Innovation Commercialization and Business Strategy

The provided assignment delves into the intricacies of innovation commercialization, emphasizing the significance of integrating 4Ps (product, price, promotion, and place) and the innovation funnel to facilitate the processing of new ideas for commercialization. It highlights the importance of leadership, culture, vision, and business case in shaping innovation within an organization. The document also touches upon the use of tools such as copyright and patent rights to safeguard legal documents from competitors.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P1) Distinguish between Invention and Innovation...............................................................1
P2) Discuss how culture and leadership of a company can be embedded.............................2
P3) Discuss 4ps of innovation and how it helped Mr Green to develop innovative drink.....3
P4) Explain frugal innovation with examples and how it is used in an organization............4
P5) Discuss the importance of commercial funnel and application of new product
development...........................................................................................................................5
P6) Build innovation plan including ways to access funding.................................................6
P7) Study various tools of firm to develop, protect knowledge, retain and intellectual
property. .................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Innovation can be sated as, the practical transformation of thought or idea into improved
or new product or services for which consumers are willing to pay value in the cut throat
competitive market. Whereas, commercialization means the process or activity of introducing an
innovative product or services and making it available for the consumers in the market place. In
this case, Healthy juice is company which was founded by Mr. Daniel Green two years ago in
the UK market. This company is coming up with innovative juice name as “orange mint Juice”.
This report includes difference between invention and innovation and how innovation is
important to firm in growth. It also focuses on how innovation can embedded with the
organization culture and leadership. Company uses 4ps of innovation to examine how it supports
managements and capabilities of innovation (Bernstein, 2015). It throws light on different
approaches including frugal innovation and innovation funnel and explains different steps to
derive an innovative juice or drink in the market.
LO 1
P1) Distinguish between Invention and Innovation.
The difference between Invention and Innovation are as follows:
Basis Invention Innovation
Meaning Invention means act of
discovering a method or
process which has not existed
earlier.
Innovation means translating
of creative thinking, thought or
idea into reality which is able
to create value in the market.
Concept Invention concept is to work
on theory.
Innovation concept is to
practically implement new
product or services designed or
framed.
Required skills It requires scientific skills for
invention.
It requires technical and set of
marketing skills for doing
innovation.
When occurs It occurs when creative It occurs when improvement in
1

thinking or idea strikes a
scientist.
existing product is felt in the
market for a product.
Activities carried out In invention activities are
limited to research and
development.
In innovation activities is
spread all over the
organization.
Importance to innovation in comparison with invention are as follows:
Reinforce brand: By developing innovative drink it will help the firm Healthy Drink to
again reinforce their brand in the competitive market. Orange mint juice will pull the potential
customers towards the drink as it is full of nutrients and minerals. Which will indirectly raise the
brand image and faith in the eyes of the customer.
Bit competitors: Healthy Drink is coming up with Orange mint juice which can bit its
competitors in the market as it is full of natural fruits and mint which is beneficial for health.
Innovation in product or services helps to capture huge market ratio and profit maximization can
be done. To be ahead of competitors in the market firm should come up with innovate drink so
that loyal and trusted customers does don't switch to other brand.
The analysis of various sources of innovation are as follows:
Demographics: Here, firm keep eye on income of people, population, education level,
and age range. By doing creative good is designed in the market so that set goals can be
achieved. Healthy Drink on regular basis scan this factors so that modifications can be done
accordingly in the cut throat competitive world.
Changes in Perception: Healthy drink examine frequently changing taste and
preferences of the customers. To survive in the market they discover drink which is as per their
emerging needs. By doing potential customers can be raised for the drink.
P2) Discuss how culture and leadership of a company can be embedded.
Culture: Healthy Drink is working on discovering innovative juice for its customers in
the UK market so that they can be satisfied with the juice. The culture of the organization is very
flexible and is adoptable to dynamic environment. It's due to culture flexibility Healthy Drink is
coming up with Innovative drink that is Orange mint juice in the third year. Employees of the
business associates are happy with the culture firm is holding and are working effectively and
2

efficiently to meet the set standards of the business in the competitive world (Dutta and Folta,
2016). It indirectly motivates its employees to perform better for productive results in Orange
mint juice.
Leadership: Healthy Drink is holding effective and efficient staff members in the
organization and are working day and night to make the Orange mint juice successful in the
competitive market. Efficient leadership carried out in an organization helps to search out the
potential customers for the innovative juice. Good leaders in a business helps it to flourish in the
global market whereas, insufficient leadership ends up in closing the Healthy Juice business in
the market place. Effective leaders encourage the firm to discover new juice drinks for the
consumers so that brand recognition can be done at a large scale and more growth and
development can be done in the international market. Effective leaders create certain plans or
strategies by which Orange mint juice can be available in the market and customers can enjoy it.
Product can be commercialized through effective leadership strategies planned in an
organization. It also helps or guide the business associates to carry out research and development
process so that unique product can be made.
Teamwork: Healthy Drink team is effective and efficient and are working hard to meet
the set standards of the business (Engel, 2015). Sufficient team in an organization motivates the
business associates to develop innovative juice in the market so that company can sustain in neck
to neck competition. Healthy Juice firm is coming up with Orange mint juice which is a new
drink and is full of nutrients like, Vitamin c, potassium etc. it also helps to lower down ischemic
stroke which will benefit consumers to remain fit, healthy and energetic through pout the day.
Vision: The vision of Healthy Drink is to move with velocity to drive profitability growth
and success in the market. It indirectly motivates the company to innovate new drink in the
coming years. Vision statement push the enterprise to come up with unique drink which is
orange mint juice with distinguished marketing strategies so that it can be commercialized for
customers in the market.
P3) Discuss 4ps of innovation and how it helped Mr Green to develop innovative drink.
Innovation is done by the business associates to meet the emerging needs of the
customers and to bind them with the services or product for longer time duration. Here, 4ps of
innovation will directly help the customers to search out potential customers for the Orange mint
juice in the global market. The 4ps of innovation are, product, press, person and process.
3

The 4ps of innovation are discussed below:
Person: Person is an entrepreneur who uses their capabilities, skills, abilities and
motivation to frame or design a creative product in the market. Healthy Drink is coming up with
Orange mint juice in the market to capture huge market ratio. Mr Green uses all his abilities and
skills to innovate Orange mint juice in the UK market. Which will help them flourish in the
international market.
Product: Product is the ultimate result on the creative process carried out the by business
associates to set standards in the cut throat competitive market. Orange mint juice is the
innovative drink of Mr. Green founder of Healthy Drink company gets motivates when then the
first drink was successfully accepted by the customers (Hossain and Kauranen, 2016). So they
are thinking variation in drinks which will help the firm to create positive image in the eyes of
the customers and brand awareness can be creates.
Press: Here, press means the working environment in which employees are working day
and night to meet the desired goals on time. Healthy Drink provides safe and secure working
surrounding to its employees so that effective staff members can be retained for longer time
duration.
Process: Here, process refers to the procedures carried out by business associates to
frame an innovative product or services. Healthy Drink is carrying out small process at the
initial stage and gradually as the Orange mint juice will sales ratio will be raise the business
operation will be expanded accordingly to meet the demands in the market.
The use of innovation funnel in shaping innovative ideas are explained as follows:
Innovation funnel is used to represent the steps which take place in processing a product
or services in the market. The method of designing innovation is to create, discover and develop
ideas and refine the create thinking into useful forms so that profits. Innovation funnel helps in
shaping innovative ideas as it clearly defines every step while processing the product. It helps the
organization to discover new ideas as simply every step of processing and motivates them to
come up with new product.
The application of Innovation Funnel are discussed as follows:
 The very first application of innovation funnel is that it is a flexible process. Due to
which firm can adopt easily in their working premises. As well as lead to generate huge
profits in the open market place.
4

 Innovation another application is that it is effective and complete implementation. Due to
which environment is controlled with limited time and risk.
 Trade secret protection is one of the essential application of innovation funnel through
which confidential information of the company can be safeguard. Due to which healthy
Drink business grow successfully in the competitive world.
P4) Explain frugal innovation with examples and how it is used in an organization.
Frugal innovation is the process of decreasing complexity and cost of a goods and its
production. It refers to eliminating of non essential elements from durable goods like, electronic
items, furniture, home appliances etc. in order to raise sales volume ion the market. The various
steps of frugal innovations are explained as follows:
Find opportunity in adversity: Healthy drink is coming up with Orange mint juice
which is full of nutrients and proteins. Example: Mr Green garbed the opportunities in the UK
market and came up with Orange mint juice for the diet and health conscious customers in order
to capture huge market ratio. Firm search out the opportunity in the adverse condition and was
able to build loyal customers (Hossain, 2015).
Do more with less: Innovation should be done with less resources with quality product.
Healthy drink is coming up with Orange mint juice with natural fruits in it. By using natural
resources and fruits orange drink is prepared for the customers which will be benefiting their
health in positive way. Example: Mr Green is coming with Orange mint juice it is innovative
drink with less use of resources but the product is of high quality and full of minerals and
nutrients.
Think and act flexibly. Innovation should be done by improvisational rather than
rigidness. Healthy drink is continuously working to come up with different juices with natural
use of fruits in it. Example: Healthy drink is flexible in its functioning is coming with various
flavoured juices to attract customers as well to meet their emerging needs for juices with are
prepared with natural fruits not with artificial colour and taste.
Keep it simple: Innovation should be simple and easy to access. Healthy drink is coming
up with Orange mint juice in the competitive market. Example: Mr Green is coming with
Orange mint juice in the market the product is simple in nature and easily understandable by the
customers. This indirectly raise the sales ratio and profit maximization can be done at a huge
scale.
5

Include the margin. For growth and success Health drink need to earn profit from the
product. Involve targeted customers’ suggestions if any problem is faced regarding Orange mint
juice so that best solutions can be received (Miller and French, 2016). It creates a sense of trust
and loyalty in the eyes of the customer. Example: Healthy drink has set affordable prices for the
juice so that every section of the customers can purchase it and huge profits can be maximized.
Which in coming years can be included in growth and expansion of the business.
Follow your heart: Mr Green has put up the idea of Orange mint juice in reality so that
emerging needs of the consumers can be fulfilled. Zeal and passion of the business helps the
owner to come up with innovative idea in order to bit the competitors in the cut throat
competitive market.
P5) Discuss the importance of commercial funnel and application of new product development.
Commercial funnel refers to as purchasing process that organization lead consumers
through when buying products. Commercial funnel is also called as sales funnel in the market.
The importance of commercial funnel is discussed below:
It helps in picking a marketing strategy: Commercial funnel helps the Health drink to
choose an appropriate marketing strategy in order to launch Orange mint juice in the market. Out
of the available options sales funnel guides to choose the best and effective marketing strategy to
promote its juice in the UK market.
Commercial funnel helps to relate to targeted customers: If Health juice use sales
funnel in their business it will directly help the organization to search out potential customers for
Orange mint juice. It indirectly raises the sales volume of the product in the market.
Helps to raise sales volume: When right marketing strategy is adopted by Health Drink
for promoting Orange mint juice in UK market the sales ratio automatically gets raised. It helps
to search out targeted customers which leads to raise customer base and sales volume.
The process of New product Development are explained as follows:
Idea generation: The first step of NDP is idea generation. It can be created or designed
from any source like, internal sources, market research, SWOT analysis, Competitors etc.
Researcher can come up with create thinking by meeting any random people at any place there is
no mix time or place to generate creative idea. Similarly Healthy Drink came up with Orange
mint juice in the market by researching the market scenario.
6

Idea screening: Whenever idea is designed on a paper it is screened thoroughly so that
any changes can be done on the initial stage. Healthy drink is coming with orange mint juice in
the market. Here, the researcher has examined the plan or orange mint juice many times in order
to match the emerging needs of the customers.
Concept development and testing: Here the organization ask consumers to taste their
innovative drink which is orange juice in order to see the reaction of the product. Business
associates provide sample of orange mint juice to the customers for trial so that positive or
negative response can be noticed accordingly.
Business strategy analysis and development: In this step business associates finalize
the concept of orange mint juice and decide various branding and marketing business strategies
in order to make the juice available for consumers in the global market by using different
marketing tools like, advertisement through print media, social media, digital marketing, radio
etc.
Product Development: Once the strategies are approved by the top level manger then
product blueprint is transformed into tangible product. And all the staff members are explained
all the roles and responsibilities to be carried out to develop orange mint juice in the market.
Test marketing: Orange mint Juice is tested in the market as well as feedback of
customers regarding the innovative product is examined. If any improvement is suggested for the
drink company tries to adopt in their juice so that customers trust and loyalty can be gained.
Which will lead to raise sales volume.
Commercialization: In this stage product is ready for the customers in the market on
local stores, mall etc. Here, customers are made available with the orange mint juice easily so
that emerging needs of the customers can be fulfilled.
P6) Build innovation plan including ways to access funding
Business Case is a type of formal written document which initiates the decision to start
up a new business plan or ease some major product development or features enhancement. This
include the essential information due to which business can make efficient and effective
decisions and assist in accomplish goals and objectives of Healthy Drink (Mohammed and
Gibson, 2015). This is a type of blueprint which is designed by covering all the relevant details
like, vision, mission, market analysis, finance allocation etc. By doing so roles and duties are
7

easily assigned to the concerned workers. Due to which best outcomes can be achieved in the set
time frame.
Executive Summary- Business Case for Healthy Drink comprises of all the essential
information Orange mint juice so that more customer can be attracted and raise sales ratio. It
requires the data of effective marketing strategies before initiating the product in the market.
However, the resources necessary has been ascertained for growth and success of business.
Mission Statement- Mission of the Healthy Drink is to offer nutrient juice to the
customers which will attract customers and meet their emerging satisfaction level. Mission
statement helps the organization to work hard day and night to meet the set objectives. Below
mentioned are the statement of Healthy Drink:
 To cater delightful experience to the customers to meet up their satisfaction level.
 Intensify the brand image of the business associates throughout UK market by offering
innovative products (Xiao, Li and Liu, 2016).
 To render quality products to the consumer and enhances their business opportunities in
market.
Resources- To present new product in the market, Healthy Drink requires different
resources such as raw materials for production process, finance, tools and technology Etc. this
will aid performance of business activities in an effective manner. The available resources are
utilized effectively so that best results can be achieved in the set time frame. Organization uses
the resources at it's optimum level so that less wastage of resources can be carried out.
Market Analysis- It is concerned with identifying the potential customers for the new
product as well as examine the level of competition in the market. It will help Healthy Drink to
design and apply strategies regarding Orange mint juice for sustaining in this competitive world.
By doing so more and more customers can be raised for the goods and services. Due to which
productivity and profitability is raised at a large scale. To grow successfully in healthy drink
market evaluation is must so that tough competition can be created for the others.
Financial Resources- Financial resources is concerned with funds needed in order to
present Orange mint juice in the market. Organization will require £50,000 to start producing
new product in the market. This is the sufficient funds required for introducing the new juice in
market. This plays a vital role in the growth and success of the business in the competitive
8

market place. Lack of monetary funds brings business at the end and are unable to grow
business globally.
Monitoring: When the new product is prepared it need to be monitored timely so that
any error can be eliminated and smooth functioning of the business can be carried out.
Organization monitors everything in order to meet the set goals respectively. By examining or
monitoring the business on continuous basis best outcomes are achieved in the cut throat
competitive world. By carrying out this on regular basis chances of error can be reduced in
Healthy Drink.
Evaluation: Company does evaluation of the product on the basis of quality, quantity
etc. it is done to improve the product so that customers can be satisfied with the product. It is
done on continuous basis in order to match the product quality, taste etc. with the consumers
emerging needs. It's through evaluation product can be improved at initial stage so that
profitability ratio can be raised. Healthy Drink take feedback from the customers and take
immediate steps to rectify it. Also, evaluation is done so that sales ratio can be raised at a rapid
scale.
Various Ways of Funding- Finance is the backbone of every business. In order to carry
business activities in an effective manner (Mollick and Robb, 2016). Healthy Drink should use
various ways of funding for introducing orange in the market. The various ways by which funds
can be generated are as follows:
 Banks and Financial Institution: This is the impelling source from which funds can be
easily accessible for business. Healthy Drink can acquire funds easily against the security
taken against loan amount. Here, Healthy Drink will be able to get a assured loan and
can function its business activities in an effective manner.
 Family and friends- Funds can be created from relatives, family and friends. In this
process interest rate is either zero or very less as compared to bank rates. But in bank
interest rate has to be paid against the loan taken. It is he most impelling way of rendering
funds.
These are the different effective sources of funding by which Healthy Drink can perform its
business activities in a desirable manner.
9

P7) Study various tools of firm to develop, protect knowledge, retain and intellectual property.
Business associates primary aim is to carry on higher profitability in order to increase
competitive advantages. They use various tools and techniques to execute business objectives in
an effective and efficient manner. However, organization should use copy rights, trade mark and
parent rights for achieving set goals on time in the marketplace (Rasmussen and Eliason, 2017).
Copy right: Copy right is a legal document which states that authority for preventing
their original product, artistic work and musical literacy and aid them in their subsequent
utilisation in the market. So, Health drink can use copy right to safe-conduct their rights as well
as to rise the brand image in the eyes of the customer.
Patent Right: Patent right aid the firm by protecting their product from getting
exploiting by using effective strategies within patent standards. In order to execute business
goals in impelling style patent rights should be used so that competitors cannot use it in wrong
way (Walsh, Lee and Nagaoka, 2016).
Healthy Drink should use patent right techniques as it safeguards the recipes of the
orange mint juice and is not disclosed to anyone in the market. By doing so organization unique
recipes cannot be used or copied by competitors in the market in a wrong way. In this case
without the permission of Mr Green no one can use their patent recipes in the market.
CONCLUSION
From the above it can be concluded that firm can carry out innovation in their product to
capture market ratio. The distinguish between innovation and invention helps the organization to
better realize these concepts. Additionally, Leadership, culture, vision also helps the enterprise to
shape innovation in the market to increase profit. Firm focus on 4ps and innovation funnel so
that new idea can be shaped. Business concern focus on commercial funnel and NPD so that
processing for commercialisation of innovation can be done. Various tools like copy right, patent
rights help the firm to safeguard their legal documents from competitors. Moreover, business
case is designed with mission and vision including ways to access funding.
10

REFERENCES
Books and journals
Bernstein, S., 2015. Does going public affect innovation?. The Journal of Finance. 70(4).
pp.1365-1403.
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&d Management.45(3).
pp.215-249.
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.
Engel, J. S., 2015. Global clusters of innovation: Lessons from Silicon Valley. California
Management Review. 57(2). pp.36-65.
Hossain, M. and Kauranen, I., 2016. Open innovation in SMEs: a systematic literature
review. Journal of Strategy and Management. 9(1). pp.58-73.
Hossain, M., 2015. A review of literature on open innovation in small and medium-sized
enterprises. Journal of Global Entrepreneurship Research. 5(1). p.6.
Miller, F. A. and French, M., 2016. Organizing the entrepreneurial hospital: Hybridizing the
logics of healthcare and innovation. Research Policy.45(8). pp.1534-1544.
Mohammed, M. I., Haswell, S. and Gibson, I., 2015. Lab-on-a-chip or Chip-in-a-lab: Challenges
of Commercialization Lost in Translation. Procedia Technology. 20. pp.54-59.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review. 58(2). pp.72-87.
Rasmussen, T. E. and Eliason, J. L., 2017. Military-civilian partnership in device innovation:
Development, commercialization and application of resuscitative endovascular balloon
occlusion of the aorta. Journal of Trauma and Acute Care Surgery. 83(4). pp.732-735.
Walsh, J. P., Lee, Y. N. and Nagaoka, S., 2016. Openness and innovation in the US:
Collaboration form, idea generation and implementation. Research Policy.45(8).
pp.1660-1671.
Xiao, X., Li, Y. and Liu, Z., 2016. Graphene commercialization. Nature materials.15(7). p.697.
11