(PDF) The definition and classification of innovation

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Discuss Innovation and explain importance of innovation to firm with comparison with
invention. ...................................................................................................................................1
P2: Discuss the leadership, vision, culture and teamwork can shape innovation and
commercialization. ....................................................................................................................2
TASK 2............................................................................................................................................3
P3. Discuss the 4Ps of innovation to study the innovative idea of Orange Drink. ....................3
P4. Discuss frugal innovation and provide examples how it helped the organization. ..............4
TASK 3............................................................................................................................................6
P5. Importance of commercial funnel and application of new product development.................6
P6. Innovation business case.......................................................................................................7
TASK 4............................................................................................................................................8
P7 Tools are used by company to retain its intellectual property...............................................8
CONCLUSION ..............................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation means transforming the thoughts, ideas and creative images into a good or
service that creates value in the market and customers are willing to pay for it. Essence Drink
was founded by Akshay Kumar, two years ago and the firm name was Mango lassi. This product
was launched in UK market. Akashy Kumar is planning to launch it's new drink in the market by
the name of Orange Lassi with orange flavour in it. This report includes meaning of innovation
and also highlights on the importance of it on the firms functioning. It also focus on organisation
vision, culture and 4Ps on innovation to examine and shape innovative thoughts. It also study the
importance of commercial funnel on new product development also build an innovative business
case including ways to access funding (Bason, 2018). Firm examine different tools and
knowledge and intellectual property to retain in the market.
TASK 1
P1. Discuss Innovation and explain importance of innovation to firm with comparison with
invention.
The word Innovation can be defined as translating of creative idea into valuable product
or service for which customers are are willing to pay for it. On the other hand it a application of
effective solutions that is able to meet the new emerging requirements, existing market needs and
unarticulated needs Innovation takes place through more effective products, services,
technologies, business models and processes. There are various types of innovation like, radical
innovation, incremental innovation, disruptive innovation and architectural innovation. This
helps to generate huge opportunities and pays vital role for the survival, success and economic
growth. Social sites like, Facebook, instagram etc. and internet are the examples of innovations.
It is important to do continuous innovation in the business to retain in the market for longer time
duration and firm remain competitive in the dynamic market. The various importance of
innovation that had affected the new product Orange Lassi of Essence Drink are as follows:
Nanotechnology: Essence Drink uses nanotechnology in it's new product (Orange Lassi)
it will raise the sales ratio in the current market as this technology is recently being utilised both
for novelty and healthy eating solutions (Bernstein,201). It helps to control the chemical reaction
taking place at the time of production which will help the firm to attract huge customers towards
their product.
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Delicious and Nutritious: Organization is launching Orange Lassi which is rich in
vitamin C which help to reduce stress and also contain phosphorus, magnesium, selenium and
copper minerals which keep the customers healthy. It will directly raise the profit of the
organization as customers are more health conscious and the new innovate drink is doing justice
with the customers needs and demand.
Recycle process: Essence drink is using the process of recycling the Lassi drinks as this
step will help the organization to reduce cost and can use the funds to expand in the global
market. Customers are more sensitive towards environment and the step of recycling of drinks
will attract customers and firm will be competition for other business.
Equipment Innovations (Flexibility and Adaptability): E- commerce websites has
helped the new product Orange Lassi to flourish in the market as this drink is available to the
customers as and when needed (Berry and Berry, 2018). With the help of this modern technology
firm can maintain their embracing technology with operations and prices of the production are
steady which help the business to gain huge market share as well as more profit maximization
can be done to explore in the global village.
P2: Discuss the leadership, vision, culture and teamwork can shape innovation and
commercialization.
The term commercialization can be described as the process of inserting new product method
into commerce making it accessible on the market. This is the process of pull off or running
something primarily for financial gain. There are certain styles like, culture, vision, leadership
and teamwork which are explained as follows:
Vision: Essence drink vision is to motivate employees to be the best and provide
effective environment to work. This helps the firm to timely motivate employees to think
something innovative idea and figure out the plan on paper how this idea can be designed for
customers in real time so that customers can be benefited in the long run. Orange drink is made
to provide customers healthy drink and goodwill can be increased in the eyes of the customers
(Biemans, 2018.).
Leadership: Effective leader in the Essence Drink firm has lead the sales ratio increase
in one year by its effective strategy and firm is able to capture huge market ratio in the market.
Good leader leads a firm to be successful while ineffective leader ends up with closing the
business. Effective leader accept the new idea of its employees and normally involve employees
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in discussion which helps to generate innovative idea. It also help in commercialization as this
provides a path to enter into the new market where product can be reached out to the customers.
` Teamwork: Essence drink team work proves to be effective as within one year mango
Lassi has earned huge profit and decided to Launch Orange Lassi in the market to meet the new
emerging needs of the customers. Effective team work help the firm to innovate new products in
the market by working effectively with the resources availability (Bloom, N., Draca, M. and Van
Reenen, 2016). It also helps in commercialization as good teamwork search ways to enter into
the market so that customers can enjoy the new innovated product which help the business to
sustain in the market and also be a part of competition in the global village.
Culture: Every organization has their own beliefs, norms, artifacts, reward systems and
behaviour which helps the business to run in the global market as well is able to attract
customers accordingly. Essence drink culture is to provide healthy and neturious drink to its
customers due to which customers from every age group are attracted towards Orange drink.
Firms continuous research has helped the business to innovate new drink in terms of fruits and
firm is able to expand its business in new sector as well. It also help in commercialization as it is
widely ready for customers consumption across the globe.
TASK 2
P3. Discuss the 4Ps of innovation to study the innovative idea of Orange Drink.
The 4Ps of innovation can be explained as a model developed by John Bessant and Joe
Tidd which helps to examine the business current position and how further innovation can be
done to improve business associates process, position, paradigm and product (Christensen and
McDonald, 2015). This helps the business to meet the customers emerging needs accordingly
and directly helps the organization to grow in the global village. Innovation is to deals with the
process by which business associates generates new thoughts and ideas. The 4Ps of innovation is
the innovation mix which is widely used by the business which are explained as follows:
Paradigm: This a planned path by which an firm faces dynamic changes of being taken
creative thoughts and the process of how the business associates do all the jobs, in terms of
performing jobs by facing new threats and challenges(Cornaggia and Wolfe, 2015).
Deliveroo has to plan by how to perform business associates job in the dynamic condition and
situation. This encourage the firm Essence drink to invent new product like, Orange Drink for
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customers in the market. Which directly helps the organization to be competition for other
business operating in the market.
Product: Innovative product helps the firm to capture huge market ratio as today's
customers are more attracted to new innovative product. Orange drink which is full of minerals
helps the organization to capture huge market in the global village. In case of Deliveroo if the
new product is satisfying the customers need than only it can generate value as well value can be
added to the business by adding competitive advantages to sustain in the market (DiMasi and
Hansen, 2016).
Process: The success of the business is totally depended on the delivery process, if short
delivery process is carried out than chances of profit maximization increases and if the delivery
process is long than the customers reaction can be negative at some point of time. According to
Delivroo the success rate totally depends upon the delivery process as quick delivery attract
customers and are able to trust to the business more.
Position: Business can achieve it's position in the market by providing quality and
quantity products to it's targeted customers. Essence Drink is able to capture the market and
raised sales of the mango Lassi by providing quality drink and now deciding to launch Orange
Drink to meet the emerging needs of the customers so that stable position and brand image can
be created in the eyes of the customers for time duration.
P4. Discuss frugal innovation and provide examples how it helped the organization.
Frugal innovation can be explained as lowering or reducing the cost of goods, complexity
of product or services and its production by removing the non-essential features from durable
goods like, books, automobilies, furnitures, toys, medical equipments, jewellery etc. in order to
sell the product across the nation. There are six types of frugal innovation which can be
explained as follows:
1. Engage and Iterate: If firm uses engage and iterate innovation principles it will help the
business Essence Drink to understand more about customers taste and demand as it rely
on educated guesses about customers emerging needs. Example: new product Orange
drink will be beneficial by this principal of innovation as it does not focus on insular
research and development which help the firm to capture targeted customers for the
drink.
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2. Flex your assets: Essence drink is launching it's Orange drink in 3D print which will
attract more customers as this flex tools helps to manage supply chain in their production
due to which targets can be achieved accordingly. Example: Some of the new tools like
robotics and 3D printers and new approaches such as social and continuous production
helped the new product Orange Lassi operations and logistics to satisfy the demanding
consumers better and more cheaply. This directly helps the business associates to
maximize profit which can be used in expansion and growth of the business across the
globe (Etzkowitz and Zhou, 201).
3. Create sustainable solutions: If the firm Essence drink uses research and development
can develop self sustaining solutions which is benefiting both environment and business
as cradle to cradle which means materials can be recycled repeatedly. Which will the
customers to have trust and faith for the organization. Example: New product Orange
Lassi has been developed by research and development in the market it is beneficial both
for they customers as well as the environment as it is made of natural fruits oranges.
4. Shape customer behaviour: Customers nature and behaviour helps the organization to
sell it's lassi to the customers as customers are more health conscious in the recent days.
Companies can motivate it's customers into behaving differently like, more safely,
driving less etc. and make consumers feel richer while consuming less product.
Example: If customers drink Orange Lassi in little quantity they must be ensure that
Lassi should give full satisfaction as per their needs and demand of the consumers.
5. Co-create value with prosumers: Firm Essence Drink is performing the activities of
prosumers by their own as they reduce time and smooth functioning of the business can
be done. The collective designs, structures etc. helps the business associates to attract the
customers globally and continuous research and development empowered prosumers
which lead to effective results. Examples: Orange Lassi with it's taste and packet design
can pull customers towards it can indirectly targeted goals and market shares can be
fulfilled (Groves and Kuiken, 2016).
6. Make innovative friends: Essence drink surrounded with innovative friends like frugal
products, business models and start ups etc. helped the firm to grow worldwide.
Example: Orange Lassi with new taste and flavour helps the organization to capture new
customers and new market in the global village (Wolin, 2016). Joining hands with
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innovative friends like suppliers, start-ups, capitalists,business nodes etc. helps to
generate new ideas in the market which can be taken as opportunities to grow business
globally.
TASK 3
P5. Importance of commercial funnel and application of new product development.
Commercial funnel is a process by which a company want to lead their customer when
they are buying a product. In commercial funnel there are basically different steps that can be
include in commercial model which are mention as below.
Awareness phase- in this a customer is already aware about our product. Like in
essence mango lassi is already known by the customer.
Interest phase- in this customer is interested in our product. consumer do some research
regarding our product. For Orange lassi it is beneficial because it generate the interest in the
mind of consumer regarding our product.
Evaluation phase- In this customer compare our product with the competitors. At this
stage customer finally decide that they should buy a company product. For essence it is
beneficial because it help them as they are selling healthy drink.
Decision phase- in the decision stage customer finally want to buy a product of the
company and then customer start to negotiate the price regarding that product.
Purchase phase- at this stage when customer is satisfy with product price then product or
service is purchased by the customer.
Reevaluation phase- in this stage when the product and service is consumed by the
customer then the decision is again evaluate that whether the product is again purchased. In
essence company should try with their new lassi that it satisfy the need of the consumer so they
create the repetition of their customer (Kerr and Nanda, 201).
Last is repurchase phase in this customer decide whether product should be purchased again so
for orange need it is compulsory to establish themselves as a brand.
New product development- is the way by which a product is generated and then the
fresh product is dispatched to the market. There are different stage which can develop before a
product is launch in the market.
Idea generation- in this a new idea is created and it can come from anywhere like from
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internal source and by doing different research. For essence the idea is for launch a healthy drink
in the market.
Idea screening- there are so many ideas but very less of them are good to start a new
project. Like in orange lassi concept is feasible because it is running as a trend in market for
consume healthy food and drink.
Concept development- in this stage a new plan of action or design for a product is
developed. Like in case of orange product company should target their market towards youth,
person who are motivated towards their health etc.
Product development- Once the strategy is decided by the company then they apply
them so the production can be started for new products. Like for lassi company target is for
health so now they can go to cover this area of development (Pisano, 2015).
Test marketing- in these product sample can be move in the market now company check
what are response of the customer towards company drink
Commercialization- in last company can launch there product they go with different
marketing policy and use technique to sell their product to the large number of potential
consumer.
P6. Innovation business case
Business case- it is written in words and contain value that how to convince the
individuals so that they can create their customer base in favour of their product. A good case
can create many potential consumer for their business.
Summary of the organisation- For the case of essence, company has product of mango lassi
which show a high growth in first two years of its launch but at third year the sale for the lassi is
start to decline because the competitors has entered in market. The company main target is to sell
their product to the people who are aware about their health (Kleinknecht, 2016). As the
company segment their products according to demand for healthy drinks in the society.
Need for the new product- Company face the demand for new product because there are less
sale of existing product as compare to last two years. in the case of essence there are no new
product like company is only dealing mango lassi so this is also a need to increase the range of
products.
Satisfy the need of customer- In case of Essence mango drink is already popular in the market.
People are satisfy with quality of product so it is already a plus point for company but in case of
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new product company should declare that what are benefits of orange how it can fill the needs of
vitamin, calcium etc.
Innovative about the product- The concept is innovative because in these curd is mixed with
fruits and people also response in favour of this drink. The product is innovative existing
flavoured lassi is mixed with sufforn, cardamom but fruit is mixed in diary product by the
essence company and in these orange may be a good choice for drink.
Customer research- company had gone through to the different research paper and many more
different technique and tools are also applied by them before launch of the mango lassi. Like
Essence first they segment their market towards youth, person who are interested in sports and
individuals which focus on consume of healthy products (Manzini, 2015).
Investment- For launch of such a new product there is again a huge investment is required by the
company to advertise, marketing, and distribute to the product. So they develop such a case that
they can turn the capitalist in favour of our business idea. Company can source their funds from
banks, angel investor and also from venture capitalist.
TASK 4
P7 Tools are used by company to retain its intellectual property.
In present scenario large number of companies are expanding themselves into different
business industry to earn more profits. So if very difficult for an existing company to protect its
intellectual property. First discuss about what is intellectual property.
Intellectual property mean the creativity of an individual that help a person to create his
new invention. It has divided into two categories. First is industrial property and second is for
services.
In industrial property it include patent, trademark and in service industry it cover copyright. The
major tool employed by a company are as follows:.
Patent- when a new product is launched in the market many other companies should also
try to enter in that market with similar features product so for an existing company who invent
the product should patent their machine or product by these they can create monopoly in the
market for a short time. In case of Essence drink company can patent their machine and launch
products like orange lassi which is totally a new product in the market this help the company to
improve quality of there existing invention also.
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Trademark- name, symbol, logo etc. that create a image in the mind of the consumer of
a company product that is also used to develop a connection with the customer. Like in Orange
lassi the word lassi refer to a flavour and healthy drink.
Copyright- are those that protect the art, music and classical work of the company. A
copyright is also used in protecting the company brocher, annual report and other important
documents. In case of Essence the orange and mango lassi formula can be copyright by the
company to cover the whole market.
CONCLUSION
From the above discussion it can be concluded that Innovation and commercialization
and their importance plays vital role in the development of the business globally. Business
culture, norms and leadership helps the firm to examine innovative idea which can be taken as
opportunities can the near future. Frugal innovation and 4Ps like product, price, position etc.
helped the business to study the current market customers taste and preferences to meet the
emerging needs. A business case including access funding has been designed as well as various
tools are used to develop and retain firms information
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REFERENCES
Books and Journal
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Press.
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pp.1365-1403.
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In Theories of the policy process(pp. 263-308). Routledge.
Biemans, W., 2018. Managing innovation within networks. Routledge.
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Chinese imports on innovation, IT and productivity. The Review of Economic
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innovation. Harvard Business Review. 93(12).l pp.44-53.
Cornaggia, J., Mao, Y., Tian, X. and Wolfe, B., 2015. Does banking competition affect
innovation?. Journal of financial economics,.115(1). pp.189-209.
DiMasi, J. A., Grabowski, H.G. and Hansen, R.W., 2016. Innovation in the pharmaceutical
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Economics. 7. pp.445-462.
Kleinknecht, A., 2016. Innovation patterns in crisis and prosperity: Schumpeter’s long cycle
reconsidered. Springer.
Manzini, E., 2015. Design, when everybody designs: An introduction to design for social
innovation. MIT press.
Pisano, G. P., 2015. You need an innovation strategy. Harvard Business Review. 93(6). pp.44-
54.
Wolin, S. S., 2016. Politics and Vision: Continuity and Innovation in Western Political Thought-
Expanded Edition(Vol. 23). Princeton University Press.