Business Innovation and Commercialization: A Case Study of 'The Healthy Juice'

This project examines the importance of innovation and commercialization in the context of 'The Healthy Juice', a UK-based company established in 2016. It explores the concepts of innovation and invention, the role of organizational vision, leadership, culture, and teamwork in shaping innovation, and the application of the 4Ps of innovation and the Innovation Funnel. The project also delves into frugal innovation, the commercial funnel, new product development (NPD) processing, and building an innovation business case. Finally, it evaluates tools for developing, retaining, and protecting knowledge and intellectual property.

BUSINESS INNOVATION AND COMMERCIALISATION
1

Table of Contents
Introduction:.......................................................................................................................3
LO1:...................................................................................................................................4
P1: Explain Innovation and determine its importance to organizations in comparison
with invention ....................................................................................................................4
P2: How organizational vision, leadership, culture and teamwork can shape innovation
and commercialization.......................................................................................................6
LO2....................................................................................................................................8
P3: Explain the 4Ps of innovation and explain the use of the Innovation Funnel to
examine and shape innovative ideas................................................................................8
P4: Explain developments in frugal innovation and provide examples of how it is used in
an organizational context.................................................................................................11
LO3..................................................................................................................................12
P5: Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation..............................12
P6: Build an innovation business case for an organisation, including ways to access
funding.............................................................................................................................14
LO4..................................................................................................................................16
P7: Evaluate the different tools that Mr Green can use to develop, retain and protect
knowledge and intellectual property................................................................................16
Conclusion.......................................................................................................................18
Reference list:..................................................................................................................19
2

Introduction:
In today’s world, Innovation has become the unique factor for a company to establish
itself in the tough competition. Innovation helps the products and services of the
company to occupy a prominent place in the corporate world. At the same time in the
flow of this unbending competition, this has turned to be a necessity for the companies
to blend the innovation with the market commercialization, which is nothing, but to
present the product such a way that meets the present trend of demand of the mass.
This particular project shades light on ‘The Healthy Juice’, a UK based company that
was founded in the year of 2016. This project will focus and explain the importance of
Innovation and Commercialization in the business market full of rigid competition.
3

LO1:
P1: Explain Innovation and determine its importance to organizations in
comparison with invention .
Innovation is the fruit of creative ideas in any field. Particularly in the ground of business
Innovation is triggered by the process of brain storming among the heads within the
organization (Burns, 2016). This is the tool that converts ideas into the overall growth of
the company and the well-being of the society. With these developing factors of a
business, new products and processes do come in the way and gradually developed
and commercialized in the marketplace.
Importance of Innovation in Business:
By implementing new ideas a business proceeds towards wider range of success (De
Bono, 2015). Innovation leaves the scope to grow for the company in different aspects
with:
 Diversification of Products
 Increase in Profit
 Differentiation between products
 Meeting the expectations of the customers
 Expanding the market share by providing diverse products with fine difference
from each other
 New business opportunities
 Personalized Services
Mr. Green had successfully launched the product ‘Healthy milk shake’ for the first two
years, but unfortunately after that, the sales figure took an about turn and “The Healthy
Juice” has been facing some serious turbulence in the path of its growth. Here comes
the need of blending the two components, “Innovation” and “Invention”. Overcoming the
4

issue will be possible if new ideas are implemented to improve the base product
keeping intact the newly launched product (Healthy Milk Shake).
Invention and the comparison of the same with Innovation:
Invention, a term that is quite similar to the term Innovation, actually has a fine line of
difference (Denscombe, 2014). Invention is all about creating or designing a new
product that satisfies the customer’s demand and Innovation is something that brings in
the diversity to improve the product. In short, ‘Invention’ turns the ‘Innovation’ into
reality.
Elements Innovation Invention
Implication Innovation is all about
implying new ideas to
bring in new products
or processes in the
company.
Invention is about giving
shape to the Innovation
through the creation of
the particular project.
Conception Improving the existing
product
Creation of a fresh product
altogether
Required Skills Knowledge about the
market demand and
creativity in thinking
Scientific and technical
expertise
Concern Area Wide range of products
and processes for
overall advancement
A particular product to
work on at a time
Responsible Departments Entire organization starting
from associates to
management levels is
welcome to input ideas
Only Research and
Development
department is involved.
5

When it comes to Mr Green’s company, the marketer is not really interested to shift his
concern totally to the newly launched product from the first one he stepped into the
market with. This can be done only by using the concept of Innovation to implement
some new changes to meet the consumer’s expectations. This is clearly made out of
the situation that the Invention is not actually required here.
With the study above this is to conclude that Innovation and Invention, both are equally
important but according to the situations that a company faces time to time (Cooper and
Edgett, 2012).
P2: How organizational vision, leadership, culture and teamwork can shape
innovation and commercialization
Bhatti (2012) opined that the culture, vision and leadership always have a very positive
impact towards setting up the concept of Innovation. Based on this concept, the
organization must know how to commercialize the products in the market that is full of
competitors. For sustaining the growth of the company the above three components are
very important.
In case of ‘Healthy Juice’ the organizational culture, leadership, structure and the vision
will definitely platform noteworthy effects and will build up the concept of Innovation
within the company. In case of ‘Healthy Juice’, the way of leadership needs to be
modified in order to meet the demand and expectation of the leaders as well as the
vision of the company is another concern area to be focused if required. Even this can
be a subject to change according to the situation. Having a clear idea about the demand
of the consumers is very much essential to bring in a wide range of products to beat the
competitors by meeting the customer expectation.
Leadership plays the equally crucial role to incorporate the innovation among the
workforce of the company (Ashcraft and Cohooni, 2017). For example, in ‘Healthy Juice’
the managers and leaders must have the capability to inculcate creative ideas within
and that only enables them to inspire other employees to implement ideas to produce
6

new products to attract the target customers. They must do so in order to direct,
encourage, persuade creativity among the workers, and bring in the required change in
the managerial procedures. This shall be done by utilizing all the required resources
efficiently in order to bring in innovation in the business. The management has one
more thing to be updated constantly with is transformational leadership style and this
can be executed flawlessly once all the resources are utilized to its fullest. For ‘Healthy
Juice’ the management style should be such that the significant innovation and
commercialization become a constant part for the organization.
Generally, the process of innovation involves three stages.
 Generation
 Evaluation
 Implementation
A continuous support and inspiration encourage employees to undergo a brainstorming
and help them to come up with new ideas. In case of ‘Healthy Juice’ there will be no
exception. The management should be a permanent support system. The concept will
definitely uphold the commercialization through proper implementation and practice. For
any organization team work is the main driving factor in order to succeed. With
implementation of these stages the workforce will be self motivated to apply their
creativity while fabricating the new products (Basu et al., 2015).
7

LO2
P3: Explain the 4Ps of innovation and explain the use of the Innovation Funnel to
examine and shape innovative ideas.
The 4Ps of Innovation
Similarly as the 4ps of Marketing, there are the 4Ps in Innovation, as known as
Innovation Mix, is a model that has been developed by John Bessant and Joe Tidd.
The 4Ps are as follows:
 Product
 Process
 Position
 Paradigm
Product:
This covers the area where the innovator and his workforce emerge with new concepts
to imply in order to improve the existing product or producing a new one. Different ways
to draw customers towards the product making it more appealing are programmed and
enclosed (Katzenbach and Smith, 2015).
Process: Under this stage all the needed changes and the innovators employ
refinements. They carry out all the steps that are necessary to enrich the products and
services (Yu et al., 2016).
Position: This portion is all about reviewing till now whatever is done by the
organization. The innovators have to look at their own products, services and even the
company from a third person’s perspective to understand how the audience views their
8

organization and accordingly making compulsory adaptations and altercations in order
to reach the expectation level of the target customers (Beck, 2018.).
Paradigm: This section is all about a huge change if needed. Under this, innovators
may alter a big part or even the entire procedure the company caters the services in. In
order to eliminate the dull tag associated with a firm, the innovators may pull in a major
change in the operations or other sectors of the business. Sometimes the revolutionary
change in the presentation of the company helps itself to recreate the image and bring a
noticeable change in the viewer’s perception.
Use of the Innovation Funnel:
The term ‘Innovation Funnel’ is used to describe a definite type of self-assessment for
the companies. Through this ‘Innovation Funnel’ the ideas get shape in reality and
innovations are required to reach the expectation level of the customers.
Figure: Innovation Funnel
(Source: Katzenbach and Smith, 2015)
9

This encompasses three divisions (Guttmann, 2016). First one starts with the wide
mouth of the funnel that accepts all kinds of ideas and creative thinking that may
develop the products. In case of “Healthy Juice” the same can execute the same in
order to develop their range of products. By this step a wide variety of ideas are
unbolted in front of the company. The study and progress team of “Healthy Juice” can
explore and research about the a variety of merchandise and the formerly brought in
innovations obtainable in the market, consider the competition, and most notably, find
out the flaws and limitations of its own product varieties.
Second stage is represented through the starting of the narrow ended part. In this next
step the relatable and contextual ideas are sorted and all these filtered concepts are
subjects to be screened and experimented in the first step. If they go as per the
company’s goal, the products and services undergo compulsory changes based on the
approved ideas.
The third and final stage is the one that is symbolized by the end portion of the narrow
ended part. Here the finally tested ideas are extensively released for the consumers.
This is the phase where the final results of innovation are assessed (Christopher, 2016).
When it comes to ‘Healthy Juice’, the organization should give a look at the
shortcomings of their own products and consider implying the Innovation Funnel when
they have decided to undertake the opportunity of innovation. In the next stage it has to
shape out the filtered ideas that go hand in hand with the company objectives as well as
exclude the inappropriate ones. Finally they should present the new products filled with
innovative changes to the target customers.
10

P4: Explain developments in frugal innovation and provide examples of how it is
used in an organizational context.
Frugal Innovation:
There may be situations when a company faces insufficiency of resources and this is a
big hindrance for any innovations to take place. Here comes the effectiveness of Frugal
Innovations (Trifilova et al., 2016). When the innovator and the creator emerge with the
concerns of lack of resources, they somehow cope up with the situation with the help of
Frugal Innovation. For example, countries like Africa are suffering lack of resources as
lack of electric supply till date. There are people who can arrange the charging of
electronic devices using their bicycle. In short, they are capable to produce electrical
energy from mechanical energy (Marx and HSU 2015).
In Mr Green’s company the management can use Frugal Innovation to imply various
factors such as bringing solar energy in use to operate the machineries. They can cut
the cost of packaging by using fibre or any other substitute materials in place of glass
materials. Research says that whenever products come in market with different
packaging, consumers start noticing it once again with a new perspective and this in a
whole helps the company to uplift its profit and sustain the market hold.
11

LO3
P5: Explain the importance of the commercial funnel and the application of new
product development (NPD) processing for commercialisation of innovation.
A literal meaning of funnel is a tube, which is wide at the one side and narrow on the
other side. A commercial funnel is used to explain different steps, which are followed in
the various components of a business such as sales, production etc. The main objective
of product innovation is to create new products, which are relevant to the market, to
address the need of the target consumers and to stay ahead of the competitors ( Lewis
et al., 2017). There are three broad stages of commercial funnel in the product
innovation process. Here, the stages will be discussed in the context of ‘Healthy Drinks’,
Following are the stages of innovation funnel:
 At the first stage concentrates on the Research for the products: wide mouth of
the funnel
At this stage, the company focuses to enhance its knowledge and information
regarding the relevant products. The motive of this stage is to collect as much as
ideas possible from the market as to the need and demand of the product
(Kotlarsky et al., 2016). Depending on the ideas, company can decide how many
products they want to develop for the near future.
Before, commencing the research, the concerned team need to chalk-out a
proper plan as to how, when and what information they need to complete the
task. In order to collect the information, the team can conduct surveys in the
market such as colleges, universities, shopping centers etc and collect
information from competitors. Brain storming among the peers can also provide
valuable insights (Appio et al., 2014).
In this stage, the company needs to move as fast as possible and have clear
understanding of the main objective of the activity. The team also needs to have
12

the ability to interpret the informations, which, have been collected from various
sources correctly, and to come to conclusion as to which ideas are worth
considering.
In case of “healthy Drinks”, the team needs to gather information regarding the
various types of healthy juices, smoothies; drinks etc can be manufactures and
understand the demand and purpose of healthy drinks in the target market.
 The second stage is to develop the ideas -the middle narrower portion of
the funnel
In this stage, the ideas that have been collected in the first stage get short-listed.
In this stage, the ideas are cross-matched with the objective of the exercise, risks
involved in creating the product, manufacturing hindrances etc. After the risk
assessment, every product ideas should be checked in terms of investments and
profit margins. After considering all these points, the ideas can be shortlisted. At
this stage, the ideas also need to be tested with real customers (Al-bloush and
Solemon, 2017). Sometimes, the products, which are feasible in respect to all
business perspective, can fail during the test marketing, because the actual
consumer can only give the true verdict as to how a product will perform in long
run. There will be many ideas, which, will apparently look like feasible but will fail
to impress the actual consumers.
In case of “Healthy Drinks”, the team needs to decide the flavors and type of the
drinks.
 The third and final stage of the innovation funnel is the marketing of the
selected products- the narrow portion of the funnel
Here, the team and the management finalize the products, which will be mass-
produced after the test marketing (Kotlarsky et al., 2016). Then, it is up to the
marketing team as to how they want to promote the products among the target
consumers. This part is also a very crucial part in the whole process of
commercialization of any product. As without proper promotion and distribution
channel, the success of any product is impossible.
13

Generally, it can be seen that the younger generation is more health conscious.
Therefore, the marketing team of “Healthy Drinks” will mainly target the colleges,
universities and gymnasiums for the promotion and distribution of the products.
P6: Build an innovation business case for an organisation, including ways to
access funding.
Every time, when, innovation commercialization of any product is proposed, an
innovation business case is mandatory. A business case is the justification of a new
project in terms of every business aspects such as profit, good reputation etc. Business
cases also help understanding the objective of the development of any new product.
Sometimes, the company needs to acquire funding for the business projects from
external sources, as it is not possible to fund the projects on their own. Here are few
tried and tested avenues to raise funds from the external sources:
 Venture Capital: Acquiring fund from the venture capitalist is one of the most
preferred sources. Generally, venture capitalists invest in a high growth product
or services. Venture capitalists take an equity part of a company against their
investment in the said organization. This means a certain percentage of
ownership will go to the venture capitalist (Davis and Brady, 2015). This also
means that a pre-decided portion of the profit will also go them. Benchmark
Capital, Capital G, FirstMark capital are few renowned venture capitalists.
 Angels: Angel investors are those wealthy individuals who lend money to any
business organization after scrutinizing the business proposal thoroughly. These
kinds of investors generally prefer to invest in small firms, which does not have
requirement for a large amount of money. In exchange of their money, they
preserve the right to oversee the management of the company. They usually
invest in the beginning of the project to have a full control of the investment. Rico
Wyder, Nancy Fachney, Alex Edmans are few renowned names in this field.
 Business incubators: Business Incubators usually prefers to invest in high-tech
industries by lending mmoney at various stage of the business development.
14

Usually business incubators invite various other businesses to join the company
and help in various sectors of the business such as logistics, administration,
operations, finances etc (McKitterick et al., 2016). Incubation period for any
company continue upto two years from the start of the project.
 Government Grant: Sometimes government fund many companies through their
various development programs. Generally, they focus on small and medium
enterprises to encourage business culture and job prospects of the country. But,
it is a little tougher to achieve government grants.
 Bank Loans: last but not the least is bank loans. Bank loans are mostly popular in
the small and medium enterprises. In exchange of their investments bank only,
look for interest. But, before applying for bank loans the company needs to go
through a number of procedures and scrutiny of their documents. The idea of the
company also needs to be backed up by a sound business proposal. Otherwise
the application will be rejected.
15

LO4
P7: Evaluate the different tools that Mr Green can use to develop, retain and
protect knowledge and intellectual property
Intellectual property: The intangible properties that are the result of creativity or
innovation of an individual or an organization is called intellectual properties ( Mollick
and Nanda, 2015). To safeguard the intellectual properties one need to copyright or
trademark the same. In case of “Healthy Drinks,”, Mr. Green need to protect the idea of
his healthy drinks from his competitors to stay in the business. For any intellectual
property to be effective in the long run, Mr. Green needs to constantly develop the
ideas.
Here are few ideas how Mr. Green can develop intellectual properties:
 Survey: By conducting surveys regarding the products, in which the company is
interested, the company can stay in touch with the target consumers of the
product.
 Research: Research is another way to keep developing the intellectual
properties.
 Gathering Information from Competitors: The competitors of the same sometimes
work on similar ideas, which can help in developing their own products.
Intellectual properties of any company give them brand identity. Every brand follows a
set of rules in order to create a brand identity for them. The mission and vision of the
company are aligned with the brand identity. Intellectual properties also contribute
hugely in the creation of the brand identity (Lewis et al., 2017). The brand identity of any
company is built on the intellectual properties of the company. It is also important that
the companies work towards protecting their intellectual properties so that their
competitors cannot capture their market share.
Importance of Intellectual Property rights:
16

Due to some very important reasons, the intellectual property rights are recognized and
accepted all over the world. Here are few reasons why the IPR exists:
 It gives incentives in terms of money or otherwise to the individuals for the
innovation
 It gives proper recognition to the innovator of the product
 It also ensures the originality of the product
Everyone needs to have knowledge about intellectual property rights. Common people
are often comes across things innovated, created or produced someone. Blueprint of a
house, logo of a company, recipe of a food product, design of clothing, shoes, bags
cars, mobile, furniture etc, writing of a book, newspaper the list is never ending.
Someone or the other designs a pin to infrastructure of an airplane ( Giménez et al.,
2018). Therefore, it can be said safely that everything that surrounds a common human
being is creation of some other person. In other words, it is an intellectual property of
somebody and therefore safeguarded by the law.
Therefore, it can be concluded that common man comes across intellectual properties
from dawn to dusk. These properties are protected under law of intellectual property.
Copying and imitation of such products without the permission of the creator can land
the offender in grave problems. Therefore, knowledge of intellectual property is must
for everybody.
In order to protect the intellectual properties of his health drink idea from his competitors
mr. Green needs take few measures:
Here are few tools that Mr. Green can use to do the same:
Patents: In order to protect the recipe, ingredients etc of his product, Mr. Green can
patent his products. The government authority generally issue license for conferring
rights to the organization or the owner of the company for a limited period. After
patenting his product, the patent holder becomes the sole authority to use the said
product or services (Bhaumik, 2014).
17

Trademark: This generally applies for the company or product name, logos, words etc.
Government authority allows the owner or innovator of any product or images register in
his or the organization’s name. Mr. Green can trademark the name “Healthy Drink” in
order to avoid the copy of the name of his own creation.
Copyrights: The legal right, which is granted to the creator of a certain work, is called
copyright. Copyright is valid to certain types of creative innovations (Thomas, 2014). It is
considered as "territorial rights", which implies that it cannot be extended beyond a
certain jurisdiction or area. Some copyrights are applicable nationally and some of them
is valid internationally too. The duration of copyright varies from case to case.
Sometimes it holds true for 2 years and sometimes it can acquired for 100 years.
The competitors of “Healthy Drinks” can use the above-mentioned tools to protect any
kind of breach. These tools are all legal rules. This will prevent any activity to copy the
ingredients, recipes or ideas of “Healthy Drink” from being copied. Ignoring any of the
above will be termed as illegal and punishable offence if found guilty.
Conclusion
The subject the study is Innovation and Commercialization of business. The above
report explains the difference between innovation and invention. Innovation is when an
existing product produced in a new and unique way whereas innovation is to come up
with completely new ideas for products or techniques. It is also explained how
innovation is importance in the context of the organization. The main aim and objective
of the organization help shape the innovation process of any kind in the organization.
The importance of commercial funnel and its application in new product development
have also been discussed. Here, the example of “Healthy Drinks” has been used to
explain the importance of the innovation. An innovation business case has also been
created in the context of “Healthy Drinks”. The report also suggests various ways of
funding. The report also explains the importance of intellectual properties. The
researcher has suggested various tools to Mr. Green to protect the intellectual
properties.
18

Reference list:
Al-bloush, H. and Solemon, B., 2017, April. Intellectual Property Challenges in the
Crowdsourced Software Engineering: An Analysis of Crowdsourcing Platforms.
In International Conference of Reliable Information and Communication
Technology (pp. 875-884). Springer, Cham.
Appio, F.P., Cesaroni, F. and Di Minin, A., 2014. Visualizing the structure and
bridges of the intellectual property management and strategy literature: A document
co-citation analysis. Scientometrics, 101(1), pp.623-661.
Ashcraft, C. and Cohoon, J.M., 2017. Gender, Commercialization and Thought
Leadership in Computing: Examining Women’s Participation in Information
Technology Patenting and Conference Paper Authorship. In Technology,
Commercialization and Gender (pp. 177-198). Palgrave Macmillan, Cham
Basu, R.R., Banerjee, P.M. and Sweeny, E.G., 2013. FRUGAL
INNOVATION. Journal of Management for Global Sustainability, 1(2)
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Bhatti, Y., 2012. What is frugal, what is innovation? Towards a theory of frugal
innovation.
Bhaumik, S.A.T.Y.A.K.I., 2014. Analysis of Risk Management Activities in the
Design, Engineering, Development phases of Manufacturing Organizations.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Cooper, R.G. and Edgett, S.J., 2009. Generating breakthrough new product ideas:
Feeding the innovation funnel. Product Development Institute.
Davis, P. and Brady, O., 2015. Are government intentions for the inclusion of
innovation and small and medium enterprises participation in public procurement
19

being delivered or ignored? An Irish case study. Innovation: The European Journal
of Social Science Research, 28(3), pp.324-343.
De Bono, E., 2015. Serious Creativity: How to be creative under pressure and turn
ideas into action. Random House.
Denscombe, M., 2014. The good research guide: for small-scale social research
projects. McGraw-Hill Education (UK).
Giménez-Figueroa, R., Martín-Rojas, R. and García-Morales, V.J., 2018. Business
Intelligence: An Innovative Technological Way to Influence Corporate
Entrepreneurship. In Entrepreneurship-Development Tendencies and Empirical
Approach. InTech.
Guttmann, R., 2016. How Credit-money Shapes the Economy: The United States in
a Global
Katzenbach, J.R. and Smith, D.K., 2015. The wisdom of teams: Creating the high-
performance organization. Harvard Business Review Press.
Kotlarsky, J., Rivard, S. and Oshri, I., 2016. On a Supplier's Paradoxical Practices:
The Case of Technological Innovations in Outsourcing Engagements.
Lewis, M.O., Hayward, S.D., Baxter, R.J. and Coffey, B.S., 2017. Stakeholder
enrolment and business network formation: a process perspective on technology
innovation. International Journal of Technoentrepreneurship, 3(3), pp.203-227.
Marx, M. and Hsu, D.H., 2015. Strategic switchbacks: Dynamic commercialization
strategies for technology entrepreneurs. Research Policy, 44(10), pp.1815-1826
McKitterick, L., Quinn, B., McAdam, R. and Dunn, A., 2016. Innovation networks and
the institutional actor-producer relationship in rural areas: The context of artisan food
production. Journal of rural studies, 48, pp.41-52.
Mollick, E. and Nanda, R., 2015. Wisdom or madness? Comparing crowds with
expert evaluation in funding the arts. Management Science, 62(6), pp.1533-1553.
20

System: The United States in a Global System. Routledge.
Thomas, E., 2014. The role of intermediaries in collaborative research and
development projects.
Trifilova, A., Bessant, J. and Alexander, A., 2016, June. Innovating innovation
management teaching. In ISPIM Innovation Symposium (p. 1). The International
Society for Professional Innovation Management (ISPIM).
Yu, Y., Wang, C., Grice, C.R., Shrestha, N., Chen, J., Zhao, D., Liao, W., Cimaroli,
A.J., Roland, P.J., Ellingson, R.J. and Yan, Y., 2016. Improving the performance of
formamidinium and cesium lead triiodide perovskite solar cells using lead
thiocyanate additives. ChemSusChem, 9(23), pp.3288-3297
21