Commercialization of Innovations: A Case Study

This assignment provides a comprehensive analysis of commercializing innovations at global markets through a single case study. It explores the role of business model design in innovation diffusion, labor union effects on productivity, and the significance of trademark or patent applications for start-ups. Additionally, it discusses enhancing innovation commercialization through supervisor-sales rep fit, employing lead thiocyanate additives to boost solar cell performance, and unpacking relationships between work organization, capability development, and innovation in African micro-and small enterprises.

Innovation and
Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Concept of innovation and determine its importance for organisation in comparison with
invention.................................................................................................................................3
P2 How organisation's vision, leadership, culture and teamwork can shape innovation and
commercialisation within Essence Drinks..............................................................................4
LO 2.................................................................................................................................................5
P3 Presenting explantation of 4Ps of innovation and using of the innovation funnel for
shaping the innovative idea....................................................................................................5
P4 Presenting explanation of the frugal innovation and example........................................6
P5. Explaining the significance of the commercial funnel and applying the stages of new
production development in processing for the innovation and the commercialisation..........7
P6. Building an innovative business plan for the company with the various sources of funding.
................................................................................................................................................8
LO4................................................................................................................................................10
P7. Evaluating different tools for retention and protection of knowledge and intellectual
property used by the company..............................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The organisation have to deal with various types of issues related with the consumer
demand and their satisfaction. This is of crucial importance for each business as the consumer are
the one who are ultimately responsible for operating of business and its profitability. The present
report is related with analysing, invention, innovation and commercialisation of goods and product
by Essence Drinks which serve mango lassi. Invention is related with bringing in a new idea of a
new lassi in the market. Innovation is related with making changes in the exiting product by
addition of value and commercialization in order to present it to consumers. Along with this there
is inclusion of organizational culture, , invention of the products, team work, vision and
leadership. The 4Ps of innovation are explained along with the frugal innovation. The importance
of innovation and its retention is explained and the rights over the intellectual property related with
inventions.
LO 1
P1 Concept of innovation and determine its importance for organisation in comparison with
invention
Innovation is a process of developing new product or idea which helps in improving the
effectiveness of a business idea or product to meet the increasing needs or requirements. This can
also includes implementing the improvements within an existing product or service to cater more
and more customers. The main motto behind executing the innovation process is to solve a specific
problem using unique and creative solution. The process of innovation is very important for purpose
of commercialization (Aarikka-Stenroos, 2018).
Commercialization is the the process of monetizing of financing a innovative idea. In other
words, providing a innovative service or good in return of financial benefits can be termed as
commercialisation. It is beneficial for an organisation as it offers the company with an opportunity
to grow and have more and more development in innovative products and services.
However, the innovation process is different from the invention process. Invention can be
stated as a sudden discovery or developing a new and unique product. The invention is a result of
extensive research and development and practical implication and usage of a invented items are not
known. It is a practical implementation of a theory or idea.
Major difference between invention and innovation process are as follows:
Invention Innovation
It can be termed as development of a new
product or service which is unique in nature. It
involves the process of creating a new product
It is a process of making improvement and
changes which increases its effectiveness. It

or service. adds a value in an existing product or service.
For the invention purpose, extensive scientific
research and development process is carried
out.
The innovation process is carried out by the
organisation or a innovator when a need arises
related to improvement of existing product or
service.
It is a single entity having only one product or
idea. Although the idea or concept behind
invention process is a unique theory and
research.
It is a combination of multiple processes
including research and development, product
planning, feasibility study and promotional
measures related to launching of a innovative
product.
The practical implementation or utilization
process of a invention or invented product is
unknown.
It is the practical implementation of a invented
service or product that is used as a solution of
problem solving (Ke and et.al., 2016).
The innovation process is relatively important for an organisation as it supports the
organisation to develop and produce new and innovative product. The purpose of innovation is to
solve specific problem or issue that is been faced by the customers of an organisation like Essence
drinks. It supports the development of innovative products and services like Espresso Lassi which
will help in attracting new customer base and increase sales of organisation. It will not only increase
the sales of the organisation but also increase the profitability and productivity of organisation.
Although invention gives technical effectiveness of organisation while the innovation will help in
overall growth of organisation.
P2 How organisation's vision, leadership, culture and teamwork can shape innovation and
commercialisation within Essence Drinks
Innovations and commercialisation is an organisational level process which covers all the
departments of organisation. The main purpose behind having the innovation and commercialisation
process is to solve a problem that is faced by the customers as well as the company and get the
monetary benefits from new and unique products. The organisation's leadership, culture and
teamwork plays a very significant role within the functionality of organisation. This supports in the
effective shaping up of innovations and commercialisation process within Essence Drink. The
elements like within the organisation to have an innovative will help in incorporation of innovation
and commercialisation process (Chun and et.al., 2015).
The vision of Essence Drinks is required to be clear and precise in order to avoid any sort of
conflict or in difference at the work place. The organization will look after the setting up of its

organisation and operations based on the vision statement to carry out the research process and have
a deep influence on the operations and activities which are carried out by organisation. This guide
the management of Essence Drinks to inculcate new and innovative ideas which will help in
enhancing the measures which are taken in context by organisation. All these measures and
activities related to the growth of the business organisation supports establishing a innovative
framework. It will guide selected energy drink manufacturing enterprise to develop new, innovative
and feasible products like Espresso Lassi. Along with this, effective leadership also plays a very
deep and significant role in implementing the innovation within the business enterprise (Hohenberg
and Homburg, 2019). An effective and supportive leadership will help the business organisation to
carry out an extensive research process that will help in growth of the innovation process within the
organisation. Besides this, the leaders or managers at energy drink enterprise will look after guiding
the work force within the organisation to commercialize the Espresso Lassi. This will help them to
motivate and carry out the innovation process.
Culture also plays a very important role in the operations and implementation of the
innovation process. It creates an environment that supports the carrying out innovation or product
development process. It not only helps in improving the possibility of meeting the organisational
needs but also to cater a range of customers. Positive and assisting culture with open accessibility of
the enterprise leads to suitable execution of new product creation and financing process. An open
and inclusive culture also helps in identifying new ideas to turn in innovative products or services
(Rasmussen and Eliason, 2017). Followed by this, teamwork or group based performance is also an
important factor that affects suitable establishing of innovative product development measures.
Having an efficient and skilled team will not only mitigate the chances of risk factors but also
improves the efficiency of team members within an enterprise. The innovation that is been
developed will support a good rise in innovation and commercialisation measures which are taken
in consideration by an enterprise. The staff of Essence Drinks will interact, cooperate and work with
each other to develop new, unique and innovative products and services for meeting their
customers needs and demands.
LO 2
P3 Presenting explantation of 4Ps of innovation and using of the innovation funnel for shaping the
innovative idea
Innovation is the process which deals with creation of new ideas and thinking by the
organisation. This deals with the aspect of bringing in new product or services for the business in
order attract more consumes and ensure profitability and survival of the company. The 4Ps of

innovation present the innovation mix which is engaged by the business in order to develop the
process and idea of generating a new product. The 4Ps mix is described beneath:
Paradigm: is a planned process where the company Essence Drinks considered the
changes which have triggered the innovation and invention of new product (Chiaroni and et.al.,
2016). Here the process related with innovation, invention and thinking is done on how to perform
all the activities related with this task and cope with the challenges and threat in the course of
performing the plan Essence Drinks is of required to make plans related with conducting business in
the changing situation and conditions and it will bring in a new products as Espresso lassi.
Product: in the innovation mix defines the main item that will be offered to the costumers
and create value for the organization. Essence Drinks has planned to bring in a new product with a
innovation in the lassi as Espresso lassi. With this product the company is will a new lassi to
consumers to satisfy taste buds with best consumer services. It will enhance the value and brand
image of Essence Drinks be gaining competitive advantages. This can be stated that the most
important element of 4Ps is the product around which the whole process revolves.
Process: can be defined as the manner win which the product will be made available to
the consumers. This is of key importance to identify the way as it is the delivery process through
which the new product reach to a potential consumer (Nepelski and Piroli, 2018). In this context it
can be stated that if the packing and container in which lassi is served is not good the lassi can
spill and this will make the new espresso lassi unattractive or less attractive. Also with a a good
demand faster services of lassi is required which must be definite and not clumsy.
Position: in the innovation mix defines the goals and objective of this particular innovation
and commercialisation process. This can be explained as the the manner in which the Essence
Drinks want to achieve the position of high demand and good sales of its new product the espresso
lassi along with a higher consumer satisfaction and gaining competitive advantages.
Innovation Funnel of Essence Drinks: this is the process which includes development of
the new idea and identification of the steps and by application of those better consumer satisfaction
can be provided. There are different types of funnel through which ideas and be generated. This
start with collection of information about the idea of espresso lassi and view of the consumer over
the same (Kraemer-Mbula and et.al., 2019). After this comes the stage of screening the idea among
the different ideas and identification of the best idea amongst all. With this comes the stage of best
to provide the lassi to the consumers and the supporting hand which Essence Drinks will need. The
final step is related with determining the consequences and opportunities that the Essence Drinks
can get and implement the idea in practical life.

P4 Presenting explanation of the frugal innovation and example
The frugal innovation is the procedure which is related with invention of a product in the
scared resources of the company. This depend on the social, economic, legal, political factors .
These factors all together polish the and shape the innervation idea and reduction of the cost and
expenses over the new development (Golovanova and Bekaeva, 2017). The frugal innovation also
provides importance fro product and service to move from lower level of the buyers and and
reduction in the cost of the production and the procedure through which a product is made available
to the customers. For example the organisation Samsung have a different product line of the smart
phones for two countries viz India and UK. This action of Samsung is termed as frugal innovation
where the goods and services are provided to the consumer as per their preferences, demand and
choices. This is seen that the people of both the nation have different level of knowledge and skill
set. As it is higher in UK among all generation and all age group where it is different in India as
the consumers groups there are too different and complex (Pietrzykowski, 2016). The older
generation have nil or very low attraction to the smartphone so for them smart phone with simper
user interface and lesser complexity are developed. This was, Essence Drinks can use the frugal
innovation to innovate and invest new products of espresso lassi by identifying the need, demand,
taste and preference of the people of UK and the vicinity where the business activities of Essence
Drinks are carried on by Akshay Kumar.
P5. Explaining the significance of the commercial funnel and applying the stages of new production
development in processing for the innovation and the commercialisation.
Commercial funnel is also known as the sales funnel which refers to the process of buying
which the Essence drinks provide to its customers when they purchase the product. It is one of the
major concept of the business as it includes the most critical sections that the organization must
focus on such as the awareness section, that tells about the awareness of the product of the company
in thew minds of the audience. The interest section which states the interest of the customers
towards the product offered. Sales funnel helps Essence drinks in selecting the right marketing
strategy so that increased sales can be ascertained by capturing the large market share. Commercial
funnel plays a vital role in relating the company with its customers by providing them with exciting
offers s that large customers get attracted (5 Reasons Why the Sales Funnel is Important for
Entrepreneurs, 2019). It enables the firm in opting for improved ways like taking feedback,
identifying the roadblocks etc. leads the firm in attaining the growing success in the future.
New product development stages- As the mango lassie, product of the Essence drinks
decreases the sales of the company in third year due to the changing taste of the consumers. Essence
drinks, for resolving this problem has planned for offering the energy drinks with wide range of
flavors. The following stages have to be followed by the company to develop its new product.

Idea generation- In the first step, Essence drinks will be generating the idea relating to the
product that need to be introduced by gathering the information from internal and the external
sources. The idea of producing the energy drinks with several flavors has been developed.
Screening- At this stage, the idea that is generated will be assessed that it is good or feasible
in gaining the profitability and meets the needs of the customers.
Concept development- The third stage includes the testing and the development of the
concept for the product. A blueprint will be prepared in context of the version of idea. This steps
make the idea more presentable. The concept will be bought into the target market for testing the
reaction of the customers against the product.
Product development- After the development of all the strategies, the concept made will be
transformed into the actual physical product. This stage of new product development builds a
prototype or the model for the product. Implementation of the strategies that are decided in the
previous step will be made in this step.
Commercialization- After testing the prototype and validating the concept, in this step the
product will be ready and the marketing mix will be used in selling of the product. The duties are
assigned and the targets are been set for different departments.
P6. Building an innovative business plan for the company with the various sources of funding.
Executive summary
The entrepreneur launching the new product of energy drinks with different flavors. Essence drinks
has adopted the product development as its business growth strategy in the existing as well as the
new market. The idea of introducing this product has been evolved by keeping in mind the needs of
the sport's person, gym trainers etc.
Mission- To become the leading organization across the world and offering the product with
superior quality, healthy, natural flavors and great testing to keep the customers satisfied.
Vision- To bring the positive energy among the people and facilitating the great place for
working with an inspiration to perform to the best of their potential. Nurturing or creating for the
winning network in respect of the customer base and the suppliers by enduring the value.
Maximizing the long term earnings and strives for wealth maximization of the stakeholders.
Objectives-
To increase the market share by 10% at the end of the 2019.
To increase the sales by 15% till the end of the 2020.
To maximize the profit margins to 20% in the mid of the 2020.
Marketing Mix-

Product- Essence drinks will be providing for wide range of flavored energy drinks products
that includes the Essence original zero, Orange Zero, fit water, sport raspberry, sport orange low
calorie, sugar free energy drink etc.
Price- The pricing strategy that the Essence drinks follows is the penetration pricing strategy
where it set lower price for its new range of energy drinks for attracting more and more customers.
This helps the firm in gaining large customers base with in turn increases the sales of the enterprise.
Competitive advantage can be gained by the company over its competitors as this strategy forces
the customers to switch.
Place- Essence drinks will be delivering its products worldwide through the super market,
theaters, street vendors, malls, street shops, minor stores, canteens of universities and the schools.
Promotion- Various promotional tools such as advertising, public campaigns, social media
marketing is been used by the Essence drinks. These promotional tools will help the organization in
attaining its objectives effectively and efficiently. It will also use sales promotional tools like
offering various discount schemes, quantity benefits etc.
STP approach-
Segmentation- Essence drinks segments its product on the basis of demographic sector that
includes dividing the population based on the age, gender, income and the occupation of the
different countries.
Targeting- The company uses the differentiated targeting strategy where it creates several
campaigns for different market segments and the target groups. Essence drinks mainly targets the
sports people, gym trainers, youth, diabetic persons and the high income class people.
Positioning- It means selecting the most suitable marketing strategy for target audience.
Essence drinks will be using the mono-segment kind of positioning where it fulfills the desires and
the wants of each and every customer segment. Its unique quality and flavors are the major
components for creating a unique identity in the minds of customers.
Financial analysis-
Cash flow
Particulars Jan Feb Mar Apr May Jun
Sales 10000 10300 10609 10927.3 11255.1 11592.7
Total cash inflow 10000 10300 10609 10927 11255 11593
Cash outflows
Material 2500 2538 2576 2614 2653 2693
Labor 1500 1508 1515 1523 1530 1538
other indirect expenses 2000 2010 2020 2030 2040 2051

Total cash outflows 6000 6055 6111 6167 6224 6282
Cash surplus 4000 4245 4498 4760 5031 5311
Add: opening cash balance 1000 5000 9245 13743.4 18503.7 23534.8
Closing cash balance 5000 9245 13743.4 18503.7 23534.8 28846
Source of funding- Various sources of funding are adopted by the company such as personal
savings and loan from the bank for meeting the financial aspects and for running the operations
smoothly.
LO4
P7. Evaluating different tools for retention and protection of knowledge and intellectual property
used by the company.
An innovative range of new drinks is to created by Essence Drinks of which the company
has thought to protect the methodology by having:
1. Copyright – It is defined as granting of authority and exclusive legal right to the creator of
an original method or process. It gives right of using exclusive usage of a particular business
strategy or process to Essence Drinks. By seeking this right, the company can determine the
condition and criteria of using the original work process. Essence Drinks can also assess up
to what level it can be copied and use by any other business firm with a limited time period.
Pros Cons
 It helps the company in
protecting the new work process
or business operations plan from
unauthorized duplication process
(Joyce and et.al., 2016).
 The Copyright law design helps
to protect the intellectual
property of all the creative
workers in their respective
creative fields.
 One of the biggest disadvantage is
that the exclusive right is provided
only for a limited time period after
lapsing of which anyone can make
use of it.
 The copyright protection allow for
both production and reproduction
but it doesn't give full ownership
right to Essence Drinks.
2. Trademark – A symbol, sign, design or any expression which makes the existence of one
company different from another in terms of identity and recognition. By using trademark
facility, Essence Drinks can differentiate its products and services with a particular symbol

or sign of its own from those of rivalry firms.
Pros Cons
 With the help of Trademark, it
provides Essence Drinks
corporate identity (Burmann and
et.al., 2017).
 The most important benefit with
trademark is that it doesn't come
with a statutory limitation related
to the life span.
 Trademark provides protection
against the use of marketing
concepts only and not for product of
Essence Drinks always.
 Renewal of Trademark registration
is required to be made after every 10
years along with fees, failure of
which can lead to removal from the
register of trademark.
3. Patent – Is a form of protection provided to Essence Drinks consisting of exclusive rights
related to framing, using, selling, importing etc. of an invention methods by excluding
others from performing the same till patent duration.
Pros Cons
 It prevents other rivalry firm
form making profit out of the
inventors' creation.
 With this Essence Drinks can
provide good credibility to its
products.
 Is a time consuming and lengthy
process, which can result in
obsolescence of invention or
changes in it.
 Is available only where patent has
been filed (De Vries and et.al.,
2017).
4. Design Rights –It helps Essence in protecting visual appearance of its product by giving
exclusive rights over it to extent by providing legal right from stopping rivalry firms from
making use of same product design.
Pros Cons
 Essence Drinks can renew design
rights for a set and specified
period.
 Helps company in acquiring the
 It will lead to additional cost to the
products of Essence Drinks which
will increase it prices.

design rights at very low cost.
Thus, Essence Drinks should go for Design Rights of Intellectual Right of Property as it
provides company with renewal option & low cost of acquisition which a small entity can also
support.
CONCLUSION
On the basis of the present report, this can be said that innovation and commercialisation
process plays a very important part in growth of a company. The report covers factors like concept
of innovation with its comparison with invention. Also the effectiveness of leadership, culture etc
on developing of commercialisation and innovation is evaluated. The 4 p's of innovation and new
product developmnet cycle is analysed. Other thn this, the innovation management measures and
ways of preserving intellectual property are accessed and interpreted.

REFERENCES
Books and journals
Aarikka-Stenroos, L., 2018. ANIL ENGEZ STAKEHOLDERS CONTRIBUTING TO
COMMERCIALIZATION OF A RADICAL INNOVATION AT GLOBAL MARKETS: A
SINGLE CASE STUDY.
Burmann, C. and et.al., 2017. Identity-Based Trademark Protection. In Identity-Based Brand
Management (pp. 281-289). Springer Gabler, Wiesbaden.
Chiaroni, D. and et.al., 2016. THE ROLE OF THE BUSINESS MODEL DESIGN IN THE
DIFFUSION OF INNOVATION. In 17th International CINet Conference. Innovation and
tradition: combining the old and the new (pp. 1-11).
Chun, D. and et.al., 2015. Labor union effects on innovation and commercialization productivity:
An integrated propensity score matching and two-stage data envelopment
analysis. Sustainability. 7(5). pp.5120-5138.
De Vries, G. and et.al., 2017. Trademark or patent? The effects of market concentration, customer
type and venture capital financing on start-ups’ initial IP applications. Industry and Innovation.
24(4). pp.325-345.
Golovanova, N. and Bekaeva, A., 2017. Problems and risks of commercialization of innovations in
the Russian Economy.
Hohenberg, S. and Homburg, C., 2019. Enhancing innovation commercialization through
supervisor–sales rep fit. Journal of the Academy of Marketing Science. pp.1-21.
Joyce, C. and et.al., 2016. Copyright law (p. 542). Durham: Carolina Academic Press.
Ke, W. and et.al., 2016. Employing lead thiocyanate additive to reduce the hysteresis and boost the
fill factor of planar perovskite solar cells. Advanced materials. 28(26). pp.5214-5221.
Kraemer-Mbula, E and et.al., 2019. Are African micro-and small enterprises misunderstood?
Unpacking the relationship between work organisation, capability development and
innovation. International Journal of Technological Learning, Innovation and
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Nepelski, D. and Piroli, G., 2018. Organizational diversity and innovation potential of EU-funded
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Pietrzykowski, M., 2016. Strengthening the internationalisation and commercialization of clusters
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Poland and Lithuania. Studia Oeconomica Posnaniensia. 4(5). pp.160-183.
Rasmussen, T.E. and Eliason, J.L., 2017. Military-civilian partnership in device innovation:
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Online
5 Reasons Why the Sales Funnel is Important for Entrepreneurs. 2019. [Online]. Available
through:<https://www.myasbn.com/small-business/growth-strategy/5-reasons-sales-funnel-
important-entrepreneurs/>.