Exploring Innovation Performance Measurement Techniques

The provided document is an assignment on innovation performance measurement techniques. It references several books and journals that discuss the topic, including 'New Frontiers in Open Innovation' by H. Chesbrough and M. Bogers. The assignment appears to be focused on exploring different methods for measuring innovation performance, such as fuzzy logic and multi-objective DEA approaches. It also touches on the concept of open innovation in small and medium-sized enterprises. The references cited are from 2014 and 2015, suggesting that the assignment is likely related to a course or research project in innovation management or entrepreneurship.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Justification of innovation and its significance to organisation in comparison with
invention.................................................................................................................................1
P2. Justification how organisational vision, leadership, culture and teamwork can shape the
innovation and commercialisation..........................................................................................2
TASK 2............................................................................................................................................3
P3. Determination the 4Ps of innovation and explanation the use of innovation funnel to
examine and shape innovative ideas.......................................................................................3
P4. State developments in frugal innovation with examples of how it is used in an
organisational context.............................................................................................................5
TASK 3............................................................................................................................................6
P5. Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.........................................................6
P6. Build an Innovation Business Case for an organisation, including ways to access funding 8
TASK 4............................................................................................................................................9
P7.The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation can be explain as the introduction of unique or different ideas in to the
marketplace in order to develop new product or services and changes in the organisation with
several processes in an effective manner. On the other side innovation take place by provision of
lot of different process, product, technologies and services that are very useful to make good
market or society in an effective manner. Whereas, commercialization is the process that
involves in the commercial activity. This present report is based on Essence drink which is UK
based organisation along with this it sells mango lassi from last 2 years (Aarikka-Stenroos,
Sandberg and Lehtimäki, 2014). At present organisation want to increase their sales by providing
innovative product to the customers. Therefore, this report will discuss about the frugal
innovation or innovation funnel in regards with this company. Commercialise process of
innovation or budget estimate also will explain. Lastly, various tools in order to protect
knowledge and intellectual property will also get covered in this report.
TASK 1
P1. Justification of innovation and its significance to organisation in comparison with invention
Innovation is the very important thing which changes environment of any firm positively.
Therefore, innovation is always focuses on making different products in order to existing
product. This is also about the bring several changes in the organisation in order to adopt lot of
changes within the working environment because of producing better services or product. That's
why it has been recommended to the Essence drink manager that should innovate their product
by adding few flavours in lassi such as savory lassi which is the flavour of cumin and salt. By
this customer can get more attractive and this concept will automatically maximise the company
sales in an effective manner (Brunswicker and Van de Vrande, 2014). Therefore, innovation is
beneficial for the company as well as society in different ways, which are given below:
 Firstly it will helps the company in order to solve their issues within the market place.
 It is beneficial in order to make strong relationship with employees or customers in an
effective manner.
 It can also very helpful for any firm in order to beat their competitors or rivals.
 It also determine the working skills and performance of employees by which they create
innovative ideas for better future in the market.
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Now firm is able to increase their sales through above benefits as these advantages of
innovation will enhance sales of their product of mango lassi.
Comparison between Innovation and Invention
This is clearly defined that invention is the good process in order to create or invent
unique product effectively (Brusakova and Kosuhina, 2015). At the same time innovation is the
way of developing different changes in the existing product so that firm can easily enhance their
sales or profits. There is difference between innovation or invention, are given below:
Basis of comparison Innovation Invention
Meaning It is the process of translating
idea in order to satisfy the
customer needs in an effective
manner.
It is a good or services that
develop the value for which
customer will able to pay.
What is it ? It is necessary for adding the
value wherein, firms already
exist at marketplace.
It is the creation of product.
Skills Required Marketing skills, technical
knowledge is required.
Financial or scientific skills are
needed.
Concept It is the concept of practical
implementation from new
thoughts.
Good idea works in theory in
order to invent anything.
Occurrence It arises when company
needed few changes in their
existing goods.
It occur when new though
strike in the mindset.
Concerned with It is a group of different
services or product.
It is determine as the single
process.
Examples Introduce new product like
T.V., tablet so on.
It create or invent printing
press and Telephone as well.
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P2. Justification how organisational vision, leadership, culture and teamwork can shape the
innovation and commercialisation
It is very much necessary to have actual vision or mission in the effective culture or
leadership with in the organisation on order to accomplish the goals and objectives effectively.
All these functions plays very important role in order to innovate any kind of product
(Carayannis, Grigoroudis and Goletsis, 2016). That's why it is also necessary for the Essence
drink company that they should have everything clear in their mind like mission or vision etc.
this concept also affect the employees so that firm and their worker can easily sustain in the
market in an attractive manner.
Culture: Essence drink have good culture by this employees have the lot of energy to
their existing products that helps the company or also increase their sales effectively. The
positive culture helps in order to make different lasssi with the flavour of cumin or salt. Apart
this having diversifying culture also very helpful for company that makes strong environment so
that employees can easily think or make innovative strategy efficiently.
Vision: In this Essence drink satisfy their customer requirements or demand. Now a days
company trying to innovate their product through providing savory lassi to their purchasers so
that company can easily get high profit from the market effectively. Along with this Company
(Essence Drink) have clear vision so that they can easily understand or make unique product in
order to achieve goals and objectives efficiently.
Teamwork: It is necessary to a firm in order to classified the huge task into the smaller
groups by this firm target can be fulfil within the particular time (Chesbrough and Bogers, 2014).
Now it is suggested that company should make relationship with other companies which will
helps them in order to make their innovative product effectively.
Leadership: It is one of the best function which motivate, lead or encourage people and
team members effectively, so that Essence drink can easily accomplish their goals and objectives
in an appropriate manner. Whereas, effective leadership is necessary to have within the company
where leader can motivate their team members or workers in order to prepare innovate lassi.
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TASK 2
P3. Determination the 4Ps of innovation and explanation the use of innovation funnel to examine
and shape innovative ideas
Innovation mix is the model of business which determine the 4Ps of innovation . This
model is formed by John Bessant and Joe Tidd. There are different process (4 PS) of innovation
which are given below:
Product: Product define the company culture that what they are providing in order to
complete their target. As the Essence drink innovating their lassi product with cumin and salt
flavour, with the help of this firm can enhance their sales or fulfil their targets.
Position: In this situation company is identified the actual position to their product at
marketplace in which company can get know the customers demand and requirements in an
effective manner (Fabrizio and Tsolmon, 2014). So that company can make their innovative
product as per the customers needs. That's why it is analyse the customer possibilities or segment
of market.
Process: In this situation company transfer their product to its customers. Actual process
should be followed by employees of Essence drink in order to achieve customer potentiality and
target efficiently.
Paradigm: In this company aware from all the factors so that product is developed in an
effective manner. That's why company provide guidelines like what type of uses of this product
as well as define customer requirements effectively.
Innovation funnel:
This is also the model of business which is used by lot of companies in order to evaluate
the idea of the specific product. It has several steps which are to be used on growth of the exist
products. It has purpose to find real position of the innovative products within the marketplace.
There are few steps which are given below:
Opportunity assessment: This stage will define the needs and wants of the customers as
well as few information which is mainly needed by the company in order to make innovative
product of Lassi by this they can attain their overall targets.
Insight based ideation: This stage will determine the several type of product to know
that which kind of opportunities will be good to apply on innovative product of Essence drink
that is examined by sources like online survey, survey and so on (Fu and Mu, 2014).
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Conceptualization: This stage will purchase an consultancy in order to give good idea
regards the lassi or innovative design wherein, more and more people can get attracted easily.
Benchmarking and evaluation: In this stage company will receive the feedback or
reviews from customers as they providing sample of lassi in the market that increase the brand
name.
Launch: After all the explanation in this stage company has launched their product in the
UK market. By this concepts Population of UK can increase the sales of firm in tan appropriate
manner.
P4. State developments in frugal innovation with examples of how it is used in an organisational
context
Frugal innovation is the good process of minimizing the complexity of cost as well as
production of goods. It is commonly used remove non essential features or innovative product as
well. Frugal innovation is necessary in order to change the product's features by adding some
new elements in the production of services (Kilelu, Klerkx and Leeuwis, 2014). So that Essence
drink can bring new flavour in their lassi at marketplace so that sales can maximise easily. Frugal
innovation is quite essential in relation to effectively be utilised within Essence Drinks in
development of new and appropriate drinks without adding too much to the cost. Moreover, it
would also help the firm to reduce superfluous expenses as its application would require the
company to appropriately cut down the cost during the time of their production. It could be
applied within a range of ways, for instance, could be used within their packaging or multi-
flavoured drinks in order to appropriately enhance the scope of success within the market.
Opportunities of new market: Before manufacturing the innovative product at
marketplace than it is important to know that same product is offered by any other firm or not
and also about their strategies like what tactics they are using and so on. By this concept of
investigation firm is able to bring innovative product of Lassi with in the market.
Resources: It is necessary for any kind of firm in order to use lot of resources for the
growth of product so that they can able to compete other firms within the competitive market. By
this company can gain more profits effectively.
Innovation funnel: This determine the growth and development of product. This is said
that firm is always brings new product in the market of UK. Like Essence drink bringing unique
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flavour in the competitive environment to achieve goals so that firm can get higher increment
positively.
Developing idea of innovation
Sales is important for product innovation in order to evaluate the actual condition which
is necessary for the market or customers demands in an effective manner. By this company can
make high innovative product to achieve goals (Libaers, 2014). There are few steps which is
determine in the frugal innovation which are given below:
Screening new Idea: As per this planning is the first stage by this company can plan
regarding their innovative product in order to fulfil customer's satisfaction.
Idea Screening: In this stage firm can analyse the innovation of product of Lassi
effectively.
Testing: In this stage firms will test the innovativeness in the product in order to offer the
sample of lassi to their customers also receiving feedback from several customers efficiently.
Internal analysis: This step will going to analyse the characteristics of product in an
specified manner. As this is much important in order analyse the effective overall performance of
employees within the organisation. On the basis of this company is able to give proper analysis
to their employees in an effective way.
Review Competitive Market: This is the last stage where firm checks their product
appropriately that their product fulfil customer demands or not.
On the basis of frugal innovation, business concept can get lower cost so that they can
easily enhance their business goals in a proper way. With the help of this business concept can
achieve their proper goals by using innovation frugal ideas in an appropriate manner. Therefore,
this can be said that this is much significant for managing the overall working condition of new
business in a proper way.
TASK 3
P5. Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel is also known as the sales or revenue funnel which commonly refers
to the buying processes of firm in short it depends upon the customer's buying behaviour
(McKelvey, 2014). This classified in to three phases, given below:
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Pricing policy: In this innovative product of Essence drink will be fix by the commercial
funnel as well as as price of Lassi is also going to be change by this each customer is able to
afford this lassi which is liked by all so that they can get attracted towards price and will
purchase it.
Implement investigation programmes: For innovating product, it is necessary to go
through the customer needs, so that commercial funnel will help the company in order to bring
their innovative product within the market.
Advanced technology by development: With the help of this company can advertise
their product easily to develop their growth of business in an specific manner.
Helps in improving the developing Business: Commercial funnel is very helpful in
order to analyse the purchasing level of buyers and accomplish their expectations effectively.
This process can get high sales and profit in regards with Essence drink.
Steps for the process of new Product development:
Idea generation: This stage is used to analyse the specification of innovative products
within the market through knowing the all aspects or requirements of customers (Paradkar,
Knight and Hansen, 2015). In reference the Essence drink firm will innovate their Lassi by
aiding the flavour of cumin and salt.
Idea evaluation: This step will help in reducing the non essential elements from the
different thought which was developed by innovator. The focus on this step in NPD focuses on
creating a large number of ideas and selecting the one which is most feasible and viable on
behalf of an organisation.
Concept definition: This stage focuses on converting ideas into product which can be
successful in the market for longer run. In this step product will decide the innovations in
product of Lassi.
Strategic analysis: This step will analyse the company's strategies which was opt for the
innovative products in a better way or also check the fishability or existence of product
effectively. The features which are taken into consideration are target market, value proposition
and profit goals which are formulated by the organisation.
Product development and testing: It will going to generate or test innovated product
that is flavoured lassi (Partanen, Chetty, and Rajala, 2014). In this company will offer savory
lassi to their customers and receive feedback efficiently. This feedback which has been
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provided by the customers will be further analysed to improve the quality of product which is
being offered to them.
Market Testing: This is going to identify the correct time which is needed to innovate
the product and market testing that is completed by the customer's feedback. In this owner of
Essence drink will evaluate the time for innovative products. It is an approach through which an
marketer will be gaining experience of the market and will be identifying the best time and
method through which it will be introduced.
Commercialisation: This is the stage where final decision will be taken up by the
management. Whether to launch a new product in the market or not. If yes, business can
determine price of innovative product will be fixed by marketing plan so that savory lassi prices
can be modified easily.
Product launch: At last, company is able to launch their product with lot of innovation
that is savory lassi.
P6. Build an Innovation Business Case for an organisation, including ways to access funding
This case is important which fulfil the requirement of firms in order to develop
innovative business case. That's why it is essential for company to develop overall budget
effectively.
Estimated Total expenses of the Firm
Type of expenses Cost
Manufacturing expenses $400
Raw material expenses $700
Labour expenses $650
Management expenses $200
Marketing expenses $350
Total $2300
Estimated Total Revenue of the Firm
Name of the
product
Price of the
product
Quantity of the
product
Revenue from single type of
product
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Savory Lassi $ 2 200 $400
Orange Lassi $ 2 100 $200
Pineapple Lassi $ 2 200 $400
Litchi Lassi $3.50 100 $300
Plain Lassi $ 1.50 400 $600
Total revenue $1900
Therefore, estimated total profit of the company may be – (Total Revenue – Total Expenses)
= ($1900 - $2300)
= $ 50
Different things which are to be required are given below:
Executive Summary: This is all about the product of savory lassi which is innovated
through the Essence drink for which they needed different strategies of marketing that involves
in the PESTLE, SWOT etc. by this product can be launched easily in order to enhance the
development of business in an effective manner.
Problem: As per this issues which is faced by firm while manufacturing of innovative
product.
Solution: This statement gives lot of opportunities to company in order to improve their
changes effectively.
Mission statement: To satisfy customer needs or requirements in order provide better
quality of product.
Resources: According to this resources are utilised in an effective manner.
Market analysis: This situation identify the market condition by this firm can launch
their innovative product to satisfying people.
Cost and benefit analysis: After determining the cost and margin of profit will be
identified by the firms.
Expected benefits: Benefits like social, financial or environmental.
Ways of funding
Bank and Financial institution: Money or budget can be stored by financial institution
that can helps in innovate the existing product.
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Family and friends: This is also the good way to collect the interest which is paid by the
company that can also innovate the product.
Therefore, Essence drink will collect fund from the different resources as they provide lot
of security system like low interest and so on.
TASK 4
P7.The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.
For an organisation, it is very much important for them to protect their products and
services form their competitors. In order to more improvement there are lot of ideas and
strategies for increasing the sales of this respective organisation. On the basis of this, the
company can get higher achievements and target their goals in an appropriate way. As it is
necessary approach that's why it is important to have effective goals and strategies as well as
proper tools and techniques in a perfect manner. For this, Essence Drinks can adopt different
tools, some of these are as follow :-
1. Copyrights : It generally refers to the protection in relation with author's work.
Copyrights always known as the intellectual property which offers publications,
distributions and rights for the authors. All these are necessary for author because no one
can used this data without permission of author. This is the strategy, which Essence Drink
can adopt, as in this government use to give proper rights to inventor and innovator of
some specific product and services, so that they can sell and provide it according to their
norms (Pellikka, 2014). Also this help that individual from any type of piracy, and
redundancy of that good and service. Moreover, it would provide an edge to the firm in
the market as any other company, in order to produce similar product, they would be
required to seek permission from the firm or face a lawsuit. Therefore, it is much
essential or effective for author by which they can get protection at higher level. There
are some examples which is eligible for copyright protection such as motion pictures and
other audio-visual works.
2. Trade Secrets : It consist different types of intellectual property which can be in the form
of practice, formula, process, design, commercial method and so on. With the help of
these sort of intellectual property an organization can get competitive advantages. In this,
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organisation like Essence Drink use to keep all the detail about the product and service as
secret. This will help them in keeping their innovation safe from their competitors, so that
they do not copy it. For instance: Essence Drinks can preserve their recipe for preparing
their Lassi so that competitive edge in the market could be obtained and retained. This is
very effective for an organisation which generally defined the varies by jurisdiction by
which respective firm can be focus on their appropriate methods or techniques in order to
accomplish organisational goals. For example: according to this knowledge can be kept
as the trade secret which comes under the different terms like unique programmes,
devices and so on.
3. Patents : It refers to the exclusive right and rights those are granted by the government
for a limited period of time by which things can be changed for the public disclosure of
an invention. This is certificate, which an organisation like Essence Drink have to take
from the government, which help them in making monopoly of that product and service.
This will help them in reducing the chance of redundancy of product. For instance:
Essence Drinks can obtain a patent for their invention for flavoured lassi which will grant
them with legal protection to sell their services. It is much effective for company in order
to follow all kind of government policies by which they can enhance their overall
productivity and profits in a perfect way. For example: According to this firms can get all
relevant information in order to achieve appropriate goals in an effective way.
Trademarks : It is also refers to the intellectual property which consist different kinds of sign,
design and expression which identifies the overall identities of goods and services. These are the
designs, logos or expressions which defines that the product has specific origin source. Essence
Drinks, for example, could utilise these in forms of tag-lines as well as captions, which would
help them differentiate their offerings from that of competitors within the market. The presence
of trademarks will be helpful for an organisation in creating distinct identity in the market
contributing to higher sales. For example if company will make their effective designs on their
products then they can easily get overall profitability and productivity in an effective manner.
Along with this concept can be understand by the proper example in which respective
organisation can make their effective goals in a proper manner. For an example: If respective
organisation will use these sort of term in their operating system of management so that they can
easily differentiate their product from the other company. By using this criteria they can make
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effective goals and achieve their target without any issues within the marketplace. Therefore, this
is much necessary for this organisation to follow effective brand title and patents in an
appropriate manner.
CONCLUSION
From the above discussion it has been concluded that, innovation is a process which is
used by organisations and individuals, so that they can make a new product by implementation of
new idea in their existing products. Also, for innovating a product finalising a budget for it is
very much needed, as this help them in gaining knowledge that how much funds will they have
to invest in innovation. Along with this, it has been concluded that, there are ample number of
tools which an organisation can use, so that they can protect their innovation from their
competitors.
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REFERENCES
Books and Journals
Aarikka-Stenroos, L., Sandberg, B. and Lehtimäki, T., 2014. Networks for the
commercialization of innovations: A review of how divergent network actors
contribute.Industrial Marketing Management. 43(3). pp.365-381.
Brunswicker, S. and Van de Vrande, V., 2014. Exploring open innovation in small and medium-
sized enterprises.New frontiers in open innovation.1. pp.135-156.
Brusakova, I. A. and Kosuhina, M. A., 2015, May. The fuzzy logic method for innovation
performance measurement. In2015 XVIII International Conference on Soft Computing
and Measurements (SCM)(pp. 291-293). IEEE.
Carayannis, E. G., Grigoroudis, E. and Goletsis, Y., 2016. A multilevel and multistage efficiency
evaluation of innovation systems: A multiobjective DEA approach. Expert Systems
with Applications.62. pp.63-80.
Chesbrough, H. and Bogers, M., 2014. Explicating open innovation: Clarifying an emerging
paradigm for understanding innovation. New Frontiers in Open Innovation. Oxford:
Oxford University Press, Forthcoming. pp.3-28.
Fabrizio, K. R. and Tsolmon, U., 2014. An empirical examination of the procyclicality of R&D
investment and innovation. Review of Economics and Statistics.96(4).pp.662-675.
Fu, X. and Mu, R., 2014. Enhancing China's innovation performance: The policy choices. China
& World Economy.22(2).pp.42-60.
Kilelu, C. W., Klerkx, L. and Leeuwis, C., 2014. How dynamics of learning are linked to
innovation support services: insights from a smallholder commercialization project in
Kenya. The Journal of Agricultural Education and Extension.20(2). pp.213-232.
Libaers, D., 2014. Foreign‐Born Academic Scientists and Their Interactions with Industry:
Implications for University Technology Commercialization and Corporate Innovation
Management. Journal of Product Innovation Management.31(2). pp.346-360.
McKelvey, M., 2014. Science, technology and business innovation. M., Dodgson, D., Gann and
N., Phelps (eds.) The Handbook of Innovation Management. pp.69-82.
Paradkar, A., Knight, J. and Hansen, P., 2015. Innovation in start-ups: Ideas filling the void or
ideas devoid of resources and capabilities?.Technovation.41. pp.1-10.
Partanen, J., Chetty, S. K. and Rajala, A., 2014. Innovation types and network
relationships. Entrepreneurship Theory and Practice, 38(5), pp.1027-1055.
Pellikka, J., 2014. The commercialization process of innovation in small high-technology firms–
theoretical review. Handbook of Research on Techno-Entrepreneurship. pp.91-109.
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