Innovation and Commercialisation

This study material provides an in-depth understanding of innovation and commercialisation. It explains the importance of innovation in business and the process of commercialising new products. It also explores the 4Ps of innovation and the use of the innovation funnel. Additionally, it discusses the principles of frugal innovation and its application in the market. Suitable for students studying business and entrepreneurship.

INNOVATION
AND
COMMERCIALISA
TION

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Innovation and Invention.............................................................................................................3
Organisational vision, leadership, teamwork and culture shapes innovation and
commercialisation........................................................................................................................5
LO 2.................................................................................................................................................6
4Ps of Innovation and use of innovation funnel..........................................................................6
Frugal innovation.........................................................................................................................9
LO 3...............................................................................................................................................10
Commercial funnel and application of new product development............................................10
Innovation business case............................................................................................................11
LO 4...............................................................................................................................................15
Tools used for developing, retaining as well as protecting knowledge with intellectual
property......................................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The word innovation is represented as adoption, assimilation as well as exploration of
value added novelty which creates new performance dimension. In other words, something new
which fills needs of untapped customer is innovation. It includes aspects of product renewal as
well as designing new processing technologies (Bashmakov and et. al., 2015). On other hand, the
word commercialisation is represented as procedures of launching brand-new commodities in
market. In broad act, activities that are within commercialisation are production,customer
support, marketing and distribution. To add cognition for innovation and commercialisation,
Juice Executives Company is chosen that is specialist in producing cold pressed juice. The
institution have head offices situated at Lordswood, England, UK. The organisation produces
freshly made as well as organic juices and delivers comfortableness to users. The report entails
context of innovation and invention, types of innovation, process required for commercialising
innovation and range of tools to protect ideas and intellectual property with advantages and
disadvantages.
LO 1
Innovation and Invention
Innovation means new imagination, ideas and creative thoughts in form of method
addition to device. It is viewed as applying better solutions which have potentiality to meet
unarticulated needs, requirements and current market demand. It enhances chances to react for
changes as well as discovering new opportunities. For instance, Juice Executives Company is
specialist in producing diverse types of cold fresh and organic juices. The company recognised
that there are various market segment that are not able to enjoy the cold pressed as well as
organic juices due to their high prices. The managers recognised the innovation needs so to meet
market segment needs. Fresh Boat Cold Juice Packet will be introduced by the entity as an
innovation for their juice bottles. Some importance of innovation to the selected organisation are
as determined:
Gives edge for market penetration: Innovation is vital for business as it provides edge
for penetrating market with fast speed as well as helps in making better connections with
developing market. To gain market penetration, it is important for Juice Executives Company to
innovate its products in order to connect with other markets.

Standing against competitors: Innovation allows to offer uniqueness to customers.
Innovators take renowned commodities and convert them into better products. It also adds more
valuable to business that makes a business standing against competitors. To stand against rivals,
it is significant for respective firm to develop innovation that is new in market.
Invention: It is termed to unique product that is produces for for time despite of any
modifications in existing ones. It is big step to attain success. In other words, devices as well as
procedures which are made up or created through figuring out aspects to do something are part of
invention (Chun and et. al., 2015). It include aspects that are never been made till yet and process
to make a product has never used yet. Some importance of invention are ;
Shapes working: Invention is something that shapes overall working of entity through
making or using procedures which are never used or made yet. Invention for Juice executive
Company is important as to shape its entire working for achieving success. When new things or
ways are discovered to execute activities in new manner then it shapes the activities or
procedures of performance.
Taking lead within consumer group: Inventing the things that are not available in
market helps in gaining shares within new consumer group. The significance of invention at
selected business is to take lead within new or existing consumer group. An invented commodity
or procedure is generally more advance and have capableness for satisfying all essential
consumer requirements.
Innovation in comparison with invention
Comparison basis Innovation Invention
Innovation is implementing idea
to modify existing product so to
add values within the existing
ones.
Invention is occurrence of a
thought or idea for procedures or
commodities which are not yet
made by some one else till date.
Occurrence Innovation occurs when any need
is recognised to make
improvements in current goods.
For instance, Juice Executives
Company felt need to launch
Invention occurs when new idea
strikes in the mindset of owners
or manufacturers. In context to
Juice Executive Company, they
make invention when something

Fresh Boat Cold Juice Packet
within their cold pressed juice
bottle.
hit in the mind of the
authoritative.
Concerned with Innovation is related to
combining diverse products and
processes.
Invention is concerned with
individual commodity or
procedure.
Activities Innovation is spread across
whole business.
Invention is limited to activities
of research and development.
Organisational vision, leadership, teamwork and culture shapes innovation and
commercialisation.
Innovation is significant element as it provides diverse ideas for executing tasks in best
ways. The invention and innovation concept re used in commercialising commodities within
existing or new market place. For Business concerns, it is essential to drive all the factors
efficaciously as to more emphasis towards have vision, culture, leadership along with teamwork
in order to perform activities in hierarchical manner.
Vision: Vision is core part of organisation as it illustrates what a business seeks to attain
in coming years. Vision of Juice Executives Company is to provide innovative flavours within
juices (Datta, Mukherjee and Jessup, 2015). For this, company is planning to innovate their cold
pressed juice bottles into Fresh Boat Cold Juice Packet. The top authorities shared their vision
with the staff member's and collects ideas or thoughts about modifications in the production of
new juices that results in shaping innovation and commercialisation of the business.
Culture: The beliefs, values and shared vision of entity in the mindset of manpower and
customers plays huge role in shaping innovation along with commercialisation. Companies such
as Juice executives Company follows elements within Charles Handy's Culture with the purpose
of shaping commercialisation and innovation. Through this model, main focus is on following
type of role culture wherein each individual is provided their roles and responsibilities for
attaining objectives and sharing valuables for shaping innovations.
Teamwork: For shaping innovativeness addition to commercialisation, managers of
Juice Executives Company is required to build effective team where people work in teams and

will coordinate activities to achieve success. The teamwork that Juice Executives Company have
are self directed teams, problem solving teams and virtual teams that coordinates their activities
with each other and discusses various ideas so that an effective solution can be made that can
turn the normal idea into shaping innovation and commercialisation. The teamwork will benefit
the entity in understanding organisational targets and making best efforts for collectively
achieving tasks and improving aspects in such manner that will shape the concepts.
Leadership: Activities that leaders perform so to influence group of people towards
goals achievement. Leaders posses skills like integrity, delegation, humility and visionary that
they uses while operating activities optimally. In context to Juice Executives Company, leaders
adopts democratic leadership style through which they engages and motivates manpower to work
on the ideas and make decisions that can shape innovation as well as commercialisation at great
extent.
Innovation springs flashes of genius. The innovations occurs from conscious as well as
purposeful findings for innovation opportunities. In context to Juice Executives Company, the
sources of innovation for Fresh Boat Cold Juice Packet are organising brainstorming sessions fro
employees, remaining flexible, developing insights about market needs and engaging and
influencing manpower for sharing creative views (Du and et. al., 2017). In addition, leaders of
the institution fosters and develops work environment of innovative culture by leading others,
building effective teams, setting benchmarks for best and rewarding failures.
LO 2
4Ps of Innovation and use of innovation funnel
Innovation is primarily most crucial word for any business as it helps in achieving
sustainability within existing market. The 4Ps of innovation was illustrated by renowned
personalities like Joe Tidd as well as John Bessant. These 4Ps are named as product, paradigm,
positioning and process innovation that uncovers elements related to development practices for
bringing changes within business firm. At the time of planning, Juice Executives Company can
widely use this framework for ascertaining existing position together with analysing
improvement areas within 4Ps. The 4Ps of innovation are:

Product innovation: It comprises changes within the products or services that are
offered by an organisation. Innovative product is simple to understand. It is creation as well as
subsequent launching product which is new or an improved version of previous products. When
management team of Juice Executive Company have strong vision for grabbing attention of
distant customers then they must realise perfect demand of product fro setting strategies to
achieve the vision.
Process innovation: This type of innovation means improvements within current
procedures along with devising and implementing new procedures. It includes changes within
activities in which organisational products are primarily manufactured and delivered. The
selected company can use process innovation while making changes in ways products or juices
are manufactured that will help in emphasising towards effectiveness to make and implement
practices for positioning Fresh Boat Cold Juice Packet.
Paradigm innovation: Paradigm Innovation is generally an underlying change within
mental models which defines the working of a entity. Primarily, this innovation is associated
with elements such as where, why along with how commodities will be used and practices
through which work will be accomplished (Hossain and Kauranen, 2016). With this innovation,
Juice Executive Company can maintain its survival level through making modifications within
existing commodities such that needs of customers are effectively satisfied.
Positioning Innovation: It is described as the modifications within ways products are
introduced. In broad sense, it illustrates where the customers for the products lies along with the
story told to them for the product. It helps the company to make changes about ways new
innovation will be perceived symbolically as well as the ways it will be consumed.
Hence, Juice Executive Company should prefer to product innovation in order to make
changes within their existing product of cold pressed juice bottles to Fresh Boat Cold Juice
Packet that will benefit in global expansion for satisfying market needs.
Innovation funnel
Innovation funnel is effective approach to develop an innovative together with ideal
action plan. It is a process that eliminates complexities along with costs while producing an
innovation or commodity. It is primarily used by research and development department of Juice
Executive Company for evaluating ideas for developing products along with screening them to
choose best option for innovation of Fresh Boat Cold Juice Packet.

Illustration 1: Stages of innovation funnel, 2016
(Source: Stages of innovation funnel. 2016)
Innovation funnel is used to achieve success in innovation by following its three phases
that are investigation, development and distribution. At Juice executive Company, administrators
uses innovation funnel with the objective of implementing new practices, programmes and plans
for altering current juices and their bottles. It illustrates geographical location for conceiving
insights about identifying and screening alternative choices of development for combination of
subsets related to new product thought. At investigation phase, the framework widens mouth in
which administrators increases their knowledge through investigating activities for accessing
information for improving new product quality along with procedures for ideas (Hossain, 2015).
The nest is development phase, wherein ideas investigated are properly screened so to examine
as well as shaping wide opportunities for innovative ideas. At last, distribution or shipping phase,
herein, all the practices are set for shipping innovative commodity to distant areas or locations.
Through all these stages, managers uses innovation funnel that results in effectively examine all
the solutions that helps in shaping innovative ideas. There are numerous uses of innovation
funnel some of them are as follows :-
 It provide assistance to an organisation in filling gap in market by way of manufacturing
as well as economic activities.
 Along with this, innovation funnel also helps in attainment of strategic edge within
market area by way of development in products and services which are high in demand.

Frugal innovation
Frugal innovation is procedure which is executed within the scope of an organisation
with motive to make sure that product development take place by using excellent technological
advancement (Oskam, 2016). Such type of products are generally available within market at
favourable price. According to this phenomenon, modifications take place on continuous basis in
macro environment of Juice executive company which need to do modification within products
as well as operations in respective manner. It is crucial to gain comprehensibility of market
opportunities with view to devise decision for development of positive image within mind of
customers.
Principles of Frugal Innovation:
 Engaging and iterating: According to this, there are numerous policies as well as
regulation that will assist in providing better knowledge related to the working
conditions. In relation of Juice executive company, there is requirement of implementing
changes according to requirement of customers.
 Flex the assets: This principle of frugal innovation states it is important for Juice
executive company to analyse entire market situation within effectual manner before
execution of any corporate strategy.
 Creation of sustainable solutions: As per this principle an organisation face high level
of competition within market area. Thus, it is required by Juice executive company to
frame effective strategies for gaining market opportunities in future which result in
growth and development of business.
 Shaping customer behaviour: For an business firm consumer are their focal point. So,
for juice executive company it is necessary to frame effective business policies as well as
strategies which help in fulfilling consumers requirement within effective manner.
 Co-creating value with presumer: It is important for respective juice company to gain
knowledge about customers views as well as opinions in relation of innovation which
they are bringing in market.
 Innovation networking: It is consider as essential aspect which have direct effect over
society and business firm. Thus, innovation networking assist in enhancing Juice
executive company growth within market area.

The products that are produced should be such that their quality is high and are affordable
at the same time. The customers should not feel that they have to pay high prices in order to
purchase products that are of good quality. The company should manufacture products in such a
way that through a less amount of investment, it is able to generate and come up with innovative
and unique product ideas that are able attract customers and encourage them to buy the products
as they are priced at affordable rates and also the company is able to maintain good standards.
LO 3
Commercial funnel and application of new product development
Commercial funnel can be referred to as the overall journey of customers related to
purchase of organisational offerings. Through the usage of commercial funnel, Juice executive
company can gain the attention of more customers and persuade them to make a purchase (Jamil,
Ismail and Mahmood, 2015). There are several steps related to commercial such as opinion,
preference, awareness, purchase, consideration and so on. Commercial funnel aids Juice
executive company in selection of suitable marketing strategies and development of long term
relations with customer through which huge revenues can be generated by the respective
company.
New product development is the process whereby an organisational offering is created
through an entity. In relation to, Juice executive company is launching cold pressed juice for
appealing to new range of people. Step of new product development are as follows :- Idea Generation: In this first stage idea related to new product is generated. In relation to
Juice executive company, they came up with idea of launching cold pressed juice. Idea evaluation: In second step idea introduced by respective organisation and will be
evaluated for identifying that idea is capable of attaining outcomes or not. If there is any
issue with idea and not able to get success then it should be eliminate and new idea have
to be considered. Development of Concept: After evaluation, idea of company is transformed into a
product concept. In relation of Juice executive company, juice idea will be test on small
group of customers to determining their response (Ke and et. al., 2016).

 Marketing Strategy: Hereby, a number of effective promotional and advertising different
strategies would be devised by Juice executive company with a view to market regarding
the new product, i.e., cold pressed juice. Business analysis: Here, the firm ascertains and analyses the cost, profit, sales as well as
other expenses related to new product. Development: Hereby, manufacturing procedure is actually executed by the organisation
i.e. Juice executive company. Test Marketing: Hereby, Juice executive company would conduct a number of tests to
check the effectiveness of product in relation to its appeal to public at large.
 Commercialisation: This marks the last phase of new product development process
whereby the cold pressed juice would be actually launched by company with a view to
attain the desired targets attached to it.
Thus, through implementation of above mention stages related to new product development
procedure, juice executive company will able to generate high revenue within market area
through their cold pressed juice.
Innovation business case.
Business case is related to documentation of strategies, course of action as well as tactics
which implementing by an organisation for gaining competitive advantages within market area.
In relation to this, business case of Juice Executive company have to involve all necessary
information needed by an entity present business project. Business case of respective
organisation to launch new product within market area are as follows :-
Executive summary: Juice executives company is coming with cold pressed juice within
market area. The entity want to grab large market share by launching this product which is
developed with the assistance of frugal innovation that have high scope of effective appealing to
people.
Mission statement: “To become the word of mouth for customers.”
Objective: As the entity came up with a new product into market, Juice executive
company has stipulated SMART objectives along with it, which the organisation is intending to
achieve in a timely manner. Such objectives are stated below:
 To inflate the market share of company across the global periphery by 10% by the end of
1 year through new product launch.

 To enhance the sales of new product by 25% in upcoming 6 months through extensive
marketing via social media.
Resources: For product development and launching there is requirement of numerous
resources because with the assistance company will be able to attain what they desire from
starting (Kuratko and Hoskinson, 2016). In relation to juice executive company, there is
requirement of several resources such as financial, human resource, raw material for making
juice and many more.
Market analysis: There are numerous strategies which was executes by Juice Executive
Company with view to analyse market as well as effective position of new product for targeting
audience.
Financial projection: For introducing cold pressed juice there is requirement of approx.
20 million pounds by Juice executive company.
Ways of funding: There are numerous way by that an organisation can acquire funding
for launching new product within market area. Thus, bank loan is feasible option as it is most
secured option. Apart from this, there are some more option of borrowing money i.e., friend and
acquaintances. In relation to this, it can be said for Juice executive company they have to borrow
money from bank as it is most secured source.
Business Plan refers to a document that comprises of brief description of the various
objectives pertaining to finances as well as operations of a company. It also contains the details
of how these objectives are to be achieved in order to sustain in a dynamic and competitive
environment. The plan is written with a viewpoint of various departments of an organisation.
Funds refer to the investment that is made available for carrying out a particular purpose.
All organisations have internals funds that can be used at the time of need or when an emergency
pops up. There are various sources depending on either the basis of period or on ownership or the
source through which it is generated. Some examples of sources of funds include – equity shares,
trade credit, debentures, banks, public deposits, preference shares etc. to name a few.
Business performance can be measured through various ways including key performance
indicators, by defining suitable metrics. Other methods include the amount of profits a company
is able to make in a year, the customers' feedbacks, their satisfaction, how many new customers
the company is able to attract, what are the goals and objectives of the firm, whether the brand
has enough followers on social media or not etc.

Fund Flow
Statement
Particulars Jan Feb Mar Apr May June July August
Sep
tem
ber
Cash inflows
Investment 5000
Credit sales 2000 4500 3000 4500 1500 5500 4200 1000
200
0
Total inflows 7000 4500 3000 4500 1500 5500 4200 1000
200
0
Cash outflows
Fixed: Rent and
elexrticity 3000 2500 1500 2000 1200 3500 800 200 300
Variable : Direct
material 2500 350 200 3500 150 1200 300 400 500
Total outflows 5500 2850 1700 5500 1350 4700 1100 600 800
Net cash flow 1500 1650 1300 -1000 150 800 3100 400
120
0
Opening balance 0 1500 3150 4450 3450 7050 14900 32900
662
00
closing balance 1500 3150 4450 3450 3600 7850 18000 33300
674
00
Octobe
r
Novem
ber
Decem
ber Jan Feb Mar Apr May June July

800 1200 1500 3600 3000 3000 4500 1500 3500 4200
800 1200 1500 3600 3000 3000 4500 1500 3500 4200
100 600 300 2000 2500 1500 2000 1200 1500 800
100 100 400 300 300 200 300 150 500 300
200 700 700 2300 2800 1700 2300 1350 2000 1100
600 500 800 1300 200 1300 2200 150 1500 3100
133600 18300 18800 19600 20900 21100 22400 24600 24750 16250
134200 18800 19600 20900 21100 22400 24600 24750 26250 19350
Particulars Jan Feb Mar Apr May June July
Augus
t
Sep
te
mb
er
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500 1200 3200
150
0
Total inflows 9200 2000 7500 3000 5000 6500 1200 3200
150
0
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500 1200 600 500
Variable : Direct
material 350 300 250 150 100 500 500 250 450
Total outflows 2850 1500 1750 2650 1200 2000 1700 850 950

Net Fund flow 6350 500 5750 350 3800 4500 -500 2350 550
Opening balance 0 6350 5850 11600 11950 15750 20250 19750
221
00
closing balance 6350 5850 11600 11950 15750 20250 19750 22100
226
50
Octobe
r
Novem
ber
Decem
ber Jan Feb Mar Apr May June July
8200 1250 3210 1200 5000 2500 4500 1500 3500 4200
8200 1250 3210 1200 5000 2500 4500 1500 3500 4200
500 1200 700 2000 2500 1500 2000 1500 2000 200
250 1300 500 300 300 200 250 360 250 500
750 2500 1200 2300 2800 1700 2250 1860 2250 700
7450 -1250 2010 -1100 2200 800 2250 -360 1250 3500
22650 30100 28850 30860 32160 32360 33660 35860 36010 37510
30100 28850 30860 29760 34360 33160 35910 35500 37260 41010
LO 4
Tools used for developing, retaining as well as protecting knowledge with intellectual property.
There are several tools as well as techniques which utilise by company for protecting
ownership right of their offerings. Hereby, intellectual property is related to the procedure of
creativity of mind such as invention of designs, names, symbols, image and many more. With the

assistance of intellectual property rights without permission no one can utilise these rights. In
relation to this there are different tools explanation of these are as follows :-
 Patent – It is essential tool as it help in analysing relation of proprietor. In relation to
Juice Executives company there is requirement of uniqueness within entire policies by
that they can modify their overall plans (Mollick and Robb, 2016). Main duration which
patent have is approx. 20 years after that there is requirement of renewal as duration of
patent get completed.
 Trademarks – It is collection of symbols as well as signs which differentiate merchandise
of company from their participants. Trademarks is expression that recognizes goods and
services for particular cause. Moreover, consumer will able to recognise products by their
codes and signs which are printed in their packages and vouchers.
 Copyrights – It is type of legal as well as private rights which are utilise by creators for
specific quantity of centuries to issue, record, print and many more. In simple term, it is
production of artist which is protected by getting misused from frauds and hackers.
Copyrights is legal rights which utilise by designer for protecting their work limited
rights.
Thus, for Juice executives company patent will be most suitable intellectual proper which
which help them in securing their cold pressed juice concept getting misused.
Intellectual property office – IPO is official United Kingdom government body which is
responsible for intellectual property rights such as patents, trade marks as well as copyrights.
Moreover, IPO is an executive agency which sponsored by the department for business, energy
& industrial strategy. The IPO became the operating name of patent Office on 2nd April 2007 as
well as it was step up in 1852 for granting patents, although the origins of patent system date
back a further 400 years. Intellectual Property office have team of approx. 1000, with offices in
Newport as well as London (What the Intellectual Property Office does, 2019). The team is made
up of specialists in rights-granting, IT, finance and HR.
CONCLUSION
After going through above mention report it has been concluded that, innovation as well
as commercialisation both are considered as essential part of an organisation. Because it will
provide assistance in proving their existing products and offering them to consumers which

improve their performance within market area. In addition to this, through conducting
comparison within invention and innovation company is able to develop their knowledge within
respective framework in more effective manner. As this overall concept have wide impact on
company within several factors such as teamwork, culture, leadership, vision and many more.
Apart from this, it has been commercial funnel, new product development and innovative
business case provide assistance in guiding company in such manner which will provide
assistance in developing innovation within suitable manner. From last part, it has been identified
that there are various tools which aids company in protecting intellectual property. This is also
assist in developing effective product for organisation by using better knowledge which was
developed from entire analysis.

REFERENCES
Books and journals
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Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
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Online
Juice executive. 2019. [Online]. Available through: <https://www.thejuiceexecutive.co.uk/>
Stages of innovation funnel. 2016. [Online]. Available through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>
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