Innovation and Commercialisation

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Table of Contents
Table of Figures...............................................................................................................................4

Introduction......................................................................................................................................5

Morrisons.........................................................................................................................................5

LO: 01..............................................................................................................................................5

P 1....................................................................................................................................................5

Innovation....................................................................................................................................5

P2.....................................................................................................................................................6

Shaping Innovation and Commercialisation................................................................................6

M1....................................................................................................................................................7

Innovation Sources......................................................................................................................7

LO: 02..............................................................................................................................................8

P3.....................................................................................................................................................8

4Ps of Innovation.........................................................................................................................8

Product.....................................................................................................................................9

Price.........................................................................................................................................9

Place.......................................................................................................................................10

Promotion..............................................................................................................................10

Innovation Funnel of Morrisons................................................................................................10

P4...................................................................................................................................................11

Frugal Innovation Developments..............................................................................................11

M2..................................................................................................................................................12

Innovation Funnel in Morrisons................................................................................................12

Investigation, Development, Shipping..................................................................................12

D1..................................................................................................................................................13

Development and Measurement of Innovation..........................................................................13

LO: 03............................................................................................................................................13

P5...................................................................................................................................................13

Importance of NPD and Commercial Funnel............................................................................13

P6 , M4...........................................................................................................................................14

Innovation Business Case..........................................................................................................14

LO: 04............................................................................................................................................15

P7...................................................................................................................................................15

Intellectual Property...................................................................................................................15

Patents....................................................................................................................................15

Trademark..............................................................................................................................15

Copyright...............................................................................................................................15

D2..................................................................................................................................................15

Overcoming Challenges for Innovation.....................................................................................15

Conclusion.....................................................................................................................................16

References......................................................................................................................................17
Table of Figures
Figure 1 – Commercialisation and Innovation in Business, (Slideshare, 2018)..............................8
Figure 2 – Marketing Mix 4Ps, (Pinterest, 2018)............................................................................9
Figure 3 – Innovation Funnel, (Gómez-Pérez, et al., 2009)..........................................................11
Figure 4 – Frugal Innovation, (Tiwari & Bergmann, 2018)..........................................................12
Figure 5 – Innovation Funnel Steps, (Schwarze, 2018).................................................................13
Figure 6 – Commercial Funnel, (Mailmunch.com, 2019).............................................................14
Introduction
Every business organisation expects changes and innovation in order to enhance their business
growth. If innovation is implemented and managed with the best attributes and skills and with
appropriate resources, it enriches the lives of individuals immensely [ CITATION Red14 \l
1033 ]. The manager of innovation of a business organisation assumes a significant job for all the
thoughts in regards to the product innovation. Other than this, the manager of innovation is
likewise answerable for commercialisation of the new items. Commercialisation refers to
presenting/propelling the new or improved items into the business market. With the goal that
clients get the new product or good effectively and can buy it [ CITATION Dat13 \l 1033 ].

This report will analyse the importance of innovation in the business, different innovation
sources and 4Ps of innovation. The organisation that has been selected for this assignment is
Morrisons. Moreover, frugal innovation developments will be analysed with its application in the
context of the organisation and its role in the business industry. Importance of New Product
Development (NPD) and commercial funnel importance will be explained with Morrisons
innovation business case. Different tools for retaining and protecting the intellectual property
will be also analysed.

Morrisons
Morrisons is the fourth largest business supermarket in United Kingdom that has been
established in the year 1899. The supermarket is primarily engaged of over 370 stores all across
UK in the management and operations. Morrisons provide the consumers with special offers on
fresh foods, grocery and products of alcohol with low prices range [ CITATION Mor19 \l 1033 ].

LO: 01

P1
Innovation
Innovation is regarded as the most important and complex organisational issue faced by many
businesses in the industry and is known as the key to success. Innovation mentions to any new
extra element that increases the value of existing contributions of any business. It is of essential
significance for business organisations that expect to catch a greater market and increase the
quantity of consumers [ CITATION Toh12 \l 1033 ]. Invention is viewed as the most significant
and complex authoritative issue that has been looked by numerous organisations in the business
and is known as the way to progress. In an industrialist society, there is a significant qualification
among innovation and invention. An innovation is without economic value except if it is placed
into functional use and utilisation. A conceptual thought might be a significant innovation.
Though, it takes a business visionary to change the conceptual creation into an attractive product.
By "completing things," the business person produces financial worth and utility [ CITATION
Sen17 \l 1033 ]. Innovation is highly important for the business to have continuous improvement,
develop better communication and takes risks and challenges to increase the business. Whereas,
invention is important for personal business development and provide the organisation to stay
productive and motivated.

The business industry of food retail is constantly stronger in the market of U.K. and experienced
proceeded with development. The development of Supermarkets and superstores are year of
unsteadiness in which there is high competition that reach to competitive edge. Morrisons is
focusing in innovation in their business to increase their sales, profitability and achieving their
business goals. As organisations are rapidly incorporating advancements and developments in
their business, Morrisons should think strategically in order to have a competitive image in the
market [ CITATION Mor18 \l 1033 ].

P2
Shaping Innovation and Commercialisation
The rapid economic growth in the business environment and the technological emergence made
it easier to effectively communicate with other business countries all over the world that is
causing competition among each other. Effective leadership, team work, vision and culture are
the most essential and significant aspects in the business organisation that leads the business
towards success. The vision of the organisation explains what the organisation aims in future that
also directs and helps the organisation towards their desired objectives and goals. Every business
organisation should have a clear innovative vision for their employees to stay motivated
[ CITATION Hao15 \l 1033 ]. The vision statement of Morrisions is that they deliver the product
with very best quality in less reasonable amount [ CITATION Mor19 \l 1033 ]. Morrisons want
to innovate their business in order to attract more consumers and resolving their challenges that
the consumers face. An association enormously impact inside the conduct and behaviour of the
individuals in the business organisation, convictions and approach of the leader. Each co-worker
to be increasingly imaginative and creative at their work and should been empowered by the
leader, they will control the employees with appropriate help and designated assets that are
required for enhancing new products in the business. They will set up the practical objectives and
difficulties before the workers. For team development Tuckman’s theory focuses on the way the
workers and employees work together on a task with the help of forming, storming, norming and
performing operation steps [ CITATION Cas07 \l 1033 ]. To upgrade their insight and aptitudes
collaboration is particularly fundamental for each worker. In the event that the organisation
permits free progression of extreme, thoughts and ideas, they can include more an incentive
inside the group culture of the organisation and furthermore creatures progressively imaginative
in nature [ CITATION Hao15 \l 1033 ].

Figure 1 – Commercialisation and Innovation in Business, [ CITATION Sli18 \l 1033 ]

M1
Innovation Sources
According to Tonț and Tonţ (2016), the economic business is being characterised by the growth
of economy and higher complexity based on the innovation and knowledge. Innovations are
considered as the main aspect for better conditions of life and growth of productivity. They build
careers and employments, generate income and improve the life of individuals through creating
essential services and products. Though, the increase of innovation needs an encouraging
environment for the business innovation activity including the potential in human resources that
is highly qualified and in the form of financial resources that may lead to effective development
of technologies. The implemented and generated innovation’s quality and number mainly depend
on the type of their source [ CITATION Ski15 \l 1033 ]. According to the perspective of the
business market, the innovation level of the new services and products may be categorised as
continuous innovation and discontinuous innovation. Continuous innovation outlines the
improvements and benefits to the current business market and with new business features
whereas discontinuous innovation represents new business technology which results in new
infrastructure of the business market. Morrisons are focusing on acquiring effective objectives of
social and corporate responsibility that are business, environment and society. Moreover,
Morrisons provide their consumers with friendly culture and environment for shopping. United
Kingdom is increasingly becoming a country that is multi-cultural with the learning and
appearance of numerous business cultures [ CITATION Mor18 \l 1033 ].

LO: 02

P3
4Ps of Innovation
Business organisations implement innovations in their business for making their services and
products highly useful. If the business organisations do not have innovation, then then they will
probably fail to sustain the dynamic environment of the business. In order to evaluate and
analyse the innovation process, the tool that is significantly used is 4Ps of innovation that helps
business organisation to change and modify their services and products [ CITATION AlB18 \l
1033 ]. The four main Ps Product, Place, Price and Promotion for achieving the process of
marketing consummation.
Figure 2 – Marketing Mix 4Ps, [ CITATION Pin18 \l 1033 ]

4Ps of marketing mix helps in identifying numerous marketing and operational management
problems and lead them to examine their future steps in the process. The organisation’s authority
should must arrange the marketing mix 4Ps in a manner that they can be coordinated in a
structured way with each other [ CITATION Fra05 \l 1033 ]. The functions of the four key
elements of marketing mix are as follows.

Product
Product is considered as the main element that can be offered in the business market to satisfy
the needs of consumers. The forecasting of sales in the business organisation is determined by
the services and products that are offered in the business market. The authority or the
management should be highly careful and responsible in designing any product or service
[ CITATION Ung18 \l 1033 ]. Product is the first most priority of Morrisons as they focus on the
product’s model, style, packaging and most importantly the quality of the product.

Price
Price is regarded as the value that will be paid by the consumers for buying the service or
product. It is highly important to set the price of the business product as the level of satisfying
consumers that majorly depends on pricing according to the product quality. The determination
of the price of the product must be determined by the standard and quality. Price should not be
much high that consumers cannot buy it. It is important to keep the targeting consumers in mind
for the ability of the consumers to pay for the product [ CITATION Ung18 \l 1033 ]. Morrisons
level of prices, policies, discounts, margin level and discounts are all fixed according to the
consumer’s purchasing power and was excellent for continuous growth and profitability.

Place
The strategy of environment or place refers to the product or service that is generated or build
then where it will be warehoused. Place mainly refers to the area or locality where the product or
service will ho to be purchased by the consumers. Place is selected when the business
organisation identifies the target consumers of the business [ CITATION Ung18 \l 1033 ].
Morrisons is located in United Kingdom and initially was not very successful in effectively
placing their products because of the single format of supermarket. They planned to have a fresh
food model but they know that it cannot operate on a smaller scale and was not appropriate to
compete with the competitors like Sainsbury and Tesco. Therefore, they have efficiently started
small stores in the areas of southern congested [ CITATION Mor18 \l 1033 ].

Promotion
The product based successful business organisations mainly depends on the promotional
activities which makes aware the business organisations to identify the target consumers through
demonstrating the products and their benefits. Promotion is regarded as the type of advertising
function of the services and products. Means of advertising such as television, radio and
newspaper are especially used for promoting the services and products. Utilising the promotional
activities helps the business organisation to make consumers know about the product and service
[ CITATION Pou13 \l 1033 ]. Morrisons use numerous promotional strategies for continuously
promoting their products. They are also using television advertising of their websites and on
numerous platforms. They use numerous logos such as ‘Fresh Choice for You’ and ‘Food
Specialist for Everyone’ [ CITATION Mor18 \l 1033 ].

Innovation Funnel of Morrisons

Innovation funnel is the process for developing new innovative ideas through describing the
phases and steps with which the business organisation can provide the best quality product or
service to consumers. Morrisons aim is also to provide the best products for satisfying the wants
and needs of consumers that are targeted by the organisation. The process of innovation funnel is
developed through essential process comprising of investigation, development and shipping
products [ CITATION Jea12 \l 1033 ]. These three steps are also utilised by Morrisons in their
business in order to upgrade their offerings of the existing products.

Figure 3 – Innovation Funnel, [ CITATION Gó09 \l 1033 ]

P4
Frugal Innovation Developments
Frugal Innovation in the business organisation is the process of invent of the idea of any service
or product and this process is also known as frugal engineering. This process helps the
organisation to reduce the cost of production or manufacturing and also avoid production
complexities. The factors on which frugal innovation is dependent are environmental, social and
politics. These factors help in shaping the process of innovation in the business organisation.
This also provides product or service importance through moving to the lower level to the
consumers, reducing the complexity of production and reducing product cost [ CITATION
Kno16 \l 1033 ]. Morrisons should take all the factors critically in order to have frugal
innovation development in their business. Morrisons adopted this process for decreasing the
manufacturing and production cost [ CITATION Mor18 \l 1033 ].
Figure 4 – Frugal Innovation, [ CITATION Tiw18 \l 1033 ]

M2
Innovation Funnel in Morrisons
The three steps that are investigation, development and shipping products can be effectively used
by Morrisons.

Investigation, Development, Shipping

In order to enter in a business market with the product, the organisation should analyse their
competitors with their products and services provided to the consumers. Morrisons should also
have to conduct the business research in order to analyse and identify their competitors and their
existing products. This research will also help in evaluating the current business performance of
Morrisons and the response of consumers to the brand [ CITATION Mor18 \l 1033 ]. Morrisons
should must use the approach of development and funnel innovation in order to maintain their
development process. Shipment process comprises of the system of transportation that must be
adopted by Morrisons for shipping the products.

Figure 5 – Innovation
Funnel Steps,

[ CITATION Sch18 \l 1033 ]

D1
Development and Measurement of Innovation
According to Adams, et al. (2006), the development, measurement and innovation are significant
and complex issues. The most important challenge for business organisations is to measure the
complex procedures that influence the innovation capability of the organisation for managing it
perfectly. In case of Morrisons, they should provide healthy and fresh products to their
consumers with easily accessible and the functions that are less complex.

LO: 03

P5
Importance of NPD and Commercial Funnel
Commercial funnel is also known as sales funnel that comprises of the process through which
business organisations generate high leads and engage numerous consumers to the business
organisation. There are few steps that must be considered in order to exaggerate the consumers
and the clients for the business organisation growth. These steps are attract, convert, close and
delight [ CITATION Sta17 \l 1033 ]. NPD means New Product Development which is a process
that identifies and evaluates the core business methods for launching any product or service in
the business market. The process is made in order to increase organisation sales when it is
emergence time of the market. NPD also involves some stages in its process that are idea
generation, definition of concept, analysing the market, development of product and
commercialisation [ CITATION Kim16 \l 1033 ].

Figure 6 – Commercial Funnel, [ CITATION Mai19 \l 1033 ]

P6 , M4
Innovation Business Case
There are some requirements that must be followed in order to work easily in the business
organisation which make the innovative business case. Using the innovation business case by the
organisations, they can measure their business performance and identify new ideas for their
future work. In order to make innovative business case, Morrisons should include the
development process of the product, pricing strategy, identification of target market and the
emergence in the business market.

 The initial role of Morrisons is to develop the products that will be offered to their
consumers and must incorporate new effective features and aspects in their products.
 The next step is the strategy for pricing. Morrisons should select reasonable and
appropriate price for their targeted consumers to earn huge business revenue.
  Moreover, they must have efficient promotional activities to get aware the consumers
about the product and also increase the awareness of the brand. Using this way, business
organisations must make their own image of the brand and with these promotional
activities, Morrisons can attract new consumers.

LO: 04

P7
Intellectual Property
It is highly important for the business organisations to protect the techniques and ideas of the
organisation. There are numerous services that helps in protecting the rights and privacy of
business organisations. Few tools are mentioned below that can be used in order to protect the
business organisation which are patents, trademark and copy rights [ CITATION Bra17 \l 1033 ].

Patents
Patents are effectively used in order to protect the design, invention and other confidential
information of any business organisation.

Trademark
Trademarks are utilised to differentiate the products and services of the organisation from other
business organisations.

Copyright
Copyright is a tool that is used for helping organisations to secure their important work.

D2
Overcoming Challenges for Innovation
According to Skibiński and Sipa (2015), innovation is highly important for the business to have
continuous improvement, develop better communication and takes risks and challenges to
increase the business. Whereas, invention is important for personal business development and
provide the organisation to stay productive and motivated. According to Loewe and Dominiquini
(2006), there are numerous challenges that are strategic, legal, cultural and operational for
successful innovation in the business organisation. In order to overcome the challenges business
organisations should must incorporate creative business strategies for making their product after
analysing their targeted consumers.

Conclusion
This report analysed the importance of innovation in the business, different innovation sources
and 4Ps of innovation. The organisation that was selected for this assignment is Morrisons.
Moreover, frugal innovation developments were analysed with its application in the context of
the organisation and its role in the business industry. Importance of New Product Development
(NPD) and commercial funnel importance were explained with Morrisons innovation business
case. Different tools for retaining and protecting the intellectual property were also analysed.
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