Innovation and Commercialisation

This report analyzes the difference between innovation and invention, the value of innovation to organizations, and how it can be implemented in the leadership and culture at Essence Drinks. It also explores the 4 Ps of innovation and the approaches taken by Essence Drinks to process innovative ideas. Additionally, it discusses the steps taken by Essence Drinks to derive a new and innovative drink. The chosen organization is Essence Drinks, founded by Akshay Kumar.

INNOVATION AND
COMMERCIALISA
TION
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Table of contents
INTRODUCTION……………………………………………………………..3
1.What are the dissimilarities in the middle of innovation and
invention…………………………………..3
2.What is the significance of innovation to organisation and how this can be implanted within
the organisational leadership and culture at essence drinks…………………………………4
3.Describe about the 4 Ps of innovation and how this supports the capability and management
of innovation. Also explain about which form of innovation should Essence Drinks adopt….5
4.Explain about the approaches that Essence Drinks take to process innovative ideas
including the innovation funnel and frugal innovation and also give examples of different
approaches used by the organisation………………………………………………………….6
5.Describe about the steps taken by the Essence Drinks to derive a new and innovative
drink…………………………………………………………………………………………6
CONCLUSION…………………………………………………………………………….7
REFERENCES……………………………………………………………………………..8
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INTRODUCTION
Innovation refers to the birth of new ideas that has been converted into real world. In
terms of business innovation it can be in the form of result of a product, process or business
concept that can be activated into the marketplace and produce large amount of profit for the
organisation. (Ahn, and et.al., 2016). At large scale commercialisation is the result of
transforming new ideas and inventions into greater wealth for everyone in the society. In this
report analysis has been done on the difference between innovation and invention and also
analysis has been done on the value of innovation to organisation or how it can be implanted
in the leadership and culture at essence drinks. The analysis has also been done on the 4Ps of
innovation and strategies that Essence drinks take to process new ideas. This report also
includes about the next steps taken by the Essence Drinks to derive innovative drink. The
chosen organisation is Essence Drinks. Akshay Kumar is the founder of Essence Drinks
company. The company has been launched with one drink named as a healthy mango lassi
into the UK market. The company has performed very well in the fast pace manner in the
initial first year due to its innovative product.
1. What are the dissimilarities in the middle of innovation and invention
Innovation can be defined as it is the process of making any contribution to an
existing product and service. While invention refers to the development of a product or
process for the first time. With respect to the company a healthy mango lassi which is
launched for the first time is considered under the category of invention. The basic difference
between innovation and invention is that invention is the development of a new product while
innovation is making any significant contribution to something already existing. Invention is
an original and new idea while innovation is the real conversion of a new idea. In this
concept certain skills are required. Scientific skills is necessary under the category of
invention while set of marketing, technical and strategic skills are required under the category
of innovation. Invention occurs when new idea or original thing strikes into the mind of
scientist while innovation is required when a need to be fulfilled for a product or
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improvement in existing product. Invention is concerned with single product or process while
innovation is concerned with combination of various products and process. Under the
category of invention, it is limited to research and development department. Innovation has
spread across the organisation. The difference between innovation and invention really
matters for the organisation because it impacts the strategy. There can be various types of
strategy which includes competitive strategy, growth
strategy and intellectual property strategy. Under competitive strategy, it is the strategy
applied by the organisation for competitors to be kept from entering when any invention has
been launhed by any organisation. Conversely, innovations will enter existing markets and
may have direct or indirect competitors. Under growth strategy, if the organisation starts its
life by producing any new product or servie, then the growth strategy should be in this
manner that how it become focused to stay relevant by continuously innovating on the
product and space created. Under intellectual property strategy, if the organisation is working
with an invention, it is a smarter move that protect the particular invention by patents to
sustain competitive advantage. The same can be done with innovations, but keeping the
innovation unprotected could enhance collaborative innovation.
2. What is the significance of innovation to organisation and how this can be implanted
within the organisational leadership and culture at essence drinks.
To achieve success for the organisation, in this modern world there has been a very
fast change in the technological advancements. Because of this extreme growth, organisations
have been forced to adapt and expand more than ever before. This increasing need for growth
and change gives an opportunity for the organisation. (Lenderink, and et.al., 2019).
Companies that embrace innovation has a sizable advantage in meeting the demands of their
customers. Importance of innovation to organisation plays a very important role in the market
share of company. Because innovation always advanced the product ad gives an higher edge
as compared to their previous product and other competitors also. Innovation always leads the
company in the market and also attract more and more customers which is beneficial for the
profits of organisation. If the organisation is using innovation on its processes, then it will
save time, money or other resources which will give competitive advantage over other
companies stuck in their systems. At essence drinks, innovation brings new ideas and energy
to the role as leader and to solve challenges. Mango lassi which is launched by the essence
drinks can be innovated through adding new flavours, essence and smoothening smell to
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elevate the lassi to a new level. Innovation can also be done through making ice creams in
new styles from it. Healthy mango lassi plays as a leader in the market but by adding some
new ideas, thinking it will go on the next higher level. It is a single drink which can be
converted into shakes through new innovative styles. Their company’s culture or aim is that
to innovate new range of drinks but do not want to move away from lassis. For adding the
innovation into leadership, they can launch different flavours of drinks like strawberry
flavour, vanilla, chocolate, banana flavour drinks etc. These different kinds of flavours of
drinks can act as a leadership role in the market for the particular company. In this manner
different kinds of innovation can be embedded into the organisational leadership and culture
at essence drinks.
3 Describe about the 4 Ps of innovation and how this supports the capability and management
of innovation. Also explain about which form of innovation should Essence Drinks adopt
4 Ps of innovation: There are 4 Ps of innovation which are named as Product
innovation, Process innovation, Position innovation and Paradigm innovation.
 Product Innovation: Product innovation can be defined as it is creating new or
making changes to the products or services provided by the organisation. The ultimate
product is for their customers which should be healthy and useful for their consumers.
 Process Innovation: Process innovation refers to make changes in the way the
products has been produced or delivered. Process innovation could mean that to make
changes in the manufacturing process, rethinking best practices in the process
management or how improvements are measured.
 Position Innovation: Position innovation can be defined as position the product or
service the positioning within the marketplace. It creates a change in the context
where the products and services are introduced or positioned in the marketplace.
 Paradigm Innovation: Paradigm innovation is the shifting of an underlying metal
model via a change.
Essence Drinks should adopt product innovation. Because through product innovation, new
range of products come into the market which will attract the customers. Innovation gives the
competition to other products and companies also. (Michelino, and et.al., 2015). Product
innovation not only gives profits to the organisation but also gives the brand image and brand
loyalty in the minds of customers. In the second year, Essence Drinks can’t perform very well
because of the entry of new competitors with their new products. So its important to
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introduce new products so that it can take their own stand in the market. New products not
only attracts the customers but gives a new product to this particular industry. Due to
innovation country moves in the forward direction it gives an extra move for the organisation.
Innovation is important with changing period of time because in this competitive world
technology also changes in the fast manner. If company does not elevate itself then it will
automatically gives chance for large number of competitors for themselves. That’s why
product innovation is very important for Essence Drinks.
4Explain about the approaches that Essence Drinks take to process innovative ideas including
the innovation funnel and frugal innovation and also give examples of different approaches
used by the organisation
The approaches Essence Drinks can take to process innovative ideas including
innovation funnel and frugal innovation. The company’s aim is that taking an idea and
transforming into reality. The aim has been fulfilled when the idea gets transformed into the
formation of a new product that meets the needs of the customers in an economical manner.
The development process includes large number of inputs which are continuously and
gradually refined. (Gerlitz, L., 2016) The management of development funnel is comprised of
three tasks which includes the initial task of investigations. The next one is narrowing of the
funnel and the last one is screening. In the first task the company should open to new ideas as
part of the initial stages of its innovation process. Under the second task, the idea which has
been screened that should be implemented with full focus and limited resources of the
company. In the last task. Essence drinks should be on the lookout to ensure the product
settled on delivers the company’s business objectives. Under the frugal innovation process
the keen eye is on the consumer needs.( De Jager, and et.al., 2017). The essence of frugal
innovation is based on the concept that resource constraint can be seen as opportunity not as
liability. In this scenario, resource constraint can be seen as the promoter of agility. This
approach does not look at customers to impress them with sophisticated products or services.
These organisations are committed to creating excellent quality solutions that offer the most
exceptional value to clients at the low cost. (Reyneke, and et.al., 2021). The different kinds of
products as innovation from the essence company can be are: Fruit flavoured drinks, fruit
flavoured ice creams and fruit cakes along with caviar. These innovative products can give
tough competition to the new entrants in the market.
5Describe about the steps taken by the Essence Drinks to derive a new and innovative drink
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Different approaches used by the company as examples for the innovative product.
Their first step as an example is identification of the wow. In this step, the staff members at
Essence Drinks, especially those concerned with R & D activities should be keen to discover
outliers that are intriguing. (Reyneke, and et.al., 2021). The outliers should pique the
curiosity of the R & D staff member. As a result of this step, Essence Drinks can come up
with the formulation idea of a drink that is intriguing. In the next step which is execution of
the so what. In this step, it outlines that knowledge of the fact that ideas can benefit the
organisation strategy is the beginning of idea execution. (Parham, and et.al., 2021) And the
last step is amplification of the oomph. Under this last step as an example the company
should consider amplifying the oomph by leveraging the strategic novelty of the new drink
formulation. The amplification of oomph at the company can only work when the right
leadership behaviour and resource leverage are in place. For introducing new product in the
market by the company it is important to make a proper planning so that it can be executed in
a well mannered pattern. The company should take care about the tastes and preferences of
their customers so that their launch will go definitely in the right path. They also need to take
care about capturing and target the right market so that they can earn maximum profit. They
should also be focused on pricing strategy so that it an be affordable for every class of person.
There should be no bifurcation that particular class can only afford the product. The company
should also focus on their promotion strategy for the launch of the innovative product of their
company. If promotion is not done properly then there will be less chances of successful
launch of their product in the market. Awareness and publicity should be there in the open
market so that maximum people can attract towards their product. The steps taken by the
company is very important for the launch of any innovative product because the small steps
and proper execution can result in to the bigger success. So its important to stay awake by the
company and have a keen eye on each and every step.
CONCLUSION
Innovation and commercialisation plays a very important role in the business world. For an
organisation innovation is very major part which is very closely related with the company’s
performance. (Pereira, D. and Leitão, J., 2016). Its important to understand that how
leadership is very important for commercialisation and innovation. For the launch of new
product in the market the four Ps determine everything for it in changing and adapting the
shape of innovation. With the organisational context, developments in frugal innovation is an
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important parameter for the company’s performance and growth. So innovation and
commercialisation can change the face of the business and it also upgrades the thinking of the
person and also for the market.
REFERENCES
Books and Journals
Pereira, D. and Leitão, J., 2016. Absorptive capacity, coopetition and generation of product
innovation: Contrasting Italian and Portuguese manufacturing firms. International Journal of
Technology Management, 71(1-2), pp.10-37.
Parham, and et.al., 2021. Commercialisation of ultra-high temperature energy storage
applications: the 1414 Degrees approach. In Ultra-High Temperature Thermal Energy
Storage, Transfer and Conversion (pp. 331-346). Woodhead Publishing.
Reyneke, and et.al., 2021. Pivot to online in a post-COVID-19 world: critically applying
BSCS 5E to enhance plagiarism awareness of accounting students. Accounting
Education, 30(1), pp.1-21.
De Jager, and et.al., 2017. Towards an innovation and entrepreneurship ecosystem: A case
study of the central university of technology, free state. Science, Technology and
Society, 22(2), pp.310-331.
Gerlitz, L., 2016. Design management as a domain of smart and sustainable enterprise:
business modelling for innovation and smart growth in Industry 4.0. Entrepreneurship and
Sustainability Issues, 3(3), p.244.
Michelino, and et.al., 2015. Open innovation in the pharmaceutical industry: An empirical
analysis on context features, internal R&D, and financial performances. IEEE Transactions
on Engineering Management, 62(3), pp.421-435.
Lenderink, and et.al., 2019. Innovation and public procurement: from fragmentation to
synthesis on concepts, rationales and approaches. Innovation: the European journal of social
science research, pp.1-25.
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