Sample Assignment Innovation and commercialisation
Innovation, generally in business, refers to the formulation and implementation of new ideas so that it can maximize the value of the business and maintain the level of customer satisfaction. Every business firms try to innovate new policies or products in order to have competitive advantage over the other firms. Firms those are strategically advanced, try to maintain good culture in which they can boost up the innovation practices more and more (Bilgin, M. and Danis, H. 2013). For this practice, most of cases the firm may have to incur a huge amount of cost in research and development. But after successfully commercializing the idea, the firm can get back its investment without any delay. So, commercialization is very necessary and every firm is dependent on this approach as it ensure successful implementation of the idea in the real scenario. It is a broader concept in which all of the primary functions of business are occurred. Every firm is dependent on these two approaches. The ongoing process of innovation and commercialization help the firm to protect itself from any unusual scenario.
Introducing Atwood mobile incorporation
Atwood mobile Inc. is a very renowned designer and manufacturer of hardware and appliances for RV industry for many years. The company is constantly trying to innovate new products related to the customers’ demand. The company always try to innovate new lightweight RV components for its partners. The long-term vision of the company is to innovate superior products which will meet the customers demand (Eliot, G. 2016). The company produces a range of different types of appliances like gas appliances. Some other components includes Chassis components, Seating hardware and systems and safety restraints etc.
My Intro as CEO
As the CEO of the organization I have to achieve the ultimate goals and objectives of the company and manage the company in such a way that it can sustain for a long period of time. I will create new policies and approaches and direct the management so that the mission and objectives can be accomplished properly.
LO1 Context for innovation and determine the difference between invention and innovation:
P1 Innovation and its importance to Atwood Mobile Inc. with a relevant example:
Innovation is an act of creating new ideas for better performance in the business. Atwood Mobile Inc. always depends on this approach as it has to maintain a good collection of different appliances for the customers. Without innovation the company cannot hold the existing customers as well as new potential customers. By maintaining the innovation process the company may balance its growth of sales to an optimum level (Burns, P. 2009).
Innovation and Commercialization
Innovation refers to the formulation and implementation of new ideas so that it can maximize the value of the business and maintain the level of customer satisfaction. Atwood Mobile Inc. try to innovate new policies or products in order to have competitive advantage over the other firms. However, after successfully commercializing the idea, the firm can get back its investment without any delay. So, Atwood Mobile Inc. is dependent on commercialization as it is very necessary ensure successful implementation of the idea in the real scenario (Bilgin, M. and Danis, H. 2013).
Atwood Automobile Inc. prefers invention rather than innovation though it is a difficult task and requires massive courage of the management. Because invention is the creation of new product for the first time and the company has no idea about the appeal of the product to its potential customers. And innovation is second phase of invention where the company tries to modify the current approach of completing job so that it can maximize its value to its customers.
P2 Organizational vision, leadership, culture and teamwork in the shaping of innovation and commercialization:
Atwood mobile Inc. Vision: Atwood always try to achieve its vision by maintaining its organizational leadership, culture and teamwork. At present, the main vision of the company is to provide superior service to its customer by providing superior quality product. The company continuously improves the designs and features of the products so that it have better quality than before (Burns, P. 2009). It will also ensure the company to maintain a level of good customer relationship which is another vision of the company. Another vision of the company is to have a corporate climate where rewards are provided to the employees for their better performance.
My leadership as CEO: As a CEO of the company I have to direct the management and other employees in such a way that the goal of the company can be achieved. Making new products for the customers is one of the main goals as it ensures the customer’s satisfaction which is very crucial for the competitive environment. Employee development is another priority from my part as they actually contribute to the implementation of any actions. As wealth maximization is the ultimate goal of this company, I have to search for new ways continuously so that the profits can be maximized and the total cost can be minimized. I should maintain a conflict-free environment which is very crucial for running the company smoothly (Bilgin, M. and Danis, H. 2013). In most cases, I should search for if there is any miscommunication left between the management and stakeholder and also consider the new implementation of ideas from the perspective of our employees.
Team work: Team work is an important strategy for Atwood inc. as the company always search for new design and creation. Team work also helps to maintain a good communication among the employees and reduce the conflict among different parties. When the employees are working in a team, they have a common goal and try to achieve that goal by helping others. A good collaboration among the employees help Atwood inc. to accomplish its task within a short period of time (Eliot, G. 2016). Team work ensures high efficiency in performing the given task. In Atwood inc. the decisions are taken by considering all of the team members’ opinion. Sometimes the team get the feedback from the frontline mangers as they use the same product.
LO2 Different types of innovation to employees in Atwood Automobile Inc:
P3 4ps of innovation and the use of innovation funnel to examine and shape innovative ideas to employees:
The employees of Atwood Automobile Inc. know well about the innovation 4ps as it stimulate the employees to come up with new innovative ideas.
The 4ps of innovation are as follows:
[Figure 1: 4P's innovation]
- Products: Atwood inc. focuses on product innovation as this is the ultimate thing that will be delivered to the customer. The company always try to make some incremental change so that the product looks more appealing to the potential users (Glueck, W. and Jauch, L. 2011). The research and development department always consider the customers’ demand and current trends of the product.
- Process: the management of Atwood inc. focuses on identifying the best process that will generate more products and services for its customers with minimum cost. The process is a broader concept as it cover all others aspects of the organization (Burns, P. 2009). The company will become more profitable when it incorporate better process and reduce the existing one.
- Paradigm: it is also an important part in the innovation process. In this category, the company tries to find out the reason why they do the activities in their business (Eliot, G. 2016). The management continuously tries to find out the best way of doing the business so that the radical change become suitable to all the parties.
- Position: the company always tries to deliver the best products and services so that it can position itself as a good firm in the customers’ mind (Bilgin, M. and Danis, H. 2013). The company know very well that without having a good perception about its products and services to its customers, it cannot attract the customers.
Ideas cannot come overnight. It takes a long period of time and involves hard work of different parties. At Atwood inc., the ideas of different groups of employees are taken into consideration. The possibility of getting the best idea will be higher if there are larger number of ideas from different groups. There are two types of innovation funnel which can be used for selecting the best idea among different ones. In the first funnel, different types of ideas are collected from different groups of people and the management try to implement several ideas simultaneously. In the second funnel, the ideas are screened before implementing in real situation. In the idea innovation funnel, the best ideas are selected among the different ideas. Different varieties of ideas are entered into the funnel for further investigation and only the best ones are implemented in the real scenario.
Graph: Two innovation funnel models
P4 Developing a frugal innovation:
Developing frugal innovation is very important task for the company as it ensures large scale sales of products to different market segments. Globally distributed economy enhances the needs for frugal distribution in every company. Because the company cannot sell the same product to all the geographically distributed customers in a same manner (Glueck, W. and Jauch, L. 2011). In the given case, Virgin Corporation adopts frugal innovation program which enables them to reduce the cost of producing their products as well as complexity. Frugal innovation focuses on reducing the cost of the producing products so that the customers of developing country can afford to buy the product. Frugal innovation maintains the quality and service of the product with a minimum level of cost.
[Figure 2 Features of Frugal Innovation]
Frugal innovation at Atwood: Atwood inc. perform its activities based on technology and updated information. The central concern of the firm is actually on customer’s day to day problems. The company follows new ways of processing its activities so that cost can be minimized and quality of the product and services can be maximized. Frugal innovation ensures the company to distribute its products to different market segments. Developing frugal innovation is very important task for Atwood inc. as it ensures large scale sales of products to different market segments. Globally distributed economy enhances the needs for frugal distribution at Atwood inc. Because the company cannot sell the same product to all the geographically distributed customers in a same manner.
LO3 Process required commercializing innovation in Atwood:
P5 Importance of commercial funnel and the application of New Product Development (NPD) processing for commercialization to employees:
The main purpose of any innovation is to create better product or make better process so that it can create value for the customers. Each and every innovation has to be screened critically and conversed in such a way that it is implemented perfectly so that the real cost of implementation can be minimized and the return from it can be maximized.
Commercial funnel: the main purpose of commercial funnel is to generate profit through different types of activities from marketing to selling. The commercial funnel has different phase all of which help the company to make the products efficiently and make higher profits (Bilgin, M. and Danis, H. 2013). The management tries to reduce the complexity of funnel in such a way that it reduces the longer phases as a result it becomes shorter. Seven distinct phases make the commercial funnel.
Importance: the process is very important as it increases the chance of success. The producers always try to find out new ways of making product so that it can create its appeal for the customers. The research and development help a lot in this regard (Hutt, M. and Speh, T. 2007). The research and development enable the company to create new products for the customers, improve the current condition of the society and keep the current growth of the company remain stable.
New value for the customers the more the company can make value for the customers, the more the customers will agree to pay higher amount. The company also make product in order to remain competitive over its peer companies.
Improvement of the society better products improve the standard of living of the people. The company constantly search for a product which meet the demand of the customers. The company adds new features in its product so that it meets the people’s demand.
Sustainability for the company every company should keep the current growth in order to remain stable. If the company continuously search for improved processes and make innovative product it will increase its chance of success over its competitors.
New Product of Atwood: Atwood Inc. always add new product in its product line so that it can attract the potential customers. The company adds household products in its product line such as vacuum cleaner. The company increases its product lines in a diversified way. From parts marking to household appliances making. Atwood Inc. focuses on increasing the capacity of vacuum cleaner in order to make it more affordable for the customers (Burns, P. 2009). The company always concentrate on increasing the capacity of motors, batteries and other devices. The company successfully produces water heater for boating industry and it becomes standard water heater in the boating industry. The company makes different types of new home appliances and detectors for meeting the customers’ demand.
P6 Business case and ways to access funding in Atwood:
If the business wants to achieve the strategy that we have discussed above some specific functions have to be analyzed. These are competition from peer firms, barriers in entry, product substitute and other market factors. In order to implement these strategies successfully some steps should be analyzed carefully. At first the business has to find out any restrictions and opportunities around the business. The risk and benefit should be calculated. If there are any technical barriers, it should be solved carefully. The required time of implementation should be analyzed carefully (Eliot, G. 2016).
Funding: funding is a vital step in the successful implementation of business innovation. Without enough funding the idea cannot be achieved. Funding is required mostly for research and development. Funds can be collected from various sources (Glueck, W. and Jauch, L. 2011). Some these are available global fund for innovation, net earnings from previous years’ profit and if there is any foreign investment available.
We will fund in our innovation project from the capital of the shareholders. Some other funds may be collected from other research fund. The company can also collect the fund from both external sources and internal sources.
LO4 Range of methods for protecting ideas and understand their advantages and disadvantages
P7 Different tools that Atwood can use to develop, retain and protect knowledge and intellectual property:
Protecting the ideas is a very important consideration for the business. Because if the business cannot protect the ideas the other firms will imitate the idea and implement in their own business. There are different tools available for Atwood Inc. for protecting the ideas (Bilgin, M. and Danis, H. 2013). The “Blue, White, Red, Yellow, Black and Green” is a test that develop a idea from general thinking.
- The blue exhibits the scenario
- White evaluates the data and facts
- Red passes logic and emotions
- Yellow generate positive thinking
- Black help the tester identify the risk and problems.
The different tools that Atwood can use to generate, hold and keep their ideas and intellectual knowledge are following-
Brainstorming: brainstorming is an idea generation techniques that gathers different ideas from different members of the discussion groups. And then, the best ideas are selected and implemented properly. Brainstorming helps to find out the best ideas for the recent problems (Hutt, M. and Speh, T. 2007). At Atwood Inc. ideas are taken into account when there is needed any problem in the business.
Design Thinking: it is technique in which the current products are designed in order to make it more appealing. This process helps to make the best product for the customers.
Scenario Scanning: it is an idea generation technique where the recent trends are considered carefully and the actions of the competitors are analyzed. It helps to make the necessary product without any delay.
Coalition of the workers: the workers are actually working actively in the business. So, it is very likely that they will identify the solution of potential problem at first. When different workers give their opinions, it is likely that any conflict can be occurred. It is a usual scenario. So, the mangers should not be worried about that and handle the situation prudentially. If the members of the group help each other any problems can be solved without any delay.
Methods of protecting and retaining the business ideas
Protecting the ideas is a very important consideration for the business. Because if the business cannot protect the ideas the other firms will imitate the idea and implement in their own business.
There are different types of tools that help to protect the ideas. Among them the most used tools are:
- Trade secrets
- And Trade dress unfair laws
Trademarks: trademarks distinguish the product from its competitors. The new business should make a trademark so that it can distinguish itself from its competitors (Burns, P. 2009). If the business has a trademark it can create a good relationship with its customers and the customers can be relied upon the business’s products. If any business registers any trademark, other firms cannot imitate the trademark after that.
If the business patent its new products, the other business cannot do their business with the same product. So, patents help the business to remain in competitive advantage position (Hutt, M. and Speh, T. 2007). If there is no patent right, the cost for research and development may not be recovered. So, it is a right for the firm who create the firm for the first time.
Copyrights: Copyright creates a restriction in such a way that other business cannot copy or imitate the products for doing their business. The creator of the product be in a safety position for the copyright option. Copyright options are given to those businesses which invent new category of product which is intellectual in nature.
Knowledge development and retention policy at Atwood:
In Atwood Inc. different types of tools are used for knowledge development strategy. These tools are:
- Simulated studies and
- Design thinking
Steps for taking trademark as retention strategy:
Figure 3: Tools for protecting ideas
The manager should not implement the new innovation instantly. First of all, the manger should consider the legal and other challenges that may impede the business to undertake the innovation (Eliot, G. 2016). There are some risks and concerns that should be considered by management. These are:
- Risk related to intellectual property.
- Implementing the ideas as soon as possible.
- Some trade secrets and protective measures should be taken as well.
In Atwood Inc., these tools are considered carefully before implementing the idea in the business (Bilgin, M. and Danis, H. 2013). If the management is concern with these issues the obstacles of managing business will be reduced significantly.
Innovation is an important tool for any business. However, it is not an easy task. The business should be concerned about any innovation and successfully commercializing the innovation. As it is a difficult task, most of the small firm don’t take any actions for innovation as a result they remain behind in the race of innovation and commercialization (Burns, P. 2009). Firms those are strategically advanced, try to maintain good culture of creating innovation in which they can boost up the innovation practices more and more. For this practice, most of cases the firm may have to incur a huge amount of cost in research and development. But after successfully commercializing the idea, the firm can get back its investment without any delay. So, commercialization is very necessary and every firm is dependent on this approach as it ensure successful implementation of the idea in the real scenario. It is a broader concept in which all of the primary functions of business are occurred.
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