CompanyThis assessment will cover the following questions:
- Samsung Electronics is a major manufacturer of Electronic components, headquartered in South Korea. What do you mean by Innovation and examine the key difference between invention and innovation.
- What are different types of innovation.
- Examines the process required to commercialise innovation.
- How innovation helps to deal with the competitive market and create large base of consumers.
INTRODUCTION
Innovation is the process through which ideas and inventions are made into valuable goods and services for which customers and consumers will pay. There are primarily four different types of innovations: Incremental Innovation, Disruptive Innovation, Architectural Innovation and Radical Innovation respectively (Lambert, 2019). While commercialization is the procedure through which new goods and services are brought into the market. Broadly commercialization also includes manufacturing, distribution, marketing and promotion, sales, customer service and other key operations which are necessary in achieving commercial success for new goods and services.
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 good or service which has innovative approach behind it, by increasing comfort levels for customers and to meet the changing requirements. It can be understood as application of better solutions by companies for creating higher value for customers through implementation of new product and services. Innovation brings improved efficiency, effectiveness which is highly relevant for enhancing production levels in competitive business environment for organizations. Innovation brings high creativity to the process which eliminates chances of errors of products and enhances the quality performance for customers. For example innovation of iPhone is one of the most innovative breakthrough advanced in technology which has improved networking for people to large extent (Wan and Ding, 2019).
2. Invention-
It can be understood as unique device, method or composition of process within an overall product development process which enhance the functioning levels . Invention helps to overcome barrier by creating something new which increases level of efficiency through constructing imagination into practical outputs. It brings imagination of humans into practical actions where visualization of ideas has played an important role in inventing new objects. For example Galileo invented Telescope in 1609 which has played an important role in human history by advancing our understanding of Earths place in 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 process for the first time which brings revolutionary change for humans. Whereas Innovation on other hand occurs when significant change with help of technology comes in existing product or method 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 speed 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).Company is committed to transform the digital world with highly innovative technologies, products and design which enriches life of people creatively. Company inspires constantly by delivering ground breaking innovations constantly in digital appliances, network systems for enhancing global community living. Samsung Vision 2020 is an ambitious growth target by company where company aims to deliver operational excellence and innovation in highly competitive digital business environment (Djamasbi and Strong, 2019).
P2 Organizational Vision, Leadership, Culture and Teamwork Shape Innovation and Commercialization
1. Vision-
Organization vision of Samsung shape innovation and commercialization to a great extent as company visions to enhance the productivity levels with high technological up-gradation in all electronics services and appliances. (O'brien,2019).Vision is a long term plan for company which aims to foster growth and innovation along with completion of organizational set goals to reach high profit margins. It is imperatively important for company to foster innovation along with high sustained customer loyalty growth in high volatile business environment.
2. Culture-
Organization culture plays an important role in shaping innovation and commercialization within company to deliver high growth and success for long term sustainability in market. Charles handy theory explores classification of business culture based upon functions and role of management teams including superiors, leaders and subordinates (Callaghan,2019).Theory focuses on six influence elements in 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, 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 theory which focuses on team formation. Forming, storming,,norming, performing, adjourning and transforming are the steps which analyses how team tackles performance levels from initial formation to completion of tasks and projects. Samsung lays high importance in building strong technically advanced teams where employees are given brainstorming sessions, opportunities to showcase their ideas by which they are lead to transforming for reaching 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 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 initial offering by company to customers which has high potential to attract them, Samsung focuses on innovative technology in products to compete in high volatile business environment.
- Process- It refers to 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 context of introducing products and services to target customers in market share innovatively. Samsung aims to deliver high innovation in positioning itself in target market of all age groups which enables it to position itself strongly in digital competitive world (Wong, and Ngai,2019).
- Paradigm- It refers to methods of how innovatively company frames about products and services to customers globally. Samsung aims to enhance its paradigm globally among consumers of all age groups by offering high technically advanced electronic products, promoting about services on 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 company through innovation. Innovation funnel includes brainstorming employees about advanced usage of technology and ensuring the best methods are chosen for projects. Samsung with the help of innovation funnel enhance its production levels with creation of advanced processing technologies in all electronics, increase the profit margins by reaching cost efficiency. It enables company to filter out the hazards which may come in innovation implementation process and select the best alternatives through which 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 target market globally with high tech technology advancement. Samsung aims to enhance its production targets with frugal innovation, developing electronics devices with high tech memory system and instant networking opportunities for people. Company aims to use digital appliances with upgrade technical advancement which reduces chances of error and eliminates hazards during production process (Wong and Ngai, 2019).
It is important for SMEs to adopt frugal innovation in their processing units as it help to achieve cost efficiency, speed up the process of operational structure and reduces chances of failure. Through frugal innovation SME companies can save large amount of capital by utilizing resources efficiently and reaching optimum results.
For example- A team of Cambridge computer scientists has developed 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 sales process or in detail can be understood as revenue enhancement process where companies aim to bring efficiency in reaching production targets along with focus on 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 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 target market efficiently.
- Sales Funnel- The purpose of this funnel can be understood as converting people who are already in buying cycle to be loyal customers with innovative selling techniques for reaching 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 process of bringing new products and services into marketplace by engaging in research according to changing customer preferences, market advancement or to capitalize innovative opportunities. Samsung aims to build global reputation as dynamic innovation and creatively advanced digital company where consumer preferences are given high importance. It enables companies to deliver more innovative products by better functionality in performance levels, customization and interpersonal services. Samsung aims to respond quickly to changing business environment and stay one step ahead in highly competitive digital world by advancement and new high tech devices (Winch, 2019).
The 8 steps in NPD which 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, 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 the productivity levels and attain business goals needs to construct innovative techniques for implementation and reach global audience with high tech digital devices (Bhimani, Mention and Barlatier, 2019).
Product Development and Marketing-
Samsung aims to introduce new smartphone in market Tech Radar which has high tech features with advanced technology and high quality camera functions. Innovative business case will assist Samsung to introduce high tech digitally advanced electronics and smartphones into people worldwide. Company aims to enhance marketing techniques by engaging in partnerships, promoting about new goods and services on social media platforms Samsung 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 business case showcase the ways how company can access funding on 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 finance capital on global platform, as company has an already established goodwill in delivering high quality advanced digital electronics and gadgets. Equity financing will enable Samsung to promote about its new smartphones and other advanced technical gadgets to people who look 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 the long term sustainability it is necessary that Samsung must protect its intellectual property so that it can protect its innovation and valuable knowledge from the competitors. Thus, organization uses various tools to protect these valuable resources. These tools provide exclusive rights to innovations of organization so that no one else can copy or use them without permission of organization. Samsung uses 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 innovation. Further the patent allow organization to prevent any kind of unauthenticated and unauthorized stealing or usage of organizational designs or processes. The design patent gives security to valuable design of Samsung products which are not purely utilitarian (Manzini and Lazzarotti, 2016). It includes configuration, shape, patter 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 invention.
Copyrights:
For protecting creativity, artistic work as of brand organization uses copyrights on its designs. Copyrights provide exclusive rights for the creativity for a specific period only, but they do not cover the protection of information of ideas. The tool provides protection to only to the manner of form in which ideas are expressed.
Trademarks:
These IP protection tool distinguishes and identify the products and services of organization from others. Thus, Samsung uses this tool to protect its brand name and service marks such as its symbol, tag line, logo as well as its name. Trademarks prevent organization to prohibit the competitors of business 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 organization. Thus, Samsung uses these legal agreements to limit the disclosure of protected information so that third parties cannot breach the confidentiality intentionally or accidently. All employees of Samsung are also bounded with legal employee agreements so that they handle confidential information of company carefully and with sensitivity.
Cryptography For Digital IP:
With advancements in technology it has also become mandatory for the organisation to secure their digital data. Organisations use cryptography method 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 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 innovation 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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