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Importance of Innovation and Commercialisation

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INTRODUCTION

Innovation is defined as a modified or creative thought and imagination in a procedure form. It also includes doing modification in an existing product to rise profits and productivity  of a firm and it helps in analysing current market trends and customer requirements. Commercialisation refers to introducing a new product or services in a market. It covers the stage from manufacturing to distribution of a product or services in a market (Aarikka-Stenroos and Sandberg, 2012). This report is on Whirlpool company which is a home appliances  industry founded in 1911 by Louis Upton  and has headquartered in Michigan, United States. Its products are major and small appliances. This assignment includes innovation, importance of innovation, difference between innovation and invention and types of innovation. Process required to commercialise innovation and range of methods for protecting ideas along with their advantages and disadvantages is being mentioned.     

TASK 1

P1 Innovation and its importance to organisations in comparison with  invention

   Innovation is a process of finding new ways for doing an activity or process. It also refers to various activities of an enterprise in context to process, product and daily routine of an organisation.  It also focuses on increasing profits of firm by attracting customers in a targeted market. During this process of modification an organisation can analyse trends, get  appropriate information  and availability of product. Whirlpool  is considered as most innovative company of the world which offers a wide range of electronic products. This organisation is famous for its innovation in manufacturing sector which produce highly creative items on regular basis. For this assistance, it has given employment to best talented engineers who are expert in adding more valuable features in existing products (Bagchi-Sen, 2010). In terms of revenue, this company has occupied a large area of marketplace because of innovation.

Importance of innovation

    • Maintain customer relationship:Innovation results in modification by giving new creative products or services in current operation. This help in creating good quality of products and services with some specific system. Individual's always determine new functions in shopping malls and services. Moreover, it helps in increasing standards of company by implementing by new functions in current process. Whirlpool can  develop healthy relationship with their clients.
    • Develops new technologies: To give customer satisfaction innovation is done frequently during research and development process. Innovation helps in providing new methods for promotion, distribution and product operational function into a company (Bogers  and West, 2010).  Whirlpool can adopt new technologies to influence their potential customers.

Basis of difference

Invention

Innovation

Meaning

It is a process of creating new product which will meet requirements of customers.

It refers to a method of brining improvisation to add a value in current product.

Objective

It aims at providing a new product to people that will give them ease.

It aims in doing add on in existing product.

Concept

It develops an idea with originality.

It implements a new idea practically.

Skills

People working for innovation should have scientific skills.

People who are working for invention requires skills of marketing.

Occurs when

It occurs when there is a idea in mind of scientist.

It occurs when a product needs modification or there is need for launching a product in market (Walsh, 2012).

Concerned with

It concentrates on a specific process or product. 

It concentrates on connection of various products and process.

Activities

It is restricted to Research and development Department. 

It covers all the departments within an organisation.

 

            Invention has different concept from innovation, it refers to modification done an existing product which cannot be launched by other firm at market. It is a creative potential of a firm. Comparison between innovation and invention are being discussed below.

P2 Impact of organisational vision, leadership, culture and team work can shape innovation and commercialisation

            Whirlpool company uses different factors which can give shape to innovation and commercialisation which have been discussed under beneath.

            Vision:  Company has a vision statement “ Every home..Everywhere..with pride, passion and performance”  which means that every house is company's field and every customer along with their activity is treated as an opportunity by company. This vision encourage potential and determination  that an organisation has for their clients and enforcing them to give creative solutions which will help in satisfaction of customers (Bogers and West, 2012). Through the help of vision a company can set their objectives and targets for future and do modification considering future. It helps in expansion of business in future. Managers of company implement plans to accomplish vision which will help in growth of a company in future.

            Leadership: It is ability of an individual or group of people to influence and lead their colleagues or followers in an organisation. It involves making sound and often difficult decisions, creating and distributing a clear vision, setting targets which can achieved effectively and efficiently and providing their followers proper and appropriate knowledge  and elements needed by them during the process of achieving setted targets (Teece, 2010). In whirlpool, leadership helps in leading and encouraging their followers and leaders along with creative ideas can influence rest of workforce to convert those thoughts into realities and create faith between staff members which will result in higher productivity and profits of a company.

            Culture: Productivity and profits of a company is affected by internal environment factor. It is a responsibility of a manager   to develop a friendly and harmonious environment that will help in reduction of conflicts among staff members within a workplace (Ettlie, and Rosenthal, 2012). Here whirlpool, adopts a diverse culture under which engineers from diverse regions, qualification with various scientific and technical skills  will produce results which will help in new ideas for commercialisation. Diverse d skills of engineers leads to more innovation and launching of differentiation in products within an organisation.  

            Team Work:  Team work helps in collaborating working of employees as an individual  employee will not work as efficient and effectively as a group can do. Moreover when employees will work in group they will create a harmonious environment within an organisation and  able to resolve conflicts  and will work with more dedication and hard to achieve targets of company. As different people have different point of view and have various perception they will bring more innovative and new ideas for modification of a product within Whirlpool. Working in groups will also encourage workforce and will help in revenue generation and profit of a company.

Different sources of innovation and how organisations can foster and develop an environment and culture of innovation

            For innovation to successfully take place, management of any business organisation has to adopt a number of measures. In context of Whirlpool, there can be various sources for innovation to foster in business environment. These are promotion of new ideas proposed by employees, engaging them while making necessary decisions for successful functioning of entity. Also, some other ways can be building healthy relationship with the workforce so that they develop a sense of belongingness to entity and feel valued and responsible for carrying out the operations of Whirlpool effectively. Along with this, Whirlpool organises half yearly brainstorming secessions wherein any individual who is a part of organisation can up with a new idea that can take company to height and achieve high profitability in near future. All these reflect that company largely follows a culture where innovation is encouraged and promoted at all the levels.

TASK 2

            Innovation mix refers to a strategic tool which helps in improving quality of products and services and it helps in developing a brand image and increasing productivity and profit of a company  and employees (Gambardella and McGahan, 2010). It involves P's which are product, process, people and press to make use of strategies in a workplace. Whirlpool make use of these four   P's to increase their profits and build good will and brand image at market.

            Product: It refers to doing modification and improvisation in products. It can be related to packaging, designing, methods of distribution, promotion  and many more.  Here in Whirlpool, it means bringing modifications and improvisation in home appliances and company has launched a new product which is Ice magic.  

            Process: Process is a plan of action which ends in completion of a task. Management of company creates plan to improvise method of distribution or manufacturing products or services. Process involves various other stages which are  operations, manufacturing, selling, promoting, advertisement and many more. It also means improving a product so it can be fast and have reduced cost. In whirlpool, process innovation is used to develop strategies for implementing a plan for  launching and manufacturing a new product in a market place. It also helps in effective and efficient working of employees as well as an organisation.

            Position: This is concerned with the individuals who are targeted as a customer base for increasing the sales and profitability of company. This aspect holds immense significance as business runs in a society and is desirable to operate in a manner that best suits the demand and needs of community (Wonglimpiyarat, 2010). Also, this is in accordance with ensuring that customers perceive good image of the product and are  influenced to make a purchase consequently. In Whirlpool, this is done by bringing continuous innovations in the existing products and product lines of company so that customers gain maximum satisfaction and can be retained for a long time.

            Paradigm: It refers to the act of bringing radical changes in the manner of working by way of innovation. Paradigm is related to creating improvement in the current processes and techniques of company so as to improve the overall working performance of organisation (Thore, 2012). Also, consideration should be given only to such changes that bring positive transformations within the business environment. In Whirlpool, this is executed by constantly modifying the business model or tools and techniques used by employees so that the assigned task can be achieved in a timely manner.

            Innovation funnel refers to providing new ideas to workplace which will benefit in successful achievement of   objectives related to future. In this process data collected from external sources are determined an put into use so that sufficient information regarding invention within workplace is analysed. Innovation funnel is comprises of three stages which are being mentioned below.

            First step: It is the initial step in which a company collects data which is required to make  modification or improvisation related to requirements of a client (Huizingh, 2011).

            Second step: Under this step a segment is divided into smaller segments of market under which an organisation can sort and create plans so that they can do modification and improvisation.

            Third step: It is a last step taken by a manger of an organisation. By the help of these smaller segments they will produce a result that will lead to better satisfaction of customers. 

P4 Development in Frugal Innovation

            Frugal innovation can be described as an effective method which is helpful in reducing complexities and overall cost of production. It is necessary to manufacture goods at minimum cost so that they can boost up profit margin which provide support to improve productivity as well as profitability in proper manner. It is essential for every organisation to to put efforts for decreasing threats of business along with increasing strengths in order to utilise them for making better profits on regular basis (Snow and et. al., 2011). However, it will facilitate to attract new customers and retain the current clients which ensure long terms benefits of an enterprise. In context to Whirlpool, they are required to apply technique of frugal innovation so that they can remove issues from their overall procedure of production which helps to increase quality of product in respect of attaining satisfaction of customers (Kim and et. al., 2011). It is important to take appropriate steps which should be taken for properly applying frugal innovation method and these are explained further –

            Determine area of improvement – The initial step can be described define as to determine overall those departments or sections of an organisation where development is required along with solving threats. It include the criteria of identifying various problems in production and other sections of company so that appropriate efforts can be put to sort out them. In case of Whirlpool, they should determine threats and weaknesses of their business and then take proper steps for removing issues to facilitate better production of products.

            Make alternative solution -  This involves to determine various kinds of alternative ideas or thoughts in order to solve the problems of company to make their product more effective for achieving satisfaction of customers. However, it is necessary to conduct meetings to take suggestions from desired staff members of company to gain various alternative choices in order to make correct decisions (Lindič  and et. al., 2011). The Whirlpool company should take suggestions from employees with involving them in meetings which helps to attain more alternative solutions  and make them feel valuable in company.

            Choose most appropriate solution – The third step refers to analyse overall alternative ideas or concepts by determining their positive as well as negative aspects. However, it will provide help to select the best one choice which is beneficial in terms of solving threats or problems which effects negatively on production of goods and facilitate to gain better profits by Whirlpool.

            Sustainable solution – This can be explained as to analyse overall positive and negative aspects of selected choice to apply the same for to make effective solution in order to gain its profits for long duration of time in business. It will help the company to deal with different types of issues which may generated in future while conducting operations in proper manner. In context of Whirlpool, they should evaluate effectiveness of best idea selected so that it will facilitate to sort out overall issues in production for increasing quality of product along with improving customer satisfaction.

            Shape clients behaviours – The shaping of client behaviour refers to put efforts for completing all the changed requirements and desired of them in order to make them loyal for brand (Snow and et. al., 2011). It include the criteria of delivering better quality of goods as per actual needs and wants people for increasing sales of product by Whirlpool which facilitate achieve growth for business successful manner. 

TASK 3

P5 Importance of commercial funnel and application of New Product Development

            Commercial funnel can be described as an effective idea or concept which analyse overall  potential numbers to evaluate those people who actually purchase products or services of brand repeatedly. It is important to analyse really loyal clients of company who purchase product from same brand and never switch to another organisation as they are responsible for fixed profit of company for along time. However, it can be considered various steps such as interest, evaluation, surprising decision, re- evaluation and repurchases phase which provide support to organisation for increasing their profits (Teece, 2010). Moreover, there are various kinds of significances which can be achieved by Whirlpool company by using commercial funnel  and these are given below –

  • Initially, the commercial funnel is significant as it is helpful to gather appropriate data about customers which provide support to fulfil actual needs, wants and demands of people in order to achieve their higher level if satisfaction.
  • Secondly, the Whirlpool can remove threats of production processes which facilitate to manufacture high quality of goods and helps to attaining desired goals or objectives of business in proper manner.
  • Thirdly, it will provide support develop goodwill of brand in more effective as well as efficient manner through creating appropriate image of Whirlpool company in front of customer.

            Application of new product development

            The organisation is required to make an accurate plan of action which provide support to introduce new product in market in order to enhance brand image in market along with attaining better profit share appropriately (Lindič and et.al., 2011). It includes several steps which are described below –

            New product Strategy – This includes the criteria of establishing effective strategies which are supportive to launch a new product i.e. Icemagic having feature of simple twisting knob to make ice 40% quicker.  It also involves automatic micro processor and water cooling feature  for 12 hours without power and less power consuming product. Product should design as per actual desires of people through analysing them in an accurate way (Thore, 2012). Managers of Whirlpool should put their efforts to make appropriate techniques or policies for introducing fresh product for grabbing more profit share in market.

            Idea generation and screening – This can be described as to generate different types of ideas or concept for introducing new product in market and conduct appropriate screening of the same to analyse their benefits in order to select the best one alternative choice. Whirlpool is required to choose the best idea so that they can enhance their profitability which facilitate to attain better growth of business in future.

            Business analysis – This step involves the proper evaluation of overall strengths and weaknesses of business so that accurate actions can be taken for improving benefits of strong aspects along with reducing negative impacts of weak point of business. It will provide support to improve brand image in market along with satisfying customers appropriately. Whirlpool is required to conduct their SWOT analysis in terms of evaluating their strengths and weaknesses  in respect of taking better profits in business by launching new product i.e. Icemagic.

            Commercialisation – This can be consider as very important actions in which appropriate number of product is required to be supply  and distribute in different stores of company so that people can easily get them (Godin, 2012). It is necessary for make available product in market at every location in order to achieving more number of customers new product i.e. Icemagic by Whirlpool to enhance business successfully.

            New product – After completing different steps for launching new product in proper manner for completing needs of customers to grab more profit share in product. In context of Whirlpool, new product is Icemagic having unique features for fulfilling actual desires of customers in proper manner for satisfying the same.

P6 Build an innovation business case

            Innovation business case is described as to establish an appropriate plan of action which includes various types of strategies, methods, techniques and policies to launch a new product properly (Walsh, 2012). It is necessary to make an accurate planning which facilitate to conduct overall processes that are required to be completed properly for introducing new product successfully. In context of Whirlpool, it is necessary to make effective innovative business case for launching product named as Icemagic.

            Executive summary – The Whirlpool company is an American multinational manufacturer  and marketer of home appliances and headquartered in Benton Charter Township, Michigan, United States. It was founded in the year around 1911 and manufacture home appliances to fulfil actual desires of people. Moreover. it has approximately 92000 staff members working with them on regular basis to conduct operations in proper way (Bogers and West, 2012).

            Vision of company – The vision of Whirlpool company is “In all homes....Everywhere, with pride, passion and performance. They have mission statement “We all, are passionately creating loyal consumers for the rest of our lives”.

            Need for innovation – To enhance profit share of Whirlpool in market through introducing new product i.e. Icemagic.

            Solution – They make an effective strategy of launching fresh product named as Icemagic which helps to increase their profits.

            Consumer Analysis – The Group of customers who can easily afford the Icemagic product and desired people whom demands can be complete by the sane in appropriate manner.

            Creation and improvement – In order to introduce the Icemagic, it is necessary to gather overall required resources so that every process and activity can be carried out in proper way. It includes the creation of new innovative features in fresh product to make it more efficient from other present product in market which ensure its opportunities for success.

            Acquisition of funds – The funds is main source for conducting every single procedure and events relevant to operations which is necessary to launch Icemagic by Whirlpool in proper manner. As Whirlpool is a large company, the company has ample number of sources to acquire funds from. Some of the sources that company can opt for, are bank loans and asset securitization for collecting funds so as to feasibly introduce the new product.

            Benefits Availed – The new product have unique idea of completing new desires of people by implement appropriate feature to the same. It will provide support to increase good will of brand as well as help to gain better profit share in market to ensure further growth of business in future (Wonglimpiyarat, 2010).

TASK 4

P7 Different tools that organisation scan use to develop, retain and protect Knowledge and intellectual property

            Innovation can be explained as a criteria of generating better ideas or thought which facilitate to improve quality of product and increase profitability of organisation. However, the managers of company put their efforts to make more effective as well as efficient strategies which are helpful gain better growth of business (Aarikka-Stenroos and Sandberg, 2012). In context of Whirlpool, it is essential to make innovative plan of action with accurate concept which is supportive improve brand image along with boosting profit share. There are different tools which are used an organisation to develop, retain and protect knowledge as well as intellectual property. Some of these techniques or methods are as under –

            Copyrights – This can be described as protection tool for creators of original work of authorship which includes musical, dramatic, literary, architectural and other works. It involves that registration of work is recommended in the event is infringed upon or ownership is questioned.

            Patents – The patents refers to another form of intellectual property in which a patent provide legal permission to owner to exempt other in order to make, sell, use, and import innovation (Bagchi-Sen, 2010).

            Trademarks – This can be explained as symbol through which a person identify particular product or service. However, such marks or signs are generally located on packaging of product, label, voucher or product itself.

CONCLUSION

            From the above report, it is conclude that an innovation can be described as a modified or creative thought and imagination in a procedure form. It includes importance of innovation such as maintain customer relationship and develops new technologies along with  innovation mix including its factors like product, process, press and people. However, it involves application of new product development with several effective steps including new product strategy, idea generation & screening,  business analysis, commercialisation and new product.

REFERENCES

Books and Journals

Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to commercialization through networks. Journal of Business Research. 65(2). pp.198-206.

Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US biotechnology sector. European Planning Studies. 15(6). pp.753-766.

Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within open, user and cumulative innovation.

Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open and user innovation. Creativity and innovation management. 21(1). pp.61-75.

Ettlie, J. E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service Management. 23(3). pp.440-454.

Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose technologies and their implications for industry structure. Long range planning. 43(2). pp.262-271.

Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.

Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation. 31(1). pp.2-9.

Kim, S. K. And et.al., 2011. The effect of R&D, technology commercialization capabilities and innovation performance. Technological and Economic Development of Economy. (4). pp.563-578.

Lindič, J., and et.al., 2011. Deploying information technologies for organizational innovation: Lessons from case studies. International Journal of Information Management. 31(2). pp.183-188.

Snow, C. C. And et. al., 2011. Organizing continuous product development and commercialization: the collaborative community of firms model. Journal of Product Innovation Management. 28(1). pp.3-16.

Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning. 43(2). pp.172-194.

Thore, S. A. ed., 2012. Technology commercialization: DEA and related analytical methods for evaluating the use and implementation of technical innovation. Springer Science & Business Media.

Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization strategies for small and medium renewable energy enterprises. Technovation. 32(1). pp.32-42.

Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon Valley. The Journal of Technology Transfer. 35(2). pp.225-236.

ONLINE

4ps of innovation 2017. [Online]. Available through <https://www.slideshare.net/lbaraliu1/chapter4-35297521>. 

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