Innovation and Commercialization: A Study of Factors

This assignment provides a comprehensive study of innovation and commercialization in different industries. It includes a list of references to various studies and research papers on the topic, covering aspects such as entrepreneurship marketing, R&D efficiency, innovation barriers, commercialization processes, and more. The references are from reputable journals and publications, including Technology Analysis & Strategic Management, International Journal of Research, Innovation and Commercialisation, and others.

Innovation and
Commercialisation
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Contents
INTRODUCTION...........................................................................................................................4
P1 Concept of the innovation and its comparison with an invention..........................................4
P2 Vision, leadership, teamwork and culture that shapes innovation as well as
commercialisation........................................................................................................................5
P3 4P's of innovation and its usage within innovation funnel.....................................................7
P4 Developments in Frugal Innovation and their use within organisation..................................9
P5 Importance of commercial funnel and application of new product development of
innovation..................................................................................................................................10
P6 Building innovative case for an organization.......................................................................12
P7 Different tools an organisation can develop retain and protect knowledge and intellectual
property......................................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Innovation and commercialisation are two major process of a business firm which
involves developing any new product along with a process of business strategies, idea or action
plan (Sengoku, 2015). Hence, in that situation, this is important to generate idea or development
in order to bring consistency in the business operation. In this report, an idea of new product
which is Banana Lassi will be cover, after the business analysis of the Essence drink at a larger
scale.
Apart from this, report will cover concept of an innovative and its importance in
comparison with an invention. Along with this, report will also put on how teamwork, culture or
leadership helps in shaping an innovation long with creation of business case studies. Lastly,
report will also include discussion on commercial funnel and new product development along
with frugal innovation and also 4 P’s of the innovation.
P1 Concept of the innovation and its comparison with an invention.
Innovation is a process of translating an idea or kind of an invention into any goods or
service that is taken into consideration for creation of value or which customer will have to be
pay. For the purpose of an innovation, an idea must be their which needs to be applicable at an
economical cost and must be made with a kind of a specific needs (Sengoku, 2015). Innovation
in reality comes from a kind of an imagination, information or initiative with rising of a value
generation. This is different from invention, because an invention is making of any new products
or services which never exists in past or present. For Essence drink, which is a leading drink
based firm is facing lack of an innovation either in taste or process of the products such as
marketing, sales or aspects of an operation. Innovation is important to build brand image of any
product either with help of making a small change or complete transformation of a products in a
productive manner. Mango Lassi which is an existing product of the Essence drink has foreseen
decline in sales for a third year. Product innovation will be a best option for Essence drink to
come up with an innovative drink such as Banana Lassi. Here, innovation can be made in taste or
flavour of a Banana Lassi. This is what completely different from invention, Banana Lassi
cannot be recognised as invention, as it can be made previously by other business organisation.
Importance of the innovation is structuring of a product or any tangible item which has
capability to products line of the Essence drink at a larger context. This will assist Essence drink
to change in their product image which is a company strength in bigger period of time. A major
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benefits of an innovation is its ability to make any product differentiates from each-other along
with making a brand popular world-wide and also feasible to make a proper growth & image of a
Banana Lassi into the market structure. Here, business entities have a scope to bring business
activities with a proper understanding of an innovation strategies or action plan. It will be highly
suitable to do comparison of innovation with invention in order to realise importance of the both.
Basis Innovation Invention
Meaning Innovation implies the
implementation of idea for product
or process for the very first time.
It implies an implementations of an
idea for a product or kind of services
that never been made before.
Concepts Practical implementation of new
idea
An original idea and its working in
theory
Concerned with Combination of various products
and process
Single product or process
P2 Vision, leadership, teamwork and culture that shapes innovation as well as commercialisation
Innovation can be referred to as the most important aspect of an entity as this provides
assistance to a company to improve its uniqueness, creativity and thereby, ensure business
growth within market place. It can be said to be the process through which new things are
formed (Sterckx and Cockbain, 2014). It will help Essence drinks to render unique and creative
offerings to customers in market and consequently, enhance the benefit through which they will
be able to deliver effective customer service. Essence Drinks possesses the potential to bring
about innovations such as administrative, technical and/or within processes. ED has the scope to
tap advantage of several types of innovations such as sale of their beverages via online channels.
For this, company is required to alter its operational activities so as to develop a good innovative
working environment. The vision, teamwork, leadership and culture have a significant influence
and they shape innovation and commercialisation in the below mentioned ways:-
Innovation and vision:
When an entity has a strong vision, it is usually seen that they effectively incur efforts
and money upon innovation as well as energy. It can be said that a strong vision is the
prerequisite to come up with innovation within organisational premises. Innovation can provide
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assistance to the organisation and enhance its overall creativity level when leader of the entity
has a methodical visualization and know how to devise relevant strategies to interact with
employees (Sengoku, 2015). The vision of Essence Drinks is to provide healthy Lassi to
consumers by combining the beverage with nutritional values. By this, organisation can earn
financial gain and exercise commercialisation. This vision helps employees to know what they to
do in future. This will motivates to adopt innovative and creative ways to complete their work
that results into new innovation.
Innovation and Leadership:
For facilitating a number of techniques or processes within innovation, it is required by
the leader to motivate and align the workforce in order to ensure that their operational
performance is enhanced. In this regard, it is essential for the leader of Essence Drinks to offer
financial gains to them so as to boost their morale to enhance their skill set as well as innovative
creativity. Effective leadership is the key to facilitation of an atmosphere where innovation and
commercialisation persists for a long duration of time. This leadership supports all workers to
understand what they to do in upcoming time period. This will encourages to pick out innovative
and essential strategies to done their work that outputs into new innovation.
Innovation and Culture:
Culture can be referred to as the principles as well as attitudes held by an individual or
organisation. A number of cultures exist within business organisations which lead them to
innovational culture. In this relation, Essence Drinks has enforced task culture with a view to
assign the roles and duties to individuals in accordance with their educational and professional
backgrounds (Pellikka, 2014). This fosters the company to encourage personnel to come up with
innovative ideas so that organisation can launch innovative products which hold features capable
of being commercialised.
Innovation and Teamwork:
It is imperative for the leader of an organisation to deliver performance as per the
organisational functions by tapping the opportunity of utilising several innovative techniques.
This develops strong team culture strong which fosters innovation within Essence Drinks. This
aids the organisation to sustain in market for a long period and earn huge revenues and profits.
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P3 4P's of innovation and its usage within innovation funnel
This is a tool used for mix innovation that is indulged in bringing about required
improvements and associated procedures within the business environment of an organisation.
This comprises of processes, position, paradigm as well as product. These are elaborated below:-
(Source: 4P's of Innovation, 2018)
Product Innovation: Here, several methods are executed to enhance the efficiency of
current goods. In this regard, Essence Drinks make use of techniques and technologies so as to
bring improvements in products or services. This is facilitated by conducting certain steps with
the assistance of which maximum contentment can be gained from people, thereby, implying
increased sales and profits (Pellikka and Malinen, 2014).
Position Innovation: This is integrated with untouched market sections with a view to
offer goods. With this, Essence Drinks can carry out study upon a wide variety of market
segments and identify the potential customers in order to ensure long term sustainability and to
enhance sales.
Process Innovation: Here, an organisation discovers a number of innovative
methodologies by way of which it can create as well as carry out value addition within the
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Illustration 1: 4P's of Innovation

manufacturing process. This assists Essence Drinks in enhancing its productivity and thereby,
developing cost effective goods which are of enhanced quality. To facilitate this, Essence Drinks
is required to carry out assessment and evaluation of overall procedure invention as well as
allocation of beverages (Pellikka and Malinen, 2014).
Paradigm Innovation: This consists of values, practices, beliefs, ideologies to come up
with innovative ways of carrying out day to day activities of firm. This assists Essence Drinks in
enhancing the existing or new product development process, thereby, also improving overall
customer service.
Use of Innovation Funnel
Figure 1: INNOVATION FUNNEL
(Source: Innovation Funnel, 2019)
This is a process which is taken into use by an entity while developing goods and
services. The hidden principle behind the convention of this process is to possess effective
commodities and services which are desired by consumers (Gulbrandsen and Aanstad, 2015).
This process consists of three steps. The first and foremost step is to have enough information
about the latest trends prevailing in markets. Essence Drinks can tap advantage of this to gather
competitive and consumer data by way of questionnaires as well as surveys.
The next step is monitoring of ideas presented by entity. With this company can find the
most suitable idea and enhance its Rate of Interest (ROI). In the final stage, the company works
towards attainment of organisational objectives. The product created as a result of this process is
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then presented in front of consumers. Innovation funnel will give a boost to performance as well
as financial status of Essence Drinks.
P4 Developments in Frugal Innovation and their use within organisation
Frugal innovation can be referred to as the measures through which an organisation can
get rid of unnecessary cost related to production. This provides assistance in lowering the cost of
products by eliminating unnecessary elements from goods. It is crucial for Essence Drinks to
increase their ROI. In relation to Essence Drinks, products offered by the entity to customers
hold low carbohydrates which aid ED in increasing its loyal base of customers at marketplace
owing to the health conscious nature of a large segment of population (Mohannak and Samtani,
2014).
It is relevant for Essence Drinks to implement the concept of frugal innovation within the
organisational premises as this will give a boost to ROI and sales of entity. The beverages
rendered by Essence Drinks are composed of high nutrimental value which aids in attracting the
attention of all age groups. This will help the organisation to market upon the organic and
nutritional ingredients of products to significantly enhance its loyal customer base (McGillivray
and et. al., 2014). This ensures sustainability of Essence Drinks for a long course of time and
enables increased profitability.
Frugal Innovation – New Product Development of BANANA LASSI
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Flavour: This product will be available in flavours such as Elaichi, Mint etc.
Ingredients: This will be made up of organic and highly nutritional ingredients that are healthy
for an individual to intake on a daily basis such as yoghurt, milk, sugar free etc.
Price: This will be priced between 15-30 pounds.
Packaging: This will be packed in clay mugs.
Nutritional Values: The nutritional value will be high.
Marketing and Sales: The sales and marketing for Banana Lassi will be done with the use of
broadcast media such as Radio and TV.
P5 Importance of commercial funnel and application of new product development of innovation
Commercial funnel is an entire path which is divided into three different phase which help
in utilising the present goods or strategies. Commercial funnel refers to as buying as well as
selling process which assists business firm to acquire its purposes of trading by their purchasing
power of their feasible products. Moreover, this is necessarily used by an organically, as it
provides aids with multiple channels to buyer’s, in such a way that customer must know about
what product people are buying or selling in an effective manner (Greenaway and Rudd, 2014).
For instance, this funnel is necessary for the success of the Essence drink in a competitive
marketplace, as they are launching their new product which is Banana Lassi. Commercial funnel
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is used to create platform where customer can come at one place and suggest organisation on
what type of flavour or taste they will like to taste. In this context, the importance of the
commercial funnel is as follows:
Improves ways of growing and developing business: Commercial funnel plays effective
role in the business firm, as it assists business in growing their operation at an accurate manner.
Hence it has been identified that each customer's level in funnel help them to satisfy as per their
need and preference so that business can grow with its new product in marketplace of the United
Kingdom.
Adoption of advance technology: Herein, Essence drinks are planning toadopt advance
tools & techniques to bring innovation in the Banana Lassi in their own product line. Essence
drinks is coming with the yummy taste with checking calorie level in Banana Lassi, as because it
is sweet in nature (Cuéllar-Fernández, 2014). This Lassi product is mixture sour and sweet in
nature to attract in nature.
In social context, Essence drink will help to create a new method for strategic alliances,
joint venture and creating buyer’s purchasing power. Here, new product development process
will be discussed which is 8 steps process with a kind of an explanation for each topic to led
perfect idea generation to final product launch.
An entire NPD process is as follows:
Idea generation: This is a first stage of NPD, in which a perfect idea or information on
development of innovative product is used to be taken into consideration. Essence drinks
management has decided to launch Banana Lassi, in which idea needs to be accurate or perfect.
Idea evaluation: This tell about evaluating an idea in comparison to what all types of
trends or scenario are running into a market. This kind of idea’s will be evaluate with support of
a strategic tools or techniques.
Concept definition: In this stage of product development, concept of Banana Lassi is
need to be defined with people of the Essence drink to create their awareness about a product in a
market place. This will help to tell hoe Banana Lassi product will be manufactured and how it
will be manufactured (Dodourova and Bevis, 2014).
Strategic analysis: In this strategic stage, manager of an Essence drink is required to
makes accurate action and formative strategic on how and when this product will be launched in
market place.
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Product development and testing: In this stage, final product is used to be made and then
proper procedure of test or check begins. After making of a final product, Banana Lassi will be
test in different condition such as temperature, packaging, hot or cold climate, water and humid
condition. After this checking, final sample approval is sent to production unit to final products
for customer’s in given point of time.
Market testing: After the product manufacturing, product will be tested in final market to
check how reliable or feasible this product, before shifting to a market structure or type. Also, an
actual market suitability will also be checked in different manner in accordance with a market
structure (Dincer, 2017).
Commercialisation: In this stage, product pricing will be decided in accordance with
customer’s ability to pay or afford this product. Along with this, sales promotion or marketing of
Banana Lassi will be perform in market shape or size.
Product launch: In this final stage, final product will be launched and starts distributing
to customer's with recommended offers or price measurements.
P6 Building innovative case for an organisation
Business case is a formal making of a situation in which Essence drink can mention all
kind of necessaries or things which are essential in completion of defined goals or targets in
given time period (Chun, Chung and Bang, 2015). Usually, this is necessary for business firms to
consist of all manner of the necessary strategies that are required in completing task.
Vision: The Vision of the Essence drink is to “Become customer favourite taste forever”.
Mission: Its mission is to make potential Banana Lassi which must have good
ingredients for person health by ensuring high quality of raw material for manufacturing it.
Market analysis: This will be prominent for Essence Drink to do analysis of a market in
an effective manner, so that proper identification must be done in order to gain exact customer
strengths for this Banana Lassi product. In marketplace, there are requirement of innovation in
Lassi. For this business manager can innovate in their Lassi by mixing banana flavour.
Cost and benefit analysis: In this business case, cost of the Banana Lassi will be 3
pounds after analysing consumer preference and income level towards this Lassi product. Thus
as per need and preferences the cost of product will be decided.
Financial projection: For manufacturing till final launching of the Banana Lassi into the
market, cost for this project is comprises of £20,000.
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Ways of funding: For an organisation fund is back bone of business as without funding
it is not possible to meet up the daily requirements of business operation. Herein, essence drink
are adopting various sources of finding such as they can adopt bank and financial institution in
order to raise fund from it. Also, Angel investor will also provide funds on frequent basis.
Monitoring and evaluation: Here, proper monitoring of a business plan case will be
taken into role in which entries or strategy has been undertaken to made to initiates this project
from starting to the end.
P7 Different tools an organisation can develop retain and protect knowledge and intellectual
property
For Essence Drink it is necessary to protect actual identity or image of this Banana Lassi
with the use of different tools or techniques in order to prevent actual identity of this drink
product among customer (Ahmadi and O'Cass, 2016). Essence drink must use different tools
such as patents, copyrights, trademark etc. with an intention to create an effective image of this
Banana Lassi to last long its purpose for longer time duration. The explanation of each and every
tool or technique is as follow:
Patents: Manager of the Essence drink can adopt patents, so as to prevent their Banana
Lassi from being copied by other business firm. This will be taken to protect taste or flavour of
this Lassi to continue its operation for future longer duration.
Benefits The major benefit of the patent will help Essence drinks to protect taste
or preferences of their Banana Lassi. Also, this will assist Essence drink
to get right advantage of their own product.
Drawback This is a risky technique, as if found guilty, direct impact will be goes to
business operations or functions.
Copyrights: It is a form of an intellectual property act which grants creators of the
original creative work to give an exclusive right to determine or use any kind of the product
(Abdul Razak, Murray and Roberts, 2014). In context with Essence drink, business firm have
major right to protect what they have created or makes. This tool will assist Essence drink to do
business operation effectively.
Benefits This will assist Essence to protect an actual identity along with innovative
creative to continue business regulation in an effective or measured terms.
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Also, this will be assist to make business functioning more productive.
Drawback Copyright is consist of formal queries or time consuming with lots of
issues and conflicts among different parties.
Copyright will be suitable in case of the Essence drink to protect the image and brand
identity of the banana lassi. The reason behind its suitability as of increased protection and shield
to product from being copied by others business entity.
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CONCLUSION
From this above report, it is concluded that innovation is necessary for business activities
to make more innovative products to offer it to customers. Innovation starts by idea generation
which is a proactive stage and also ends at final product launch. Innovation has shown that
protection of it is necessary to build to maintain its own value or status to lead an effective
selling of any innovation led products in an effective manner or ways.
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REFERENCES
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