Frugal Innovation and Commercialization Process

The assignment delves into the topic of frugal innovation, focusing on its role in enhancing customer satisfaction and quality product/service delivery. It also discusses the innovation business plan and its implementation to gain a competitive market share and client contentment level. The assignment references various books and journals, online resources, and provides a summary of the key concepts and information.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and determine its importance to organizations in comparison with invention:1
P2 Organisational vision, leadership, culture and teamwork can shape innovation..............2
and commercialisation:..........................................................................................................2
P3 4Ps of innovation and innovation funnel:.........................................................................3
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................4
P6 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation...................................5
Build an innovation business case for an organisation, including ways to access funding. ..7
P7. Different tools to develop, retrain and protect the knowledge and intellectual property of
an organisation........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation and commercialization is process to innovating goods and services to and
present into the market. Is the process to research about the organization products and developed
to the market. In this report included the founder of healthy juice organization Mr. denial green
want to create innovation in their drinks to present different type of juice according to their
competitor. It in report also included the importance of innovation in the products and
organization vision, culture, leadership and teamwork shaping innovation and
commercialization. It report also define the frugal innovation and process for new product's
development.
TASK 1
P1 Innovation and determine its importance to organizations in comparison with invention:
Innovation Invention
Importance of innovation is helps to
implements new things in their juicy products.
Innovation is defines exploring new ideas
leading to the creation of new products and
process or service. It also defines to examine
the previous products and try to developed new
things new experiment in products. Innovation
is very important in any business because
market is changes every time and many
competitors present new products in the
market. And every organisation try to increase
their business growth so they doing innovation
in their products to present innovation products
in the market. Innovation is means to
exploiting new technology and generate new
value and to bring about significant changes in
society. In the healthy juice organizations
Invention is process to create new products
with new ideas and new techniques. Invention
is also defines the products experiments to test
their quality and their cost. Its process refers to
imagination of any products. In a healthy juice
invention helps to discover their products
process and its reflects extraordinary creative
ability or skill and that makes a distinct and
recognized contribution to and advancement of
science. Invention process help to create new
things in healthy juice organization they
experiment on their juice like milkshake other
drinks and try to develop new test in drinks so
people attract with their products.
1

innovation helps to introduced with new
techniques products and also developed new
implementation in products to present new test
for the customers. Importance of innovation
healthy juice organization it helps to increase
their company popularity and gives new test to
their customers. In healthy juice organization
innovation helps in every department like
manufacturing, marketing etc., in the
marketing after innovation in the products
healthy juice try to increase their marketing so
people knowing about their new innovating
products and service and they try to increase
their innovation products marketing,
P2 Organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation:
Vision- Vision for heath juice is to serve healthy juice to every people and make innovation them
to people having new test of drinks.
Leadership- Manager of healthy juice they present their customer to different kinds of juice and
also serve the new test of the customer.
Culture- Healthy juice define a culture about they having friendly environments to their customer
and also present timely different test according to their demands.
Team work- Team work define the healthy juice they work on team and present different kind of
innovation in their drinks. Like they change the test of the drinks and also examine customers
test.
In innovation and commercialisation vision, leadership, culture can shaping their organization
activities like vision helps to increase what organizations want to achieve in their business. It's
also helps to motivate their employees to work hard and also determine the new things to
2

increase their business growth. The leadership determines the to manage each and every process
in business. Manager manage all the employees work an also motive to do work hard and
identify the things which is increase organizations growth. Culture shaping the organization
environment where people can work and communicate to each other and share their ideas.
Culture is also shaping the organisation organisational vision, leadership, culture and teamwork
can shape organizations activities like to invention, innovation, delivering, creating, processing
etc. teamwork in any organizations defines the process of working collaborating with group if
people to achieve goals in business. Teamwork is crucial part of any business. Working in team
people shared their ideas and important information to each other and also share their business
problems and solved them. In healthy juice organisation vision, leadership, culture and teamwork
shaping their business growth because in healthy juice try to innovation in their products and
also try to developed new test and increase their organisation. In organization manager examine
the all market drinks and they try to implement new test in their products. The employees
inventing drinks and test new changes in drinks. All the employees in healthy juice worked in
team they discuss about the new test in their drinks but according to customers demands because
in the market customers always want new test. So organization group try to change their drinks
test which is like to customers also according to customers satisfaction.
P3 4Ps of innovation and innovation funnel:
Innovations 4ps defines the process which is improved business in any field. It helps to
understand how can innovate to improve product, process, position and paradigm. It helps to
give direction of what need to innovation in products and it also supports to generate process can
incubate a new idea. 4Ps innovation is defines the process in ovation on the products, place,
price. Healthy juice organisation 4ps helps to developed new things and innovation in their
products. All the 4ps elements helps to innovating things in their juicy products. There are
following 4ps which defies innovation in each department.
 Product- Products is organizations asset which they provide to customers and supping
and them. Product is also defined the organizations main elements which they supply to
their customer. The In healthy juice 4ps of helps to understand innovation process in
product. The organizations examine the market changes of the products and also examine
the customers needs and their demands which helps to understand what type of
3

innovation need a product. In healthy juice they first changes a test of their juice then add
more ingredients in juice like fruit etc.
 Process- Process is what the company provide the procedure here organizations supply
their product to the customers through online of offline. In this healthy juice decide to
final process of the products they implement their products according to precess. Process
us define final innovation of products. It helps to understand the what more products and
ingredients helps to make testy drink for the customers.
 People- people are who they played main role in organization like customer, employees,
supplier etc. which played main role in every organizations. For the innovation in healthy
juice organization employees are played most important role they try to implement new
idea in their products. Their employees worked in team and they do major discussion of
the innovation. Because organization want try to developed new test their customers to
increase their business growth.
 Place- Place where organisation do their business like store, company etc. After the
innovation in the products. Healthy juice to open their store which place their people
mostly come and enjoy their time. Its benefits because they definitely purchase their
drinks.
Frugal Innovation- frugal innovation refers to leads to innovation that are faster, cheaper and
better. It mostly defines the reverse innovation of the products. It describes a type of innovation
in technology products are customized at low prices and high volumes in emerging markets.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is the approach to reduce the complexity and cost of an innovation and
develop a product or service that is developed by the firm. It is the approach of developing the
high quality product that will fulfil the basic requirements of the customer or stake holder. Such
innovations and products will help in better rise in the satisfaction level of the users. The motive
behind developing a frugal innovation is to perform basic necessity or functioning. It will
support a good rise in the effectiveness (Drucker, 2014). On the major level, they give out the
very finite profit margin, but if the product went successful and is been liked by the customers, it
can turn out to be the big commodity for the company to get commercialized and generate huge
4

revenues. Other than this, the products of frugal innovation have higher chances to meet the
requirements of an individual as they are tailor made and can be modified as per the
requirements of the user. The frugal innovation has the major plus point of being affordable and
easily accessible to its customers, which make them more satisfied and attracted towards its
usage. The frugal innovation will involve the usage of the better quality of the technology,
concepts and idea to have a good meeting of the targeted goals.
The approach of frugal innovation will be beneficial for Mr. Green to develop or modify
its current products to cater the needs of customers in a very effective way. This will help him to
regain a good market share and provide its customers with new and innovative product in healthy
drinks. As the resources required for it are less and manufacturing cost is also low, the frugal
innovation will help in better rise in the satisfaction of the customers. As the production cost will
be minimum, the selling price will be low making the innovation cheap and affordable for the
customers of Healthy Juice (Berry and Berry, 2018). He can launch the combination of his juice
with other products like ice creams, candies, chocolates etc. which will not only improve and
increase the portfolio of the organisation and enable the firm to develop a good and low-cost
juice based product for its clients. It will help Mr. Green to develop high quality products for its
customers.
P6 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.
Commercial funnel is the structure that involves that better placing of the various
products and services in a structured manner that it will support a good rise in the customer
satisfaction level and gain a good rise in the profitability of the operations that are been followed
by the organisation (Wolin, 2016). It involves the various operations and actions that will support
a good rise in the satisfaction level of the customer and will help in getting the appropriate
satisfaction level. The commercial or sales funnel involves the following elements:
5

Awareness: This stage includes the biggest number of customers where the firm will take the
steps to develop the better awareness among the customers about the benefits and features of the
product. For instance, Mr. Green promoting his products and services to its customers. This will
involve the usage of different tools and techniques like direct marketing, social media approach
etc.
Interaction: inspired by the awareness, the customer will interact with the vendor about the
further more details of the product to gain a better knowledge or insight about the product or
service. The conversation leads to the increase in the interest of the customer towards the
product.
Interest: the development of the interest is dependent of the effectiveness of the marketing
campaign, price of the product and usage or requirement of the item. This phase involves the
minimal number of customers and thus Mr. Green has to look after the better management of this
customer base.
6
Illustration 1: commercial funnel
Source: commercial funnel, 2017

Action: this phase involve the purchasing of the goods and products from the vendor that will
help in developing a good rise in the satisfaction level of the customer and will help the firm to
generate a good amount of revenue and have a sustainable market position (Hatch, 2014).
Mr. Green will use this approach to apply a better commercialisation of his products and
services in order to improve the commercialisation process.
Other than this, the new product development cycle will help in the better rise in the
operations and meeting of the targeted goals and operations which will support an improvement
in the customer satisfaction level. This will help in gaining a good idea and developing it to make
an effective product and market it in a better way to generate a good amount of revenue and thus
will support a meeting of the targeted goals and operations by the firm. The product is been
launched and the feedback of the customers are been taken to test its feasibility.
Build an innovation business case for an organisation, including ways to access funding.
The innovation business case will help in the proper handling of the wide range of
operations that will support a good management of the business activities and development of the
business case. This will help in the better development of the business model within the firm and
will help the organisation to give a suitable rise in the operations that will supports good
management of business activities and the innovation development process. The innovation
business case for Healthy juice is as follows:
Stage 0: this involve the discovery of the idea and or opportunities that will help in better
management of the operations that will support a good development of the high quality product
and services. This will help the firm to get access to the better funding and thus will help in
suitable rise in the operations of the company. It also includes the proper research measures that
to turn a business idea into an effective and high quality product and services (Union, 2014).
Stage 1: This stage will involve the better testing of the feasibility of the idea that is been
identified in order to make the suitable decision making process. It will help in suitable
determination of the measures that the company will take to develop and innovative product and
service for its customers and thus will support a good rise in the customer's satisfaction level.
Stage 2: This stage involves the proper development of a strategic plan that will help the
management of the organisation to effectively identify the sources of funding that will help in the
better execution of the business operations of the company.
7

Stage 3: this stage will cover the development of innovative product and services that are been
developed and is been produced to get promoted and sold to generate a good revenue and get
return of interest.
Stage 4: this is the most crucial level in the product development as this stage involves the
development of the high quality products and services with their testing and trials to judge their
feasibility. It will help in proper estimation of the valuation of the product or service, that will
support a good rise in the revenue generation of the company (Johnston and Marshall, 2016).
Stage 5: after the product is been tested and the necessary changes or modifications are been
made, the innovative product or service is been launched in the market. Here the product or
service is been sold to gain the better revenue generation and satisfaction level of their
customers.
After these steps are followed, Mr. Green will convince investors who will be convinced
who look after the proper funding and financial support to the cited firm.
P7. Different tools to develop, retrain and protect the knowledge and intellectual property of an
organisation.
The intellectual property is the main asset and resource for an organisation that will
facilitate a good growth and development of the firm and will support the rise in revenue
generation and potential customer base of the organisation. The safe guarding of intellectual
property and potential customer base of the firm, which will help in the suitable achieving of the
sustainability of the firm. The information and data that is been possessed by the firm will help
the organisation to improve its performance and met the satisfaction level of its customers.
Some major steps to develop, retain and protecting the intellectual property of the firms are:
 Patents: it is the process of legal registration of the design, idea or formula that is been
developed by the firm. This will be implemented for that gaining of innovation in a better
way.
 Trade mark: it is the acquiring of the certain symbols or names to promote their product
or services and provide the cited firm with an unique identity.
 Copyright: it is the legal right over the development of the operations or usage of the
product or services developed by firm (Hatch, 2014).
Besides this various technological and legal measures like copyright protection act and
using of anti malware software can be used to safeguard the intellectual property of firm.
8

CONCLUSION
Thus, this can be concluded that the proper adoption of innovation measures that will
help in suitable rise in the compatibility that will support a good rise in the customer satisfaction
and producing high quality product and services. The innovation business plan and
implementation of frugal innovation will help the organisation to gain a good market share and
contentment level of their clients.
9

REFERENCES
Books and Journals
Baudry, M. and Hervouet, A., 2016. Innovation in the seed market: the role of IPRs and
commercialization rules. Journal of Agricultural & Food Industrial Organization.14(1).
pp.51-68.
Berry, F.S. and Berry, W.D., 2018. Innovation and Diusion Models in Policy Research.
In Theories of the policy process(pp. 263-308). Routledge.
Cuthbertson, R., Furseth, P.I. and Ezell, S.J., 2015. Innovation Commercialization and Value
Formation. In Innovating in a Service-Driven Economy (pp. 96-102). Palgrave
Macmillan, London.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Dutta, S. and Folta, T.B., 2016. A comparison of the effect of angels and venture capitalists on
innovation and value creation. Journal of business venturing.31(1). pp.39-54.
Hatch, M., 2014. The maker movement manifesto: rules for innovation in the new world of
crafters, hackers, and tinkerers. New York: McGraw-Hill Education.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Kuratko, D.F. and Hoskinson, S., 2016. Technological innovation: Generating economic results.
Emerald Group Publishing.
Rubera, G., Chandrasekaran, D. and Ordanini, A., 2016. Open innovation, product portfolio
innovativeness and firm performance: the dual role of new product development
capabilities. Journal of the Academy of Marketing Science.44(2). pp.166-184.
Shatokha, V.I. and Polushenko, V.А., 2014. MANAGEMENT OF INNOVATION
COMMERCIALIZATION PROCESSES: EXPERIENCE OF SWEDEN
UNIVERSITIES AND POSSIBLE WAYS OF ITS USE IN UKRAINE. Science.10(3).
pp.55-60.
Union, I., 2014. Communication from the Commission to the European Parliament, the Council,
the European Economic and Social Committee and the Committee of the Regions.
Brussels.
10

Veselovsky, M.Y., Pogodina, T.V., Idilov, I.I., Askhabov, R.Y. and Abdulkadyrova, M.A., 2015.
Development of financial and economic instruments for the formation and management
of innovation clusters in the region. Mediterranean Journal of Social Sciences. 6(3).
p.116.
Wolin, S.S., 2016. Politics and vision: Continuity and innovation in Western political thought.
Princeton University Press.
ONLINE
Sales funnel, 2017. [Online]. Available through:
<https://searchsalesforce.techtarget.com/definition/sales-funnel>
11