Innovation and Commercialisation

This report analyses concepts of innovation, commercialization and invention along with their differences. It also evaluates the various different types of innovations possible within an organisation and determines the process which is required to commercialise innovation in an organisation. Finally, it studies the range of methods which can be used to protect knowledge and ideas along with their advantages and disadvantages. In this report, we have evaluated these operations within the organisation Samsung Electronics, as part of its Product-Innovation team. Samsung Electronics is one of the biggest and well-recognised brands globally, beginning operations in 1969 it has continued to expand its operations and market share ever since.

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P1 Importance of Innovation in Comparison With Invention

1. Innovation-

It refers to the process of making an idea or invention already invented into a good or service which has an innovative approach behind it, by increasing comfort levels for customers and meeting the changing requirements. It can be understood as the application of better solutions by companies to create higher value for customers through the implementation of new products and services. Innovation brings improved efficiency, and effectiveness which is highly relevant for enhancing production levels in competitive business environments for organizations. Innovation brings high creativity to the process which eliminates the chances of errors in products and enhances the quality performance for customers. For example, innovation of iPhone is one of the most innovative breakthroughs in technology which has improved networking for people to a large extent (Wan and Ding, 2019).

2. Invention-

It can be understood as a unique device, method or composition of process within an overall product development process which enhances the functioning levels. Invention helps to overcome barriers by creating something new which increases the level of efficiency through constructing imagination into practical outputs. It brings the imagination of humans into practical actions where visualization of ideas has played an important role in inventing new objects. For example, Galileo invented the Telescope in 1609 which has played an important role in human history by advancing our understanding of Earth's place in the universe.

The difference between Innovation and Invention can be understood on various points which are as follows:

• Innovation connects the dots between inventions. This statement can be understood as a foremost creation step or introduction of a process for the first time which brings revolutionary change for humans. Innovation on the other hand occurs when significant change with the help of technology comes in existing products or methods for enhancement in performance levels.
• Invention creates something entirely new which has not been functioning until now, innovation creates something which has high chances for selling in companies. Innovation along with creativity speeds up the process of invention which has an already-implemented function to deliver.

3. Implementation of Innovation-

Samsung aims to deliver high innovation criteria of technologies in already invented networking systems by advancement in quality service and superfast communication standards (Wang,2019). The company is committed to transforming the digital world with highly innovative technologies, products and designs which enriches life of people creatively. The company inspires constantly by delivering groundbreaking innovations in digital appliances, and network systems for enhancing global community living. Samsung Vision 2020 is an ambitious growth target by the company where the company aims to deliver operational excellence and innovation in the highly competitive digital business environment (Djamasbi and Strong, 2019).

P2 Organizational Vision, Leadership, Culture and Teamwork Shape Innovation and Commercialization

1. Vision-

The organisational vision of Samsung shapes innovation and commercialization to a great extent as the company's vision is to enhance productivity levels with high technological up-gradation in all electronic services and appliances. (O'Brien,2019). Vision is a long-term plan for a company which aims to foster growth and innovation along with the completion of organizational set goals to reach high-profit margins. It is imperatively important for a company to foster innovation along with high sustained customer loyalty growth in high volatile business environment.

2. Culture-

Organizational culture plays an important role in shaping innovation and commercialization within the company to deliver high growth and success for long-term sustainability in the market. Charles's handy theory explores the classification of business culture based on the functions and roles of management teams including superiors, leaders and subordinates (Callaghan,2019). The theory focuses on six influence elements in a company culture that shape innovation and advanced growth, which are physical, exchange, rules in procedures, persuasion, ecology and magnetism. Samsung aims to enhance innovation and commercialization targets by training employees with advanced skills, and strong persuasion by leaders which enables procedural growth in ecology.

3. Teamwork-

The importance of teamwork in bringing innovation and commercialization for company growth can be understood through Bruce Tuckman's theory which focuses on team formation. Forming, storming, norming, performing, adjourning and transforming are the steps which analyse how a team tackles performance levels from initial formation to completion of tasks and projects. Samsung places high importance on building strong technically advanced teams where employees are given brainstorming sessions, and opportunities to showcase their ideas by which they are led to transform to reach end targets of high innovation and commercialization (David,2019).

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P3 4Ps of Innovation and How It Leads to Shape Innovative Ideas

The 4ps of innovation which contribute to the construction of operational stricture with innovative ideas for Samsung can be understood as follows-

• Product-Innovation in product and services is highly important for attaining target customer growth market. Product is an initial offering by the company to customers which has a high potential to attract them, Samsung focuses on innovative technology in products to compete in a highly volatile business environment.
• Process- It refers to the way things are created and delivered for converting inputs into final products innovatively. Samsung aims to reach cost efficiency through advanced technologies in processing their electronic devices and eliminating all hazards.
• Position- It refers to change in the context of introducing products and services to target customers in market share innovatively. Samsung aims to deliver high innovation in positioning itself in the target market of all age groups which enables it to position itself strongly in a digital competitive world (Wong, and Ngai,2019).
• Paradigm- It refers to methods of how innovatively a company frames products and services to customers globally. Samsung aims to enhance its paradigm globally among consumers of all age groups by offering highly technically advanced electronic products and promoting services on a global platform.

Importance of Innovation Funnel-

It can be understood as mechanism which enables constant stream of ideas which needs be screened for viability, strategies to introduce long term changes in the company through innovation. The innovation funnel includes brainstorming with employees about the advanced usage of technology and ensuring the best methods are chosen for projects. Samsung with the help of the innovation funnel enhanced its production levels with the creation of advanced processing technologies in all electronics, increasing the profit margins by reaching cost efficiency. It enables the company to filter out the hazards which may come in the innovation implementation process and select the best alternatives through which the company can enhance its products and services (Callaghan,2019).

P4 Developments in Frugal Innovation

Frugal innovation can be understood as the procedural method of reducing complexity and cost of goods which are inputs for final production innovatively for reaching cost efficiency in targets. It is important for companies to work with frugal innovation techniques where it becomes imperatively important to use resources available to their optimum utilization. It aims to eliminate non-essential features from durable goods to increase efficiency for reaching the target market globally with high-tech technology advancement. Samsung aims to enhance its production targets with frugal innovation, developing electronic devices with high-tech memory systems and instant networking opportunities for people. The company aims to use digital appliances with upgraded technical advancement which reduces the chances of error and eliminates hazards during the production process (Wong and Ngai, 2019).

It is important for SMEs to adopt frugal innovation in their processing units as it helps to achieve cost efficiency, speed up the process of operational structure and reduces the chances of failure. Through frugal innovation, SME companies can save large amounts of capital by utilizing resources efficiently and reaching optimum results.

For example- A team of Cambridge computer scientists has developed a highly affordable solution for budding engineers looking to gain hands-on experience by working with advanced computer technologies and coding. Frugal innovation has helped them to utilize their capital worth fully in eliminating any wastage of resources and bringing high production levels along with profit margins.

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P5 Importance of Commercial Funnel and New Product Development For Commercialization of Innovation

Commercial Funnel-

It refers to the sales process or in detail can be understood as a revenue enhancement process where companies aim to bring efficiency in reaching production targets along with a focus on the enlargement of profit margins. Samsung aims to deliver quality services to all customers worldwide when it comes to technical advancement in electronics. It is divided into variant steps which differ according to the sale models of companies (Lambert, 2019).

• Marketing funnel- Nurture innovative contacts to enter the Sales funnel. It refers to management by marketing teams and builds innovative prospects for reaching the target market efficiently.
• Sales Funnel- The purpose of this funnel can be understood as converting people who are already in the buying cycle to loyal customers with innovative selling techniques for reaching the customer funnel.
• Customer Funnel- This funnel is managed by support staff and management services looking after customer satisfaction services for attaining high customer loyalty and obtaining repeat orders (Sun, 2019).

New Product Development(NPD)-

This refers to the process of bringing new products and services into the marketplace by engaging in research according to changing customer preferences, market advancement or to capitalize on innovative opportunities. Samsung aims to build a global reputation as a dynamic innovation and creatively advanced digital company where consumer preferences are given high importance. It enables companies to deliver more innovative products through better functionality in performance levels, customization and interpersonal services. Samsung aims to respond quickly to the changing business environment and stay one step ahead in the highly competitive digital world through advancement and new high-tech devices (Winch, 2019).

The 8 steps in NPD that companies follow for bringing new products and services in market share are as follows:

Step 1- Generating the idea

Step 2- Screening

Step 3-Testing the concept

Step 4 -Business analytics

Step 5-Marketability test

Step6-Technicalities and product development

Step 7- Commercialize

Step 8- Post-launch review

P6 Innovation Business Case and Ways to Access Funding

Innovative business case with high product value, better control on capital utilization for innovation portfolio and idea generation processes for reaching high-value blend of products and services in market share. It enables companies to analyse the benefits and risks involved in proceeding with the recommendations, and alternatives available before management. Innovation business case includes segmentation, targeting and positioning opportunities for companies where new customer market share is targeted for growth. Samsung to increase productivity levels and attain business goals needs to construct innovative techniques for implementation and reach a global audience with high-tech digital devices (Bhimani, Mention and Barlatier, 2019).

Product Development and Marketing-

Samsung aims to introduce a new smartphone in the market Tech Radar which has high-tech features with advanced technology and high-quality camera functions. The innovative business case will assist Samsung in introducing high-tech digitally advanced electronics and smartphones to people worldwide. The company aims to enhance marketing techniques by engaging in partnerships and promoting new goods and services on social media platforms Samsung's vision is to enhance customer loyalty worldwide, segment new tech-savvy customers of all age groups and deliver efficient quality services to them.

Ways to Access Funding-

There lies high investment of capital finance by companies to bring new products into market share, promotion and advertisements for reaching large amount of people effectively. Samsung's business case showcases the ways how a company can access funding on a global platform and enhance public contribution by engaging them in promotional activities.

Equity Financing-

It refers to financing where money is invested in business by customers and shareholders in exchange for part ownership (Velenturf and Jopson,2019). This is an effective way to raise huge financial capital on a global platform, as the company has an already established goodwill in delivering high-quality advanced digital electronics and gadgets. Equity financing will enable Samsung to promote its new smartphones and other advanced technical gadgets to people who are looking for investment opportunities in big companies.

P7: Tools to Protect and Retain Intellectual Property and Knowledge

Intellectual property (IP) is defined as the ownership of design or any innovative ideas developed by any person or organization. For long-term sustainability, it is necessary that Samsung protect its intellectual property so that it can protect its innovation and valuable knowledge from competitors. Thus, the organization uses various tools to protect these valuable resources. These tools provide exclusive rights to innovations of the organization so that no one else can copy or use them without permission of the organization. Samsung uses the following tools to protect its IP and knowledge resources:

Patent:

With this tool, Samsung is able to control the usability rights of its designs or innovations. Further, the patent allows organizations to prevent any kind of unauthenticated and unauthorized stealing or usage of organizational designs or processes. The design patent gives security to the valuable design of Samsung products which are not purely utilitarian (Manzini and Lazzarotti, 2016). It includes configuration, shape, pattern or even colour of their products so that product-appealing features can be prevented from the other industrial competitors. The patent of organizational sensitive information or products excludes other people or organizations from selling or using the invention in exchange for public disclosure of the invention.

Copyrights:

For protecting creativity, artistic work as of brand organization uses copyrights on its designs. Copyrights provide exclusive rights for creativity for a specific period only, but they do not cover the protection of information or ideas. The tool provides protection to only the manner of form in which ideas are expressed.

Trademarks:

This IP protection tool distinguishes and identifies the products and services of the organization from others. Thus, Samsung uses this tool to protect its brand name and service marks such as its symbol, tag line, and logo as well as its name. Trademarks prevent organizations from prohibiting competitors of businesses from using these IP from being misused or stolen (Alcacer, Beukel and Cassiman, 2017).

Employment and Nondisclosure Agreement (NDAS):

It is also obvious that IP can also face threats from the internal environment of the organization. Thus, Samsung uses these legal agreements to limit the disclosure of protected information so that third parties cannot breach confidentiality intentionally or accidentally. All employees of Samsung are also bound by legal employee agreements so that they handle confidential information of the company carefully and with sensitivity.

Cryptography For Digital IP:

With advancements in technology, it has also become mandatory for organisations to secure their digital data. Organisations use cryptography methods to provide encryption to their transmitted as well as stored data. The encryption ensures that knowledge is protected from the cyber threats and privacy risks.

Also read:- Growth and Development of International Business

CONCLUSION

In conclusion, through this report, we learn about the concept of innovation and the importance of inventions and innovation to an organisation. The report analyses how an organisation's vision, culture, leadership and teamwork attributes can shape commercialization and innovation. Then it goes on to explain different P's of innovation, uses of innovation funnel and frugal innovation along with their examples in organisational context. The report also evaluates the importance of commercial funnel and applications of New Product Development (NPD) and builds an innovative business case including ways of accessing funds. Finally, it determines the various tools used to develop, retain and protect knowledge and intellectual property. To get more details about online assignment help ask our experts.

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