Innovation and commercialisation - mango lassi Assignment

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and its importance to organisations in comparison with invention................1
P2. Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation...................................................................................................................2
TASK 2............................................................................................................................................3
P3. 4Ps of innovation and use of the innovation funnel.........................................................3
P4. Developments in frugal innovation and examples of how it is used in an organisational
context....................................................................................................................................2
TASK 3............................................................................................................................................3
P5. Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.........................................................3
P6. Build an Innovation Business Case..................................................................................5
TASK 4............................................................................................................................................6
P7. Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is considered as a procedure of making something new within goods and
services that develops value for the amount which is paid through consumers. This is also known
as the means of changing the enterprise models and adapting to changes into environment for
offering efficacious goods and services (Abdul Razak, Murray and Roberts, 2014). This whole
report is based on the company Essence Drinks which deals in mango lassi into UK market. It
was developed 2 years ago by their founder known as Akshay Kumar. The purpose of this report
is to describe innovation and its significance to firm. Vision, leadership, culture and teamwork
can shape innovation and commercialisation. 4P's of innovation and the usage of innovative
funnel. Improvement into frugal innovation and facilitates example how this used in company.
Significance of commercial funnel as well as application of NPD. Preparation of an innovation
business case. Apart from this various tool that are used to retain, protect knowledge and
intellectual property.
TASK 1
P1. Innovation and its importance to organisations in comparison with invention
Innovation is the method that focused upon developing something innovative in market
area for the long duration of enterprise growth. The Essence Drink firm is a small company
which deals in mango lassi into the market of United Kingdom. But after sometimes its sales are
decreasing so the founder Akshay Kumar think to bring something innovative in its lassi. So, the
founder decided to come up with preservative lassi of different flavours in sachet as coming up
with this innovation has various significance for firm are mentioned below:
 Innovation into lassi grab the attention of more consumers and maximise the Essence
Drink sales. Moreover, this will satisfy the clients requirement in appropriate way.
Coming up with something new into market place aids in developing goodwill of Essence Drink
that is essential for attracting more number of clients. Also, this will maximise sales and
achievement of organisation's objective at stipulated time (Ahmadi and O'Cass, 2016).
Beside this, innovation plays significant role in whole company involving workers also as this
will act as an improve mental and success tool for Essence Drink. Hence, they are brining
preservative lassi of different flavour in sachet into marketplace. In order to satisfy the
requirements of consumers as well as for enhancing sales. Moreover, both innovation and
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invention are considered as a term that are differ from one another. For respective firm, lassi is
its USP so, company's owner decides to do innovation in its existing products rather than
replacing from other invention (Chun, Chung and Bang, 2015). Hence, invention is not
considered through Essence Drink. If they will divert from their USP thereafter sales will
automatically get reduced. Comparison among invention as well as innovation are described
below:
Basis Innovation Invention
Definition This is about executing
creative ideas in their existing
product for the first time.
Essence Drink is performing
innovation through brining
preservative lassi in sachet.
This is whole about bringing
something new into
marketplace that have been
never before seen into market.
Essence Drink is not
performing any kind of
invention as lassi is its USP.
What is it It adds on the value to its
products which are existing in
the market.
Through performing it new
products will be launched into
market area.
Skills needed Herein, there are requirements
several skills such as strategic,
marketing and so on.
In this, there is only the needs
of scientific skills.
P2. Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
This is essential for whole company to has its clear vision in respect of pre-determined
objectives. For effective growth and acquiring competitive position in market area Essence drink
have to communicate business vision, mission and objectives to its staff efficaciously (Dincer,
2017). Respective organisation should have effective vision which is required to run the
enterprise smoothly for long duration by developing image as well as goodwill into market area.
Hence, vision, leadership, culture and team work plays significance role into innovation and
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commercialisation procedures in several manners due to their broader aspects. All that are in
respect of firm are described below:
 Vision: Essence Drink firm, vision is to facilitate healthy preservative flavoured lassi in
sachet to public over United Kingdom. Moreover, they want to develop the living
standards of individuals by healthy and easy to carry choices. Through preservative
flavoured lassi in sachet, the company want to become the particulars market leaders and
by satisfying client’s needs which results in business growth.
 Leadership: Within innovation procedures, organisational leaders plays significant role
in implementing the ideas of preservative lassi of different flavoured in sachet as its their
responsibilities is to work for organisational success. Into Essence Drink, leaders play
important role in managing effectual relation between staff and employer as by this
innovation implementation become easy (Dodourova and Bevis, 2014). Moreover,
leadership role is crucial in firm as manager and leaders are individuals who manage as
well as control overall activities in appropriate manner.
 Culture: Within innovation procedures, the culture of the company plays significant role
as it consists values, rules, norms and many more which are implemented by higher
authority for effectual operation of the respective company. In case the organisational
culture is positive and comfortable in adopting then this will be easier to implement
innovations into existent products which is preservative lassi of different flavours in
sachet. Also, culture of the company should be friendly so that staff are satisfied who
works there.
 Team work: in the company, this is significant to has team for the several activities for
managing the things in simple manner without having any kinds of pressure on workers.
Through group work the Essence drink can achieve its pre-planned objectives. While
implementing innovation they have to make effectual team which are capable to perform
on this and acquired success. Although, group work is essential for doing work at
stipulate time and in proper way.
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TASK 2
P3. 4Ps of innovation and use of the innovation funnel.
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Innovation can be defined as a process that involves multiple activities to uncover new way of
doing things. (Fuertes-Callen and Cuéllar-Fernández, 2014).Essence drinks can create better
opportunities but developing original concept. There are four P's of innovation that can be used
by Essence drinks are described below.
 Product innovation: In this innovation everything related to product are include. Product
innovation can be referring as the introduction of new product or changes in current
established product. Essence drink can try develop new product, new ingredients, new
shape, colour, taste etc. for better and innovative product. Essence drinks can make
changes in current 'lassi' by changing ingredient used in production. Also, through
making preservative lassi of different flavours in sachet as this help customer to drink
various types of lassi any time and in anywhere.
 Process innovation: Herein, firm identify various kinds of innovative procedures with
the assistance of that it can improve as well as add value in its manufacturing method and
enhance its process in order to make cost effectual goods with standard quality. This is an
internal method that will assists Essence Drink to develop its productivity. For instance,
they are needed to measure overall procedures of innovation as well as allocation of its
drinks.
 Position innovation: This is related with new market segment for offerings products and
services. Herein, firm identify the diverse manner to classify new market area for its
services as well as merchandise to come up with innovations. Through using this,
Essence Drinks can analysis a various range of market segment and recognise its capable
clients. It will ensure its long term sustainability into market.
 Paradigm: It is the factor that is related with changed perspective of viewing enterprises.
This means seeing same thing but in another manner (Greenaway and Rudd, 2014). At
starting lassi is not taken as an effective product to sell into UK market area but the
Essence Drink success changed the views of multiple individuals and as an outcome
several rivals entered in the market of serving broader range of drinks. This is related to
modifying the manner the things have been performed into organisations for brining
innovative model into business structure.
Usage of innovation funnel into analysing and shaping idea:

Innovation funnel is considered as a model which is utilise by firm to measure and
conceptualise new ideas. This describes the methods of creating new products for catering the
requirements of marketplace through making creative products or procedures. The steps of this
structure is opportunity appraisal, conceptualisation, measures and benchmarking and so on.
Department of research and development often utilises this process within different company.
Essence drinks should use this model through obtaining knowledge as well as think multiple
ideas as soon as possible. Information can be accumulated from several sources like clients,
rivals and thereafter different firm made the designs and testing are performed to check its
responses so that at last decision are taken either to move on with the idea or not if the answer is
positive then products are introduced into target market.
P4. Developments in frugal innovation and examples of how it is used in an organisational
context
Frugal innovation is considered as the creation into the products and services with existing
resources it is the concept that is adapted through businessmen in respect to resource scarcity
(Gulbrandsen, and Aanstad, 2015). This can be performed by innovation into the design of
existent product, methods, improving technology which can be generate innovative products at
lower price. There is various principle of its process are mentioned below:
 Identifying opportunities in adversity: According to this, Essence Drink have to
identify various or new opportunities which are advantageous for organisation few
times in threats potential opportunity is hidden that required to be recognise thus
company should consistently scan environment of business for finding capable
components.
 Perform more with less: As per this, Essence Drink should identify new manners
for creating their product with limited resources. Its depend upon optimal resource
utilisation.
 Think and act flexibility: Rigidity can be considered as the roadblock into
innovation procedures thus firm required to be flexible to except modification
(MacGillivray and et. al., 2014). Moreover, enterprise being difficult activity need
changes from timely.
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 Keep it simple: Launching various variety can create the work more difficult hence
they should develop preservative lassi of different flavour in sachet so that it does
not has to perform several complex methods into production process.
Utilisation in respect of organisation:
Essence Drink generate innovative lassi through launching preservative lassi in sachet
and ingredients such as powder, various essence etc. The organisation has effectual usage of
available raw materials and practices as well as developing new products to obtain competitive
advantage (Mohannak, and Samtani, 2014). This also connects them with suppliers and another
sources for performing innovation in their operations. For example: the firm can reduce the
delivery time and provide quick services to its consumers. It will aid in developing the
effectiveness as well as profit of the company.
TASK 3
P5. Importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel is referring as the manner that includes three phases which are utilised to
redesign existing products by implementing several beneficial strategies as well as policies.
Hence, this is funnel which is significant for the growth of Essence Drinks. Description related to
this are given below:
 Developing the manner of business growth: Commercial funnel is referring as an
essential concept in enterprise growth (Pellikka, and Malinen, s2014). As with the aids of
it whole audience level can be find within funnel then satisfy their needs and demands.
This is the procedures which results in maximising profit as well as sales level.
 Pricing policy: Essence Drink firm is facilitating their innovative products which is
preservative lassi of different flavour in sachet at affordable price so that all kinds of
audience can able to prefer it. Normally, the customers do not wish to pay more amount
for offerings. With the aids of commercial funnel organisation can make the strategies for
pricing through identifying the client’s behaviours in respects of pricing.
 Growth of technology enhancement: the organisation Essence Drink can use this
particular funnel for launching their innovation in the market area which is preservative
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lassi of different in sachet so that clients can prefer it whenever they want also, they can
carry that while travelling and enjoy the various flavours of lassi.
 Implement Investigation events: For the company Essence Drink, this is significant to
do investigation so that they can able to accumulate data relate to requirements of the
clients as well as also the market conditions.
In this procedures, commercial funnel plays important role which is essential for firm to bring
the innovated products into market area as well as accomplishing success (Sengoku, 2015).
New product development is considered as an extended procedures and also this consists
several steps which are explained below:
 Idea Generation: This is known as the initial stage for bringing innovation within lassi
by making innovative ideas through performing the effective investigation. Hence, this is
significant to accumulate data regarding doing innovation into available products.
 Idea Evaluation: This is considered as second step, in this ideas which area developed
by junior innovation consultant will be measured so that worthless ideas will be removed.
 Concepts Definition: After analysing the overall ideas the concepts of introducing
preservative lassi of different flavour in sachet will be approved.
 Strategic analysis: In this, manager of Essence Drink has to assure that the idea of
preservative lassi of different flavoured in sachet set into the business enterprise
strategies and also determining the price, margin regarding profit and demand.
 Product improvement and testing: In this, preservative lassi of different flavours in
sachet will be developed as well as their testing are performed in order to identify the
products quality.
 Market testing: In this particular steps, preservative lassi of different flavours in sachet
testing are performed in respect of marketing according to the clients, feedbacks,
producers, reviews and many more. Moreover, in it suitable timing for introducing
innovated products in market area.
 Commercialisation: Herein, preservative lassi of different flavours in sachet cost will be
determined as per their marketing plan.
 Product Launch: This step is considered as the last step in which Essence Drink firm
introduce its innovated products which is preservative lassi of different flavours in sachet
within the market area.
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P6. Build an Innovation Business Case
Business case is considered as the case where organisation accumulate the overall crucial
things that are required for accomplishing the goals of the enterprise. It is significant for firm to
monitor the all items so that they can influence the future operations of the Essence drink in
effectual manner. Moreover, this can be creating in both ways such as non-verbal and verbal that
includes efficacious information related to enterprise and their working.
Executive Summary: Essence Drink business case is introducing preservative lassi of
different flavours in sachet within UK market area. For bringing this particular products,
company have to develop effective marketing strategies which involves SWOT, PEST and
porter’s five forces model so that innovation implementation results into business growth.
Mission Statement: Essence Drinks mission statement is to formulate healthy and easy to
carry lassi as they believe in facilitating tasty drinks which drives towards healthier audience.
Essence Drink mission statement purpose are:
 Making clients satisfy by delivering products which exceeds the customer’s
expectation.
 Improve trade marks by innovative marketing.
 Assure that good quality of raw material are used for making the preservative lassi
of various flavour in sachet.
Resources: There are several raw material and assets which need to be comply through
firm in such a manner that they can manage innovation effectually. Proper availability of
resources is significant which are required for attaining the daily activity.
Market analysis: For the firm Essence Drink, this is essential to study the market
effectually for finding the level of competition, clients conceptions in context of lassi and many
more.
Cost and Benefit analysis: Preservative lassi of different flavour in sachet cost are to be
decided after doing the examination so that clients preference regarding cost will be recognised.
Financial projection: For introducing the creative products which is preservative lassi of
different flavour in sachet in UK market area so the needed funds is approx. £ 17 000.
Ways to access funding:
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Funds is known as the backbone of firm as without it they cannot able to accomplish
regular requirements. For introducing innovative product in market area. Essence Drink
needs funds which can be generated from several sources that are explained below:
 Bank and Financial institution: The firm Essence Drink take loan from bank as
well as other financial institutions. As it is considered as a secured procedure to
obtain funds for organisation because there are needs of mortgage for credit.
Moreover, the amount of interest should be paid in context of principle amount.
 From family and friends: The company Essence Drink can also credit funds from
their friends and family. The effectual benefits of this is that they do not have to pay
any kinds of interest amount, they supposed to pay only the taken money.
For the organisation Essence Drink financial institution and bank is effectual sources of
obtaining funds as this is the secure as well as safe.
TASK 4
P7. Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property
Intellectual property is consisting of all creative and innovative pieces of business that
differentiate company from its competition. The original concepts and idea that become assets
for organization includes invention, logo, artistic work, product or business name that came up
with using intellect-brain of employees. Essence drink have value in their product, so it is
important for them to protect company's intellectual property and information about products.
Different types of protection that company can use are discussed below:
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Copy right
It is the sets of rights awarded to creator and owner for original creative work of
authorship by registering copyright. This includes literary and artistic work such as, novels,
poems, films, designs, software and so on. Advantage of having copyright registration is that it
allows copyright holder to sue an infringer in federal court. Essence drink can register copyright
of its products. It will serve as an indication that registered company is actual owner. This
enables company to sue an infringer for statutory damages of product. Registration conveys
additional benefits for owner to protect original work, but disadvantage of copyright is that
registration can be very time taking and high cost involved.
Trademark
This is protection given to original word, name slogan, design, symbol or other unique
device that identifies a product or organisation. Trademark can be valuable assets for Essence
drinks as it is linked to their products and consumer (Sterckx, and Cockbain, 2014). Customer
can decide to buy products just based on trademark. Advantage for Essence drinks is that they
can protect their product 'lassi' by trademark. It helps in protecting product being used by
competitors. There are some disadvantages also of trademark as it only protects marketing
concepts and not always protect product from rival company.
Patent
This property right confers to holder exclusive right of exploitation of invention by
protecting against unauthorised implementation of invention. By patent protection of Essence
drinks products, protection is given to product or process invention. It helps creator to get
exclusive control over their idea. There are three types of patents utility, design, plant.
Advantage of patents right is it gives Essence drink products right to stop other from copying,
manufacturing, selling or importing their product without permission. Disadvantage is that
applying patent right can be very time-consuming and lengthy process.
CONCLUSION
From the above report it has been concluded that innovation is crucial component for
organisational growth as this aids in developing competitive advantage into market area. It is
affiliated to creating new features into existent products there are differences among invention
and innovation. As invention is making something new. This needs clear vision, leadership,
culture and so on. Moreover, there are 4Ps of innovation such as product, process, position and
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paradigm that aids firm in creating unique features. Various kinds of tools like copyright, trade
mark and many more assures the organisation’s ideas as well as content from steal or copied.
Hence, each company have to make effectual business case in order to maximise profitability
and gaining more market share.
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REFERENCES
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