimm and Jaenicke, 2012).
All the above mentioned principles can help to make the innovation process effective and appropriate for the customers.
M2 Application of innovation funnel in the organisation
C&K Holdings implement the innovation funnel to introduce innovative product into the existing market. The three essentials of this which helps them to guide the organisation employees and managers to research the market by collecting effective market information and according to the current trends of market they develop the products. And efficaciously deliver the products in market. It also help them to form the innovative ideas so that they choose the correct strategy to achieve the goals.
M3 Evaluation of frugal innovation
Frugal innovation is the methods which is used to reduce the products and services cost by reducing its complexities. It plays an essentials role as they remove the unnecessary characteristics of products and services that are not helpful but increase the cost and complexities. C&K Holdings uses this process to minimize the production cost to maximise the profit margin. It also helps them to produce the product and serve the services at lower price by minimising the use of resources in product development. This is the common ideas of innovation which assist them to modify innovative products and services into the existing market.
D1 Examination of growth, scope and development of entrepreneurial venture
Different entrepreneurial ventures are developing continuously in UK and all of them are using innovative ideas to develop their business. It is not possible to launch the innovative products by all the companies. The process of innovation help the organisation to expand their scope, attain growth and get developed by expanding business.
P5 Importance of commercial funnel and use of new product development process
Commercial funnel: It is also known as purchase funnel which can be defined as the process of buying a product by the customer with the help of the information that they are having about a particular product. It is essential for an organisation as it helps to monitor the demand and supply of the products (Hsieh, 2013). If C & K Holdings is willing to use the commercial funnel technique than it has to follow five different stages that are required to be followed. First stage is awareness that helps to aware the customers about the features and benefits of the product. In second stage opinion of the customers is acquired about the innovative product in the form of their feedback so that if they are not satisfied than changes can be made according to their demand. The third stage is related to the consideration in which price of the product is decided according to its features. Forth stage is preference, in which customers analyse that all the products that are provided by the company are according to their preference or not. Last and fifth stage is the purchase in which customers make choice to purchase or not to purchase the product of the organisation or not (Jacobsson, Lindholm-Dahlstrand and Elg, 2013).
Commercial funnel is mainly used for the process of new product development process for the organisation. C & K Holdings is willing to launch an innovative idea in the market in which it will modify its process of construction by using effective equipments that may help to attain organisational goals. For this purpose organisation have to follow some stages. Following steps are related to this process:
Idea generation: It refers to the creation of the idea in which various new ideas are developed by the employees and the managers of the organisation. These ideas are provided to the higher authority of the organisation.
Idea screening: Different ideas are gathered from the employees and other persons of the organisation they give ideas to launch the innovation. One idea is selected by the owner which is going to be implemented.
Business analysis: In this stage the organisation needs to gather information of the market by conducting an analysis. This may also help to identify growth opportunities in the market.
Product development: In this stage design and features of the new product or equipment is developed which is going to be modified by the organisation (Kilelu, Klerkx and Leeuwis, 2014).
Test marketing: In this step company provides the product to the certain markets to record their feed back and identify the effectiveness of the product.
Commercialisation: This is the last stage of this process in which product is supplied to different geographic location of the country.
All the above mentioned steps needs to be followed by C & K Holdings while modifying the process of construction that may help to attract large number of customers.
P6 Innovation business case for the organisation
Executed Summary: C & K Holdings is an electromechanical company which is providing innovations in business case. They are accessing their funds in market place. They are switching designs for next generation. Their components are dealing in everyday use. For building business size is made by innovating criteria like crowd funding, boot stepping for start-ups.
Objective: The purpose of enhancing innovation in business operations is done by applying for loans and for financial opportunities. C & K Holdings objective is to enhance productivity by innovating compliances and makes their saving by having flexible interest rate (Qian and Haynes, 2014T).
Solution: C & K Holdings company is their in a manner to improve productivity by switching top risks. It is based on executing components by having invention of new products and services. The result opt from this is new designs of with automotive implications. From this, C & K Holdings receive positive surface area, enhanced quality, faster of production.
Research for customers: Company has made this with a purpose to work according with the demand. Customers needs and wants is made according to their preferences. In accessing funds from market. The innovation criteria is their for attracting customers towards a product.
Develop and design plans: developing and designing of plans is made on the basis of decisions made by manager. C & K Holdings raising funds in market operations is made on new innovative product which is designed for development.
Necessity of capital:
Cost of new equipment
Total requirement of the capital for the company is 54000 which is required to operate the business and to successfully launch the innovation in the market.
Expectable benefits: C & K Holdings is considering achievements by enhancing benefits relating to funds, rate, expenses. They are dealing with an innovation which is based on increasing potentials towards making enhancements in business case. Employees of C & K Holdings leading benefits in making finest production in market place (Thore, 2012).
M4 Business case that consists measurement of all effective techniques
Business case is the concept refers to the process of launching new product in the market. It is essential for the C & K Holdings to analyse the market demand so that the new product can be launched successfully in the market. The efficiency of the product which is introduced in the market can be measured with the help of budgets and future estimation of demand.
P7 Different types of tools that can be used by organisation to develop, retain and protect knowledge
C & K Holdings, Inc, manufacture electromechanical switches in united kingdom. It aimed to provide designers a next- generation switch which s compact yet strong resistant to water. Their switch features in a soft actuator that results in upgrading customer experience. Due to increase in competition in market place this company needs to secure its innovative ideas, business plans and other aspects from its competitors. In U.K. There are various laws made by which a company protects its business from illegal activities. It includes intellectual rights that are trademark, copyrights and patent.
Trademark: It is a brand name, word, symbol,design,slogan and logos that are used on goods and services and create differentiation of product or services from one business company to other. By using this right C & K Holdings can secure their product trademark from any illegal use. This will help them to reduce their amount of time and money.
Patent: This right provides property rights on any invention but that invention has to be new and are not known by anybody else. C & K Holdings can utilise this right to file patent application. It will secure them to get copied by their competitors in the market. And allow them to be successful because they develop new product that offer competition on marketplace.
Copyright: It is a legal right of the owner of intellectual property. In general copyright means right to copy. This law does not restrain owner of a copy from reselling of their copyrighted works. By granting this right C & K Holdings can protect their creative product. Only the original creator of a product and whom he authorized have the exclusive right to reproduce the product or services.
As per above discussion, C&K Holdings can secure their product and set their business apart from competitors. From all above mentioned points organisation can use to develop, retain and protect their knowledge. By securing their goods and services with help of these rights organisation can able to increase their competitiveness in many ways by dedicating time and resources to intellectual property protection. This will help an organisation to promote their growth (Vishnevskiy, Karasev and Meissner, 2015).
M5 Evaluation of tools in the context of wider business environment
There there three different products that are used for the protection of invention and innovation. These are patent, copyright and trademarks. C & K holdings is using these tools in order to secure their innovative ideas. All of the tools help to secure the innovative ideas of the organisation.
D2 Impact of small businesses on different stages of economy
Small business organisations are the base of the economy they help to enhance the national income. If the businesses are operating effectively than they may acquire long term sustainability. All the small business help to enhance the economy as they develop their business and also help to run the business smoothly.
From the above project report it has been concluded that innovation and commercialisation these are two different elements that are required to attain all the organisational goals. It can guide the company through out the way of success. If the organisation is able to make modification in its products than it may help to attract large number of customers.
- Abebe, G.K. and et. al., 2013. Adoption of improved potato varieties in Ethiopia: The role of agricultural knowledge and innovation system and smallholder farmers’ quality assessment. Agricultural Systems. 122. pp.22-32.
- Avimanyu, D., Reed, R. and Jessup, L., 2012. Factors affecting the governance of innovation commercialization: a theoretical model. Journal of Business and Management. 18(1). p.31.
- Batkovskiy, A. M. and et. al., 2015. Assessment of the Innovative Capacity of Intellectual Property. Mediterranean Journal of Social Sciences. 6(4). p.325.
- Budzianowski, W. M., 2016. A review of potential innovations for production, conditioning and utilization of biogas with multiple-criteria assessment. Renewable and sustainable energy reviews. 54. pp.1148-1171.
- Cho, J. and Lee, J., 2013. Development of a new technology product evaluation model for assessing commercialization opportunities using Delphi method and fuzzy AHP approach. Expert Systems with Applications. 40(13). pp.5314-5330.
- Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of technological innovation: taking stock and moving forward. R&D Management. 45(3). pp.215-249.
- Datta, A., Reed, R. and Jessup, L., 2013. Commercialization of innovations: an overarching framework and research agenda. American Journal of Business. 28(2). pp.147-191.
- Dereli, T. and Altun, K., 2013. A novel approach for assessment of candidate technologies with respect to their innovation potentials: Quick innovation intelligence process. Expert Systems with Application. 40(3). pp.881-891.