Innovation and Commercialisation - Essence Drink Case Study

INNOVATION AND COMMERCIALISATION
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Table of Contents
Introduction......................................................................................................................................4
LO1..................................................................................................................................................4
P1: Explaining innovation and determining its importance to Essence Drink in comparison
with invention..............................................................................................................................4
P2: Explaining how Essence Drink’s vision, leadership, culture and teamwork can shape
innovation and commercialisation...............................................................................................5
M1: Analysing different sources of innovation, and organisation fostering and developing an
environment and culture of innovation........................................................................................6
LO2..................................................................................................................................................7
P3: Explaining the 4Ps of innovation and explaining the use of innovation funnel to examining
and shaping innovative ideas.......................................................................................................7
P4: Explaining developments in frugal innovation and providing examples of how it is used in
an Essence Drink context.............................................................................................................9
M2: Analysing and applying innovation funnel in Essence Drinks..........................................10
M3: Evaluating the role of frugal innovation in Essence Drinks..............................................11
LO3................................................................................................................................................11
P5 Explaining the importance of commercial funnel and the application of new product
development...............................................................................................................................11
P6 Build an Innovation business case and ways to access funding...........................................13
M4: Building a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve....................15
LO4................................................................................................................................................15
P7: Evaluating of different tools that Essence Drinks can use to develop, retain and protect
knowledge and intellectual property..........................................................................................15
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment......................................................................................................16
Conclusion.....................................................................................................................................17
Reference List................................................................................................................................18
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Introduction
This report is based on innovation and commercialisation.Organisational innovation means
applying new business ideas for the smooth functioning and practices in the organisation
(Hullova et al. 2019). The processes are made more effective and the existing products are also
improved. To commercialise the products innovation is required. These days’ businesses are
facing a lot of challenges in innovating new products. It is necessary for the business to bring
new and innovative products for the competitive markets of the UK. In this report, the situation
of Essence Drink is taken into consideration.The founder of this company is Akshay Kumar. He
had launched a healthy mango lassi in the UK market. The first year it rapid growth and sales
also increased. However, in the third year, the sales of this healthy drink decreased drastically.
This happened because of the new competitors coming into the UK market. The founder of
Essence Drink knew that innovation is the key to business growth but he didn’t want to shift
from lassis. I have been appointed as a junior brand strategy innovation consultant to understand
the situation and provide recommendations for the improvement in the company.
LO1
P1: Explaining innovation and determining its importance to Essence Drink in comparison
with invention
Innovation is the process of representing new ideas and trends. Many activities are performed in
innovation so that new products can be made. Innovation comes with creativity. Here people
have to think out of the box to enhance a product.Innovation is very important for companies
these days as it creates great opportunities so that companies can survive the market situation
(Jensen et al. 2016). It gives growth to the economy and success. Original concepts are
developed through innovations. The current problems of the companies can be easily be solved
by innovation process. There are four types of innovations and they are Incremental,
Architectural, Disruptive and Radical.
However, innovation is different from invention. In the case of the invention, it is the idea that
has never occurred for a particular product. Here the product is completely created and it is
original in nature. The company needs to have scientific skills for an invention. But in the case of
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innovation, the new product is not created (Muthukrishna and Henrich 2016). Modifications are
done in the existing product. The skills required in this case are technical, marketing and
strategic. The activities of innovation are spread across the organisation.
Innovation is of much importance when compared to the invention. There are many reasons why
companies are taking the innovation process. Developments for companies are creative in nature.
The company can also see growth and new trends can be set through innovation. The company is
gaining improvement and they also get sustainability. Just by rebranding, the product people get
attracted. Creativity gets increased through innovative business ideas. Innovation allows the
usage of social mediaas innovative campaigns can improve the business (Amabile and Pratt
2016). This also gives motivation to the employees. Innovation gives a unique selling point.
Customers get to see and use innovative products and hence value is added to the company. They
also gain commercial advantages and media exposure is also positive. However, companies
avoid using invention methods because it is a long process. Scientific skills are required and
companies do not have much time to spend on a new product. It also requires a large amount of
money and there is no guarantee that the new product will be successful in the market.
P2: Explaining how Essence Drink’s vision, leadership, culture and teamwork can shape
innovation and commercialisation
Innovation mainly depends on creating new ideas.New thinking can be decoded through the
process of innovation (Breuer and Lüdeke-Freund 2017). The company's goal is to
commercialise its products through innovation. The products have to be according to the needs
of the customers. It is seen that commercialising simply means bringing new product in the
market.
There are factors that are affecting the innovation process and commercialisation. Essence
Drinks want to reach their goals and objectives to make their company successful. They want to
give the best healthy lassis in the market. For this, they are coming with innovative ideas and
then commercialising their products. Essence Drinks have the vision to become the leading
company in the market by launching an innovative product. They are also using the latest
technologies so that they can satisfy their customers.
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