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Programme BTEC Higher National Diploma (HND) in Business (Marketing)

Unit Title and Innovation and Commercialisation (Unit 8)


Number:
Dr Ayodele Aluko
Unit RQF level/Code 4/(M/508/0494) Module Tutors a.aluko@mrcollege.ac.uk
Name/Email o.joshua@mrcollege.ac.uk
Olajide Joshua

Credit Value 15 Assignment Brief Code RQFBM-RP0902051

Cohort Name Sept 19A Assignment Date Set 20th April 2020

Session Start Date 4th May 2020 Session End Date 17th July, 2020

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INNOVATION AND
COMMERCIALISATION
(Unit 8)

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Table of contents
Table ofcontents……………………………………………………………………..……….1
Introduction………………………………………………………………………………….…2
Background of the organisation………………………………………………………………3
Differencebetweeninventionand innovation…………………………………….………...4
Explain the importance of both innovation to organisation………………………………..4
Explain how organisational vision, leadership, culture and effective teamwork influences
innovation and commercialisation and how these factors can make an organisation an
innovative organisation………………………………….…………………………………….7
Explain the sources of innovation including the merits and demerits of each
source……………………………………………………………………………………………9
Types of innovation……………………………………………………………………….…...10
Explain the 4P*s of innovation…………………………………………………………….…10
Define innovation funnel and explain how they are used to develop innovative
ideas…………………………………………………………………………………………....13
Define and explain the concept of frugal innovation……………………………………….15
Explain the benefits of frugal innovation to your chosen
organisation…………………….15
Process of commercialising innovation………………………………………………………
17
Define comercial funnel and the importance to an organisation………………………….17
Expline the process of new prod development (NPD)…………………………………….18
Develop a detailed innovation business case which highlights the
following…………….20
How to protect innovation……………………………………………………………………..23
Examine the strengts and weaknesses of each technique………………..…………….…
23
Explain how your chosen organisation can protect their innovation using different
techniques……………………………………………………………………………………...26

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Summary and
conclusions…………………………………………………………………….29
References…………………………………………………………………………….……….30

Introduction
Innovation is concerned as the concept of bringing new idea, thoughts and imaginations
in bringing new product or service into action. This also includes application of the better
solutions that would meet with new requirements of the organisation, meeting customer
needs and also existing marketing needs of the business (Christensen et.al. 2015). It is
the process of translating an idea into the good or service that would create value for
that the customers would pay. The idea that is being applied by the business is
replicable at the economic cost and would meet with specific needs of the customers.
Thus, commercialisation is the process of translating the ideas into reality that would
lead to increase greater wealth of the organisation.

The report covers discussing about the importance of innovation and also analysing
suitable factors that affect the organisational culture. There are different innovation
sources explained through which innovatoon could be implemented in the
organisational context. Further, the context of innovation funnel in the organisation is
being applied that could be effective for organisation for bringing step by step innovation
in the business. In addition, the application of new product development process is
explained that could lead Deliveroo to achieve successful implementation of innovation.
At last, to protect the innovation, it required business to implement intellectual property
right tools so that innovation cannot be copied or brand reputation cannot be damaged.

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Background of the organisation

Deliveroo is an online food delivery organisation, based in London; England was


founded by Will Shu and Greg Orlowski in 2013. The organisation operates in more
than 200 cities in UK, France, Belgium, UAE, Australia, Hong Kong etc. It is a private
organisation employing around 5600 employees as per the data of 2019. The food
orders are placed by the customers on mobile applications and website and the drivers
associated with the delivery merchant delivers the parcels to the respective customers
(About Deliveroo, 2020). The customers are charged with separate fees. Deliveroo has
tie ups with restaurants providing tasty foods at fast delivery and low price. It charges
commission fees from such restaurants.

The organisation has not made higher profits yet as the fourth year for Deliveroo was
quite bad as it started facing competition from new market entrances like Uber Eats,
Grub Hub, Caviar, Freshly etc. The local and foreign sellers’ products decline the
market Deliveroo and its sales margin could not meet the expectations of the founders
and investors. By seeing this downfall, the management took a decision to appoint a
new strategy innovation consultant to analyses the negative factors and provide new
and real ideas of innovating new styles of marketing, facing the competition and
attracting new customers

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Difference between invention and innovation

Innovation can be considered as a new suggestion or a potential idea or a better


change or improvement in existing invention, products or services, any expertise field.
Innovation helps in achieving comfort, value and development. The leaders and
managers continuously work with the research and development department to evolve
new and creative ideas and improve the current one to increase more output and
revenue. Technological advancement and internet are one of the best examples of
innovation development by every nation (Roco and Bainbridge, 2013). Innovation has
improved the standard of living of the society and assisted the leaders of Deliveroo to
look for more opportunities.

Invention is considered as a critical process of designing a new development. Invention


provides new and useful things, concepts, and approaches for the users. Invention may
occur in a variety of fields like product, services, education etc. it provides the
consumers to achieve a better and relaxing experiences that had not been attained
earlier. It can be understood that innovation and invention differ from thin margin (Mast,
2013).

Figure 1: Innovation vs. Invention

Comparing the invention and invention, both are very different terms but innovation is
somehow connected with invention. Invention is considered as bring fresh idea or
offering new product that is not currently available in the market. This is one of the

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effective concept that lead business to position in the market with a new product.
Innovation on the other hand is referred to bringing change or development in the
current product. This means business tries to bring new idea and implement better
solution to meet new market requirements and also meetings need of the customers.

Explain the importance of both innovation and invention to organisations


Deliveroocomplete business operations are focused on innovation. Deliveroo
employees are encouraged to share their knowledge and experiences to making new
strategies and actions to provide customer satisfaction and gain competitive advantage.
The leaders of Deliveroo have invested in huge campaigns displaying differentiated
products according to the needs of customers (Camisón and Villar-López,2014.).The
organisation has won Best Beats First Category Real Innovation Awards. The leaders
have provided huge variety and range of food and drinks menus as per customer’s
taste, need, moods, restaurant preferences etc.

Faster deliver – Deliveroo delivers the food by bicyclist in approximately 32 minutes in


around 200 cities and 12 countries. The organisation this way contributes in achieving
sustainable development. At a time 3000 bikers are seen everywhere that are engaged
in delivering mouth-watering foods at cheap price to the customers at doorstep (Cant,
2019).

Pop up kitchens – This new concept have bought worthy solutions for the restaurants.
In UK the rental, food cost and real estate process are increasing. Pop Up kitchen has
reduced the investment capital to one tenth. The researchers combine the data and try
to connect every popular restaurant in the area. The track record of Deliveroo is
marvellous. The organisation has 10000 restaurants covered in UK. Being a competitive
food tech innovation is important for Deliveroo to survive with the changing factors and
expand continuously (Roberts et.al. 2020). The leaders have taken better financial
decisions specially while investing in new countries.

RooBox – It is pioneering remote kitchen initiative assists the restaurants by giving


access to deliver in key locations and helps in fastening geographic expansion. It
converts low value spaces into delivery hubs serving 2000 dishes per day. The new

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funds are used by the management in explaining new and existing market and services
like breakfast, express lunch, corporate ordering, striking deal and offers and major
partnership with Pizza Express. The management has also invested an amount of US $
275 million in E investment with Bridgepoint, DST Global, Green oaks Capital and
General Catalyst Partner (Maggitti et.al.2013).

Virtual restaurant model – Ghost Kitchens or cloud kitchens are a type of virtual
restaurants that are emerging in technological world that are raising price war in the
food delivery industry. The kitchens are set up at every visible location providing food at
nominal rate. Amazon has invested 100’s of millions in Deliveroo to achieve progressive
goals. The leaders will cut down 50% cost on food for customers along with new and
exciting offers. This policy aims at doubling the profit for the organisation due to
automation and effective supply chain management the leaders have managed to
increase customers count and income (Mehboob, 2019).

Ocean innovation strategy – Food services are carried out in own mini food factories
through automation end excluding riders. Incitement restaurants accelerate the sales.
Restaurant’s products are promoted on the Deliveroo mobile app. In Deliveroo is using
a hybrid model that creates a network of freelancers to outsource the food. This helps in
expanding the production and rising new ideas to lower the food price. Freelancers also
lower the business risk and fulfils large scale demands (Mehboob, 2019).

Strong communication – Better relations with the customers will built customer loyalty.
It helps in building a better image of the organisation and the restaurants. Deliveroo has
a huge database of its existing customers but do not share that with the associated
restaurants. The management has been able to earn profits regularly as compared to its
competitors. The communication network of Deliveroo is much better than other
competitive brands like Brewdog, Ocado, Dyson etc (Sarooghi et.al. 2015).

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Figure 2: Innovation

Explain how organisational vision, leadership, culture and effective teamwork


influences innovation and commercialisation, and how these factors can make an
organisation an innovative organisation.

Vision – The leader of Deliveroo aims at delivering to food at urban areas and
residential colonies with large population with low restaurant counts. The focus is
shifting towards providing healthy and tasty food at low cost and less time and being
available for wider audience. The new organisational structure must support the
employee’s demands and giving opportunities to earn at peak hours. The leaders must
plan to expand the brand in new countries and utilise the financial resource in providing
improved quality products (Maggitti et.al.2013). A vision helps in

Vision leads organisation to follow the relevant direction through which new ideas and
creative concepts that can lead business to bring innovation. Vision would be motivating
the staff towards better performance and sharing innovative ideas. In addition, the ideas
that are presented by the staff could be considered by Deliveroo in achieving the
relevant organisation in bringing innovation.

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Leadership-the CEO, Will Shu look for better opportunities and fruitful possibilities for
expansion in near future. The employees provide 24 hours customer’s services and
evaluate the health and risk associated with the food (Richardson, 2020). The delivery
manager looks after the function like building and maintains the team, identifying the
problems and asking for better suggestion from the qualified and skilled employees.

Leaders at Deliveroo are engaged in brand promotion via various channels and growth
programs. The leadership factor can lead Deliveroo to lay importance of target
customer’s convenience for selecting best products and services on ecommerce
platform. Leader in the business would try to engage with the staff that can lead to
enhance the objectives and achieve organisational goals in relevant manner.

The leaders and managers at Deliveroo have adopted food system thinking approach.
The leaders conduct proper research about the food production system and make
decision about food sourcing, retailing, pricing, maintain the supply chain and
minimising environmental pollution.

Culture – Culture consists of set of values, ideas, beliefs, and way of living, disciplines
that members of a common group of individuals or society generally shares. The leader
at Deliveroo sets high standards for the workers and motivates to give impactful
performance.

The culture must influence the performance, communication and decision-making


process of the staff positively (Cant, 2019). The colleagues and workers enjoy working
in the competitive environment with each and have established a positive work
relationship. The management team is ready to help the employees in need and provide
flexible working hours. Deliveroo tries to minimize the discrimination at workplace and
maintain the salary structure.

The culture of the organisation is referred to the work environment where leaders of the
organisation would motivate staff to change their thinking and present innovative ideas.
The workplace that foster the culture of innovation would help business to gain relevant
and key competitive advantage.

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Teamwork – The main emphasis of the team members is that the organizational goals
have to be achieved by a combined effort of well skilled, experienced and
knowledgeable team members. Efficient distributed team work is the benchmark of
success in digital industry. Effective communication will achieve the objectives in limited
time and cost. The leaders and team members at Deliveroo focus on the important
items and demands of the customers and facilitated the movement of delivery items
(Richardson, 2020).

The management team of Deliveroo has built Enterprise Collaborative Canvas based on
Slack and G Suite to accelerate the digital communication and fast interactions with the
customers. The technological advancement is also used to carry on the internal
operations and outsourcing activities. The management has also lay emphasizes on
continuing the business with virtual team like outsourcing the customer care with a
collaboration from Philippines. This is the kind of innovation that business has brought
to achieve relevant organizational goals. The team members also chat with the
customers and assist in resolving the issues and answering their queries (Richardson,
2020).

Figure 3: Innovation and Commercialisation

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Explain the sources of innovation including the merits and demerits of each
source

External sources Internal sources


Technical advancement is also brought up Demographic conditions like age, race,
in fast delivering of products along with sex, employment, education, income etc
change and improvement in the plays an important role in influencing the
processes. Internet is the most important innovation process of the food industry.
source of business today as it reaches out Employees at different locations in the
vast range of customers. The marketing world provide relevant information about
team of Deliveroo is able to create the the needs, taste and demands of the food
products awareness to local and as per the new trend and preferences of
international buyers (West, J. and Bogers, the citizens.
2014). Proper analysis is done by the marketing
and research team. Such team collects
The well skilled, experienced and qualified adequate data to innovate a useful and
professional of Deliveroo keep a sharp eye healthy idea (Arfi et.al. 2018).
on the changing market trends and
customers taste and their adaptability for The managers provide a comfortable
the product and services. The organisation working environment to the employees at
possesses a huge fan following specially workplace. The changing perception of the
in UK and France. population is raising new demands and the
restaurants associated with Deliveroo are
Deliveroo researcher and development striking hard to make more innovative
team works on service innovation to dishes in low cost to attract more
maintain their market position and gain customers online to increases their profits
competitive advantages (West and and assists the food delivery industry (Arfi
Bogers, 2014). et.al. 2018).
Merits and Demerits Merits and Demerits
The external sources of the innovation are Internal sources for innovation are
important to analyse as these are the important because it leads to achieve the

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uncontrollable factors as it directly will potential decision making and business


influence on the process of innovation. would be able to implement the latest
Analysing the use of external source in innovation in the organisation.
innovation would lead business to take
relevant business decision making. The factors of internal innovation are
challenging because customers and their
The external sources are sometimes perception regularly keeps on changing
uncontrollable and they would indirectly and that would effect on the perception of
affect the business. And the innovation business to bring latest innovation.
process can become the potential loss for
the business.

Favourable market situations like increased sales, revenue, demand of products,


efficient supply etc encourages the leaders and managers in an organisation to invent
and experiment newer product differentiation. Innovation is necessary as the customers
become bore of using the same product for a long time. Customer’s reviews and
feedbacks will guide the leader to bring improvement. The social media and ecommerce
platform contribute in promoting products of well-established brands.

Types of innovation

Explain the 4P’s of innovation

Understanding Commercialization process

It is process of introducing a new product, services or methods in the commercial


industry for business development. Commercialization makes the products and services
ready for the customers at huge marketplace. This process encourages the entry of
technology into the organisational functions. The research and development technology
helps in making the product commercial and to encourage the sales of the new
developed products advertising, promotions, marketing play an important role

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(Anderson, 2013). To gain long term success the organisations goes through innovation
funnel process to evaluate best ideas for making the products and improving the
existing ones. Stakeholders and customers are also involved in this plan.

Four p’s of innovation are:

Paradigm – Paradigm innovation refers to changing the current business models


followed within the organisation. The paradigm innovations encourage the organisation
to introduce new objectives and operational models which are set to accomplish
ultimate organisational goals and to maintaining costs. It also modifies the thinking and
working style of the employees. This kind of innovation is performed to improve
profitability. The organisation emphasising on developing product chains and expanding
service lines also comes under paradigm operations.

The focus on keeping consumers healthy can also boost Delieveroo to make paradigm
innovations by introducing categories of healthy food option. The further paradigm
innovations for the Delierveroo can be improving online payment options for delivering
food to attract more market consumers.

It is a planned strategy faced by the sales organisations while undergoing the process
of innovation and improvement. The thinking process of the employees and leaders is
influenced by many changing factors, threats and uncertainties. TheCEO of Deliveroo
encourages the staff members to manage the business operations in the competitive
environment. The customer care service of Deliveroo is ready to help the new
customers regarding the delivery issues from the new and existing restaurants
(Anderson, 2014).

Deliveroo should provide adequate training to its new employees to increases the sales,
customer services and faster delivery. The best performing employees and delivery staff
must be rewarded with bonus and sales incentives. Showing respect to the customers is
one of the most important attributes of the employee including the delivery boys/girls
and sellers at retail stores. The suppliers of Deliveroo provide best raw materials and
are paid on time to maintain the trusted relationship (Fernandes and Brandão, 2016.).

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Product – Product is defined as the actual good that generally meet with the needs of
the customers. And the customers purchase against paying suitable amount. Thus, it is
effective for offering product on the basis of quality and that meet with customer needs.
Quality products and services adds value to the management of every profit and
customer-oriented organisation in UK. To maintain the market position Deliveroo must
provide new and healthy food of its customers. If the products are focus on four P’s of
innovation then it will simplify the commercialization process for the industry. Deliveroo
sells its products in five categories under separate product line and wide range of
variety to choose from (Anderson, 2014).

The products of Deliveroo are considered to be differentiated from the one its
competitors. Like the seller sells traditional design products. Before launching new
products, the marketers of Deliveroo must test the new products by providing free
samples or conducting proper survey. The organisation must concentrate on improving
the packaging of the products that must be a little appealing to the customers and for
easy transport. The products must include warrantees, credit facilities, after sales
services etc (Cant, 2019).

Process – The retailers of Deliveroo must ensure that products are available at the
stores and the inventory is maintained. The food ordering system in Deliveroo is
computerised; orders are placed via app or website and then shipped in the delivery
process to the customers (Fernandes and Brandão, 2016).

This includes the process that business uses to provide right product to the right
customer and at the right time. The target market of Deliveroo is basically on the basis
of socio demographic that means teenagers and students are being targeted. The
business try to offer affordable meals by offering premium discounts. The prices of the
products are decided by the competitive pricing strategy. In online selling the delivery
cost is included in the price of the products. The researchers are involved in regular
market research to understand the changing market trends and customers growing
taste and needs. Customers provide regular feedbacks at stores, website, app, and
social media (Tidd and Bessant, 2018).

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Position – This can be regarded as the future goal of the organisation. The
organisation aims at attaining a certain position in the competitive market by providing
innovative products and services. Deliveroo aims at becoming the market leader in the
food delivery industry not only in UK but at global level by providing customer
satisfactory services. The management should increase its advertising campaign to
attract new customers via digital media platform. The brand image of Deliveroo and the
online traffic would improve by techniques like banner advertising, Search Engine ads
and optimization and writing blogs (Anderson, 2014.).

Figure 4: 4Ps of innovation

Define innovation funnel and explain how they are used to develop innovative
ideas.
It is the process which is used to filter out the bast idea fro all the ideas proposed. The
process is carried out by mangers and leaders and the stratagies are planned for the
chosen idea. The major priority of the manager’s and leaders si to choose a idea that is
practial and profitable. Following stage are followed for filteration.

Idea generation – It is starting program providing collection of new and artistic ideas by
the experts and team members. The leaders set high benchmark for the employees to

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use their skills and knowledge in providing a useful and potential innovative idea. At
Deliveroo employees are provided a friendly and relaxing working environment with
better data and equipment’s to concentrate more deeply. It is an important stage for
encouraging healthy discussions and assists in innovation process (Vanhaverbeke,
2013).

Screening – After the first stage the collection of idea travels through physical and
logical areas and better ideas need better support of knowledgeable individuals. In
screening process, the advantages and disadvantages of the selected idea are
evaluated. The ideas are selected or eliminated with advocacy and impartiality. Only
those ideas are examined that provides maximum economic output. For example, the
Virtual restaurant idea of Deliveroo was the best idea till date that has provided with
maximum sales and profit growth to the leaders (Bonazzi and Zilber, 2014).

Experimentation–The finalised idea goes through a testing process to identify the


threats and its survival in the dynamic environment. Researches start the survey of the
market and prepare a target audience and their requirement of the innovative products
and services. Discoveries also fail at this stage and provide a future guidance to the
management. RooBox, Cloud kitchens providing food at low price are one of the best
experiments of Deliveroo leaders that has helped in increasing the food and drinks
business across UK by attracting customers that have minimum purchase capacity
(Hakkarainen and Talonen, 2014.).

Implementation–After achieving the acceptance of the innovative idea, distribution


process begins. The new idea is implemented and structures are set up, resources are
accumulated and maintenance process starts. Before launching the new products, the
marketers of Deliveroo take full interview from the producers, employees and labourers
about the performance and satisfaction level of the product (Vanhaverbeke and Cloodt,
2014).

The centre of the Innovation Funnel is to create however many thoughts as would be
prudent, an enormous part of which will be refined and changed over into solid
improvement plans. This makes a channel like shape, from loads of thoughts to a
couple of thoughts. As the best thoughts will remain, the Innovation Funnel is strategic
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direction tool that is to organize thoughts and guarantee that the best will be completely
evolved and propelled tasks, items, or different developments can be propelled in the
Deliveroo. The possibility of the Innovation Funnel starts from varieties of innovation
that can be performed by the organisation in respecctive operating market domain. The
thought was that it takes heaps of possible clients to fit the bill for making an
arrangement as an organization, and that it takes bunches of thoughts and meetings to
generate new ideas to assess whether another item or administration will be beneficial.

Innovation funnel is one of the systematic process that is being followed to bring
innovation. Deliveroo could be effective to follow step by step process to analyse the
market ideas and with that positive decisions could be taken to bring innovation. Market
research in the form of idea generation would shape business to find new ideas and that
can further lead to implement actual innovation.

Define and explain the concept of frugal innovation

Frugal innovation is a process used by the industrialist and manufacturers to work with
limited resources (natural, intangible, human, financial, institutional) and turn those
resources into best products for the customers with the help of innovative solutions like
better designing of the product, understanding the macro environment, adapting
modern technology to reduce the extra costs (Basu et.al. 2013). One of the example of
Frugal innovation is the product of Tata Motors that is Nano that was launched in India
and is terms as one of the cheapest cars. The car have the feature of having new
design with the patent and protected right.

Explain the benefits of frugal innovation to your chosen organisation

Such innovations serve the need of the society as a whole and contribute in social
development by raising the standard of living. In food industry providing health and tasty
food at low price and less time will increase the food orders and economically benefit
the food industry. Investment of Deliveroo in kitchen spaces has brought many
restaurants together. In recent year’s food trends, health consciousness, ingredients
have increased due to food innovation in UK. Deliveroo has maintain good relations with
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the supply chain that has helped the organisation in outsourcing the food and customer
services by cutting down the extra cost up to 20-30%. The freelancers at Deliveroo has
solved the problem of Itsu and Pizza Express to achieve economies of scale and
reducing the business risks (Weyrauch and Herstatt, 2017).

The organisation has also tied up with electric scooter rental retailer Elmovo to
increases the food delivery in London. Electric vehicles are environment friendly.

The role of applying frugal innovation in organisation

The on-demand user friendly delivery app of Deliveroo provides customised orders to
the customers; user can place the order in advance, today and tomorrow. This is one of
the best features of the app that attracts more business. The search feature of the app
assists the user to find the actual dish quickly. The user can also track the order after
placing. The GPS technology with live updates is included while preparing the app
(Bhatti and Ventresca, 2013.). Deliveroo has a safe security payment process like
PayPal, mobile wallet to allow the users to pay directly in the app.

Global organisations aim at high growth thorough business innovation and


improvement. Deliveroo is such example that has raised its market share in over four
years and it is a fastest growing food delivery organisation in UK. With low cost per
meal the management earns 30% of sales value. Cost is saved as Deliveroo is not
responsible for producing food, buy or rent restaurants, or manage much stock. The
sellers are responsible for maintaining customer relationships, handling cash
transactions (Bonazzi and Zilber, 2014).

Customers are happy with virtual restaurant concepts that provide wide range of menu
of eatables and drinks. In London, France and Dubai Deliveroo has succeeded in
maintaining a good brand image and better brand associate. The portable kitchen ideas
of the CEO of Deliveroo can be created in less than 12000 dollars. With Micro Industrial
Kitchen Model real estate prices in London will fall down. The Next Generation
Automation Technology increases cost and competitive advantages for food industry.
The modern day organisation is looking forward to start delivery with robots and drones
(West and Bogers, 2014).

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Therefore, it can be understood that to start and implement a successful innovation, the
marketers and sellers must understand the wants of their customers, the level of desires
and satisfaction the customer want to achieve, the change of taste. Building strong
value chain crafts an effective frugal idea and gaining economic advantages. With
collaborative approaches engineers from various locations works day and night to
achieve something best and worthy. The team of Deliveroo has successfully achieved
low cost, energy saving, reduce environment pollution, waste water treatment methods.
The emerging market looks up for these qualities in every brand. One must understand
that in acquiring a huge target market affordability criterion is very important. Customers
always demand high quality products at cheap price with better features (About
Deliveroo, 2020).

Process of commercialising innovation

Define commercial funnel and the importance to an organisation.


Sales funnel refers to the buying process that would lead customers to with purchasing
the products. This also refers to the process of finding, qualifying and selling the
products to the buyers. The sales funnel is being typically divided into different steps
that business follows to optimise the strategies of sales process of Deliveroo. It is
generally the customer centric marketing model that would illustrate the theoretical
aspects of customer journey towards the purchase of goods and services (Paschen
et.al. 2020). The business would follow the sales model and lead business to bring
innovation that would pass through different stages.

Awareness Phase: In this the customer is aware regarding the existence of the
particular brand in the current market. And this requires business to be aware of the
existing conditions of the market that would lead business to achieve the positive
benefits of the target market that would purchase the product of the company. This
includes business to be aware of the existence of the solution that would lead to gain
attention of the customers.

Interest Phase:It is one of the effective stages for demonstrating the interest in which
prior research is to be conducted on identifying the needs of the customers. And it is

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necessary to observe that it would either meet with the needs in the market. This would
also show the active interest of customers in suitable product group (Grublješič and
Čampa, 2016).

Evaluation phase:At this stage, it is necessary for the business to examine the
prospects of customers in analysing the competitor solution that would lead to take final
decision of the customers. The business need to take decision regarding assessing final
output of the customers. The business would take final decision in respect to evaluating
the prospects for buying.

Decision phase:At this stage, final decisions are being taken to reach to purchase of
the product that would meet with perspective needs. Thus, it is necessary for analysing
empowering the best level of satisfaction for the customers. Thus, it is required to
business to take post feedback after the product is being purchased (Schawel and
Billing, 2014.).

Purchase phase:At this prospective stage, customer would take relevant decision in
buying the product. And this would create the mindset of customers to consume the
product in future or not.

Re-evaluation Phase:At this stage, the customers if satisfied with the product would
purchase product repeated from the particular business. Thus for this they would also
recommend the product of the business to other customer (Paschen, et.al. 2020).

Repurchase phase: In this stage, the satisfaction of the customers would be


highlighted through the repurchase of the product.

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Figure 5: Sales Funnel

Explain the process of new product development (NPD).


Deliveroo adopt the process of 'NPD' for enhancing use of artificial intelligence. The
stages involved in the process are explained below:

Table 1: New Product Development Process

Stages in NPD Description


Idea Generation Development of new Idea for including
robots in operations and personal food
processing system
Idea Evaluation Time is required in traditional delivery and
therefore production of such food must be
minimised.
Strategic Analysis Appropriate strategies of marketing must
be formulated to gain attention of
customers so that organization can gain
more profits (Soheb Panja, 2018).

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Product Testing To test the product it is essential for the


organization to distribute free delivery to
target audiences
Market Testing Reviews from customers must be
evaluated for further improving the method
of operations.
Commercialisation To commercialise the product in an
effective manner, the organization at initial
level must focus on setting lower prices of
the product.
Product Launch Last stage is to launch the product in an
effective manner with the support of
effective marketing strategies.

This procedure is focused on clients. The working in reverse procedure is proposed for
Amazon. It will characterize the item more unmistakably and in straightforward manner.
On the off chance that the pioneers know ahead of time the requests of the clients it is
anything but difficult to create merchandise that would have the acknowledgment in the
market. This methodology will decrease the additional season of contentions and
conversations. The administration of Deliveroo will have the option to give high esteem
items to its customers. The techniques that can be utilized are composing official
statement, characterizing client experience and giving a client manual.

Develop a detailed innovation business case which highlights the following

New innovation

Deliveroo have higher focus on adding robotics working and artificial intelligence to its
existing production and trying to remove all the traditional practices that affect the needs
of its customers. The organization to increase the sales must adopt appropriate

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methods of distribution (Soheb Panja, 2018). In addition to this, it is essential to make


customers aware about the benefits of such type of innovation which is possible of
adoption of new marketing process (Boons et.al. 2013). The organization must also plan
to provide customer service with the help of its online websites and portals.

Scope:Deliveroo is one of the effective businesses that need to gain satisfaction of the
customers with bringing innovation in the product. Scope of business expansion is
based on bringing development in the product and increasing the sales with bringing
improvement in the business operations. Employees within the organization must be
trained to attain set objectives of bringing innovation in existing beverages by
maintaining the quality. The organization can increase overall sales and productivity by
implementing digital techniques (Casadesus‐Masanell and Zhu, 2013).

Implementation of Plan: The plan that is being designed is necessary to be regularly


monitored and must be implemented with relevant process. For this, the innovation in
the Deliveroo and its success would be measured in terms of setting KPIs. The success
of the plan would generally be dependent on increase in customer base, increase in
potential amount of revenue, the increase in the sales. These are the KPIs on the basis
of which plan would be monitored and actual success of the innovation would be
measured.

Cost Benefits

It has been identified that Deliveroo can be more expensive as compared to delivery by
local restaurant and to some extent causes harm to needs of the customers. However
at initial level the organization has higher focus on increasing the sales rather than profit
margins by maintaining reduced prices of the products. Cost bifurcation is as follows:

Expenses Cost(in Dollars)


Production 500
Raw material 200
Labour 450
Management and marketing 450
Total 1600

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From the above net profit margin after innovation is 3000-1600=$1400 as estimated
revenue is of $3000.

Funding: From bringing changes in existing technology, products and services, or


process, the organization is in need of funds which can be raised from banks, financial
institutions, investors, etc by briefing about their idea and its advantages. They can also
communicate to their business partners so as to increase the sales of their products by
providing schemes. Funds are raised by making contracts which include returning the
amount with some reasonable agreed interest in fix duration of time.

To gain benefits of funding, it is essential for the organization to wider the range of
products as compared to its competitors in the market. Current issue faced by the
organization is availability of similar products at fewer prices.

Identify risk

There are different types of risk that can be faced within the innovation of product. This
type of risk includes operational risk that is concerned with failing to meet the quality,
cost and scheduling requirements of the products. In addition, commercial risk is
concerned with improper application of strategy that will lead to fail to attract the
dedicated target audience and customers. Also financial risk is concerned with not
getting the return on investments or in case of failure of the innovations.

Leadership challenges and motivational examples

Deliveroo has the leading and professional leader that is responsible to take decisions
regarding management of the team. In terms of bringing innovation, there are different
leadership challenges that are faced by the leaders of the business. For example,
sometimes leaders need to have the humility during the success of innovative project.
Also leader needs to possess the confidence during taking decisions regarding bringing
innovation in product. It is necessary for leaders to consider development of the team
that will boost confidence and possess the effort that are based on respect to achieving
success of the project. Motivation is offered to the customers by offering incentives,

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bonus and rewards with achieving the suitable target. For example, at the initial stage of
bringing success with the innovative product, leader will initiate high involvement of the
employees that will lead to bring success of the new business innovations (Linder and
Williander, 2017).

Measurement techniques and parameters

With increasing competition, it is necessary for organisation to avoid competition in case


of testing the product efficiency. For this, it is effective for ensuring that business uses
effective range of products and make consumers to keep up with the rivals. There are
some of the techniques that can test the effectiveness of product that are explained as:

Products are to be launched in market with the combination of appropriate marketing


strategies to increase its reached to audiences. The process must be followed by
effective strategy of free delivery of food products so that customers can give their
feedback which can be utilised to improve the taste and quality of product.

The parameters for measuring the implementation of innovation generally include


measuing the number of sales and revenues after the product is being actually
launched in the market. It can also be measured with observing the increased traffic
over the website and also increase in number of customers that enquired about the
product. Actual success would be measured with observing the sales of the
organisation that is achieved after product launch. Increase in sales would directly affect
on profit of the firm. Thus, measuring that aspects would lead to measure the outcomes.

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How to protect innovation

Examine the strengths and weaknesses of each technique

To protect the creation of business such as symbol, design, packaging style and logo
business man uses various tools so that retailer cannot copy and sell their product. To
overcome the threat of retail to sell their product by coping their Intellectual property so
the government has developed s tools for protecting intellectual property which are
trademark, copyright, and patent

Trademark: it prohibits another person to use similar logo, tagline, and symbol to avoid
creating confusing to the customer. These marks are used by manufacture or seeker to
their product so no other person can copy these symbols and sell their product under
the name of the company. If one is not registered under trademark his brands name,
symbol logo tagline can be copied and the owner cannot claim for the same symbols
used by another person. Trademark use to protect services offer by the owner are
called services mark (Williams, 2013).

Trademark use to protect name of organisations and to identify them are called
collective marks. Deliveroo Company requires registering in trademark so no one can
use its tagline, logo, and symbol and sell their product under its name which may
decreases the reputation of Deliveroo and create confusion among consumer.
Trademark could be challenging because it might increase the expense of business and
potential returns could not be obtained.

Patent: patent is used to provide protection to invention of someone. It means a person


who registered his invention he can restrict everyone to sell his invention without his
permission or sell his invention on their name. the person who has invent the product
can have patent for his invention if it is discover or created by group of people, they
have form joint venture. Deliveroo require having patent otherwise anyone can use its
innovation technique. So, to prohibit its competitors to uses its technique it is important
for company to register itself under patent (May, 2013).

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To begin with, licenses are costly to get, generally costing a tremendous add up to lay
the fault on and bring to the court. Costs incorporate direct costs for legitimate
organizations similarly as delicate costs to depict the development to the patent legal
counsellor and patent managerial focuses. These costs increase altogether if the
application consolidates abroad position.

Second, licenses oblige only by and large short money related life contrasted with other
protected innovation types. The legitimate life for a patent is 20 years from the soonest
fruitful recording date of the patent application. Since the soonest fruitful chronicle date
is the conspicuous point for starting the legal clock, licenses are unique among IP types
in that the 'grant procedure's technique eats up an immense piece of the patent's
budgetary life. This has legitimate and noteworthy effects.

Two most important patents for entrepreneur are:

Design patent: theses design is more easily accepted by PTO and generally cheaper
and simple in nature it provides protection to ornamental or appearance design of
invention. It’s valid for 14 years. The condition applied for this design patent is that it
should be original, innovative, and feature must not be copied from other.

Utility patent: this patent provides protection for function of invention. It is complex in
nature as one has to explain the uses of invention. Theses patent are expensive and
complicated and required a lot if inputs of attorney and difficult to establish by PTO. But
it is more beneficial than design patent as function and method are covered in it which
provide wide range, and are stronger to cover the market. It valid for 20 years and then
the one has to renew it. The invention gets utility patent only when it is considered to be
useful, has unknown feature or feature which is not known by public and must not be
copied from anywhere (Fisher III and Oberholzer-Gee, 2013). It must not have ordinary
skill and must not have obvious use in the area of which the one has invented.

Copyrights: in this the person who has created the work or reproduce the work have
right to sell it with its original identity the owner is the only person who can copy or give
permission to copy the product and no one can sell the product without his permission.
It also explains the rights of owner of intellectual property. The owner has to pay certain

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fee at copyright registration office so no one can hamper the entrepreneur name to sale
the product by its name. The work must be original, creative and fixed in tangible
medium which can move. The owner has right to transfer the right, can reproduce and
sales his product.

The significant burden for copyrights is that copyrights secure the announcement of a
thought, not just the thought. Licenses commonly guarantee thoughts. The
differentiation may be honest; be that as it may, it is a basic refinement. For example, a
maker disperses an article unfurling advancement. Copyright law makes sure about the
way in which the innovator imparted the advancement in the article; in any case, the
real development delineated in the article doesn't get copyright affirmation.

Industrial design: these designs consist of pattern colour shape and configuration of
product. It can use two dimensional or three-dimensional pattern for product packing,
design style to increases the commercial value.

Plant varieties: it is obvious for company to use variety of plant for producing their
product thus, this right enables he owner to use commercial use of new variety of plant.
So, he can propagate the product made from that variety of plant.

Geographical indication: it means the sign or symbol which defined its origin and
geographical reign in which it develops. For Deliveroo company when it trades in global
market the consumer must know the origin of the product and methods of production.
Which are covered under geographical indication (GI) it ensures the quality of product
from the certification possess to the owner.

Trade dress: it is use to protect visual appearance of product or its packing in UK it


protects the unregistered trademarks, as Deliveroo has their own strategy,
advertisement teams packing style, etc are protected under trade dress. It also protects
the outer appearance of the product. As now a day’s businessman uses non price
competition in which they aggressively advertise their product and for overcoming to the
threat of copying advertisement idle the company should registered under trades which
will help the company and no one can copy there packing and advertising idea (May,
2013. ).

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Trade secret: it is invisible ingredient of intellectual property which means it generally


hide from general public. So, no one can use same process and formula to develop
their product. It kept secret and owner takes legal support likes non-disclose agreement
so that their information cannot be sought by their competitors. Deliveroo Company has
to register itself so no one can access to their formula of making product and can
produce their product through same process. So, trade secret is suitable for internal
innovation but difficult to measure its contribution. The company has to make particular
efforts to maintain the secrecy for particular trade information. It also provides benefits
to the company as it is kept secret so it will help in providing economically benefit and
help to overcome competitors. It comes under equitable rights not in property rights
(Williams, 2013).

Explain how your chosen organisation can protect their innovation using
different techniques

From above analysis it can be concluded that it will be very beneficial for the Deliveroo
Company to register in all intellectual property so it can maintain it original product with
its original technique in the market and consumer can enjoy the original product
manufacture and the Deliveroo Company. It becomes easier for the consumer to
identify the product and consume it as there is no duplicate product in the market. This
will reduce the competition in the market and help to secure its position in the market
and promote new innovative ideas in the market which help the Deliveroo to increase
the sale and run the business effectively and efficiently (Battisti et.al. 2015). In cases
any computer or any business practise some illegal things or misconduct regarding to
theses rights the Deliveroo company have right to claim against the company and get
compensation but if they are not registered it will create a lot of problems to the
company which can hamper its reputation in the market. It will also help in overcoming
competition and achieving desire goals effect and efficiently.

The Deliveroo Company may face unwanted challenges which will affect and become
an obstacle between the paths of innovation of the firm. As in the process of innovation

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the Deliveroo Company requires number of resources the company must regulate the
availability of resources as it effects on the business decision making and growth and
development of business. Business is also affected by culture thus; inappropriate
culture hinders the path of Deliveroo Company as it occurs as a challenge in innovation
of the company. Customer satisfaction is the primary need of a business it is foundation
of business, Deliveroo has to perform and produce such product which match to level of
consumer satisfaction (May, 2013). It requires support of employee’s trainee and proper
team to manage the supply of resources and new product launch in the market.

This will only happens when the Deliveroo company look after its employee and
motivate them time to time which boost their moral increases their efficiency, develop
sense of belongings, interest and build confidence which will have positive effect on
business growth as it its duty to maintain equality in the company and provide healthy
working environment so that they can perform best in their department the company
should also provide better technology so that it can produce better output. It should also
satisfy his employer by providing basic and safety needs (Williams, 2013).

It should take intensive to motivate his employee in monetary as well as non-monetary


terms like rewards, appreciation, bonus; it should also provide training so that employee
can handle new technology. It should also take steps to avoid conflicts so it will avoid
misunderstanding and should improve communication technology and uses easy,
simple and understand words to avoid assumption and make work clear to the
employee. They must avoid using technical and jargon words. They should provide
proper motivation to the employee so they can increase their efficiency as well as
efficiency of business.

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Figure 6: Intellectual Property

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Summary and conclusions

From the conducted report, it could be summarised that innovation is one of the
important source that would lead to develop new process and products. This improves
improving the existing technologies and designs that would lead to enhance the profits
of the business. The business would increase their efficiency, improve their coverage to
new customers and ultimately affect on enhancing the profits of the business. The
successful idea behind innovation is to improve and bring product or service to the
market. Thus, the innovation factor would lead to improve the profitability of the
business. As per the above report, Deliveroo is one of the leading organisation and with
the implementation of robotics and artificial intelligence that would lead to transform the
operations and improve the costing in kitchens.

The idea of Deliveroo is behind taking relevant actions to cut the cost of food by making
one time investment. Also Deliveroo would be able to automate the delivery process
and food production that would directly impact on the profit margins of the organisation.
Thus, business will observe rapid expansion in the operations and also Staff would be
able to simplify its operations with the implementation of robotics and the artificial
intelligence.

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