Innovation and Commercialisation: A Case Study of Ella's Kitchen

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This assignment explores the concepts of innovation and commercialisation, using Ella's Kitchen as a case study. It examines the importance of innovation to organisations, different sources of innovation, and how organisational vision, leadership, culture, and teamwork can shape innovation and commercialisation. The assignment also delves into the 4Ps of innovation, the innovation funnel, frugal innovation, and the commercial funnel. It concludes by evaluating different tools for developing, retaining, and protecting knowledge and intellectual property.

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[INNOVATION AND COMMERCIALISATION]

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Table of Contents
INTRODUCTION..........................................................................................................................2
TASK 1.........................................................................................................................................3
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE TO ORGANISATIONS IN
COMPARISON WITH INVENTION............................................................................................3
M1 ANALYSE DIFFERENT SOURCES OF INNOVATION AND ORGANISATION CAN FOSTER
AND DEVELOP AN ENVIRONMENT AND CULTURE OF INNOVATION.....................................4
P2 EXPLAIN HOW YOUR ORGANISATIONAL VISION, LEADERSHIP, CULTURE AND
TEAMWORK CAN SHAPE INNOVATION AND COMMERCIALISATION....................................5
TASK 2.........................................................................................................................................6
P3 EXPLAIN THE 4Ps OF INNOVATION AND EXPLAIN THE USE OF THE INNOVATION
FUNNEL TO EXAMINE AND SHAPE INNOVATIVE IDEAS.........................................................6
M2 ANALYSE AND APPLY THE INNOVATION FUNNEL IN AN ORGANISATIONAL CONTEXT...9
P4 EXPLAIN DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE EXAMPLES OF HOW
IT IS USED IN AN ORGANISATIONAL CONTEXT....................................................................10
M3 EVALUATE THE ROLE OF FRUGAL INNOVATION IN AN ORGANISATIONAL CONTEXT.......11
TASK 3.......................................................................................................................................12
P5 EXPLAIN THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND THE APPLICATION OF
NEW PRODUCT DEVELOPMENT (NPD) PROCESSING FOR COMMERCIALISATION OF
INNOVATION........................................................................................................................12
P6. BUILD AN INNOVATION BUSINESS CASE IN AN ORGANISATION, INCLUDING WAYS TO
ACCESS FUNDING.................................................................................................................13
M4 BUILD A DETAILED INNOVATION BUSINESS CASE FOR THE CHOSEN ORGANISATION
WHICH INCLUDES HOW TO MEASURE ITS OVERALL EFFECTIVENESS USING APPROPRIATE
TECHNIQUES AVAILABLE TO TEST, ITERATE AND IMPROVE................................................14
TASK 4.......................................................................................................................................15
P7. EVALUATE THE DIFFERENT TOOLS THAT THE ORGANISATIONS 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
REFERENCES.............................................................................................................................18
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INTRODUCTION
In order to survive in this intensely competitive market, organizations need to continuously
improve their market offerings and procedures. Innovation is extremely important for the
companies that implement strategies to grow and expand in a business environment. The
proper commercialisation of market offerings of the organization is to be done to register
success and growth of the same (Rasmussen, 2010). This assignment helps in understanding
the implanting of innovation and commercialisation in the culture of the organization such
as Apple and Virgin group and is benefits to the employees of the organization.
Ella’s kitchen was started by Paul Linley in the year 2006 offering baby-food in the market. It
offers organic, healthy and natural food products for children who are at weaning stages.
Ella's kitchen is taken as a study to understand the significance of innovation and
commercialisation in their market offerings to stay in leading position in baby food market
(Ella's kitchen, 2018). The mission of Ella's kitchen is to provide healthy and natural foods to
the children at their weaning stage.
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TASK 1
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE TO
ORGANISATIONS IN COMPARISON WITH INVENTION
INNOVATION
Innovation has been classified into two types by the economists that are product and
innovation. Product innovation is referred to the act of introducing new market offerings
with the aim of improving range and quality of products, Such as Apple had introduced iPod
which replaced the Walkman and other portable devices used to hear music (Lee, et al.
2010). Process innovation is developing new activities, procedures and actions or making or
delivering the market offerings by the organization. For example, online platforms have
been integrated into the different business areas such as travel, finance, entertainment and
lifestyle by Virgin Group.
DIFFERENCE BETWEEN INNOVATION AND INVENTION
Invention Innovation
The invention can be defined as the creation
of market offerings or introducing a process
for the first time.
Innovation can be defined as improving or
making significant changes in the existing
products services or process
The products and services invented is
something original and new to the world
(Chun, et al. 2015).
The products and services innovated may be
new to the company or industry but afresh
to the world.
The invention can be defined as distinct
creative act.
Innovation includes the process of changing
the habits by convincing the people to
replace existing products or services.
A major concern in innovation is on the
single product or processes.
A major focus is on the combination of
various products or processes in innovation
(Chun, et al. 2015).
The invention is a generation of substantial
ideas by transforming the novel notions.
Innovation is converting the inventors’ idea
into practice through the primary attempt.
A major concern by inventor and people is
on the physical reality of products and
services.
However, both physical and human reality of
the market offerings is considered by
innovators.
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M1 ANALYSE DIFFERENT SOURCES OF INNOVATION AND ORGANISATION
CAN FOSTER AND DEVELOP AN ENVIRONMENT AND CULTURE OF
INNOVATION
SOURCES OF INNOVATION
Ideas can be generated from various sources. These sources of innovation are classified into
two categories such as internal and external source.
Internal Source: staff members related to research and development, production,
marketing and sales and so on is some of the internal sources that lead to innovation and
improvement in the market offerings of the organization such as products and services
(Rosenbusch, et al. 2011). For example, the employees at Virgin Group are encouraged to
share their ideas and also funded and provided with the resources and funds to achieve
their best performance level.
External sources: customers, suppliers, market research insights, media reports and
research agencies, technological advancement and so on are some of the external sources
that drive innovation in the organization (Westley and Antadze, 2010). For example, due to
technical innovation in the music player devices, Apple Inc. outdid the traditional mp3
player from the market. This was supported by understanding the needs and wants of the
customers that led them through this technological breakthrough.
DEVELOPING THE INNOVATION CULTURE AND ENVIRONMENT AT ELLA'S KITCHEN
It is very difficult to instil innovation culture and the environment in the business
organization. The entrepreneur Steve Jobs mentioned that initiation for any innovation
should be the analysis for providing an exceptional experience to the users or consumer
(Nieto and Santamaría, 2010). It is also essential to look for new opportunities rather than
creating better products as compared to the rivals. Proper timing and initiation result in the
periphery of work to create new market offerings.
Also due to the entrepreneurial aggressiveness of Richard Branson, a business model
generated by them where senior personnel supports any entrepreneurial efforts of any
member of the group by sponsoring the idea or business concept represented by them
depending on the applicability and reality
Similarly at Ella's kitchen innovation is driven by the experts and research conducted. The
investigation is done by conferring to the leading academics as a base to understand the
interaction of the children with their food using all their senses. This will help in making the
mealtime of the children easier for their parents.
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P2 EXPLAIN HOW YOUR ORGANISATIONAL VISION, LEADERSHIP, CULTURE
AND TEAMWORK CAN SHAPE INNOVATION AND COMMERCIALISATION
Commercialisation can be defined as the process of introducing new product or services in
the market to reap the profit and revenue (West and Bogers, 2014). It considers the
distribution, sales, production, marketing and customer support required by the
organizations such as Apple Inc., Virgin Group or Ella's kitchen for achieving the commercial
success of the product or service.
The success of the company or organization depends on its employees and staff members. It
is essential for the company to have clear in the vision of the company by the suitable
adoption of leadership to develop the culture in the work environment of teamwork. The
company such as Ella's kitchen need to explain the vision, teamwork, culture and leadership
at the workplace to ensure inheritance of innovation and commercialisation.
VISION: a vision of any organization is its long-term goals (Yam, et al. 2011). It is imperative
for the companies such as Apple Inc. and Virgin Group to have long terms goals. The vision
of Ella's kitchen is to develop healthy eating habits, among the children, lasting lifetime
through their ranges of tasty and organic market offerings that are a baby and toddler food,
snack ranges, smoothies etc., comes handy for mother and father including fun for little one.
TEAMWORK: an employee from different background and department are included to form
a team (van Hemert, et al. 2013). Each team goes through different stage such as forming
storming, norming performing and adjourning if needed. Richard Branson developed the
team in such a way that they generate and deliver the ideas to be funded if found beneficial
for the company. Cooperation and collaboration among the team members help in
developing an effective team at Ella's kitchen.
CULTURE: this can better be understood by the types of organizational culture by Charles
Handy (van Hemert, et al. 2013). It can be observed that the culture and structure of the
organization are interrelated. The culture followed in the organization is the task and role
culture. As the task culture depends on the teamwork, it can produce results. Certain
groups, teams or forces are formed, abandoned or continued for a specific purpose.
LEADERSHIP: the leadership styles adopted in the organization play a vital role in developing
the innovative culture and environment at the workplace (van Hemert, et al. 2013).
Appropriate leadership style is to be adopted as per the situations or circumstances. The
leadership of Steve jobs is represented in the case of introducing iPods in the market by
Apple Inc.
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Similarly, Ella's kitchen needs to focus on the leadership and teamwork to develop the
culture as well as work environment in order to chive their vision by facing the problems
related to the needs and wants of the customers and delivering the same.
TASK 2
P3 EXPLAIN THE 4Ps OF INNOVATION AND EXPLAIN THE USE OF THE
INNOVATION FUNNEL TO EXAMINE AND SHAPE INNOVATIVE IDEAS
4 Ps OF INNOVATION
Innovation space comprises of 4 essential elements which are used as a tool to identify the
improvement of changes in the process, position, product or paradigm (Johnson, 2010). It
provides an explanation of the direction and areas for innovation in business.
Fig 4 Ps of innovation
Process
It includes the changes to be made in methods, processes, ways and procedures to lead to
innovation by ideas and creativity (Bessant, et al. 2011). Taking the case of Apple, new
products and services are developed that are highly efficient as well as useful. The iPod was
developed, targeted and offered to all the level of customers that too at affordable prices
aiming to replace mp3 music player from the market. New ideas are welcomed by Richard
Branson at Virgin Group and also funded if they are feasible and functional.
Position
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This element refers to analyse the context of framing and communication the products as
well as services among the customer, employees and public (Bessant, et al. 2011). Apple Inc.
is known for providing distinct product in the market and repositioned the music player
market by launching iPod. The work environment of Virgin Group represents the freedom to
communicate their ideas as a member of the team to archive their best performance from
motivation.
Product
It determines the improvement in the products as well as services offered by the company.
Changes either radical or incremental made in the products or services are offered to the
end users (Björgvinsson, et al. 2010). The innovation and curiosity initiated by Richard
Branson result in the exploration of new horizons such as Virgin Atlantic, Virgin Rail, Virgin
money, Virgin Express, Virgin Net, Virgin Bride, Virgin Blue, Virgin Entertainment Group and
so on.
Paradigm
It focuses on the mental model and aims to make either incremental or radical changes in
the perception of the customers regarding the position of the products, process or services
(Björgvinsson, et al. 2010). Ella's kitchen is looking forward to providing healthy and organic
food to babies, toddlers and children who are in their weaning age and support parents. The
radical change in the music player market by replacing mp3 players with iPod resulted in the
huge profit. Also, members generating new ideas can be funded to become new ventures
thereby offering support by the entrepreneur Richard Branson to the employees with
innovative ideas.
INNOVATION FUNNEL
Innovation funnel is the process of screening the different ideas in order to select one and
convert in the reality in order to fulfil the trends and needs of the market economically
(Vanhaverbeke, 2013).
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Innovation funnel depicted in the Virgin Group is to focus on collecting the pool of ideas
among the different sources and evaluate, screen and filter the ideas to select one or more
appropriate idea to be funded and supported. In the same manner, innovation funnel can
be used at Ella's kitchen to understand the nutritional requirements, needs and wants of
children and packaging of the food products to attract and appeal the children, babies and
toddlers to develop eating habits. This will result in increased sales and higher satisfaction
level among consumers and parents.
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M2 ANALYSE AND APPLY THE INNOVATION FUNNEL IN AN
ORGANISATIONAL CONTEXT
Innovation funnel is to be applied in Ella's kitchen. Innovation funnel includes brainstorming,
assessment of ideas, conception and evaluation, new product development and finally
launching the product in the market. All the members of Ella's kitchen are effectively
communicated their plan and accomplishment and selection criteria for the ideas being
generated along with the feasibility and functionality of the ideas. All the ideas generated by
the internal and external sources are collected and reviewed (Zandoval Bonazzi and Ari
Zilber, 2014). The review ideas are grouped on the basis of theme such as department being
affected. Selected of best themes will be done according to the set goals. The ideas are
filtered through their feasibility and functionality.
Insights and views are added to each theme selected thereby focusing on the divergence or
convergence. Among the screened ideas, more filtration is to be done to select the best
available idea. A business plan is formulated to execute the selected idea by considering the
risks associated and anticipating returns along with resource allocation. The final business
plan will be presented to a senior member who will take a decision on the project launch.
The work environment for innovation can be created by instilling innovation culture through
the effective leadership of the leaders at Ella's kitchen. It helps in motivating and
encouraging the employees to develop new ideas and concepts leading to innovation.
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P4 EXPLAIN DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE
EXAMPLES OF HOW IT IS USED IN AN ORGANISATIONAL CONTEXT
Frugal innovation can be referred as frugal engineering in which the products or services are
redesigned or modified to eliminate unessential activities and elements from the products
or services with the aim to reduce total cost but maintain quality and durability (Zeschky, et
al. 2011). Frugal innovation helps in serving the developing and underdeveloped market
with its durable or quality products or services using the unconventional distribution
network to offset razor-thin profit margins.
Considering the case study of Apple Inc., frugal innovation is adopted by Steve jobs through
the introduction of sleek and light-weighted iPod that holds the large capacity to store the
largest number of songs thus reducing the complexities and targeted and replaced the mp3
players in the music player market.
DEVELOPMENT OF FRUGAL INNOVATION IN ELLA'S KITCHEN
The ideas for innovation can be generated by reviewing the behaviours and perception of
the customers regarding the products (Annacchino, 2011). In order to maintain a high level
of satisfaction, frugal innovation can be instilled to create value by increasing the
satisfaction level of customers. The organization can utilise internet medium to become
social by integrating and connecting with an external source. Research and development
process should be continuous to identify the potential barriers in order to remove them.
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M3 EVALUATE THE ROLE OF FRUGAL INNOVATION IN AN
ORGANISATIONAL CONTEXT
The frugal innovation in Ella's kitchen is to reduce the complexities and provide memorable
experiences to the customers and users. The food products delivered for the babies,
children or toddlers features 100 percent organic ingredients. The products offered by Ella's
kitchen such as food, smoothies, snack ranges and much more for the babies ageing from 4
months to 3 years and above. Pouches were first introduced by Ella's kitchen in the baby
food market.
The role of frugal innovation in Ella's kitchen is to minimise the prices of the products. A
major focus is to be given on the taste and nutritional requirements of the babies and
toddlers by effective using organic ingredients (Zeschky, et al. 2014). Frugal innovation is to
be done in processing the organic ingredients and ensuring that no extra sugar or salt is
added apart from natural sugar. It also needs to ensure that no additives or genetically
modified ingredients are used. To maintain the nutritional competency in a baby food
product, purees of fruits and vegetables are used instead of concentrates.
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TASK 3
P5 EXPLAIN THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND THE
APPLICATION OF NEW PRODUCT DEVELOPMENT (NPD) PROCESSING FOR
COMMERCIALISATION OF INNOVATION
IMPORTANCE OF COMMERCIAL FUNNEL
The commercial funnel is used to protect or safeguard the researched ideas or services from
the rivals. It helps in protecting the technology of the company. Using commercial funnel by
any organization, the chances of marketability is enhanced (Biazzo, et al. 2013). The
products and services developed and created by the company can be protected through,
patents, copyrights and licenses.
The commercial funnel is used by Apple Inc. in order to copyright or patent the intellectual
properties that is the products or services created or innovated for being proto-typed
proving beneficial for the company. The technology innovated by Apple Inc. is distinct,
unique and protected such as the introduction of iPod in the market increased the
marketability as it comprises of various features such as sleek, light-weighted and has the
compact design of the product that is IPod thereby appealing the customers.
NEW PRODUCT DEVELOPMENT AT ELLA'S KITCHEN
The gap in the distribution network can be filled in order to reach out to a large number of
customers where the customer can select the product according to the age and other
general requirements of the children (Wheelwright, 2010). Awareness is raised among the
customers regarding the new changes and alterations in the market thereby effectively
launching the product in the market. Anticipated possibilities and obstacles can be critically
evaluated through commercialisation in the process. Commercialisation identifies and
focuses on the target market.
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P6. BUILD AN INNOVATION BUSINESS CASE IN AN ORGANISATION,
INCLUDING WAYS TO ACCESS FUNDING
EXECUTIVE SUMMARY: this business case for innovation aims to increase the green
credentials by launching ‘EllaCycle' in order to recycle or reuse the different types of
packaging at Ella's kitchen. The aim is to access funds for implementing the scheme that our
TerraCycle Pouch recycling program.
PROBLEM STATEMENT: the aim of Ella's kitchen is to encourage the parents to become
Ellacyclers by recycling or reusing the different pouches and packaging of Ella's kitchen
(Annacchino, 2011). Pouch collection points are to be set up by Ella's kitchen to drop used
baby food pouches in public places such as nurseries and shops and so on.
PRODUCT INTRODUCTION: the pouch collection points are to be set up under TerraCycle
pouch recycling program for encouraging the parent to recycle or reuse the different types
of packaging of Ella's kitchen.
MARKET ANALYSIS: Ella's kitchen is considered as the first brand in the baby food market
that brought the pouches that are handy to use (Wheelwright, 2010). Various factors such
as technological, social and environmental factors are to be considered to effectively launch
the scheme in the market.
FINANCIAL ANALYSIS: the financial position of the company is stable and remarkable as the
company. About 30 percent of the baby food market of the UK is covered by Ella's kitchen.
WAYS TO ACCESS FUNDING:
Internal Sources: internal sources such as surplus and reserves can be plough back for
launching the TerraCycle pouch recycling program (Westley and Antadze, 2010). Also, the
assets that will not be used in the company can be sold to collect cash and fund for the
program.
External Sources: funds can be collected from various external sources such as creditors,
investors, governmental agencies, institutions, banks, international organizations, individual
donors or angel investors and many more (Westley and Antadze, 2010).
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M4 BUILD A DETAILED INNOVATION BUSINESS CASE FOR THE CHOSEN
ORGANISATION WHICH INCLUDES HOW TO MEASURE ITS OVERALL
EFFECTIVENESS USING APPROPRIATE TECHNIQUES AVAILABLE TO TEST,
ITERATE AND IMPROVE
The aim of the business case is to launch a scheme that is TerraCycle pouch recycling
program in order to encourage the customers, parents to recycle or reuse the different type
of pouches used for packaging by Ella's kitchen. The effectiveness can be measured by the
increased awareness among the people to recycle or reuse the pouches. Funds can be
accessed through both internal and external sources thereby increasing the green credential
by introducing ‘EllaCycle’.
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TASK 4
P7. EVALUATE THE DIFFERENT TOOLS THAT THE ORGANISATIONS CAN USE
TO DEVELOP, RETAIN AND PROTECT KNOWLEDGE AND INTELLECTUAL
PROPERTY
Patents: a new technology or product invention is protected under the Patents Act 1977 of
the UK. Apple Inc. has patented the design of the iPod launched by them in the music player
market.
Copyrights and design: the design and artwork of the tangible or intangible products are
protected using the Copyright, Design and Patent Act 1988 of the UK (Dutfield, 2017). Apple
Inc. protected the copyrights and design of their iPod in order to prevent from being copied
by other competitors.
Trademarks: protection of different elements such as logo, slogan, variation and
abbreviation, tagline, company product, and so on can be done under the Trademarks Act
1994 of the UK (Dutfield, 2017).
Trade secrets and contracts: the secrets such as formula, the recipe of elements of
economic value are protected under Defend Trade Secrets Act 2016 and matters and things
such as process, information, technology and so on, mentioned in the contracts are
protected under Contract Act of the UK (Dutfield, 2017).
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M5 PRESENT SUPPORTED EVIDENCE-BASED EVALUATION OF THESE
DIFFERENT TOOLS IN THE CONTEXT OF THE WIDER BUSINESS
ENVIRONMENT
Patenting is protecting the rights of the inventor for the invention. It is very difficult and
expensive to enforce. The business plan of any organization needs to be patented in order
to get the most benefit and make more money out of it (Helfer and Austin, 2011). The
design of the packaging is protected under the industrial design act of the UK. Ella's kitchen
can protect the recipe and processing of the organic baby food products as it has economic
value and profit. The logo, brand and slogans of Ella's kitchen can be protected under
trademarks act. Any creativity, rhymes, jingles, lyrics, website content and other software
can be protected under copyrights act. The inventor is eligible to take legal action against
the rival who prototyped the patented item of the company, however, any legal action is to
be funded by the inventor itself (Helfer and Austin, 2011). A patent can be considered
invalid in case of any proof of the art being invented previously known as prior art.
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CONCLUSION
Thus it can be concluded that invention and innovation are different from each other it is
essential to take a decision in order to commercialise the products for the success of
innovation (Rasmussen, 2010). In Ella's kitchen, innovation space, frugal innovation,
commercial channel and new products development can be smartly implemented to
develop new products and services and it can also be protected using intellectual property
rights. The two case studies used in the assignment such as Apple Inc. and Virgin Group
helped in understanding the concept of innovation along with the sources of funds and
commercialisation.
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REFERENCES
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fashion, or fit?.
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17. Westley, F. and Antadze, N., 2010. Making a difference: Strategies for scaling social
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http://www.ellaskitchen.com/our-story/what-drives-us/] [Last accessed on 26-05-
2018]
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