Innovation and Commercialisation

Innovation and
Commercialisation

Table of Contents
.........................................................................................................................................................3
INTRODUCTION ..........................................................................................................................4
TASK 1 ...........................................................................................................................................4
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................4
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................6
TASK 2............................................................................................................................................7
P3 4Ps of innovation and use of innovation funnel to examine and shape innovation ideas......7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
TASK 3 ...........................................................................................................................................1
P5 Importance of commercial funnel and process of New Product Development for
innovation ...................................................................................................................................1
P6 Innovation Business Case......................................................................................................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Every organisation wants to attain high growth and success and for this it requires to
fulfil the different demands and requirements of the consumer. It requires the organisation to
bring innovation and commercialisation in its products by making modifications in the existing
products or by adopting different practices and methods to develop new offerings (Ahn, Minshall
and Mortara, 2017). This report is based on Essence Drinks which was founded by Akshay
Kumar and launched the company by introducing healthy mango lassie in the UK market, but
due to high level of competition company bring innovation in its products by introducing papaya
honey lassi so as to target larger customer base and gains maximum profitability.
This project will throw highlights on benefits of bringing innovation in company's
products and how organisational vision, leadership and culture shapes innovation and
commercialisation. It also explains 4p's of innovation and analyses how frugal innovation is
used within the organisational context. Moreover it also discusses the process required to
commercialise innovation and the range of methods for protecting knowledge and ideas within
the organisation.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention
Innovation is the process of application of new ideas and thoughts into development of
products to meet the demands of the customer and to gain competitive advantage. In order to
gain competitive advantage and increased sales, Essence Drinks brings innovation from healthy
lassie to papaya honey lassie to maintain its sustainability. Hence Invention is the process of
developing a new product or a service which is not existing in the market by adopting different
tools and technology. This process is quite risky for small business such as Essence Drinks and is
a costly process (Ajagbe and et. al., 2015).
Importance of Bringing innovation within organisation
When Essence Drinks brings innovation in its products, there are various benefits
associated within the organisation, which are discussed as follows-

 It allows the respective company to gain the competitive advantage as by providing the
products to the customer according to their requirements and meet up their satisfaction
level.
 Innovation brings small continuous improvements in the Essence Drinks products which
assist business to maintain its sustainability in the competitive business environment,
rather than inventing a new product which would be costly for small business.
 It adds value to the existing products within the respective company and helps to different
their product those from competitors and increase the perceived value of the products in
the market and in the minds of customers, therefore enhancing profitability and
productivity within the organisation (Reasons Why Innovation Is Critical To Businesses,
2019).
Therefore bringing innovation in the business helps the company to gain competitive
advantage and requires less resources and funds as compared to inventing totally a new product
in the market.
Comparison of Innovation and Invention
Basis Innovation Invention
Concerned Innovation is concerned to
bringing changes or
modifications in the existing
products of the company.
Essence Drink has brought
modification from healthy
mango lassi to papaya honey
lassi and meet the demands of
the customer, rather than
inventing a new product in the
market.
Invention is the process of
developing a totally new
product in the market by
adopting new production and
technologies so as to meet
demands of the customer.
Skills required Managerial and Strategic skills
are required by the managers
to develop a new product.
Scientific skills are required by
the manager to invent a new
product.