Innovation and

Commercialisation
Task 2 – Business Report
Contents
Task 2: Business Report.............................................................................................................2

Introduction................................................................................................................................2

a. Explain difference between invention and innovation.......................................................2

b. Identify and analyse sources of innovation as a core process in a specific company........4

c. Critically discuss link between innovativeness of a specific organisation and its

leadership, organisational culture and teamwork...................................................................6

d. Explain the 4 Ps of innovation with reference to a specific case study.............................7

e. Appraise the value of the innovation funnel and frugal innovation to an organisation.....9

Conclusion............................................................................................................................14

Reference..................................................................................................................................15

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Task 2: Business Report

Introduction
In a bid to analyse the innovative process at Microsoft Corporation and help in the design of a
useful innovation plan, firstly, an investigation is carried out on way organisations plan their
innovation activities and then identification of the trends and other specifications is done in
terms of the activities of the organisation and innovation types.

a. Explain difference between invention and innovation

Innovation involves the process of translating ideas or inventions into a service or goof that
adds value for which the customers pay while invention is the process within the engineering
and development process of the product.

[Source: Joshi, 2013]

An inventor is involved in the creation of a product and introduces a process for the initial
time while innovation is used for improving or to make notable contribution to it.in an
organisation, innovation is the change that adds more value to the services and products by
fulfilling the needs of customers. Innovation occurs when there is improvement or substantial
contribution towards a process, product or service that is existent (Joshi, 2013).

Innovation can be radical, architectural, disruptive or incremental in nature. Alternative

innovation framework result in various types of innovation that are based on the approach
and objectives inherent to the framework.

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[Source: Hakkarainen and Talonen, 2014]

Key differences between Innovation and Invention

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[Source: Joshi, 2013]

Invention is creation of the product or it is the introduction of the process for the very first
time. Innovation on the contrary takes place if somebody makes an improvement or notable
contribution to a product, service or process that is already existent. For example, the
microprocessor was an invention but was by itself only a circuit board part (Lakshmanan and
Lakshmanan, 2014). The different processes, services and products that evolved from the
microprocessor invention requires innovation. Micro Bit, C#, alt code and Microsoft band are
inventions of Microsoft. In terms of innovation, Microsoft innovated Microsoft Pix, Skype
Translator, Holoportation, hands free keyboard among other things (Microsoft.com, 2019).

The occurrence of a product, process or idea that is unprecedented is termed as invention,

however, the implementation of any idea for a process or product for the very first time is
innovation. Invention includes creation of a new product while innovation adds value or
alters a product that is existing (Chemmanur and Yan, 2009). Invention needs fresh ideas
with application of scientific skills while innovation is practical implementation of a new idea
and needs set skills pertaining to strategy, technicality and marketing. Invetion pertains to a
single process or product while innovationis directed towards the combination of different
services and products. Invention has limitations in terms of research as well as development
of an organisational department while innovation is spread across the organisation.

b. Identify and analyse sources of innovation as a core process in a specific

company
Considering the example of Microsoft company, the Windows operating system has
undergone several changes over years, from Windows 97 to Windows 10 to Windows XP,
these are a result of innovation. Microsoft has been successful in re – engineering itself in
different ways to make sure the older cash cows like MS Office and MS Windows can be
included in the future of technology. There have been investments made in artificial
intelligence or AI; this has made it possible to make the champion bots as the paradigm of
new age computing. This has made it possible to develop the platforms for apps based on iOS
as well as android.

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[Source: Apfeldorf, 2018]

The importance of innovation is the implementing of an idea for the process or product for
the first time. For example, the solitaire game was bundled with Windows 3.0 to enable users
the use of the mouse. Innovation needs broad skills in strategy, marketing and technology.
For example, the windows phone, it revamped the ordinary mobile phone to innovate an
existing product with the use of technology and made it useful for people using it therefore
launching a technological revolution (Apfeldorf, 2018). Innovation always does not include a
new product or discovery but adds value to one that is already existent. For example the
Xbox versions that are launched are better versions of the previous ones.

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[Source: Microsoft.com, 2019]

On the other hand, invention involves creating a product or introducing a process for the very
first time and it is essential to be different from other inventions. Inventions that are improved
versions of existing ones do not qualify for applying for patents (Joshi, 2013). Innovation is
the cause effect of invention; without invention there is no scope for improvement. There is
no innovation without invention.

c. Critically discuss link between innovativeness of a specific organisation

and its leadership, organisational culture and teamwork
In an organisation, to achieve success, it is essential that the top management and leaders
have clarity in vision for the goals, values and mission. Such elements support in guiding he
team and also achieving the vision of the organisation in commercialisation (Lopes Henriques
et al., 2019). A leader can be as good as his team; therefore, it is needed to have the right
talent pool on board with the right attitude being prevalent in the team. The culture should be
adaptable where the employees along with having the technical skills need to have the
willingness to adapt and work in collaboration with the other team members for achieving
success (Sethibe, 2018). The work environment should inspire innovation and encourage
hiring of people from different backgrounds where freedom of speech is prevalent and the
employees are provided time as well as energy to engage in experiments. For example,
companies like Microsoft, Apple, Amazon, Facebook and Alphabet have for long valued the
need for enhancing customer data for providing new insights and improving the services and
products. Having combined annual revenue worth billions, these companies have shown the
right use of technology and data makes it possible to process ordinary customer information
and transform the same into significant insight related to their shopping habits and anticipate

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product preference of the customers. The development of such technologies help the
businesses realise the importance that data commercialisation has.

Idea Generation

Idea Selection
Idea Selection

Idea
Generation
Process
Idea
Idea Diffusion
Implementation
Implementation

Sustaining Ideas
Sustaining Ideas

[Source: Sethibe, 2018]

Back in the 1980s, the vision of Bill Gates was to have one computer on each desk and every
home. During that time the computing industry was considered to be niche and a windows
software to be run on personal computers was the brain child of Microsoft co – founders bill
Gates and Paul Allen. The invention and innovation of personal computers have been
successful for revolutionising the way people work, communicate and play with
approximately 1.5 billion individuals using windows. According to Jonathan Oliver,
Microsoft’s senior Brand Strategist, the focus of the company is to improve the world with
the support of technology. Windows being an operating system had revolutionised the market
for software (Microsoft.com, 2019). MSN Messenger was an innovation that added to the
success of Microsoft. Launching Xbox in the year 2001 included Microsoft in the gaming
front too, however, the transformative most innovation of Microsoft was Kinect.

d. Explain the 4 Ps of innovation with reference to a specific case study

4Ps of Innovation:

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[Source: Soares Figueiredo and Loiola, 2012]

Product: Product innovation conveys the modifications in services, products and things that
are offered by an organisation. Microsoft had started off as being a software developed and
grown the business with increasing the variety in their products. Currently they have
entertainment, applications, games, software and devices that have been innovated to meet
the dynamic needs of customers. The devices include personal computer, windows phone and
Xbox while software like operating systems and MS office are made available to the
customers (Hakkarainen and Talonen, 2014). Hence the company diversifies to grow
strategically and enter markets by introducing lucrative products with the emphasis on
growth.

Process: Process is the change that occurs I nthe way things have been created and
subsequently delivered. The manufacture and distribution of the innovations of Microsoft had
to be innovated to in order to cope with the competition in the market. Earlier known to be a
company directed towards computer related technology, Microsoft ventured into mobile
phones and Windows operating system supported hand held gadgets to tab more customers
(Soares Figueiredo and Loiola, 2012). They made their presence felt in larger markets with
higher visibility to be noticed by the target market.

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Position: Position innovation is in the context of change; this is in reference ot the
introduction of products and services where the focus of the offering is in what the situation
is about. New market segments were opened by Microsoft targeting individuals based on
gender and age. The enhanced operating systems and gaming systems were directed towards
a younger target audience who were more used to the use of technology as opposed to the
older generations (Hakkarainen and Talonen, 2014). An improvement was brought about to
the hardware and the software was upgraded with the older versions being converted to
generate higher revenue.

Paradigm: Paradigm innovation refers to the change that is underlying in the mental models
that frame the occurrences within an organisation or how a company frames what is done by
it. Online availability has enhanced the shopping experience of customers; however, the
procedure is more complex as customers have limitations in terms of attention and time.
Microsoft offers Microsoft Stores that includes brick and mortar premises across the world
where the customers are able to discover the technologies and their use at ease (Soares
Figueiredo and Loiola, 2012). The stores are aesthetically done and provide a learning
experience for the customers.

e. Appraise the value of the innovation funnel and frugal innovation to an

organisation
Innovation funnel is the mechanism that makes it possible to constantly stream ideas that are
screened for the purpose of liability. Frugal innovation refers to the process of decreasing the
cost and complexity of products and production. This usually refers to the removal of non –
essential features from a good that is durable such as a phone to sell it in the developing
nations (Weyrauch and Herstatt, 2016).

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[Source: Weyrauch and Herstatt, 2016]

The design of products for developing nations also requires an increase in the level of
durability and the use of unconventional channels of distribution when the product is sold.

Enterprises businesses that seek to improve the journey of digital transformation journey in
the dynamic business environment use Microsoft. The information technology directors,
program managers and others of enterprises use Microsoft technologies to provide services to
the customers and business users. The difficult part is to identify the right partner who can
support in the use of Microsoft expertise while coping with the rapid pace. In order to keep
up with the pace, it is essential to have on board an information technology partner who can
make sure of the deadlines and turnaround time from conception to the delivery of solutions
(Ignitho.com, 2019). Such partners harness the power associated with Microsoft technologies
and related expertise for helping the enterprise in accelerating their processes and navigating
in a business landscape that is increasingly disruptive.

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[Source: Ignitho.com, 2019]

An innovation is the intellectual creation which is new for the world or it is an edition of an
already existent creation. It is not necessary that an innovation always has to be a discovery;
it is a human contribution that increases the productivity of a methodology or an asset that is
already existing. Therefore an innovation is the novel product of intellectual endeavour of
humans. Commercialisation of innovation can be achieved either by organisations or by
individuals for marketing and promoting the innovation to achieve commercial benefits.

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[Source: Dincer, 2017]

Commercial funnel is alternatively termed as purchase funnel and demonstrates the path of
the consumer to the purchase of a product or a service.

Source: (Dincer, 2017)

A commercial funnel has five steps associated with it which includes awareness - opinion –
consideration - preference - purchase (Dincer, 2017).

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Source: (Graner and Mißler-Behr, 2015)

Microsoft had been predominantly known to be an information technology based and

computer related company, hence when it ventured into the domain of Windows phones,
there were a number of risks associated with the launch of the phone in the market when
there were already a number of established brands present like Samsung, Apple and others.
To successfully engage in a commercial funnel, it was required of Microsoft to ensure there
was adequate awareness among the customers about the new phone and there was also
adequate willingness to consider the windows phone by the target audience (Graner and
Mißler-Behr, 2015). It is required of Microsoft to analyse the product value prior to
introducing it to the market. The intention of the companies is to reduce product cost hence
all redundant features would be removed and the cost would be brought down thereby
maximising profit.

Microsoft mobile had been introduced as a subsidiary to Microsoft for the manufacture and
development of the mobile devices after the acquisition of Nokia. The company had the right
of selling feature phones that ran the S30+ platform under the brand name of Nokia
(Microsoft.com, 2019). There was originally a partnership between Nokia and Microsoft in
the year 2011 where smartphones were exclusively established with the windows phone
based platform and engaged in the promotion of Microsoft services on the product features of

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the phone including Bing based search. Nokia maps data was also licensed by Microsoft for
the mapping services and therefore innovation was duly commercialised.

[Source: Microsoft.com, 2019]

Microsoft has used adequate innovative means for increasing the sale of the company.
Products services, operating systems and other systems have been upgraded for the benefit of
the customers. The products have been duly advertised to attract more customers and increase
sales and subsequently enhance the level of revenue. Using the online medium, Microsoft
licenses can be renewed remotely and from anywhere in the world (Microsoft.com, 2019).

Conclusion
An innovation to be converted to business, it is required to be associated with the needs of the
customers. However, a customer may not always be aware of what he wants or do not know
how to put across their needs. The key to seeing the correct opportunity is to appropriately
monitoring the market and the basic research and observation of customer behaviour gives to
the companies an idea of what the product or service needs to be like. Different information
needs to be collaborated and connected to create a product or service that would have demand
in the market.

In a project that involves development, different opinions help in reaching a decision. The
skills and opinions are duly assembled when the value chain gets involved in an undertaken
project. In a project that is technologically enabled, the network needs to engage participation
such as technology developers, applied research, experts pertaining to investors, customers,
raw materials, ends users and so on. Development of a new product that includes innovation
and commercialisation often has a level of risk associated with it and some uncertainty that
needs to be tackled.

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