Understanding Innovation and Invention

The study focuses on understanding the difference between innovation and invention, emphasizing their importance for a company's success. It highlights the need for continuous work on generating new ideas, promoting products for commercialization, and introducing innovative ideas such as frugal and funnel innovation to survive in the market.

Innovation and
Commercialisation

Contents
Introduction..............................................................................................................................................3
Task 1.......................................................................................................................................................3
P1. The importance of innovation to the organisation in comparison to invention:..........................3
P2. Vision, leadership, culture and teamwork helps in shaping innovation and commercialisation...4
Task 2.......................................................................................................................................................5
P3. 4 P’s of innovation and use of innovation funnel..........................................................................5
P4. Development in frugal model to simplify the innovation process in the organization..................7
Task 3.......................................................................................................................................................8
P5. Importance of commercial funnel and application of new product development..........................8
P6. Innovation business plan for Essence Drink..................................................................................9
Task 4.....................................................................................................................................................11
P7. Different tools used by the organization to develop, retain and protect knowledge....................11
Conclusion..............................................................................................................................................12
Reference................................................................................................................................................13

INTRODUCTION
The market is changing rapidly with the change in the customer preferences. There is
a huge competition in the market. Every company is facing competition in the market in its
respective industry. In order to survive in the market, it is necessary for the organisation to
create new ideas for innovation and commercialisation. The study shows the importance of
innovation for an organisation. The report also shows the 4P’s of innovation, innovation
funnel and development in frugal innovation. The report also highlights the ways for
accessing the fund and application of new product development process for
commercialisation and innovation.
TASK 1
P1. The importance of innovation to the organisation in comparison to invention:
There is no single definition for innovation but in laymen’s language it can be defined
as a process where ideas and invention is translated into goods and services for which the
customer pay. Peter Drucker define innovation as: “Innovation is the specific instrument of
entrepreneurship the act that endows resources with a new capacity to create wealth”
Innovation introduces the new product in the market, it helps to introduce new production
process and modify the existing one. In order to be successful in the changing market
scenario and to survive in this competitive era and to meet ever changing market demand
every organisation has to continuously work on the innovation process (Muthukrishna,
Henrich, J., 2016). Every organisation is facing the impact of migration, climate changes,
technological change, and globalization. Innovation is one of the important issues which the
organisations are facing today. About 90% of business executive thinks that innovation is
critical to the organisation. An organisation which continuously grabs the opportunities in the
market and innovate new product and service does not only survive in the organisation but
also prove to be successful. Innovation and invention are both essential for an organisation.
As the company has introduced lassi in the UK market but has to face a failure due to
increase of competition in the market. So in order to be successful the company has to apply
the following strategy. Doing market analysis in order to understand the trend in the market
and to understand what the customer want and the reason that why the customers are shifting
to other brands. Secondly, a company has to keep an eye on the market and continuously
process on the innovation in order to beat the market. Company should try to innovate new

products which can attract the customer. Lin order to attract the customer for long term the
company should try to invent new product in order to achieve competitive advantage in the
market.
Importance of innovation in comparison to invention to an organisation:
Innovation Invention
. Innovation is important to an organisation
because it supports the companies to build a
better connection with developing marketing.
If an organisation introduce a new product
for a while it can attract only few number of
customers and that also for small time period
but if a company innovate and invent new
product on the periodic basis than it can get
competitive advantages over its competitor.
An invention is the designing of new idea for
introducing new product which have never
been introduced before, while innovation is
the process of translating idea into product or
service in order to meet the requirements of
the market and earn money
P2. Vision, leadership, culture and teamwork helps in shaping innovation and
commercialisation:
The main aim of the innovation is commercialization of product and services.
Commercialization can be defined as a process of introducing a new products and services in
the market.
Impact of leadership on innovation and commercialisation:
Leadership can be defined as action of leading the organisation or people; there are various
types of leadership style such as autocratic, democratic and participative. Leadership is
essential for an organisation because it plays an important role in promotion of innovation
and commercialisation and it also helps in creating awareness among in the organisation.
Leaders creates the opportunities for the employees to be innovative and motivate them for
their work, they also ensures that organisation should take various innovative steps which can
be possible through proper resource allocation, management of funds, time and knowledge.
Impact of vision on innovation and commercialisation:

Vision of an organisation tells about what the organisation wants to be future. Vision of an
organisation is the driving force which can boost innovation and commercialisation. The
company should give free time to the employee so that employee can come up with their
ideas for innovation and commercialisation as many the people in the organisation the
number of ideas will also be high.
The company should be able to describe its vision clearly in front of its employees and if the
vision of the organisation is realistic and of value than the employee feel that they think that
they are part of something big which in result helps the employees to get motivated and bring
new ideas of commercialisation and innovation for the organisation.
Impact of culture on innovation and commercialisation:
Every organisation has different work culture but it is observed that the organisation
which encourages its employee to bring new ideas for the development of organisation and
motivate them with their ideas for example GOOGLE the employees there are given enough
free time to work on their idea in the workspace and always welcome their ideas for
innovation and commercialisation. Another factor which impacts the innovation and
commercialisation in organisation is the availability of resources. The unavailability of
resources and less supportive work culture affects the development of ideas.
Impact of teamwork on innovation and commercialisation:
Teamwork can bring the new innovative ideas however the innovation ideas comes up with
an individual but teamwork can sometimes help in creating the new idea for innovation and
commercialisation. But the commercialisation strategies can be developed with teamwork.
It is important for every organisation to work in a team in order to achieve common objective.
So the company should build the efficient team which can provide the new and innovative
ideas in line with the company’s goal and objective. It can be done by providing best services
to the customer by understanding the market demand and innovating the new product and
services to meet the demand and attract the customer. In order to launch the new strawberry
lassi there should be teamwork in the company as this will help company as it will bring new
ideas for commercialisation of the product.

Task 2
P3. 4 P’s of innovation and use of innovation funnel
As the company Essence drink is facing the loss of market share and losing of
customer due to its competitor the company should adopt the 4P’s which help company in
improving sales and profit by improving product, position, process and paradigm. In this
process the company analyse its status based on its current paradigm, product, position and
process. The tool has four section which are ranged from incremental to radical stage or vice
versa (Resnick and et.al., 2016).
The 4P’s of innovation are:
Paradigm: Using innovation in order to improve business which may also includes change in
business model which the company is currently using such as change in existing product or
innovation of new product for commercialisation (Yun 2017).
Product: Take the help of the team and ask yourself what changes can be made in the existing
product line, how the product and services can be improved.
Position: under this the market in which the product is positioned is considered for example
who your customers and employees, how the product is communicated in the market, how the
image of the offered product and services can be improved? etc.
Process: this includes the preparation process of the product all the steps in the process such
as hiring people, training and supplying. All the steps should be considered and possible
changes should be taken to improve the company’s profit. The latest tools and technologies
should also be adopted in order to improve the process and generate revenue.
Use of innovation funnel to examine and shape innovative ideas:
Figure 1 Innovation funnel

Source: (Innovation funnel, 2013)
Innovation funnel is a tool which helps company and individual in order to innovate
successfully. The innovation funnel is also known as Funnel Management Process this
process is used by many companies in order to create innovative plan which is realistic in
nature (Zehir and et.al., 2015).
A company first gather opinions of the marketers and R & D department as their opinions
came from analysis of market current situation and customers need and wants in the market.
After that the opinions are filtered and final decision is taken to create an innovative product
which is suitable for the current market.
The process involves following stages:
i) Ideas: The Essence drink should first collect the ideas from various sources such as by
process needs, knowing the opportunities in the market. Each idea should be carefully
examined that whether the idea will be successful or not, only if the idea seems to be realistic
and successful it should be continued.
ii) Concept testing: once appropriate ideas have been selected by the company then allow an
idea to ripen to ensure whether the demand in the market is large enough to continue on the
selected idea.
iii) Feasibility Study: Than a research and small test such as trials or pilot study should be
done to know whether the idea is technically possible or not.
iv) Creating a prototype: After the feasibility study the company should create a prototype of
the product.
v) Testing: Once the prototype is made the company should test it within the organisation and
then introduced to the customer for testing.
vi) Production: If the customer is satisfied and happy with the new product than the
production process should be carried out.
vii) Launch: After the successful completion of the manufacturing of product it should be
launched in the market.

P4. Development in frugal model to simplify the innovation process in the organization
Frugal innovation discovers the new models of business, redesign the products to
satisfy the user who face the barriers in the project in a sustainable manner. In other word
frugal innovation helps to redesign the product to get the new market and satisfy the
customer. The firm can innovate the product and services in different dimensions like quality,
performance, distribution, servicing, scale up, adaptability, research and development and
affordability of cost.
Frugal innovation model helps to simplify the process of innovation in products and services
in the organization. The innovation of strawberry lassie in the market will provide a new taste
to the consumers and it will change their perception regarding the drinks in the market (Rosca
and et.al., 2017). The model will help to reduce the unnecessary process in the product to
reduce the cost and improve the quality of the strawberry lassie.
The frugal innovation model helps to introduce the new techniques in manufacturing of
strawberry lassie to reduce its cost. They can also use some innovative promotional technique
like compare the new product to the existing product in the market and explore their benefits
of consumption of the strawberry lassie. They can also improve their distribution system
(Rubin, Abramson, 2018). They have to target the young age and health conscious people to
increase the sales of strawberry lassie drink.
It helps to capture the new market through different ways. It helps to research the market and
consumer and collect the useful data regarding the consumer behavior toward the particular
product and to find their needs and demand of the consumer. It also provides a better quality
standard to measure the quality of lassie in the market and to find its user. It helps the
manufacturer to improve the performance of the product.
By using the frugal model in the organization essence drink company can increasing its
service level to attract the customer and it will increase their sale. They can use the social
media to commercialize their business and attract the mass users. It will sponsor some
community events to capture the marketing opportunity and introduce their new and
innovative product in the market. It can combine their business with similar brand in the
market to reduce the competition and capture the huge volume of consumer which help to
improve the sales of Essence Drink Company.

Task 3
P5. Importance of commercial funnel and application of new product development
Commercial funnel is also known as purchase funnel. It shows the customer journey
toward the product. Before starting the sale of strawberry lassie in the market Essence Drink
need to analyses the market and the consumer preference. Essence drink use the purchase
funnel to effectively introduce the product in the market.
Importance of commercial funnel
Awareness: Commercial funnel helps to aware the consumer about the healthier
product i.e. Strawberry lassie (Gross and et.al., 2018). They have to introduce the benefits of
new drink to the consumer by using different method like advertisement, mass
communication and social media.
Familiarity: It helps to know more about the product and increase the customer
interest in the latest product. It helps to explain the Essence Drink purpose to introduce the
Strawberry Lassie in the market.
Consideration: Consideration is phase where consumer know about the product but
not ready to buy it. Consideration helps to create the opinion in the mind of the consumer and
influence them. Consideration is important for the funnel process to influence the consumer
about the strawberry lassie benefits and the taste (Weyrauch, Herstatt, 2017).
Conversion or purchase: It is important for the introduction of new product in the
market. It helps to convert the consumer to purchase the product which ultimately increase
the sales of Essence Drink.
Application of New Product Development Process
The new product development process involves various steps which help to commercialize
the innovation in the market and aware the consumer about the new product. The steps are:
1. Generating idea: Idea can be generated through different sources like internal source,
SWOT analyses, customers, market research and competition. It helps to find the

demand and need of the consumer and innovate the product according to the consumer
taste.
2. Screening the idea: In these stage few ideas are selected from the different ideas.
Company strength and weakness, market trend, customer needs and expected ROI
helps in screening the idea. It also helps to reduce the cost. Essence Company can
select the few drinks idea in these stage.
3. Concept development and testing: In these stage they frame the idea of strawberry
lassie and brought the product to the target market. Customer are selected in order to
taste the drink and give their feedback regarding the strawberry lassie (Marion and
et.al., 2015). Organization needs to be aware about the consumer taste and need and
same time they also aware the consumer about the product.
4. Strategy analysis and development: It helps to select the final decision and develop
the strategies for strawberry lassie. Essence Company analyze the competition, cost,
pricing strategy and the breakeven point for effectively implement the idea of
innovation.
5. Product development: In these stage they convert the idea into the actual product. It
helps to differentiate the product from the competitors and attract the consumer.
6. Commercialization: It helps to commercialize the strawberry lassie in the market by
different method. They can use the social media, and advertisement to promote their
product.
P6. Innovation business plan for Essence Drink
Executive summary: Essence Company make the healthier drink with different
flavour. They come with mango lassie but from last year the sales of the product was
decrease. Now, they want to introduce the strawberry lassie in the market to increase their
sales and profit and attract the consumer in the market. They research the market about the
trend and the consumer preference. They also do the test marketing to know the consumer
perception and do the changes if they need.
Requirement for innovation: for the innovation of new product they need different
data like consumer need and demand, market research, competitor’s product in the market
and the market trend. They also need fund for their business or innovation. They also require
the raw material and government permission.

Solutions: To get the fund for the innovation they have to make a business proposal. They
can take the help of government or bank to raise the fund. They can also raise the fund from
the friends, family and the market. To know the consumer need and demand they have to do
the market research. They can use the test marketing to know the consumer preference and
taste. They have to get the feedback from the consumer and do the changes. They can also use
some promotional events to promote their product.
Need of innovation: They need the innovation in the business:
 To increase the sales in the market.
 To capture the attention of the consumer.
 To reduce the cost by eliminating the unnecessary process.
 To increase the market, share and differentiate the product from the competitors.
 To expand the business with different flavor.
 To retain in the market.
Market research: Market research refers to collecting the data about the company or the
consumer. It helps to know the consumer taste and predict the demand of the product. The
forecast demand helps to collect the resources for the production and access the funding.
Required resources:budget for the innovation.
Types of expenses Cost of innovation
Raw material expenses $ 500
Manufacturing expenses $ 650
Labour expenses $ 400
Management expenses $ 350
Marketing expenses $ 200
Miscellaneous expenses $ 150
Total $ 2250
Benefits: Innovation of strawberry lassie increase the profit of the company. It helps to
reduce the cost of product and capture the market share by providing the new flavour lassie
and healthier product. It helps to maintain the health of consumer with sugar free lassie. It
also provides a new flavour of lassie to the consumer.

TASK 4
P7. Different tools used by the organization to develop, retain and protect knowledge
Organization use different tools to protect their business formula from their
competitors and differentiate their product from the others. These tools help the business to
retain in the market. They can use the intellectual property right law to protect the business
(Bettig, 2018). The ways of Intellectual Property Right are:
Intellectual property right
Any individual or organization use the Intellectual Property Right Law to protect their
product, innovation. It protects the organization from its competitors to steal the product,
services and the new innovations.
 Patent: It is a legal monopoly granted by the UK intellectual Property office to the
firm or individual to use, make or sell its invention and to protect the business from
others to copy or use the business formula. To patent the product organization has to
fill the patent application and disclose all the details of invention. Patent right allows
the owner to take the action against the organization or people who use the owner
patent without any permission. The life of the patent is maximum 20 years after the
maturity organization need to renew their patent right.
 Copyright: an organization can copyright under the copyright, designs and patent act
1988 in UK Copyright law. It arises when an organization or individual create work
and apply the work as original and exhibit degree of skills, labor or judgment. The
copy right owner has exclusive right that Distribute copies of the work to the public
by sale or other transfer of ownership, such as by rental, lease or lending. Perform the
work publicly.
 Trademark: Trademark law provides the protection to the organization and
individual. It is a way to distinguish the business from the others. It can be a symbol,
name, logo, phase, word, signature, shape, sound or any combination of this. In UK it
was written as Trade mark Act 1994. To get the benefit of trademark act, an individual
and organization has to register in UK intellectual Property office. They mainly use
the trademark to distinguish their business from the competitors in the market.
Essence Company can use the Patent Right to protect themselves from the competitors. They
have to register themselves under the intellectual Property Right Act. They have to give all
their details of innovation to the registrar office of UK. It protects the innovation of

strawberry lassie from their competitors in the market. In many countries the maturity period
was 7 year. The maximum time period of patent right is 20 year. It helps the Essence
Company to focus on their sales rather than to protect their product.
CONCLUSION
The study helps us to understand the difference between invention and innovation.
Both innovation and invention are important for the success of the organisation. As the
company has to face failure due to increase of competition in the market therefore it is
essential for every organisation to continuously work on the ideas for generating new
innovation. And to promote the product for commercialisation purpose. The company needs
to introduce an innovative drink in order to survive in the market and maintain the existing
customer and attract the new one. The company should adopt the various innovative ideas for
example frugal and funnel innovation.

REFERENCE
Books and Journals
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take? Historical case studies of the timescale from invention to widespread
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ventures: An ethnographic study within the new product development
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Rosca and et.al.,2017. Business models for sustainable innovation–an empirical analysis of
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Rubin, G.D. and Abramson, R.G., 2018. Creating value through incremental innovation:
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Vanhaverbeke, W., 2017. Broadening the concept of open innovation. The Elgar Companion
to Innovation and Knowledge Creation, Cheltenham, Northampton, MA: Edward
Elgar Publishing. pp.87-98.
Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining
criteria. Journal of frugal innovation, 2(1), p.1.

Yun, J.J., 2017. Business Model Design Compass: Open Innovation Funnel to Schumpeterian
New Combination Business Model Developing Circle. Springer.
Zehir,and et.al., 2015. Linking entrepreneurial orientation to firm performance: the role of
differentiation strategy and innovation performance. Procedia-Social and Behavioral
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Online
Innovation funnel. 2013.[ONLINE] Available through:
https://slidemodel.com/templates/open-innovation-funnel-template-powerpoint/<>