the difference between Invention and innovation.docx

Innovation And
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Difference between innovation and invention.............................................................................1
Importance of innovation.............................................................................................................2
Types of innovation.....................................................................................................................3
4P's of innovation........................................................................................................................4
New product development and innovation funnel.......................................................................5
Frugal Innovation.........................................................................................................................6
PART B...........................................................................................................................................6
Overview of YO YO Drink.........................................................................................................6
Financial Projection.....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation means introducing new thing in the company with some creative ideas that
will bring changes and new concepts for the future (Dincer, 2017). It is necessary to bring new
innovative ideas into the organization that will lead to success in the future. Commercialisation
on the other hand, is changes in the process of operations that will be replaced by the new
technology for manufacturing a product.
Present report will be focused on YOYO Drinks company. This firm is mainly dealing in
making soft drinks.
Report will include difference between innovation and invention. It will also include
importance of innovation and its different types with its positive and negative approach.
Furthermore, it will include 4P's of innovation and the process used for developing new product.
PART A
Difference between innovation and invention
Innovation is the term used for defining changes in the organization due to
implementation of new ideas and processes that will help in smooth working in its operational
activities. In this effective processes is used to bring changes that will help in gaining growth in
the company. If innovation is not being done then there will no opportunities and growth.
Innovation brings competitive advantage in the market that will facilitate in providing accuracy
in the operations (Chun, Chung and Bang, 2015). As YOYO drinks due to innovation introduces
new drink that is healthy mango lassi and this will achieve a constant rise in the market. If
innovation is being not done then there will be no growth in the company.
Invention refers to a process or method that has been developed.
It helps in improving productivity of YOYO drinks as customers are attracted more
towards it for consuming its innovation a healthy mango lassi. This will help in growth of the
business and bringing more opportunities for the future. Nowadays, consumers always want to
prefer new product so marketers have to bring new product for them that will help in satisfy the
needs of consumers. If consumers are satisfied then it will good for the company to expand its
business by creating something new.
Difference between invention and innovation
Invention means bringing new product with creative ideas for the first time in the market
while innovation is making changes in the existing product to make it more efficient to use by
1

the customers. Like, mango lassi is the invention of the YOYO company that will rise its
business at very fast pace gradually in three years (Dezi and et. al., 2018). For doing innovation,
technical and marketing skills is required for bringing changes in the company. While, in
invention scientific skills is required for carry out the business operation in the company.
Invention does not need research and development while before implementing changes in the
company research and development is necessary. Invention will lead to create many
opportunities for the business and building competitive advantage in the market. In Innovation
the product is reframed into a new product that will help in facilitating various services to its
customers. As YOYO drinks is making mango lassi as it new invention that will be its
opportunities to gain in the market share
Importance of innovation
Innovation lead to bring value in the business as through this communication will
increase between the employees in the company. As YOYO is bringing its new product in the
market so through innovation it is necessary to communicate with people more easily. If there
are no mobile phones then there will be no mode of communication and that will not help in
bringing changes in the company. Every innovation will not have been implemented successfully
in the company as sometimes it will lead to create problems due to not proper research and
development is being done before its implementation (Pynnönen, Hallikas and Immonen,
2019). Empowered team is required to carry out the operations of innovating idea that is being
introducing in the company. There are so many reasons that will bring value of innovation in the
business. In YOYO drinks it introduces its new product that is mango lassi so it will provide a
value in the market. Thus, value plays an important role for the companies as through this there
sales will increase and that will generate more profit.
Innovation is very important for every company to grow and increase its market share in
the company. If there is innovation then there will be no growth and opportunities for the future.
It helps in gaining competitive advantage in the market. If there is no innovation in the company
that will lead to decrease its value and importance in the market. This will help in increasing
various aspects of the business. As this will bring new ideas and creativity in the business that
will lead to create more competition in the market (Amponsah and Adams, 2017). It is important
to bring changes in the operations that will bring in providing various aspects that will lead to
2

create various innovative idea. There are many factors that will lead to affect different operations
of the company. There are various aspects that will bring effectiveness in the working.
Mr. Bond can turn YOYO drinks into an innovative company by bringing something new
for the people that will help in satisfying their needs and wants. Changes in the technology that is
being used will be replaced from some innovative ideas. Mr. Bond can expand its business at the
global level that will bring more opportunities for it. It is important that changes will help in
foster more growth and that will be indicative for the company (Chen and et. al., 2018). As it is
dealing in soft drinks as applying new idea that will bring more opportunities that will help in
getting more success in the future.
Types of innovation
Innovation is categorized into different ways that will help in gaining changes in the
company. They are generally included disruptive, architectural and radical innovation.
Disruptive innovation:- It is also known as stealth innovation that involves applying new
technology into the company. In this innovation old disruptive product is being innovated into
new product that will help in enhancing growth in the company. This will provide an innovative
technology that will be helpful for the company. It is important to adopt the different
technologies that is being used for various purpose. As YOYO will have to be change its older
policy technology and that will help in getting involved in the business on a larger scale.
By using disruptive innovation it will lead to generate less cost as compared to innovating new
technology. In this adopting new technology will make a cost effective that will lead to work in a
various structure that will be more beneficial for the company. Using disruptive innovation will
not cost much to the company but it needs some changes that will help in doing work better.
Architectural Innovation:- In this different skills, technology and concepts are taken together
and then apply in the business. Through this new customers are attracted towards the business.
There is less risk in adopting this type of innovation (Gatignon, Gotteland and Haon, 2016).
That will lead to create many problems in the company. As if YOYO drinks is adopting this type
of innovation that will have less risk in the company.
Incremental Innovation:- This type of innovation is the most common that will help in
increasing value of the customer. As every company wants that its value will be increased in the
market by adopting different technology in the company. Every company is adopting
incremental innovation as it provide easy working in the company that will lead to future growth.
3

As all the companies is working into various features under different products that will be
helpful in the future for the company. This will bring accuracy in the company that will lead to
decrease in the various structures that will be helpful for the future course. As YOYO drink
company will have to adopt this technology for the purpose of doing work effectively and
efficiently. This will add value in the product of the company that will be helpful for the future.
Innovation brings new changes in the company that will increase its value in the market.
Pros disruptive innovation
 Main advantage is there is less competition in adopting this technology into the company.
 There are very less number of companies that use this type of technology so it becomes a
competitive advantage for the company.
Cons of disruptive innovation
 Disadvantage is the product is already exist product in the market will bring more
competition in the market.
Architectural Innovation:- Its advantage is that there is less risk in adopting this technology
While it takes time to adopt this is disadvantage for the company.
Incremental Innovation:- It facilitates increase in the sales and profit that will lead to create
more use of technology. Its cons is that it is expensive in adopting this type of innovation.
4P's of innovation
Innovation consists of 4P's such as Product, Process, Position and Paradigm.
Product Innovation:- This will define about the quality of the product that is being taken into
account while doing an innovation, Chosen product will be based upon the line of product
through which it is being chosen for the company. In this different product is being introduced in
the company that will help in facilitating various structures that will lead to increase popularity
in the market (Akcigit and Kerr, 2018). In this product is being selected based on the specific
range of product that is being sold into the market.
Process Innovation:- This will help in bringing changes in the process and way of doing work
in the company. Innovation in the process will lead to bring more opportunities in the company.
There are many factors that will affect implementation of new technology that will bring future
growth.
Position Innovation:- This is the third P of innovation that will be helpful in providing position
of the product in the market. This will help in analysing the effect of the innovation on the
4

business. There are different ways that will help in selecting the best innovation strategy that will
helpful for the future.
Paradigm Innovation:- This is the last part of 4P's innovation. This will emphasize in
evaluating various aspect that will be helpful in different perspective in the company. It includes
where changes is being made into the company accordingly.
YOYO drink have to adopt process innovation in the company that will help in
evaluating performance and enhance changes in the process of doing work that will be more
beneficial for the future. Adopting this will increase accuracy of doing work smoothly and
constantly (Tavassoli and Karlsson, 2015). This will help in getting more opportunities as the
process is smooth and reliable in using various aspect of the company.
New product development and innovation funnel
There are different steps that will help in development of the new product are as follows:
Idea generation:- In this stage idea is being created and generated regarding implementation of
new product in the market. Various idea is being generated that will be beneficial for the future.
Idea Screening:- In this idea is being screened out from number of ideas that is given by
different people in the company. In this good and bad idea is divided into various aspects that
will help in evaluating various aspect of the product development.
Development and Testing:- Here, the ideas is sent for testing whether it is suitable for the
company or not.
Analysis and development:- After testing proper analysis is being done to evaluate the result of
the chosen idea for the company.
Product development:- At this stage the product is being developed into various forms that will
help in evaluating various structure that will be providing various factors that will be doing after
implementation of new product.
Test Marketing:- In this stage the new product is being sent to the market for testing that will
provide feedback from the customer and will get back for further improvement in the product.
Commercialization:- At this step the product is ready for use and by applying different
marketing strategies will help in getting good feedback from the consumer.
Innovation funnel is the approach that is being used to screening various ideas that will
be helpful for introducing different innovation technique in the company (Silvestre and Ţîrcă,
2019). This will be helpful in providing various forms of innovation that will be beneficial for
5

the company. This concept is helpful in selecting different ideas that will be used for various
purpose in the company. This is very important to note that this will increase sales and profit in
the future course of action. There are many ways that will become in using this innovation
funnel. YOYO company will use different stages that is required for the new product
development in the company and innovation funnel will help in screening the ideas that is being
given by the different people.
Frugal Innovation
This is the approach that means doing innovation by taking limited use of resources. This
is implementing new ideas that will be beneficial for the future. It is important that carrying out
different approaches that will create more competition in the company. This is the flexible form
of innovation that can be used by any sector of industry. By using limited resources this is
essential to provide various category into the innovation that will lead to create more expenditure
into the business. By using different sources this innovation will help in creating various
fundamentals that will bring more opportunities in the future. This aspect is very essential that
provide various sources that will be beneficial for the future course of action.
There are different sources that will be helpful for the future course of action. It is
inexpensive in using different strategies that will be providing various factors that will be helpful
for the future course of action. In this innovation there are different sources that will helpful in
arranging various aspects of life in the business. There are important factors that will have an
impact on the operations (Hamilton, 2018). This is applicable to the YOYO drink company as in
this less resources is being used in making innovation for the company. There are different
phases through which innovation can be done for the future. It is important that every business is
using various aspects that will be helpful in gaining experience that benefits the company for
long term purpose. Therefore, it is important to use frugal innovation in the company that will
help in limited use of resources.
PART B
Overview of YO YO Drink
Covered in ppt
Financial Projection
Covered in ppt
6

RECOMMENDATION
There are some recommendations that YOYO company can follow:-
 The company can enter in new market with new product. It will help them to attract more
customers and generate profits.
 They should monitor innovation through a proper plan. It will benefit them to innovate
product in effective way and in deadline.
 YOYO company should conduct market research so that data and information is gathered
and they are able to innovate products or process in the future.
CONCLUSION
From the above study it can be said that innovation is the main part of bringing new
changes and ideas into the business. It is different from invention as innovation is introducing
new product from the existing product while invention means bringing new product for the first
time in the market. It plays an important role in the organization that will help in growing for the
future. Disruptive innovation is the leading type that will use existing product and make
innovation on that product. 4P's of innovation is also important for implementing changes in the
company. As developing new product will help in increasing growth and new opportunities for
the business. It can be observed that frugal innovation is using limited use of resources for better
creating a product in the future.
7

REFERENCES
Books and Journal
Akcigit, U. and Kerr, W.R., 2018. Growth through heterogeneous innovations. Journal of
Political Economy. 126(4).pp.1374-1443.
Amponsah, C.T. and Adams, S., 2017. Open Innovation: Systematisation Of Knowledge
Exploration And Exploitation For Commercialisation. International Journal of Innovation
Management.21(03).p.1750027.
Chen, K.Y. And et. al., 2018, July. The relationships among different types of market
knowledge, ambidextrous learning, and different types of innovations. In Proceedings of
International Academic Conferences (No. 8208758). International Institute of Social and
Economic Sciences.
Chun, D., Chung, Y. and Bang, S., 2015. Impact of firm size and industry type on R&D
efficiency throughout innovation and commercialisation stages: evidence from Korean
manufacturing firms. Technology Analysis & Strategic Management.27(8).pp.895-909.
Dezi, L. and et. al., 2018. Assessing the impact and antecedents of university scientific research
on firms' innovation commercialisation. International Journal of Technology
Management. 78(1-2). pp.88-106.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation.1(1).pp.8-
22.
Gatignon, H., Gotteland, D. and Haon, C., 2016. Assessing innovations from the technology
perspective. In Making Innovation Last: Volume 1 (pp. 19-51). Palgrave Macmillan,
London.
Hamilton, C., 2018. Black Americans Past and Present Created Frugal Innovations and
Embraced Circular Economy Principles in the Marketing Dilemma. In 11th Annual
Conference of the EuroMed Academy of Business Research Advancements in National and
Global Business Theory and Practice.
Pynnönen, M., Hallikas, J. and Immonen, M., 2019. Innovation Commercialisation: Processes,
Tools and Implications. In Advances in Systematic Creativity (pp. 341-366). Palgrave
Macmillan, Cham.
Silvestre, B.S. and Ţîrcă, D.M., 2019. Innovations for sustainable development: Moving toward
a sustainable future. Journal of cleaner production.208. pp.325-332.
Tavassoli, S. and Karlsson, C., 2015. Persistence of various types of innovation analyzed and
explained. Research Policy.44(10). pp.1887-1901.
8

9

10

11

12

13