Unit: 08

Innovation and Commercialisation

 Table of Contents
Introduction:...............................................................................................................................1

Task-1.........................................................................................................................................2

Explaining innovation and its importance to organizations in comparison with invention...2

The ways organizational culture, vision, leadership and teamwork shape innovation and
commercialisation...................................................................................................................3

Analysing different sources of innovation and the ways Kodak can foster and develop an
environment and culture for innovation.................................................................................4

Explaining the 4Ps of innovation and the use of innovation funnel to examine and shape
innovative ideas......................................................................................................................5

The development in frugal innovation and the ways it can be used in the context of Kodak 7

Analysing and applying innovation funnel in the context of Kodak......................................8

Evaluating the role of frugal innovation in the context of Kodak........................................10

Task- 2......................................................................................................................................11

Explaining the importance of commercial funnel and the application of new product
development (NPD) processing for commercialization of innovation.................................11

Building an innovation business case for Kodak, including ways to access funding..........13

A detailed innovation business case which includes the ways to measure its overall
effectiveness using appropriate techniques..........................................................................15

Evaluating the tools that an organization can use to develop, retain and protect knowledge
and intellectual property.......................................................................................................16

Evidence-based evaluation of different tools of intellectual property in the context of

Kodak...................................................................................................................................17

Conclusion:..............................................................................................................................18

References:...............................................................................................................................19
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Introduction:
Innovation and commercialization is the technique associated with supply chain management
that enables an organization to establish new products in the market in order to ensure
organizational advancement. It is important for an organization to sustain in its business as it
helps the organization to keep pace with the ever-changing taste and needs of the customers.
The report highlights the different aspects as well as the application of innovation and
commercialisation in Kodak. The Eastman Kodak Company, known as Kodak, is an
organization that operates its business in the arena of technology. It was established by
George Eastman and Henry Strong almost 131 years ago in 1888 and started to carry on its
business as a camera-based product selling company (Science, Art and Industry | Kodak,
2020). Nowadays, it is losing its strong market position due to the increasing use of the
mobile phone camera. Besides, Ektra, the smartphone launched by the company is unable to
cope up in this competitive market and so Kodak has decided to go through the innovation
and commercialization process in order to perform well and get back its sustainable market
position.
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Task-1
Explaining innovation and its importance to organizations in comparison
with invention
Innovation refers to the process where an organization puts effort to make its products or
services distinctive from the competitors and to bring an uplift in the performance of its
products or services (John & Joseph, 2015). For example, Kodak, the renowned company for
doing business on professional cameras, is going through a tough time because of the
increasing technology of mobile phone camera and so it is planning to bring out new products
with much variation and uplift. This method of improvising or differentiating the products or
services of Kodak can be termed as innovation. On the other hand, the invention is a scheme
of creating new products or services after undergoing different long-term studies and
experiences. For an organization like Kodak, innovation is monumental and the following
discussion will highlight the importance of innovation in comparison with invention-

 Attaining distinctive and competitive advantage: Innovation helps a product or

service to gain attributes that make it different from other competitors which are
necessary to build a strong competitive advantage for the company. However,
inventions help an organization to compete against its competitors on the basis of the
research and development and gain attributes different from the others but it is quite
expensive for every organization. So innovations are needed to gain improvement by
adding distinctive features in every organization.
 Reinforcing the organization: Innovations add values to organizational
achievements and help an organisation grow and make a permanent and secure
position in the industry. However, inventions make the overall development of the
brands under an organization, but sometimes many new inventions bring drawbacks
that might cause harm. So, for small organizations, innovation is a secure place to
invest and increase brand identity.
 Enhancing organisational efficiency: Innovation helps an organization to develop
its current products and redesign its feature. As a result, the organization attains
efficiency in the development process of the product. However, the invention enables
an organization to change its current products and establish a new one. So the
organization is able to gain better knowledge and efficiency on the process of
inventing a new product.
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 Increasing organisational creativity: Innovation enables to enhance the creativity of

an organization by introducing the existing products in a new form. On the contrary,
the invention is an outcome of lengthy researches and ideas and it also increases the
organizational creativity in front of the customers through the introduction of new
products in the market.

The ways organizational culture, vision, leadership and teamwork shape

innovation and commercialisation
Innovation and commercialisation is the term that refers to the development and creation of a
product or service and it is highly associated with the other important aspects of an
organization, like- culture, vision, leadership and teamwork. Here, a brief discussion is shown
on how these aspects can help in the innovation and commercialisation of Kodak-

Organizational culture: The underlying norms and beliefs that give shapes to the interaction
process of the people inside an organization are considered as the organizational culture (L,
2019). The association between the organizational culture and innovation and
commercialisation vary from organization to organization. In Kodak, if the creativity,
knowledge and ideas of the people inside the organization are given importance, it will help
them to get much involved in their work. The employees get motivated and try to bring
innovative and commercial approaches that will lead the organization to success.

Organizational vision: Kodak’s vision is to become the leader in the world of imaging by
providing customers of various cultures with various ways so that they can capture, process
and communicate images at any time. This vision leads Kodak to come up with new ideas to
provide its customers with diversified products and helps the employees of the organization
to research more to execute innovation and commercialisation of fresh products.

Leadership: Leadership is the process of giving direction to a group of people so that they
can achieve their objectives. As an organization, Kodak maintains the democratic leadership
style and in this particular style of leadership, all the employees of the company get an equal
opportunity to share their ideas and thoughts. As an outcome of this, the employees of the
organization get engaged with the organization’s development plans and try to generate ideas
regarding innovation and commercialisation of products.

Teamwork: Teamwork means to work as a group so that it becomes easier to acquire

knowledge and achieve organizational goals. In Kodak, different departments of the
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organization tend to work together so that every individual working there can gain in-depth
knowledge regarding their work and get involved with their workplace activities. As a result,
the members of the organization will be able to bring more effective ideas of innovating and
commercialising new products.

Analysing different sources of innovation and the ways Kodak can foster
and develop an environment and culture for innovation
Innovation is the method of developing the current products or services where various
sources are needed to accomplish the work properly. Some of the sources are given below-

Structure of Variation in
Demographic
industry or human behaviour
variation
market and perception

Disparity
New concepts Technological between
and knowledge change assumptions and
reality

Sudden change in
market Process needs
movements

Figure 1: Sources of Innovation

Source: (Baier et al, 2018)

The above figure highlights all those sources that stimulate the ideas of innovation. The
demographic variation is a source of innovation for Kodak as the young people are getting
attracted towards smartphone day by day. So it will be beneficiary for Kodak to launch Ektra
with a few new feature that will attract the young generation. But it might not be much
accepted by the older people in the market. Another source is the technological change which
enables Kodak to use a variety of new technologies in Ektra. It will be a clear advantage for
Ektra as the people of this modern era can not stay a single moment without the use of
technology. However, its design may become a little complex due to adding so many
features. The variation in behaviour and perception is another source of innovation for
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Kodak. The behavioural pattern of people will help Kodak to understand their need and taste.
But the limitation is that it may not be able to serve the taste of every group of customer.

The market position of Kodak and its increasing competitions are the reason behind its
innovative approaches. Besides, the modern technologies and the pattern of customer
behaviour also tend to the innovation to cope up with market needs and wants. The increasing
competitions will give rise to the need for changing product features according to customer
choice and so Kodak has to change its process needs. Moreover, it has to estimate the
approximate incongruity so that it can tackle the unexpected changes in the market. By
chasing the sources of innovation, Kodak will give much importance to gain new knowledge
about the latest technologies and market trends. So they will focus on generating better ideas
in order to introduce new products and attain competitive advantage. It will try to establish its
own USP (unique selling point) and focus on creating value for the organization. As a result,
its waste of resources will also decline and its organizational performance will get better. The
employees will get more engaged in research to get the best possible outcome and thus the
organizational atmosphere will convert into an environment with higher innovative
approaches.

Explaining the 4Ps of innovation and the use of innovation funnel to

examine and shape innovative ideas
4Ps of innovation:

4Ps of innovation is considered as the four factors that enable an organization to analyse the
ways of innovating products or services within an organization. The 4Ps of innovation in an
organization is discussed briefly below-
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Figure 2: 4Ps of Innovation

Source: (Tang & Werner, 2017)

Paradigm: When an organization changes its products’ framework or model on the basis of
the ideas generated because of the ever-changing needs of customers, it is considered as a
paradigm. For example, Kodak can change the features of its mobile set so that it can meet up
the needs of customers and this will help it to grow its sale.

Products/ services: If an organization puts effort to redesign its current products in order to
improve organizational performance, it is regarded as products or service innovation. Kodak
can apply this innovative method to enhance its current products’ quality and enhance the
sale of the products.

Position: It regards the positioning perception of the current products of an organization in

comparison to the competitors and helps the organization to sustain in the long run. Kodak
can take strategies that will increase the USP of its current products and enable it to make a
strong and permanent position it the mind of the customers.

Process: It refers to the schemes that are needed in constructing and improving the products
of an organization. It helps an organization to make the perfect materialization of its ideas
and increase its productivity in order to do a better performance. Kodak can use modern
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materials and machinery to ensure that the process of innovation is enabled in an accurate
manner.

Innovation funnel:

Innovation funnel is considered as the method of transforming the idea of an innovation plan
into a materialised and feasible project (Dekkers, 2018). Kodak can use this popular method
to implement its plans into reality-

Figure 3: Innovation funnel

Source: (O'Sullivan & Dooley, 2014)

The above figure highlights the different stages of innovation funnel that helps an
organization to materialise its projects. It enables an organization to execute its ideas through
assessment, development, test and launch and to attain the objectives associated with the
projects. At first in an organization, the various ideas are constructed through paradigm,
products, position and process and after that, the ideas go through the funnel to get them into
action. The first stage of the funnel is the assessment where all the ideas and plans are
assessed on the basis of various criteria and many of them are crossed off because of the
lacking of feasibility. The second stage is the development and in this stage, the feasible
plans of the assessment stage are improved through much research and development. The
next stage is the test and here the plan is tested so that its feasibility and efficiency can be
evaluated. The final stage is the launch stage where the idea is implemented. Thus the
innovation funnel is used so that innovative ideas of an organization can be easily examined.
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The development in frugal innovation and the ways it can be used in the
context of Kodak
The development in frugal innovation:

The frugal innovation is considered as the technique of highlighting the necessary business
area by declining cost and complications of the products by crossing off the unwanted
attributes (Weyrauch & Herstatt, 2016). In this particular method, an organization usually
tries to keep the cost of products minimum by cutting off the inessential expenditures. As a
result, an organization can sell its products in the market at a lower price which will create a
strong competitive advantage of the company. So the demand for the products will increase
in the market which will help it to compete in the market to sustain in the long run. If an
organization wants to gain success through the increased productivity and sale, it can adopt
this technique which will help it to decrease the cost of its existing products and get a
lucrative outcome.

Example of frugal innovation in Kodak:

At present, the sale of Kodak is declining due to the increased use of mobile phone cameras.
The less sale of Ektra mobile is because of its inability to fulfil the expectations of the target
audience. Kodak can cut off the unwanted features and complexities and reduce the cost of
the phone and name it Ektra Exceed.

Figure 4: Ektra Smartphone

Source: (MacKnight, 2019)

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The current problems: There are a few problems in the phone, like- having no fingerprint
scanner, absence of water resistance quality, single sim system, dim brightness, less effective
speaker, thick frame, discomfort to hold because of the back camera etc.

The features after frugal innovation: Kodak needs to add the fingerprint scanner, water-
resistance durability, dual sim system, thin frame and small back camera so that it becomes
easier to hold the phone.

The new features will update the phone’s quality and help it to lessen its complexities. As a
result, it will get much market demand than before.

Analysing and applying innovation funnel in the context of Kodak

Innovation funnel is a tool that enables an organization to implement its feasible projects into
reality so that organizational success can be ensured. In Kodak, innovation funnel can help it
to grow its business through the implementation of its innovative concepts and gain a
competitive advantage in the market. The innovation funnel in Kodak and its application in
the organization is shown below-

Figure 5: Innovation funnel of Kodak

Source: (Laihonen et al, 2015)

Idea generation: At first, Kodak needs to think about the industry and brainstorm about the
new opportunities that can arise from the generation of the new idea. It must analyse the
source and future possibilities as well so that the concept and idea can be beneficial for
organizational development.

Concept screening: In this stage, the ideas expected to be feasible and realistic go through
many steps to find out the best possible idea. In Kodak, the ideas are compared with the
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market position, customer choice, customer behaviour, rival strategy and so on. The concepts
that are estimated more realistic on the basis of these attributes go through the third phase.

Analysis: In this stage, Kodak analyses the big data of the organization, its strength and
opportunities and also the negative trends. Besides, it also uses various surveys,
crowdsourcing, online feedback, etc. in order to understand its probability to sustain in the
current market. In this stage, the most feasible plan sustains and the rest are rejected.

Development and test: In this stage, Kodak develops its plan according to the requirements
of the market. It adds new features and cross-off the unwanted ones. After that, the product is
sent for testing. After doing the test, feedback is evaluated and it is compared with the
estimated value.

Launch and monitor: In the last stage, Kodak launches its goods and carefully monitor the
customer response. A continuous monitoring is done to understand the success of the product
and to take measures in future to increase the sale.

Evaluating the role of frugal innovation in the context of Kodak

Frugal innovation is a technique that is highly important for Kodak as an organization to
sustain in the current market and its role in the organization is scrutinized below-

 Ensuring efficiency and quality: Through frugal innovation, Kodak is able to

produce better products at a reasonable price and attain proficiency in its production
process. As a result, their organizational competence is increased in the market.
 Reducing waste of resources: Frugal innovation helps Kodak to ensure less waste of
its assets and decrease the repeat of its errors and so its production costs automatically
alleviate. So Kodak is able to sell its commodities at a lower rate which helps it to
sustain in the long run.
 Ensuring a lucrative outcome: Frugal innovation helps Kodak to grow its level of
productivity and as an outcome to this, the organizational sales also get increased. So
Kodak is able to perform well in the market and earn profit easily.
 Attaining competitive advantage: Frugal innovation helps Kodak to sustain in the
market and do the best possible performance. It also helps Kodak to create a
distinctive place in the customers’ mind so that it can strengthen its position through a
loyal base of customers.
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The above brief shows the role that frugal innovation has been playing in the race of assuring
organizational sustainability for reputed companies like Kodak.
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Task- 2
Explaining the importance of commercial funnel and the application of new
product development (NPD) processing for commercialization of
innovation
The importance of commercial funnel:

Commercial funnel is considered as a technique applied by an organization that creates

awareness among the customers and makes them purchase the commodity (Brockman &
McEwen, 2015). In an organization, the execution of commercial funnel has become
monumental nowadays due to increasing competitions. Some of the importance are
mentioned below-

 Commercial funnel enables an organization to understand the acceptability of a

certain product among its target audience and helps to estimate the market position of
it.
 It increases the sale of an organization by creating awareness among the customers
and convincing them to buy the product.
 It helps an organization to create strategies to attract the customers so that they get
attracted towards the commodities and purchase it.

The application of the NPD process:

New product development (NPD) is regarded as a method that an organization implements so

that it can bring a new and fresh product in the market to attain a distinctive place in the
consumers’ mind and get profit in the long run (Colombo et al, 2015). It enables an
organization to perform according to the customers’ expectations and Kodak which is losing
its market position at present must go through this process to get new products and increase
sale. The NPD process adopted by Kodak is shown briefly below-
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Figure 6: NPD process

Source: (Verma, 2017)

 Idea generation: In the first stage, the ideas are produced within an organization that
enables the improvement of the product or service. In Kodak, ideas are generated
through much research conducted by the organizational members.
 Idea screening: In this stage, the less feasible ideas are crossed off so that the most
realistic idea can be analysed further. Kodak must analyse its innovative ideas through
market research so that it can select the most feasible one.
 Concept development and testing: In this stage, the products are provided to a group
of customers to get their response. Kodak can form a small group and provide them
with the product to understand their need and the performance of the innovation.
 Market strategy development: Here, the market is analysed properly and the
condition of the market is evaluated. Then Kodak decides the suitable strategy for
implementing their idea.
 Business analysis: In this particular phase, Kodak analyses the information that puts
an impact on its business. It usually analyses the revenue, expenditure, profitability,
operating cost, etc. associated with the new product in this stage.
 Product development: If the business analysis of the innovation is seen lucrative, the
product is usually introduced by an organization. Kodak may introduce Ektra Exceed
if it is regarded to be profitable for the business.
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 Test marketing: In this phase, Kodak will test its product within a very small scale
through standard/ controlled/ simulated test marketing process to understand its
probability to get success in the large market.
 Commercialisation: This is the last stage of product development where the new
commodity is introduced in the market on a bigger scale. If Ektra Exceed passes the
test marketing stage, it will be introduced in the market to compete with the other
products.

The above discussion showed how the process of NPD is operated within an organization like
Kodak and helps it to achieve success in the market.

Building an innovation business case for Kodak, including ways to access

funding
Executive summary:

The case presents an innovative concept of Kodak and how it can bring variation to its
smartphone Ektra. The case highlights the process of redesigning the smartphone Ektra and
launch it in the name of Ektra Exceed. The Ektra Exceed is expected to gain a better market
position with the target audience of photographers and people of middle to upper income.
Kodak is implementing a strategy of the social media campaign and psychological pricing. It
has decided to collect a total fund of £200000 for the innovation and the sources will be
commercial bank loans, leasing, invoice financing and internal investment.

Introduction:

Kodak launched its smartphone, Ektra, in the market of Europe and the USA but it could not
sustain in the market due to its poor performance. As a result, both the sale and price of Ektra
smartphone is very low in the current market (Mafodda, 2019). So Kodak has decided to
redesign its product so that it can meet up the expectations of the customers and the sale of
the product enhances. Kodak has taken innovative approaches to improve the features of
Ektra within a lower cost and increase the efficiency of the mobile phone.

Objective:

The main purpose of innovating a new mobile phone named Ektra Exceed to improve the
performance of the brand so that the sales volume and profitability of the product grows and
it becomes able to sustain in the industry.
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Target market:

The target market of Kodak will be the people who are interested in photography. Besides,
the middle and upper-class individuals are also the target audience here.

Marketing strategies:

Kodak can use a variety of strategies to establish Ektra Exceed in the market and put an
impact on the mind of its target audience. The following ways can be implemented by
Kodak-

 It can use social media such as- Facebook, Instagram, Twitter, Youtube, etc to
advertise and share its product campaign.
 It can introduce an initial discount offer to attract customers. Besides, it can
implement the psychological pricing strategy to attract the target audience.
 It can distribute leaflets, use billboards and television commercials to promote its
product.

Financing needs:

Kodak is a reputed organization with a strong financial background, yet it has to evaluate the
sources needed for investing in the innovation process of Ektra. For innovating Ektra by
cutting off unnecessary and complex features and construct in a fresh way, Kodak will have
to bear the expense of $200000. The company can collect fund from the following sources-

 Bank loans: There are many commercial banks in the USA that gives loan to
organizations like Kodak. Kodak can take bank loan from a commercial bank to go
through the innovation process of Ektra.
 Leasing system: Kodak can take the lease of the necessary expensive machinery,
equipment and elements. As a result, it can avoid the huge initial cost of buying the
machinery.
 Invoice financing: In this financing system, an organization can purchase different
kinds of raw materials and other elements on the basis of credit. Kodak can also buy
the raw materials needed for the innovation process on credit.
 Personal investment: In this case, Kodak can include internal investment policy as
well. If it is unable to collect the total fund from the above-mentioned sources, it can
collect its fund for the innovation process from various internal sources.
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After collecting the funds needed for transforming Ektra into Ektra Exceed, Kodak will carry
on the process of innovation so that it can launch the new phone in the market as soon as
possible.

Ways to measure the overall effectiveness of the innovation using

appropriate techniques
Kodak can evaluate the effectiveness of its innovation process of Ektra mobile phone by
applying a range of tools and it is briefly evaluated below-

Setting objective and benchmark:

Kodak must set up its objective of improving its mobile phone Ektra through innovation so
that it can do well in the current market. Kodak has to implement the objective by comparing
it with the expected benchmark and analysing the customer needs and taste, market condition,
etc.

Execution of measurement techniques:

To do better performance and get an outstanding outcome from the innovative approaches
related to the objectives of Kodak, the following tools should be used-

 Financial statements: The financial statement will provide Kodak with information
about the operating cost, revenue, net profit or loss, rate of return, and so on. As a
result, Kodak will be able to evaluate the performance of the organization due to the
innovation.
 Market analysis: The market place analysis will enable Kodak to understand the
standing of Ektra after innovation in the market compared to the competitors. The
market share growth, profit and valuation, etc. will help them to understand the
efficiency of the innovation.
 Customer satisfaction and survey: One of the most important tools to understand
the performance of the new product is to evaluate customer opinions and taste. Kodak
must survey on the customers through social media poles, customer scorecard, etc.
and it will give the company a clear idea about the acceptance of Ektra Exceed among
the target audience.
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 Stakeholders’ value: Kodak must analyse the stakeholders’ value like- opinion,
expected rate of return, etc. so that it can understand the minimum extent of success
needed for the innovation.
 Risk analysis: Kodak must analyse the risk and uncertainty associated with the
innovation as it will help it to estimate the disparity between the expected and actual
return. It can use standard deviation, correlation, diagrams, etc. to measure the risk of
loss in this project.

After doing scrutiny on the techniques, Kodak can compare the outcomes with the set
benchmark so that it can take further steps in order to improve its performance and increase
profitability.

Evaluating the tools that an organization can use to develop, retain and
protect knowledge and intellectual property
Intellectual property is regarded as the concept that provides the owner of creative works with
the legal rights and financial benefits so that none can copy or violate the right of the owner
(Peloso, 2016). So every organization must ensure that its intellectual properties are protected
otherwise it will have to suffer in the long run. To develop and protect knowledge and
intellectual property the following tools are needed in an organization-

 Patent: Patent is an intellectual asset that provides the owner of an invention with the
legal authority to sell, develop and use it for a particular period (Dang & Motohashi,
2015). If an organization makes patent for its products or inventions, the competitors
will not be able to copy it. As a result, the organization will be able to create a strong
competitive advantage in the market.
 Copyright: Copyright is known as the intellectual property that provides legal
support to the creative works that give permission to use or develop it. If an
organization owns this authority, the competitors fail to steal the creative work of it
and it enables to get better value and creative advantage in the market.
 Trademark: It is considered as the intellectual property that provides distinctive sign,
colour, expression, name, etc. to an organization that makes it different from the
others (Castaldi, 2018). It is an authority that helps an organization to create its own
identity in the market and get greater advantage than its rivals.
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These are the tools that can help an organization like Kodak to create its own identity in the
market and enable to differentiate its products so that their competitive advantage is
established.

Evidence-based evaluation of different tools of intellectual property on the

context of Kodak
The application of patent, copyright and trademark and its benefits with challenges in Kodak
is described below-

 Patent:

The patent will help Kodak by giving it the legal right to sue anyone who tries to steal its
inventions (Torremans, 2019). So the competitors of Kodak are unable to produce its
invention-works to gain the patent authority, Kodak has to go through a long procedure
where it has to spend a big amount of money and time. Besides, there remains a chance that
some of its confidential information might get out.

 Copyright:

Copyright will give an organization the legal authority to reproduce its products and bring
change in its formula. If competitors try to copy its innovation, charges will be imposed on
them (Gallagher, 2019). So Kodak will also be able to get the same benefit. But there is a
problem that organizations face with copyright laws. In some cases, Kodak might need to
share the work of it with the others as it does not get ownership of the works.

 Trademark:

Trademark enables an organization to get a distinct identity and so it is regarded as an

individual brand to its customers (Gallagher, 2019). Because of this feature the customers are
able to differentiate Kodak with other brands and thus a loyal base of the customer is also
created. But in case of trademark, the cost of the renewal and the strategies applied to
maintain the brand identity in the market charge a high amount to Kodak.
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Conclusion:
Innovation and commercialisation are regarded as the procedure of developing the existing
product in a new way so that a strong position can be gained in the market. Kodak is the
company that is facing a decline in its sales and the performance of its mobile phone Ektra is
not good. The main objective of the report is to discuss the execution of the innovation and
commercialisation process in developing the product of Kodak. Here, the 4Ps of innovation,
innovation funnel and the NPD process has been briefly discussed. Moreover, scrutiny of a
business case study in the context of Kodak has been shown as well. Then the importance of
intellectual property and its pros and cons are also mentioned. Thus this report highlighted
the overall development and commercialisation method of Kodak and the concepts associated
with it.
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