Stages Process Steps of New Product Development

The assignment provided is a comprehensive review of the stages process steps of new product development. It includes a list of articles from various journals and books that discuss different aspects of innovation and commercialization, such as technology adoption, open innovation, business models, and social capital. The articles cover topics like the role of commercialization and reputation in product innovation success, the evolution of external technology commercialization motives, and the influence of others on perceptions of innovation climate among SMEs. The assignment also includes a reference to a blog post about the stages process steps of new product development.

Innovation and
Commercialisation.

Table of Contents
INTRODUCTION ..........................................................................................................................3
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 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
TASK 3..........................................................................................................................................11
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.....................................11
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................12
TASK 4..........................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is an changing or modifications in the process or in product. Innovation is an
chain of activities which begins with introducing a new plan of an idea and adopt new functions
so that it bring differentiation from prior creation. The main attribute that innovation is different
from creativity and it is very important for an organisation as well for an individual to achieve
career advancement and economic growth. This report is based on an organisation which is
Essence drinks that situated two years before and their co founder Akshay Kumar that brings
new concept in lassi to bring in sachet and in multi flavours that in good and healthy for body.
The main goal of that organisation is to serve best lassi which enhance their market share and
profitability. When they launch lassi in market it is at top in market but after some that concept
get obsolete and consumer demands something new. This report is based on role and importance
of innovation in organisation with vision, mission and objectives to bring innovation and
commercialisation. It also explains four Ps of innovation and innovation funnel to achieve
organisational goals and objectives. For developing new product some steps and business case
also prepare. In case of Essence drinks they choose brand strategy that is new product
development that helps in enlarge business opportunities and give competitive advantage in
better way.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation and commercialisation is one of important concept that helps in compensating
emerging needs and wants of consumers to gain long term growth and enhancement. In scenario
of Essence drinks they offer a healthy lassi in sachet that are most convenient in nature to remain
always competitive into marketplace (Ahn, Minshall and Mortara, 2017). Their brand strategic
team decide the new taste and concept that helps them to stabilise into marketplace. Essence
drinks and their team decide to bring new concept that is healthy and also in sachet that should
be convenient to carry it any place. They aimed to bring lassi in different flavours and sachet to
give health to consumers so that they feel satisfied and also enhance business opportunities.
There are some key benefits of adopting innovation and bring new idea and concept to bring
stability in organisational growth and enhancement.

Innovation and new idea helps them to enhance their goodwill in marketplace and satisfy
consumers emerging needs and demands.
It helps in beat the fierce rivals which adopts the same concept that launch by essence drinks that
gives consumer satisfaction and loyalty also (Azarmi, 2016.).
It enables to enhance revenue and market base which is an important part for any organisation to
lead in marketplace.
From the above description it has been summarised that launching a new concept or thing in
market by innovative way that proved beneficial for both organisation as well for an individual
to enlarge business opportunities (Ajagbe and et.al ., 2015. ). In case of Essence drinks which
brings new concept or idea int marketplace which is healthy lassi in sachet that are convenient
for any one to take it away. The main attribute in case of essence drinks that they apply that
concept only on lassi because they only popular or well known for lassi in market so they try to
apply new attributes only on Lassi. To understand the concept in well manner organisation have
to describe difference between invention and innovation that are as follows:
Basis of comparison Innovation Invention
About Innovation is concerned with
new idea or concept to meet
requirements or existing with
emerging needs and wants of
consumers.
it is a novel product, device or
concept that helps to bring
harmony in organisational
goals and objectives.
Objective The important or main
objective of innovation is to
deliver best values and
attributes to consumers so that
they feel satisfied (Parker,
2012).
On other hand in invention
idea or thoughts totally new
that helps in compensate needs
and demands in proper way.
Way of implementation In innovation the idea or
concept should be implement
in to practical way or on real
In invention an individual
observes both practical or
theoretical side of an attribute.

life bases.
Skills required To apply new concepts or
ideas some key areas that
should be strong in which
technical, management and
coordinating skills are very
much potential for an
individual.
On other hand in case of
invention they require
technical and scientific skills
that are very much essential to
obtain desirable goals and
objectives.
Appropriation Innovation should occurs when
an individual access needs and
wants of consumers with try to
compensate in new way.
On other hand invention occurs
when something new concept
comes into mind and which
gives new life to everyone.
Concern with To apply innovation in
organisation, management
have to apply various steps or
procedures to bring harmony.
In invention route cause or
need should be evaluated in
proper way so that desirable
outcomes should be achieve.
Activities In innovation each and
everyone give their
contribution for obtaining
desirable outcomes.
In invention through research
is very much obligatory so in
that case research and
development plays vital role.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Every organisation builds their own vision, mission and objectives that help them to
move forward on an definite path and achieve desirable goals and objectives (Dodourova and
Bevis, 2014. ). In case of Essence drinks to bring innovation and commercialisation they set an
clear goal, objectives and missions that give direction to them to move on definite path.
Therefore vision, mission and objectives gives definite path to achieve desirable goals and
objectives. In case of Essence drinks they build vision, mission and objectives that are as
follows:

vision:
In case of Essence drinks their main vision is to offer healthy and in sachet lassi also in
various flavours in market of UK (Fuertes-Callen and Cuéllar-Fernández, 2014). The another
main motive is to satisfying emerging needs and wants of consumers so that they become loyal
consumers. In case of Essence drinks their vision is to enlarge business opportunities for that
organisation bring new product into marketplace that is lassi in innovative way.
Leadership style:
To reach at definite goals and objectives organisation and their leaders have to plan each
step or procedure that are path of innovation and commercialisation. Leader accountable to bring
development and enhancement by bringing new products and services in market (Katzy and
et.al ., 2013.). The another main aspect is to fix an appropriate leadership style which helps in
deals in adverse situations. In Essence drinks they adopt situational leadership style that changes
according to situations. When an organisation bring new concept in their product they have to
take suggestions from their leaders so that they can be better implement plans for that they bring
new leadership style.
Culture:
culture of an organisation is very much important aspect for an organisation as well for
employees because in positive and healthy work environment an individual can give their best
(Khan and et.al ., 2014.). In culture consist of norms, values and beliefs that vary from person to
person also to organisation. In case of Essence drinks they build an healthy and flexible work
environment in which every one can share their views and opinions. While bring changes
organisation have to build culture in which everyone can give their best in organisational growth
and enhancement in case of Essence drinks they give teachings to their employees so that they
can adapt dynamic environment.
Team work:
Team is an group of individuals that work for an common goal and objective in case of
Essence drinks they build an efficient team in which everyone proficient in their work.
Proficiency is one of important aspect that helps to organisation in achieving their goals and
objectives in proper way. In case of Essence drinks they distribute their works and
responsibilities according to accessing their key strength and skills so that everyone feel
motivated and proficient in organisational growth and enhancement.

TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
Innovation is one of important attribute that helps to lead in market by giving best
attribute to consumers by accessing their emerging needs and wants. Before bring innovation in
organisation, Essence drinks have to follow and evaluate an definite path that helps in achieving
goals and objectives. Here are four Ps of innovation that are as follows:
In planning 4Ps of innovation helps an organisation to find out key spheres in which new things
and attributes are obligatory to comply with consumers needs and demand.
Innovation funnel:
Innovation funnel is an important steps that helps in developing products and services in
better way. The main purpose is to build product in an innovative way by identifying market
needs and wants in proper way. In that initial stage of development basic ideas should be
collected and after that going into refinery system.
Paradigm: In first step of innovation consist of what kind of change and innovation is require in
organisation. In that aspect new ideas or ways should be use to give best attribute to consumers,
in that aspect changes are radical in nature but all changes are in positive format (Kutvonen,
Savitskaya and Salmi, 2014..). In case of Essence drinks they bring changes that help them to
leverage their profit by change in business model.
Product:
In the next stage to bring innovation in organisation by find out attributes that an
organisation want to offer to their consumers. In that aspect higher authorities and others find out
ways in which service quality should be improved. In case of Essence drinks they by adding
sachet concept and various flavours in lassi helps them to remain always competitive in
marketplace.
Process:
In that stage of innovation ways or methods by which product should be offer to their
consumers. In that tier organisation decide about supply chain, workflow and hiring competent
staff and give them training so that they can give their best.
Position:

In that stage consumers should be target by accessing their needs and demands by
through research and development (Mazzarol, 2013.). In that aspect customers, employees and
public should be demonstrated and build products accordingly. In case of Essence drinks their
target market and consumers are people who love to drink in different flavours and healthy also.
Innovation funnel is one of important aspect which utilize processes that helps in achieving goals
and objective by following some specific steps or procedures. The one of most important part of
innovation funnel is to get position products and services in competitive environment. Below are
some key attributes of innovation funnel:
Opportunity estimation:
In that stage potential opportunities should be accessed in case of Essence drinks they by
analysing data and information and consumer and after that builds product and services by
accessing their taste and preferences. By line and product extension vast opportunities should be
gained.
New ideation:
In that stage opportunities that grab by that organisation should be accessed and list out
events. In case of Essence drinks by offering various products and services and opportunities that
can be accessed by an firm (Mazzarol and et.al ., 2014.). In that various kinds of methods should
be use by them to avail so that desirable goals and objectives should be achieve.
Conceptualization:
In that stage all works and procedures should be design according to design that taken
from ideation stage. In case of Essence Drinks in stage of ideation they offer various kinds of
lassi which are healthy and also in sachet.
Evaluation and benchmarking :
In that phrase consumers base should be determined by evaluating taste and preferences
of consumers and test the validity of concept. In that aspect by taking feedbacks from consumers
that are very much important for organisation.
Go/No Go:
In that stage after taking feedbacks from consumers, analyse data and information to lead
in market. By evaluating each and every aspect researchers give accent that product is
appropriate or not and accordingly take decision (Pellikka and Malinen, 2014.).
Launch:

In case of Essence drinks after evaluating each and every aspect they launch into
marketplace and get accomplishment.
From the above discussion it has been summarised that to reach at desirable goals and objectives
organisation have to evaluate each and every aspect.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is an chain of activities that helps in reduce complexities and cost
while producing products and services. It is one of most significant while implement innovation
and invention for organisational development. It is adopted by many organisation to give best
services to consumer base. In case of Essence drinks they launch a new concept into market that
is sachet lassi with many flavours. For an example in case of Essence drinks they bring new
product and services into market place after analysing needs and wants of consumers in better
way.
New opportunities:
In today competitive world organisation have to be launch various new concepts that
give delighted experience to consumer base. In case of Essence drinks by accessing competition
in market they launch a new product into market place by exploring new concept in lassi.
Resources:
for availing various concepts or opportunities organisation have to use their resources in
proper manner. Essence drinks have potential assets and investors that easily invest in their
organisation so that they can utilize all resources in proper way (Plewa and et.al ., 2012). With
the help of frugal innovation they can easily utilize resources and bring potential profits.
Frugal innovation can comprise of two segments which are determined below:
There are some major attributes that an organisation have to evaluate before launching a
new product into marketplace.
Concern:
it is very obligatory for an organisation to develop a product and services after analysing
needs and wants of consumer base. Organisation have to measure every aspect before launching
a new product into marketplace.

Related to product:
In that innovation, marketers have to find out existing and emerging needs and wants of
consumer by various sources (.Razak, Murray and Roberts, 2014.). In case of Essence drinks by
communicate with consumers they accordingly build products and services.
Idea of innovation:
To bring innovation in products and services organisation have to keenly observe by
competitor analysis to reach at desirable goals and objectives. In case of Essence drinks their
mangers and others conduct the through research by that they can easily evaluate needs and
wants of consumers.
Screening an idea:
In that stage after proper planning and coordinating work and activities organisation
check viability of an project.
Idea screening:
In that process new idea that is flavoured lassi in sachet should be screened after
evaluating each aspect.
Testing:
Testing is one of important attribute in which results should be developed to check that
product is up to to mark or not.
Internal analysis:
In that administration related to assets and key financial resources should be examined in
clear way.
Review marketplace:
It is one of important attribute in which competitors and consumers feedback should be
evaluated.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel is an way for reform products and services by evaluating their
benefits by applying various strategies and tactics (Robertson, 2014.). There are some important
attributes that helps to achieve organisational goals and objectives that are as follows:
Pricing policy:

Pricing is an very important concept in which price of products and services should be
determined. In case of Essence drinks they fix their price according to their consumer base which
is middle and upper class people (Dodourova and Bevis, 2014.). Due to higher competition in
marketplace they can offer their products at reasonable price.
Helps in grow business:
The another main attribute of commercial funnel is that it helps in economic growth and
enhancement. By identify taste and preferences of consumers they can build products and
services accordingly and gain high market share.
Advance technology:
The another main attribute that helps in bring innovation that is using advance tools and
techniques, in case of Essence drinks to produce new concept lassi in market.
Investigation programmes:
Essence drinks conduct various kinds of research and development programmes so that
they can keenly know self interest of people and build products and services accordingly.
Commercial funnel are very much significant in marketplace to bring innovation and new
attributes in organisation (Smith and et.al ., 2014).
Apart from that organisation have to follow an definite path to develop an product and services
to achieve desirable goals and objectives.
Idea generation:
The first and foremost step in new product development that is idea generation in which
new idea or concept should be tested from different perspectives. In case of Essence drinks they
collect information and data and accordingly build product.
Idea evaluation:
In that stage innovation consultants by removing errors and filter it so that any kind of
mistake not resides in it.
Concept definition
In that stage the planning stage of product should be finalised in case of essence drinks
they final their new concept.
Strategic analysis:
In that stage strategically match with implementation are in proceed to get desirable goals
and objectives.

Product development and testing:
In that stage product should be developed at small scale so that appropriate results should
be achieve.
Market Testing:
In that stage market analysis such as competitors should be done.
Commercialisation:
in it viability of product should be checked.
Product launch:
At last product should be launched in market.
New product development is an important attribute that helps in bring harmony in works and
activities to enlarge business opportunities and give best products and services according to
consumer needs and demands so that organisation can bring attributes accordingly.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
In business case consist of things which are require before launching a new product or
concept into marketplace. In case of Essence drinks before launching a new product they
evaluate various concepts that are as follows:
Executive summary:
Illustration 1: Stages process steps of new product development 2018
Source: Stages process steps of new product development 2018

In executive summary it evaluates condition by executed SWOT, PESTEL and Porter'
five force model and introduce new concept into market which is lassi in sachet and many
flavours.
Mission statement:
Their main mission is to deliver best products and services that give delighted experience
to consumer by new attributes.
Resources:
There main resources are manpower, machinery which is highly technical and investors
that helps in remain competitive in marketplace (Mazzarol and et.al ., 2014.). .
Market analysis:
In market analysis consist of cost, financial projections in case of Essence drinks there
requirement is £20,000.
they can take funds and their major source of investment is family and friends with kinds of
financial institutions. In that Essence drinks choose financial institutions to raise funds. In case of
Essence drinks they can raise funds from different sources such as Brainstorming, angel
investors and family with friends, Bank loan/ venture capital are the best sources to raise funds in
better way.
TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
There are various kinds of attributes that helps to protect innovate products and services
that are as follows:
Copyrights:
It is an legal document which gives authority or right to owner to protect their own
product so that any one can not use it illegally. It uses in products, literary and music fields and
attributes. Essence drinks use that source to protect their new idea.
Trade secrets:
it is an secret or proprietary information regarding values, employment law and contracts
are not cover in trade secrets. Hence it is not suitable for Essence drinks to adopt trade secrets.
Patent:

It gives right to owner to rescue their products and services to exploit resources by using
patent. If owner give right to use their innovative idea then another party can use it.
There are various ways to protect rights of owners with the help of copyrights, patents
and trade secrets are tools. These tools give protection to owners to secure their products and
services in better way so that they can give their best in consumer satisfaction.
CONCLUSION
From the above report it has been concluded that innovation is one of important aspect
that helps in giving delighted experience to consumer base. To remain enough competitive in
market innovation are very much important and for increase sales and consumer satisfaction to
lead in market. Innovation funnel is also very important in giving direction while launch an new
product into marketplace. From the innovation funnel an organisation can reap best ideas or
concepts that proved beneficial in organisational growth and enhancement. With the help of new
idea that helps in satisfying consumers wants in better way.

REFERENCES
Books and journals:
Ahn, J.M., Minshall, T. and Mortara, L., 2017. Understanding the human side of openness: the
fit between open innovation modes and CEO characteristics. R&D Management. 47(5).
pp.727-740.
Ajagbe, A.M.,and et.al ., 2015. Barriers to technological and non-technological innovation
activities in Malaysia. European Journal of Business and Management. 7(6). pp.157-
168.
Azarmi, D., 2016. Factors affecting technology innovation and its commercialisation in firms.
Dodourova, M. and Bevis, K., 2014. Networking innovation in the European car industry: Does
the Open Innovation model fit?. Transportation Research Part A: Policy and Practice.
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Fuertes-Callen, Y. and Cuéllar-Fernández, B., 2014. What is the role of commercialisation and
reputation in product innovation success?. Innovation. 16(1). pp.96-105.
Katzy, B.,and et.al ., 2013. Innovation intermediaries: a process view on open innovation
coordination. Technology Analysis & Strategic Management. 25(3). pp.295-309.
Khan, R.S., and et.al ., 2014. Differentiating aspects of product innovation processes in the food
industry: An exploratory study on New Zealand. British Food Journal. 116(8).
pp.1346-1368.
Kutvonen, A., Savitskaya, I. and Salmi, P., 2014. The evolution of external technology
commercialisation motives. International Journal of Business Innovation and Research.
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Mazzarol, T., 2013. The role of social capital, strategic networking and word of mouth
communication in the commercialisation of innovation. In Strategy and Communication
for Innovation (pp. 173-193). Springer, Berlin, Heidelberg.
Mazzarol, T., and et.al ., 2014. Perceptions of innovation climate and the influence of others: A
Multi-country study of SMEs. International Journal of Innovation Management.
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Pellikka, J.T. and Malinen, P., 2014. Business models in the commercialization processes of
innovation among small high-technology firms. International Journal of Innovation
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Plewa, C.,and et.al ., 2012. Technology adoption and performance impact in innovation domains.
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Razak, A.A., Murray, P.A. and Roberts, D., 2014. Open innovation in universities: The
relationship between innovation and commercialisation. Knowledge and Process
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globalising of UK higher education. In The Internationalisation of Higher Education
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Parker, S.C., 2012. Theories of entrepreneurship, innovation and the business cycle. Journal of
Economic Surveys. 26(3). pp.377-394.

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