Innovation Theories and Concepts

The assignment delves into the field of innovation research, examining established theories and concepts alongside emerging trends. It focuses on analyzing the current research landscape, identifying key themes and perspectives across different levels of analysis. The provided text excerpts explore topics such as technological change, uncertainty, innovation networks, business model innovation, digital innovation, and the role of open innovation ecosystems.

Innovation and
Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to an organisation with comparison invention................1
M1. Analyse different sources of innovation and its help in foster development..................2
P2. Use of organisation vision, leadership, culture and teamwork shape innovation and
commercialisation...................................................................................................................3
TASK 2............................................................................................................................................4
P3. 4P's of innovation and its use for innovation funnel........................................................4
M2. Analyse and apply the innovation funnel........................................................................7
P4. Development in frugal innovation....................................................................................7
M3. Role of frugal innovation................................................................................................8
D1. Critically analyse how innovation is developed, embedded and measured....................8
TASK 3............................................................................................................................................9
P5. Importance of commercial funnel and application of new product development............9
P6. Innovative business case for an organisation with options for funding.........................10
M4. Use of business case for analysing effectiveness..........................................................11
TASK 4..........................................................................................................................................11
P7. Different tools which used to develop, retain and protect intellectual property rights. .11
M5. Evaluation of these tools in wider business context.....................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation in business refer as a process which enable an entrepreneur to transform their
activities with change in time for gaining competitive advantage (Archibugi, 2017). Innovation
and commercialisation is a process which facilitate an option to every association to generate
more and more profit and enhance number of customers as well. Present assignment is associated
with Essence Drink which is producing mango drink. It helps them to improve their revenues in
an adequate manner. But when an organisation enter into third year of trading a dramatic
decrease in sales get determine. Hence, to get overcome from such context, owner wants to
innovate his business idea by increasing in number of products. This project includes a valid
differentiation between innovation and invention with various kinds. Moreover, identify the
process as well for commercialise business and its idea. For protecting a innovate idea, there are
several laws get framed by government whom have to take in account by entrepreneur.
TASK 1
P1. Innovation and its importance to an organisation with comparison invention
Innovation is a process when an individual make significant changes and modifications in
their existing business products and services. These changes are taking place into business
environment due to its dynamic nature. Essence Drinks launch lassi into market which is
consider as a major product but with an idea of change. They launch flavour lassi into market
with some fruits mixture (Balsmeier, Fleming and Manso, 2017). This process is important for
an association because:
 New idea get determine which enable success and business will get sustain at market as
well
 Innovation is important for future as well because it provide diversity to an organisation
as well
Essence Drinks could not found and early stage growth from past few years but when
they modify a famous concept of India (Lassi) into market through which they become able to
gain market share. Innovation aid business to gain market share and generate more and more
profit as well. Innovation and invention both are differ from each other as Essence drink have to
analyse this factor properly for making further development (Difference Between Invention and
Innovation, 2016):
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Innovation Invention
Innovation is adding value for something
which is already taking place into market.
Invention is a process of creating and
introducing new product at market.
Innovation is spread all across the department
and not limited to any particular department.
Invention is limited to Research and
Development department (Bhagavatula,
Mudambi and Murmann, 2017).
Practical implementation of new idea or in
existing product modifications.
It is an original idea of working theory
practices.
Innovation implies the process which is taking
place for the very first time with
transformation in existing ones.
Invention implies about the process under
which a product or idea get launched into
market which never take place before.
M1. Analyse different sources of innovation and its help in foster development
There are different sources of innovation are determine which are provided by the
Drucker's whom have to take in account by Essence Drink in an appropriate manner (Drucker's
Seven Sources of Innovation, 2017). The unexpected: Essence drink never expect that market growth will get decline within
two years of launching of flavour lassi. This section present unexpected things which are
not appropriate in nature. Incongruities: Essence drink promote their product to be best and thus many people
assumes that their innovation is effective (Bogers and et. al., 2017). Hence, in reality their
sales present everything under which they generated more and more profit in initial two
years. Process Need: Drucker stated that business have to identify the requirement of users
properly. Essence drink conduct a survey and estimated that new goods and services are
highly prioritise by an association. Industry and market structures: When Essence drink launch lassi into market a dramatic
change in sales could determine. This is consider as transformation of market where users
prefer such products and services which are innovative to market.
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 Demographics: Essence drinks have to determine the age group properly for which
targeting market will lead to set. Usually, lassi preferred by every age group person
which enable in generating more and more profit. But demographics will also get
changed with time spam. Change in perception: Perceptions of a consumer group is getting change with time and
thus this stated about decline in sales of Essence group in third year of trading.
Customer’s perceptions towards such product get changed and business have to
determine need of group properly (Camagni, 2017).
 New knowledge: Essence drink launched flavour drink into market and management have
to maintain appropriate knowledge regarding this fact. The intellectual property rights
work as a new knowledge concept for business which have to take in account in an
appropriate manner.
By taking all these points in account by management of Essence drink, association
become able to foster and generate an environment and culture of innovation. This make things
correct in nature through which business become able to generate more and more revenue. Thus,
flavour drink is a type of innovation which foster and develop an environment of innovation
which enable an organisation to generate more and more profit for the business which is
appropriate in welfare of society. In other words, innovation is must for each and every kind of
company as this will aid them into their long term survival at marketplace. Unique items will
easily acquire attention of many individuals. Organisation will lead research to know about needs
and wants of people; thus, they will accomplish it within limited period of times.
P2. Use of organisation vision, leadership, culture and teamwork shape innovation and
commercialisation
Business prepare several vision, mission and aims on which they are working so that
maximum output could be gain. Management have to understand all vision, leadership, culture
and teamwork effectively so that they become able to shape innovation and commercialisation.
Every small business when going to incorporate innovation then they have to change their
pattern of working as well as at commercialisation stage, management have to modify these
segments accordingly. Vision: It is an ability of management to think or plan about their future for making
operations effective and enhance base of users by satisfying them. This context will shape
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innovation and commercialisation concepts properly because vision get changed properly
(De Marchi, Di Maria and Gereffi, 2017). Essence drink innovation enables them to gain
market share under which they create plan for launching new product at market place.
Hence, management launch their product in other country as well which shape their
commercialisation process for increase in sales. Leadership: It is a quality state in an individual for leading several individual in order to
achieve organisational objectives and targets. Essence Drink leaders support association
to implement their new idea effectively at wide level where they are going to enhance
sales and volume. Third year they suffer some loss and for meeting with this,
management have to incorporate business at new level which is targeting new market
world. Culture: Essence drink adopt person culture where beliefs are belonged with an
individual. Hence, every person better aware about working and practices. This enable
association to shape innovation and commercialisation concept where they have to
identify suitable culture on which they can work effectively (Foss and Saebi, 2017).
 Teamwork: Essence Drinks are working effectively and this result get determine through
increase in sales of a company in their initial two years. Hence, this signifies that
teamwork properly implement the innovation process and now if management want to
enhance market then commercialisation concept get execute properly as well with
defined roles.
TASK 2
P3. 4P's of innovation and its use for innovation funnel
Innovation types is a mixture of 4p's like marketing mix under which business analyse
that what sort of changes and tools get applied by an organisation in their development idea. This
create a hypothesis under which management can bring out positive change for enhancing the
sales and volume. Essence drink management determine all these P's of innovation in account
and then take them properly for making operations effectively (Huang and et. al., 2017).
Innovative idea for launching product at new market become possible by examining this section
properly:
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 Product innovation: This section support in change or improve existing products and
services properly which offered to end users. Essence Drink already make an innovation
in their product. But in third year they suffer from change and to get rid out from this,
management wants to innovate an idea again for enhance operations. For this they can
make a combination of flavour lassi with any traditional food eatable properly to
maintain growth. Process innovation: This section support in identifying a manner for creating product
and get deliver to end users. Essence Drink opt this idea from India and add a fact into it
of flavour. Along with this, they can open some outlets over in UK as well as other part
of nation for making operations commercialise. Their process of delivering is easy and
definite which make their users more satisfied. Paradigm innovation: It will aid employer to alter products and services according to
requirement of clients. An idea is identified by the administrative unit to launch a
flavoured lassi along with sandwitch to people. This will aid firm to enhance their sales in
a proficient way. This has been found out that after some time sales of association get
decreased. Hence, it is required for superior to apply new thoughts as this will assist to
increase sales. (Johansson, 2017). Position innovation: Position of organisation is very appropriate at market; if they want
to increase it then, manager needs to use best promotional tools. It will aid them to
capture attention of many individuals. If they apply new and innovative thoughts into
their goods then, this will increase their reputation.
Innovation funnel: Many innovations are taking place in a business environment with an
appropriate analysis of each. An innovation funnel is a process which describe several steps
properly which used to develop the product into market. There are various stages are included in
innovation funnel which have to take in account by managers of a company through which better
and effective working could be promoted. Hence, a basic description about these stages are
describe as follow which have to take in account by Essence Drink managers so that better and
effective outcomes could be gain: Discovery: On this stage business have to evaluate and determine ideas from multiple
sources like ideas from investors, start-ups etc. On the basis of these sources,
management become able to handle out all issues and problems properly so that better
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and appropriate outcome could be gain (Johnson, Simmons and Sullivan, 2017). Thus, an
external idea screening, handling and screening system must be built into stage gate. Scope: One of an initial stage is scope of a project which have to take in account by
management properly. This is a first stage which have to critically evaluated by managers
so that they can take appropriate decision related with development by analysing its
future scope. Building case: This stage signifies all necessary things or strategy which essentials for a
business. Thus, on the basis of scope of project and new task, management have to
prepare appropriate action plan which are feasible in nature and support in long term
growth. Development: This stage reflect about all new technologies which enable business in
growth. Moreover, another duty is to remove all previous technology which create barrier
in manufacturing of new product and services. Thus, managers have to determine all new
technologies properly and implement them into business so that better and effective
outcomes could be gain. Testing and validation: Managers have to test new technology properly and if they found
it is valid in nature then they become able to implement it into business. Hence,
validation of technology is essential in order to produce high quality goods and services
for making customers satisfied.
 Launch: Once all innovation funnel process take place the last stage is to launch the new
product or services. It is helpful for business to launch their product into market once it
get tested and determine its validation so that suitable outcome could be gain.
Essence drink determine that business need to get modify properly because third year not
reflect positive outcome. Thus, business have to determine all such steps properly for taking an
association back on path in order to sustain at market properly by satisfying needs and wants.
This take place by making a combination of flavour lassi.
M2. Analyse and apply the innovation funnel
Essence Drinks can apply innovation funnel into business in an appropriate manner
through which they become able to generate more and more profit. When business growth of
business is low Mr. Kumar come up with a new idea of flavour lassi which provide them more
and more profit in initial two years. But when it comes up in third year of trading product growth
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get decrease and thus create issue. Hence, to get overcome from this, Essence Drink have to
again come up with a new idea but Mr. Kumar do not want to replace Lassi. As management can
provide a meal of combination in which a famous South Indian dish “sandwitch” get combined
with lassi. This enable them in again gain market share for sustainability (Knippels and van
Dam, 2017).
Innovation funnel can be implement by an association into firm effectively and
efficiently. With assistance of this, they can increase their profits. When business is not getting
success then, there is an employee provide an idea to their employer that they can launch a lassi
with some fruit flavours.
P4. Development in frugal innovation
Frugal innovation is a type of innovation which especially get framed by keeping the low
group users in account. Essence drink have to make appropriate development in their frugal
innovation under which they have to sale out their products by keeping in mind about lower
income users as well. This concept is basically applied by many business ventures for such
countries whom are emerging in nature for providing growth.
This process is used to reduce the complexity from product and make a simple innovation
into market. Essence drink can apply this method into business for:
 They become capable to reduce heavy value from lassi. Thus, frugal innovation is
basically for the lower income group in which management do not need to produce high
quality goods and services and make moderate products. By targeting emerging countries
for delivery of goods and services, products are generally do not have high range as thus,
it's a mater of fact that cost are low in nature which stated high scope for business.
 They can also apply this innovation at such point of time when trading get reduce.
Moreover, when emerging countries get targeting trade cost also get reduce. Thus,
Essence Drink have to target such emerging countries where they can facilitate business
operations properly as well as their cost of trade also get minimise in nature.
This development will usually take place at such time when business suffer from an issue
of sales deduction. Frugal development is supportive in nature for maximise number of
operations through low cost products (Kogan and et. al., 2017). Hence, for another innovation,
they can sale products at such locations of UK where low income group people are living so that
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they can take proper meal at moderate cost. Instead of spending money on television
advertisement, they can use mobile advertising. This is more effective because most of the
people are spedning more time of internet then televsion. Also the cost of giving advesnment of
televsion is very high compared to mobile advestiemnt.
M3. Role of frugal innovation
Frugal innovation play an effective role in development of Essence Drink which is stated
as follow:
 It enable business to reduce cost of product
 Enable to create goods for such income group whom do not have appropriate money to
purchase goods which support society as well
 Their products are full of nutrients as all sort of vegetables and natural essence are
includes which support in reduce poverty level and dehydration
 This also support them in generate more and more profit and create positive goodwill
(Longo and et. al., 2017).
Frugal innovation is helpful in reducing the cost of product through using new and
innovative ways which are helpful in order to accomplish all goals and targets effectively.
Moreover, it will also support business to sale out their products and services to such income
group whom do not have sufficient money to buy high quality standard products. This section
support in creating better and appropriate image towards society for better and highly profitable
results. Essence Drink can apply this frugal innovation into business for gaining better and
effective results.
D1. Critically analyse how innovation is developed, embedded and measured
According to Lundkvist and Gustavsson, (2017), innovation get developed through frugal
and funnel innovation. This support in performing all things in a corrective manner which
facilitate them an option to make the project successful. This fact get measure by the sales and its
enhancement. Growth is a beneficial tool and thing which make business operations effective in
nature. Essence Drink have to analyse their sales and compare it with previous year and then
analyse that innovation get done properly or not.
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TASK 3
P5. Importance of commercial funnel and application of new product development
Commercial funnel shows the buying pattern which a company can use for attaining
profit by using their innovation. It start from identifying and analysing ideas and then
implementing it for achieving growth in business. Commercialisation is a process through which
an association will lead to maximise their number of activities and introduce business at vast
level as well. Thus, business lead to get more focused on quality of products and services.
Commercial funnel is helpful for an organisation in order to grab more and more market share
through which profit share get enhance as well. Commercial innovation is a process in which all
forms of innovation are included which have an single aim of increase in customer value or
selling of product and services.
Essence Drink can apply this terminology into business by analysing its importance
which are stated as follow:
 Quality of products get improved under which new innovation will take place by framing
suitable strategies
 Another major importance of commercial funnel is to maximise profit margin. Essence
drink can apply this segment with an aim to generate profit
 Facilitate an option to introduce business at new level (Archibugi, 2017). Essence Drink
have a platform where they can operate activities in new market world as well.
Moreover, business want to introduce new product at market which enable them in
gaining market share and take business on path again. Hence, Mr. Kumar have to apply NDP
stages properly for innovative idea into market which is sandwitch: Generating: Essence Drink generate an idea of flavour lassi with sandwitch which enable
them to get sustain at market for long term. Screening the idea: Screen this idea properly under which Mr. Kumar have to determine
all deviations and differences properly. Testing the concept: sandwitch is a South Indian dish which might not get prefer by many
users. Hence, for this test this concept properly by management in order to gain
customers response positively (Balsmeier, Fleming and Manso, 2017). Business analytical: Analyse the outcome which get obtain by test concept. Essence
Drink have to measure the outcomes that are positive or negative and then move forward.
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 Product development: This process start from finding the need of new product and end
with developing it according to the fitablity of market. Test marketing: Product can be given to some customer and expert and then they views
can be taken regarding quality, pricing and uniqueness. If company get successful review
then they may consider that product passed the test and if they did not get positive
reviews then it will be considered as failure of product to pass the test. Commercialise: Commercialise the product to every user whom wish to want them.
Essence Drink can move towards this step only in case when everything get analyse
properly.
 Launch of product: Essence Drink will have to measure response and if they get positive
outcome then this combination of Lassi and sandwitch get introduce at market world
positively.
P6. Innovative business case for an organisation with options for funding
When business will lead to operate at big level, they require more and more fund. Hence,
management have to identify the process from which they can arrange fund in order to facilitate
activities more effective (Bhagavatula, Mudambi and Murmann, 2017). Essence Drinks have
launched lassi into market and this enable them in generate more profit. But in third year of
trading they started to bear loss and their sales get decline as well. A successful business
innovation will lead to take place on the basis of these points:
 Essence Drink suffer from a problem of low sales due to change in perceptions of
customers. This factor require appropriate strategy for overcoming.
 This problem get rid down by applying suitable strategy and identify the major thing
which facilitate them to overcome from such issue. To meet with this element Essence
Drink determine an idea to serve sandwitch with Lassi which might enhance their sales.
 Management have to review their mission again to implement this factor effectively so
that they are going to manage working properly.
 This issue get rid down by appropriate market survey under which NDP stages have to
corporate properly (Bogers and et. al., 2017).
This section also includes various segments whom facilitate to arrange fund in order to
make activities effective. Various sources of fund for Essence Drink are described as follow:
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 Banks: A major source from where Essence Drink can access fund is bank. They are
always ready to provide fund for such organisations whom are working for betterment of
society. But they charge high interest rates which create a problem for an organisation to
access money through banks and financial institutes.
 Equity: Shareholders money is a best option which reduce debt financing option. This is
helpful measure through which more and more fund get arranged easily. Company can
include in their prospect that they are going to make their offerings low for society each
group. This will enable them in create a good brand image rather than others. Essence
drink can issue share in market in order to raise funds. This will assist them in getting
desired amount of money and they power of decision making of senior manager will also
not decrease if they will go with this option.
M4. Use of business case for analysing effectiveness
Essence drink have to test their products by providing its sample to others. This enable
them in identifying that sandwitch and lassi combination is helpful for future growth and
development or not. Thus, on the basis of these concern management become able to improve
the quality of products as well as include some additional features in them as well (Camagni,
2017).
TASK 4
P7. Different tools which used to develop, retain and protect intellectual property rights
Intellectual property rights enable many business association to secure their property
rights in a proper manner. This enable them in reduce chances of duplication and secure all
inventions of a business as well. This technique get framed by law for securing rights of owner
and creator of a particular product and services. If any of the party harm this legislation then
associated party have a right to file a case against them. If a person wants to use any copyright
and trademark thing then they should have to take permission first if not then they will get sue.
Essence Drink have launched a thing into UK market which is flavour lassi (De Marchi, Di
Maria and Gereffi, 2017). Hence, management have to take a look upon each and every right
properly: Patent: Another act is patent right in which many people are restricted to use the thing
which are new in market. It is related with technology formation or invention in market.
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Managers of a company have to conduct timely basis research of market so that they can
protect an organisation to get harm by any patent case. Trademark: Essence drink have a right to gain trademark on their product manufacturing
by which neither have a right to make such products like them. If they do so then
management have a right to file a case against them.
 Copy right – this is a right of using and distributing original work of a company or
person. It is allotted for limited period of time and if Essence drink want to take copyright
of their product then they have to pay money for it. This should take copyright of their
product because it would not cost them much and provide them unique right to use their
product. They can also sell it against huge amount in upcoming time.
M5. Evaluation of these tools in wider business context
Many big firms use intellectual property rights in an appropriate manner on their products
and services. This is a major reason behind difference in wide quality and range of products and
services. Trademark, copyright, patents all are helpful for big associations in order to enhance
sales. With such stated example it get determine that if any other harm this law then everyone
have a right to file a case against them. Hence, these tools are effective in nature for every
business concern (Foss and Saebi, 2017).
CONCLUSION
It get concluded from the project that business innovation is an essential concept which
lead to enhance productivity of business and prepare a brand image as well. Innovation and
invention both are differ from each other and it have to get understand in an appropriate manner.
Innovation stated as a concept of modifying existing products whereas invention is related with
new development. Along with this, vision, leadership, culture and teamwork always shape
innovation and commercialisation in an effective manner which enable management to gain
maximum market share. 4P's of innovation provide a platform through which management can
reposition their product in market and add some beneficial values to them. Moreover, whenever a
new innovation take place, managers have to identify the intellectual property right which is
related with management functions.
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REFERENCES
Books and Journals
Archibugi, D., 2017. Blade Runner economics: Will innovation lead the economic
recovery?. Research Policy. 46(3). pp.535-543.
Balsmeier, B., Fleming, L. and Manso, G., 2017. Independent boards and innovation. Journal of
Financial Economics. 123(3). pp.536-557.
Bhagavatula, S., Mudambi, R. and Murmann, J. P., 2017. Management and Organization Review
Special Issue ‘The Innovation and Entrepreneurship Ecosystem in India’. Management
and Organization Review. 13(1). pp.209-212.
Bogers, M. and et. al., 2017. The open innovation research landscape: Established perspectives
and emerging themes across different levels of analysis. Industry and Innovation. 24(1).
pp.8-40.
Camagni, R., 2017. Technological change, uncertainty and innovation networks: towards a
dynamic theory of economic space. In Seminal Studies in Regional and Urban
Economics. pp. 65-92. Springer, Cham.
De Marchi, V., Di Maria, E. and Gereffi, G. eds., 2017. Local clusters in global value chains:
linking actors and territories through manufacturing and innovation. Routledge.
Foss, N. J. and Saebi, T., 2017. Fifteen years of research on business model innovation: How far
have we come, and where should we go?. Journal of Management. 43(1). pp.200-227.
Huang, J. C. and et. al., 2017. Growing on Steroids: Rapidly Scaling the User Base of Digital
Ventures Through Digital Innovation. MIS Quarterly. 41(1). pp.301-314.
Johansson, F., 2017. The Medici Effect, With a New Preface and Discussion Guide: What
Elephants and Epidemics Can Teach Us About Innovation. Harvard Business Review
Press.
Johnson, M. A., Simmons, W. M. and Sullivan, P., 2017. Lean Technical Communication:
Toward Sustainable Program Innovation. Routledge.
Knippels, M. C. and van Dam, F., 2017. PARRISE, Promoting Attainment of Responsible
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Kogan, L. and et. al., 2017. Technological innovation, resource allocation, and growth. The
Quarterly Journal of Economics. 132(2). pp.665-712.
Longo, M. C. and et. al., 2017. Struggling with agency problems in open innovation ecosystem:
corporate policies in innovation hub. The TQM Journal. 29(6). pp.881-898.
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Lundkvist, A. H. and Gustavsson, M., 2017. Conditions for Employee Learning and Innovation–
Interweaving Competence Development Activities Provided by a Workplace
Development Programme with Everyday Work Activities in SMEs. Vocations and
Learning. pp.1-19.
Online
Difference between Invention and Innovation. 2016. [Online]. Available through:
<http://keydifferences.com/difference-between-invention-and-innovation.html>.
Drucker's Seven Sources of Innovation. 2017. [Online]. Available through:
<http://www.launchpadcentre.com/en/blog/52-drucker-s-seven-sources-of-innovation>.
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