Importance of Innovation and Commercialisation in Organizations

This report discusses the importance of innovation and commercialisation in organizations, with a focus on the case of Essence Drink. It explores the difference between innovation and invention, the role of vision, leadership, culture, and teamwork in shaping innovation and commercialisation, the 4Ps of innovation, the use of the innovation funnel, developments in frugal innovation, the importance of the commercial funnel and new product development, and ways to access funding for innovation.

Innovation
and
Commercialis
ation

Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1.Innovation and determine its importance to organisations in comparison with invention
................................................................................................................................................3
P2.Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation..................................................................................................................4
TASK 2......................................................................................................................................5
P3.The 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................5
P4 Developments in frugal innovation and their uses in the organisational context.............6
TASK 3......................................................................................................................................7
P5. The importance of the commercial funnel and the application of New Product
Development..........................................................................................................................7
P6. Build an Innovation Business Case for an organisation, including ways to access
funding...................................................................................................................................9
TASK 4....................................................................................................................................10
P7 Evaluation of tools to develop, retain, protect knowledge and intellectual property.....10
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................12

INTRODUCTION
In business economy, the concept of innovation is related with the approaches of
developing new elements to the existing goods and services that fulfil the need of customer in
more approachable manner. In general it is also defined as the resources of modifying the
business models within a firm and adjusting to the deviations in particular marketplace in
order to provide more effective goods (Bigliardi and et.al, 2013). This report is based on
mango Lassi that is going out of the picture and there is reduction in sales figure. The founder
Akshay Kumar is thinking to bring innovation into Lassi so that it can sustain in market of
UK.
In this report, explanation and difference in the context of innovations and invention is
discussed. In addition, the various types of innovation and the valid process required to
commercialise innovation is being described. Apart from this evolution of range of method of
protecting ideas and their advantages and disadvantages are disuses in this report.
TASK 1
P1.Innovation and determine its importance to organisations in comparison with
invention
In present business era, the word innovation is defined as the method that is mainly
used for developing something new, attractive and appropriate to survive for long periods and
make business attain success. The company use to deliver delicious mango lassi from past
few years. But with the rapid changing environment their sales are minimising in UK as
people are moving to healthy drinks. Meaningfully founder Akshay Kumar brings idea to
innovate in lassi so that customer gets attracted and sales are increased. Consequently, the
visionary proposes to offer Papaya and Honey lassi as it is healthy drink and will make
people fit as papaya and honey both reduces fat from body. Some of the main significance of
bringing innovation into lassi for company is defined below:
 Innovation results in improving sales and contributes to generate revenue as people of
UK are health conscious and they get attracted towards this new product.
 Offering new products as per the demands and requirements of consumers’ outcomes
in exploiting their satisfaction level and faithfulness and help to improve goodwill at
global level (Collyer, 2017).
Aside from this, development is vital for entire organization just as the representatives as
this act as development and improvement device. Moreover, invention and innovation both

are commonly not quite the same as each other. The main motive of Akshay Kumar is make
advancement into its current items as opposed to substituting it from additional invention.
Thus, individual firm are not actualizing any sorts of creation as though it will change their
USP then its sales limits consequently. The basic difference between innovation and
inventions are explained below:
Basis Innovation Invention
Definition This means putting creative ideas and
adds values to existing products (Davies
and Horst, 2015).
It is mix of ideas and activities for
producing new product line as existing
one in not able to deliver better result.
Concepts Innovative ideas are performed in
applied manner for better result.
Original ideas and valuable process are
executed.
Actions All activities are spreads into whole
firm.
The main actions are performed by
research and development department.
Focus on It mainly focuses on build-up of
numerous goods and activity.
Its focus typically on detailed
approaches or complete process.
P2.Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
In business world, almost each type of entity are required to have clear vision, mission
that help in reaching predefined goals. In order to sustain for long in Essence Drink and gain
effective position within current market it is substantial to deliver mission, vision and
objectives of company to each staff member so that they work accordingly (Doloreux and
Shearmur, 2013). Consequently, team work, culture perform, vision and leadership vital role
in procedure of commercialisation and innovation. All these in the context of respective
company are clarified below:
Vision: The main vision of Essence Drink Company is to deliver healthy and tasty
papaya and honey lassi to the people living in UK. As firm willing to gain competitive
advantage as there is not any other rivals offering such a healthy drink. This help to satisfy
emerging demand of customer and improve sales for specific period.
Leadership: The process of innovation includes effective leadership because
important message and command must be reach to each responsible person involve in
innovating product. In respective company, leaders plays essential role in maintaining

operative association between workers and employer that help in executing plan and reaching
the desired objective (Etzkowitz and Zhou, 2017).
Culture: The procedure of innovation also includes culture of firm as it is connected
with regulations, beliefs, values and policies planned by manager for making business
operation better and profitable. If the values with respective company are happy and calm
then it will be modest to perform improvements in present products. Besides, administrative
culture must be welcoming as well as constructive in order to adhere needs and requirement
of workers that help in producing desirable goods.
Team Work: Work cannot be completed without effective time thus it is very crucial
for companies to make effective team for doing activities so that any situation can be handled
and employers are able to attain the overall aims. With proper team work the company
Essence Drinks could achieve their programmed objectives that are to bring new papaya and
honey flavoured lassi in marketplace.
TASK 2
P3.The 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas
Innovation denotes to evolving or conveying original idea to prepare goods and
services which customers have not ever experienced earlier. It is innovative procedure which
needs imagination and creative approach on the part of businessmen so that uniqueness can
be added into existing product (Hu and Zhao, 2016). The chief goal of accepting this exercise
is to obtain economical advantage in marketplace. Innovative principle like mango lassi was
the major reason that increases sales for Essence drinks in earlier year. The innovation is
based of 4 p’s (4P's of innovation. 2015). These are defined below:
Paradigm- This factor is associated with changing viewpoint of seeing business that
mainly includes taking a look at same thing in an alternate manner, Initially lassi was not
considered as possible item to sell in the UK however the accomplishment of essence drinks
changed the mentality of part of individuals and therefore numerous contenders went into the
market with offering wide scope of beverages. It is worried about changing the manner in
which things are done in the organization getting new model to the arrangement of
association. Position- It identifies with the view of clients towards the association and
what is the picture of society in the market concerning workers, sub-contractors partners and
so on. To have the option to get sustain in the market Essence drinks needs to bring another

diverse classification other than simple lassi because customer thinks that company is
dependent on that as it were.
Process- This is bothered about not simply the way toward manufacturing goods and
services yet in addition different exercises like selling, bookkeeping, advertising, providing
and so forth. In context of Essence drinks needs to get changes the producing and
appropriation procedure of existing lassi. Like the lassies ought to be sold on the web or there
must be systematic and fast delivery system. The organization needs to acquire improvement
within this element so consideration of clients can be assembled which will result in
expanded benefit.
Product- It is a typical advancement methods utilized by the association that includes
adding new components in the current items is the piece of creative strategy. Essence drinks
can provide papaya and honey lassi with designer packing in different sizes so that customer
can buy according to consumption. This system helps in trapping clients by offering them
something new that is never experienced before.
Use of innovation funnel in examining and shaping idea:
Innovation channel or funnel is model exploited by the companies to assess and
abstract new thoughts. It clarifies the methodology of creating item so as to take into account
the requirements of market by making new inventive items or procedure. The phases of this
structure are opportunity appraisal, knowledge, conceptualisation, assessment and
benchmarking, criticism and launch interest (Keskin Diehl and Molenaar, 2013). Essence
drink can relate this model by first obtaining learning and consider numerous thoughts as
much as possible to meet the criteria. Valuable data can be assembled from different sources,
for example, rivals, clients and different business organizations a while later structures ought
to be made and testing should be done to check their reactions. In last final decision are made
weather to go with the following features to produce particular product or more alteration are
required to satisfy needs
P4 Developments in frugal innovation and their uses in the organisational context
In business era, frugal innovation is referred to brining innovation in the product and
useful services with the available resources. Usually this is adopted by entrepreneur when
there is scarcity of resources within economy. There are assorted principles which are defined
underneath:

 Find opportunities in adversity- By adapting this ethics Essence drink are needed to
determine all opportunities that are beneficial and threats so that plans are made to
bring sustainability while producing new good. Do more with less- Respective firm must determine the effective ways to progress
their lassi with restricted resources in market. Think and act flexibly- The process of innovation must be flexible so that upcoming
situation and changes can be adapted and activities are performed accordingly. Keep it simple- Bringing various changes in existing product could lead to more
compound scenarios for business. Thus to make customer attention company must
only provide lassi according to their needs and wants such as papaya and honey lassi.
Uses in the organisational context:
In the context of Essence drink, the innovative lassi is produced by adding healthy
flavours and components such as honey, papaya. The company has is efficiently using
present techniques and raw material for developing new lassi that will control cost and bring
new profits. The have also build online portal and tie with best delivery services of UK in
order to provide customer requirement on just one click.
TASK 3
P5. The importance of the commercial funnel and the application of New Product
Development.
In business context commercial funnel is measured a systematic manner that have
three segments. Thus, it is consider being important funnel that is essential for Essence Drink
growth. This is defined below:
Pricing Policy: With the assistance of commercial funnel company could make
policies for setting prices by determining the actions and behaviours of the customers
relevant to different price. This help Essence drink to offer best price for produced new lassi.
Improving ways for business growth: It is measured as essential ideas into the
development of business organisation as funnel identify the target customer and develop
goods that are needed to fulfil their requirements.
Growth of technology advancement: Essence Drink could make use of commercial
funnel for presenting innovative lassi into marketplace. With advance technology they can
provide lassi by online portal to desired customer.
New product development is important and lengthy procedure that includes different
steps which are mentioned below:

 Idea Generation: The main step to create innovation in existing lassi is to progress
with creative thoughts by analysing proper market research. Idea Evaluation: The second important step is related with evaluation of ideas that
are generated for developing new elements into existing product. Concepts Definition: After assessing the thoughts the concepts of introducing papaya
and honey lassi will be approved by responsible management and owner. Strategic analysis: Essence Drink director have to guarantee that idea of new lassi
will set in the strategy and help to gain profitability margin and demand of customer. Product development and testing: This step is related with testing of produced goods
that is ready for sales. Market testing: Herein, Papaya and honey lassi market testing is performed according
to producers, consumers, feedbacks and reviews so that further changes are made. Commercialisation: In this step the newly produced lassi price will be determined by
using effective marketing plan.
 Product Launch: The last step is related with launching Essence Drinks new lassi
with added flavoured into market.
Illustration 1: New Product Development Process
(Source: New Product Development Process, 2019)

P6. Build an Innovation Business Case for an organisation, including ways to access
funding
In business scenario, the concept where companies collect each and every element
those are required for accomplishing desired objective in specific time frame (Park and
Jeong, 2013). Therefore it is vital for Essence Drink to look in each aspect that support in
execution of plans in successful way.
Executive Summary: In the context of Essence drink the case is to launch papaya
and honey lassi in UK. Therefore it is compulsory for company to frame suitable market
strategies and analyse industry with Porter's five forces model, PEST and SWOT
Mission Statement: Mission statement of respective company is:
 Provide goods that help to satisfy customer needs and requirements such as healthy
lassi is demanded by customer.
 To ensure that best quality of ingredients are used for preparing papaya and honey
lassi so customer feel good after drinking.
 Progress trademark by creative marketing such as online portal.
Resources: Huge raw materials like honey, curd, papaya, sugar free is required to
prepare healthy drink by company (Pfeffermann, Minshall and Mortara, 2013). Most
important these resources must be managed in appropriate manner.
Market analysis: It is vital to inspect market that help to figure out present
competition level, taste and preference and viewpoint for healthy lassi.
Cost and benefit analysis: Papaya and honey lassie cost must be set after performing
proper analyse of market.
Financial Projection: For introducing the advanced lassi Papaya and honey
flavoured into UK needs approx. £15,000.
Ways to access funding:
In business world, financial resources are essential for any company that help in
performing daily activity and attain goals. In context of Essence Drink they require enough
funds so that innovative product can easily be launched in market. There are various sources
of rising funds that are defined below:
Bank and Financial Institution: The Essence Drink can borrow funds from bank
and alternative financial supported in UK. It is considered to be secured procedure to produce
resources within company and attain the desired goals. It will help company to run business
activity in defined manner and repayment of loans is also not too hard.

From friends and family: Owner of Essence Drink could borrow money from close
family and friends in order to run business. Its effective advantage for firm as money can be
arranged instantly and payments are made according to agreements.
TASK 4
P7 Evaluation of tools to develop, retain, protect knowledge and intellectual
property
In present world, protecting data, thoughts, brand image, design are very important for
each company has other can misuse it and reduce the running business image. In order to
protect these circumstances several tools are used by companies to secure the organisation's
innovations. Different laws are announced by the government of respective nation that help
company to make their identity separate from other firms. Numerous structures can be
protected with these laws like logo, design, idea and name. Some different ways for securing
Innovation Company are defined below:
Trademarks- It is linked with assigning substantial trade sign, design to certain
product or services so that they are easily differentiated from rivals in same market. Essence
drink might safeguard the individuality of its lassi by registration and allocating a trade
symbol on the packets.
Copyright- This tool benefits in defending original work that is concerned with
allowing privileges to business owner and guarantees that actual work of company can’t be
used by other. It can be implemented by owner of Essence drink in order to uphold the right
that no other company can steal the idea of healthy lassi.
Patent- By using this tool respective company can reject the opportunity that other
can reject its making, inventing, selling of their work. This intellectual property safeguards
that rights of service ideas and products would remain earmarked in hands of owner. Thus in
owner of Essence drink can issue patents from government so that other cannot copy their
marketing strategy.
CONCLUSION
According to the report it has been inferred that innovation and development is
critical component for the accomplishment of any business as it helps in giving competitive
advantages in the market. This is identified with presenting new product and services in the
current marketplace or growing totally something new to pull clients. In spite of the fact that
there is contrast among invention and innovation where creation is identified with making

something new while the innovation is related with separation in the item structure. It
requires vision, mission initiative, culture and cooperation with respect to association.
Various kinds of devices, for example, trademarks, competitive innovation, patent and
copyright guarantees the insurance of organization's thoughts and substance from getting
duplicated or take. Consequently every association needs to create successful business case
for expanding benefits and procuring growth of the overall industry.

REFERENCES
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Online
4P's of innovation. 2019. [Online]. Available through
<https://egyptinnovate.com/en/innovation-tool/4ps-exploring-innovation-space>