Innovation And Commercialisation Leadership

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Importance of innovation for organisation and comparison with invention. ...................3
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation...................................................................................................................5
TASK 2 ...........................................................................................................................................6
P3 The 4 P of innovation and the use of innovation funnel for examine and shape innovative
ideas........................................................................................................................................6
P4 Developments in frugal innovation and example of organisational context. ...................8
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and application of new product development.............9
P6 Innovation business case and ways of access funding....................................................11
TASK 4 .........................................................................................................................................12
P7 Tool that use to develop retain, protect knowledge and intellectual property................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovations is concerned with using new ideas for the growth and development of
business. Innovations is generally done in the existing product or service. The major motive
behind using innovative ideas and strategies in the business is to attract more customers. If the
firm is successful in implementing new plans regarding innovation than market share of the
company will be automatically increased (Atkeson and Burstein, 2010). Innovation is most
important for every firm because with the help of this better competition can be given to the
competitors. Organisation taken in this report is essence drink which deals in providing various
kinds of soft and healthy drinks to potential customer's. Essence drinks is launching their
chocolate lassi for improving their growth and market share as well as to satisfy the needs of
customers. The major topics covered in this report are importance of innovation for the
organisation, difference between innovation and invention, 4P's of innovation, importance of
commercial funnel and the various tools which can be used for developing and retaining
intellectual property of the organisation. Proper plans for the innovation can help the
organisation is achieving its goals and objectives in the effective and efficient manner.
TASK 1
P1 Importance of innovation for organisation and comparison with invention.
Essence drink is a beverage organisation which deals in mango lassi. The business of the
organisation is at the growth stage because innovative idea and plans are used to attract more and
more customer's. But the organisation is facing huge threat of competition for its competitors.
Due to this it becomes essential for organisation to implement innovative plans and strategies for
surviving in the market for longer period of time. Essence drinks is launching their chocolate
lassi for improving their growth and market share as well as to satisfy the needs of customers.
The innovation is essential for company in this product so as to attract a large number of
customers.
Innovation is the continuous process of using new ideas and techniques which are used
by the organisation for increasing the satisfaction level of potential customer's. Innovative ideas
and strategies can be implemented in the organisation by encouraging employees to take part in
the decision making process(Bhatti, 2012). Innovation directly helps the organisation in
achieving long and short term goals in the effective and efficient manner. Proper plans for the

innovation can lead to growth and profitability of the organisation. As with the help of this
employees can be encouraged to work in the proper manner. Better competition can be given to
the competitors and rivals present in the market. Invention is very much different from
innovation, as both the terms are used for different motive and purposes. Invention is the process
of inventing something new which is typically a process or device which can provide ease to
customers in living their life properly. The invention is useful for the customers so that they can
satisfy their needs and demands.
Importance of innovation for Essence Drink
Innovation is very essential for Essence drink in new product for attracting more
customers by modifying the existing products. Whereas invention takes time in attracting the
customers as customers are not aware of new products in the market till they become successful.
Through the innovation in products, company can enhance the satisfaction and experience
among the customers whereas invention may not be successful in terms of providing satisfaction
to customers.
Difference between innovation and invention
Basis Innovation Invention
Definition It is the process of introducing
and implementing new ideas
for increasing the performance
and sale of the organisation.
It is the process of using new
tools and techniques for
conducting the operations in
the effective and efficient
manner as well as to develop
new products which hasn't
been developed
Concept Concept of innovation is
related with improving
existing product or service of
Essence Drink.
It is related with developing
new product for increasing the
satisfaction level of potential
customer's.
Focus The major focus of this is to
increase the efficiency of
existing product.
The major focus of this is on
recruiting new employees for
the new product.

P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.
Most of the organisation nowadays focus on using new and innovative techniques for
sustaining the market for longer period of time. Innovation can be done in the product, strategies
or services of the organisation (De la Mothe and Paquet, 2012). The contribution of vision,
culture of the organisation in innovation is as follows-
 Vision- Vision is the long time goal of an organisation for which company develop
strategies and plans. The essence drink also has a vision of improving the market share
and position in the market which can be achieved by using the innovation in existing
products and innovative ideas to be implemented in business operations. The company
has a clear vision due to which company decided to achieve it by using a new product
which is capable of providing the desired growth to the organisation. For this, the
company has introduced their new product which is chocolate lassi. This is introduced for
enhancing the market share as well as sales of organisation in order to achieve the vision.
 Leadership- Leadership is essential for organisations in implementing the innovative
ideas. Through the suitable leaders, Essence drink is developing the products properly as
proper guidance is provided to the employees for supporting their working by the leaders.
Leaders drive the innovation by motivating their employees as without their contribution,
new products can't be launched or developed. For the chocolate lassi, company is
focusing on hiring skilled and experienced leaders who can provide their support to
employees while developing or providing the product to customers (Flanagan, Uyarra
and Laranja, 2011).
 Team work – This also drives the innovation in business as proper contributions can be
done from the team members when they coordinate with each other. If the employees
have adequate team spirit than changes or errors in the work can be decreased. This
factors is also essential for Essence drink in innovating new product as shared ideas can
be collected from team which will be used for achieving the organisational aims for
launching the new product. For the new lassi, team work brings improved result to the
firm as people are coordinating with each other for resolving the issues and for generating
new and innovative ideas.

 Culture- This factors is also essential for the purpose of innovation in Essence drink as
through effective culture, employees can work properly which will improve their
performance and efficiency. It is quite essential for the organisation to properly maintain
the organisational culture, so that conflicts and disputes of Essence Drink are solved.
Proper culture in the organisation will lead to increase in efficiency of the employees
while developing the new chocolate lassi (Freeman, 2013). The culture at the Essence
drink enable the employees to work better through shared efforts due to which they can
generate new ideas for collaborative working in development of new product.
These factors can lead to problems and issues for the organisation if better plans are not
made before introducing the new product in the market. If Essence Drink is successful in
controlling these products than goals and objectives of the organisation will be achieved in the
limited period of time.
TASK 2
P3 The 4 P of innovation and the use of innovation funnel for examine and shape innovative
ideas.
Innovation is very much necessary for the each and every organisation. As with the help
of this large number of customer's can be attracted. The trends of the market is rapidly changing
due to this needs and preferences of the customer's are also changing. Before launching the new
product management of Essence Drink can analyse the 4 P's of innovation in the systematic
manner.
Source- 4 P's of Innovation Mix. 2015
Illustration 1: 4 P's of Innovation Mix

Product- It is the very first stage which is related with the development of new product.
Organisation is introducing chocolate flavour lassi for its potential customer's in UK. Introducing
such type of product is the innovative idea because such type of product has not been launched
by the organisation. This product can attract more customers towards the business in the best
possible manner (Gibbert, Hoegl and Valikangas, 2014). The product is equipped with
ingredients such as organic cocoa powder, Milk, sugar etc. which are also healthy and benefits
includes such as reduced inflammation, better blood flow, lower blood pressure and improved
cholesterol and blood sugar levels etc. which will assist the individuals in resolving or lowering
their health issues.
Process- These includes supplying, workflow, hiring people, and training etc. Essence
drink will use different types of processes for the development of their new product which is
chocolate lassi. The company will hire the employees through posting the job on the internet
platforms and social media platforms. For the supply, company will use the block chain
technology in order to bring the transparency in the supply chain. The company will use the
training for improving the skills of new employees so as to improve the performance. Through
these methods, company can improve their profit as the new chocolate lassi is using the updated
technology and process for ensuring the quality of new product.
Position- Essence Drink can place its products on the online platform, so that product is
within the reach of its customer's. The product will be positioned in the market having high
consumption of food and beverages products. The company will communicate with the target
customers through the social media promotions as well as traditional promotions. The brand
image of the company needs to improve by spreading awareness among the public which will
also enhance the profit of the company.
Paradigm- It is concerned with the change in the products, process etc. which is done by
the organisation. Through this, the company can sustain in the market. Essence drink can use this
for making changes in their new product, processes selected for the new products, positioning of
the new product etc. which will improve the profit and share of the company (Gomulkiewicz,
2014).
Innovation funnel and its usage
The Innovation Funnel refers to the method of constant streaming of ideas that can be
screened for viability purposes. It is a famous approach for innovation which is used by the

business firms for developing an innovative and realistic action plan. It is used by the
organisations for determining whether their developed plan or stages are aligned with the
objectives of developing new product. This method involves three stages which drives the
innovation. First stage is wide mouth of the funnel in which companies enhances their
knowledge and information in order to develop innovative ideas and products. Second stage
involves the narrowing segment of the funnel in which the ideas generated by company are
screened to determine whether they are related with goals or not. If idea is innovative and viable
then it is selected or otherwise rejected. The third stage is the narrow segment of a funnel in
which the selected idea is evaluated whether it can fulfil the organisational goals or not. This
method is useful for the firms in shaping the innovation as through this method, improved system
and strategies can be developed and implemented in the new product of the Essence drink which
will assist the firm in achieving the organisational goals too (Hancock, 2016).
P4 Developments in frugal innovation and example of organisational context.
Frugal innovation is basically used to decrease the cost of goods and service at the time
of development. This method is generally used to reduce the cost involved in the product and
focuses on taking appropriate actions for improving feature of the product. With the help of this
method, sales of the organisation can be easily increased. Essence Drink will be able to make
necessary changes for reducing the manufacturing cost of the newly launched product.
Management of the organisation can make use of frugal techniques for launching the new
product in the market. These techniques will include making best use of social media sites. As
with the help of this Essence Drink will be able to introduce new product at lowest possible
price(Joyce and et. al., 2016). This type of innovation is based on Six principles which are briefly
mentioned below-
 Sustainable solution- With the help of this organisation will be able to focus on reducing
the problems related to new product. These problems will be resolved by using the
brainstorming method in which suggestions are taken from the employees for resolving
the issues. If this is done in the proper manner than organisation will be able to grow and
sustain in the market for longer period of time.
 Asset Flex- As per this principle Essence Drink needs to focus on using innovative ideas
for the development of the product which is done by using the market research. Through

the market research, company can determine the needs and preferences of customers so
that proper product can be provided to them in order to ensure their satisfaction.
 Form consumer behaviour- As per this principle it is very much essential for Essence
Drink to properly analyse the uncertain needs of the customer'. For this, Essence drink is
using the social media so that the changes among the mindset of the customers can be
tracked.
 Iterate and engage- This technique will be used to make the customer's aware about the
newly introduced product. Essence drink is engaging with the customers by using the
social media channels such as Facebook, instagram and twitter.
 Stakeholder innovation- As per this principle it is quite essential for Essence Drink to
properly communicate with various stakeholders of the organisation. Vital information
needs to be transferred to the stakeholders. For example: the financial information is
provided to the investors and banks. Information and features of the products are
provided to the customers. Strategies and policies are provided to the employees so that
they can perform their work.
 Consumer value creation- It is used to assist the customer's in the best possible manner.
The assistance will be provided regarding the products and services of the organisation.
The assistance is provided regarding the taste, services provided, features etc. in order to
ensure their satisfaction and good experience.
With the help of frugal innovation improved services can be provided to the customer's, so that
their needs and demand are fulfilled in the effective and efficient manner. Essence Drink will be
able to give tough competition in the market(Komninos, 2013).
TASK 3
P5 Importance of commercial funnel and application of new product development.
The term commercial funnel is defined as revenue and sale funnel, in simple terms it is
the graphical representation which provide the sales process of a product from its manufacturing
stage till the customer purchase the product is discussed. The initial stage of the contain
information about the awareness stage while last and final stage tell about post purchase
evaluation about the purchase decision relate to the product. The commercial funnel is important
for the organisation in determining the weakness of the company in the manufacturing to the

delivering process. Through this, they can provide the products to the customers in an effective
manner for improving the customer satisfaction as well as profit and sales of the firm.
New product development-The NPD is a formative process by which a new product is
launch in the market. It is considered as a introductory that help company to develop its market.
Several points are mention which show step of NPD in circumstance of Essence drink. This
points are relate with new chocolate flavour lassi of Essence drink.
Idea generation- To increase the sale figure for a product a company develop a new and
innovative idea to attract potential buyers. The management of Essence drink is introducing their
new chocolate lassi which include various types of ingredients such as organic cocoa powder,
Milk, sugar etc. which are healthy for the people in consuming as well as to satisfy the needs of
customers (Lundvall, 2010).
Idea screening- Screening is a process by which management found the response of their
products in terms of sale and profits. It is done to check the feasibility about the idea of a
product. As company find that it is possible to make a lassi with flavour of chocolate that is
healthy as well as tasty also. For this idea marketing team analysis several survey which
suggestion and ideas of different population.
Testing concept- The test include role of research and development team in which
company able to know about demand for its new product. For the testing phase, this newly
developed chocolate lassi is provided to sample respondents in order to take their views and
suggestions regarding the taste, colour etc. so that proper modifications can be done for final
product.
Analyse need of product development- The most important factor is to analyse the need
of a customer in a market. People in this present century are focused on healthy products which
can satisfy their hunger and nutrients requirements. The new product of Essence drink is having
milk and raw organic cocoa powder which are healthy for consumption due to having benefits
such as reduced inflammation, better blood flow, lower blood pressure and improved cholesterol
and blood sugar levels (Mudambi, 2011).
Commercialization- The last step through which a company launch its product in the
market is known as commercialization. In regards to essence drink it include price and packing
for the chocolate lassi. As it help company to market the product with a flavoured and healthy

drink for which create a positive perception in mind of customer. To keep a healthy product
company need to provide tetra packing to its customer at efficient price.
P6 Innovation business case and ways of access funding.
The business case work as a tool which include all factors that help company to achieve
their goals and objectives. Some points for the business case is mention as follow:
Executive summary- In the business case of Essence drink company want to increase the
sale of their personalised lassi in the UK market. For the chocolate, management develop
effective strategy that help company to achieve high growth in the beverage market. This include
various sources such as marketing mix, culture and NPD process to establish their new chocolate
lassi in the market (Naphade and et. al., 2011). Through this new lassi, company is aiming to
grow their share in the market as the product is innovative and healthy which will attract more
customers towards the business.
Mission statement- The major motive of Essence drink is to contribute in health drinks
with a lassi that work as a strength of the market. Through this essence drink want to satisfy need
of health conscious and sport active person which search for a quick healthy drink.
Vision: Vision of the Essence drink for launching their new product is to capture more
market share and achieve higher market position in the beverages sector of UK.
Objective: Objective of Essence drink is to earn more profit and revenue by serving to
maximum customers through their new product.
Resources- Various types of resources are needed to develop a new product. Like in this
case company need man power, money and machine to make a healthy drink. It is very essential
for company to combine resources that help them to complete their regular activities. The
company will also acquire the raw Cocoa which will be used in this lassi.
Cost and benefit analysis- Management decided to launch a new lassi in market by
conducting various surveys and analysis. It help company to predict the manufacturing cost of
lassi and also to decide the price through which company gain its expected profits.
Financial projection- For the final project company develop a budget plan by which it is
easy to manage the funds for new product. This budget is mention as below which help to
monitor the operation cost for new product(Pattee, 2012).The company can use this method for
protecting their new product by maintaining the secrecy regarding the ingredients as well as not
making public the information of the product.

Basis Estimated cost
Manpower 5,000
Variable cost of machine 9,000
Raw materials 10,000
Shipping cost 5,000
Production cost 6,000
Total 35,000
Access funding ways- Money work as a backbone of a company. In relate to develop a
new product huge cost is required to invest. To raise funds some ways are mention as below”
Bank and financial institution- Essence drink borrow the money from by showing its
business plan and fulfil of some formalities. It is one of the safest way by to credit funds from
different financial institution or banks. As they also charge a low rate of interest. Out of these
35,000 Euros, company will acquire the 20,000 euros from the bank loans at a little interest rate.
Venture capitalist- An individual who has a surplus amount of money to invest is known
as angel investor or venture capitalist. They always ready to provide funds for a new venture. As
investment help them to gain more returns in the future. The company will acquire remaining
15,000 Euros from the venture capitalist in order to launch their new lassi.
TASK 4
P7 Tool that use to develop retain, protect knowledge and intellectual property.
Intellectual property refers to the category of property that includes intangible creations
of the human intellect in order to protect its creation rights. In context of Essence drink
management try to secure their rights and property through the help of copyrights, patent and
trademark. This rights help company to secure its products in the UK market.
Copyright- This is the way by which a company or owner save his original product or
services from other person. It provide a private right to the owner to save its information from
misuse. The essence drink can use the copyright for protecting their recipe of chocolate lassi so
that the substitute products could not be launched by the competitors (Sytch and Tatarynowicz,
2014). Strength and weakness with advantage and dis-advantage of copyright is described in
tabular form as follow

Advantage
Copyright provide the right to owner to
produce product and to authorize the
production of their lassi.
Dis-advantage
Company has to bear heavy cost to make
a copyright for its product.
Strength
Copyright work as a proof and provide
responsibility and authority to the owner.
Weakness
The copyright is provided by government
for a short time period due to which the
cost increased on every renewal.
Trade secret- In the food & beverage industry trade secret work as effective tool that help
owner to secure its unique recipe Like in case of essence drink company developed a new lassi.
so it beneficial for them to secure it from competitors. The company can use this method for
protecting their new product by maintaining the secrecy regarding the ingredients. Strength and
weakness with advantage and dis-advantage of trade secret is described in tabular form as follow
Advantage
The trade secret is always a permanent
structure to save intellectual property from
competitors.
Dis-advantage
A company cannot innovate a particular
product if it is registered under a trade secret.
Strength
The registration for a trade secret is faster
with a low amount of cost.
Weakness
There is less number of alternative is
available in trade secret. Along with the it is
also registered by others.
Patent- The use of patent is best tool to save a product from different unlawful factors.
With the registration of patent no other competitors offer similar or substitute product in the
market. It is very beneficial for essence drink as it help company to secure the mixture that is use

by company to manufacture chocolate lassi. Strength and weakness with advantage and dis-
advantage of patent is described in tabular form as follow:
Advantage
Patent provide various rights to the owner or
manufacture to establish its product and act as
a effective tool against its rival companies.
Dis-advantage
As compare to others patent rights are very
costly and a lengthy process that include
complex step.
Strength
Patent are provided to sustain the rights of a
product for a longer time period that is upto
twenty years.
Weakness
Invention that is developed by the individual
or an organisation is disclosed among all to
get the right of patent.
CONCLUSION
From the above given report it has been concluded that proper plans for the innovation
can lead to success and growth of the organisation in the best possible manner. Innovation can be
done in the existing product or a new product can be introduced in the market. Innovation will
directly help the organisation increasing the sale and profitability in the best possible manner.
Innovation and invention is very much different from each other. Both the terms are used for
different motive and purpose. With the help of frugal innovation organisation can also achieve
the long and short term goals. Various laws and regulations can also be taken into consideration
by the organisation, so that long and short term goals are achieved in the effective manner.

REFERENCES
Books and Journals
Atkeson, A. and Burstein, A.T., 2010. Innovation, firm dynamics, and international trade.
Journal of political economy. 118(3). pp.433-484.
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Bhatti, Y.A., 2012. What is frugal, what is innovation? Towards a theory of frugal innovation.
Towards a Theory of Frugal Innovation (February 1, 2012).
Cotropia, C.A., 2011. What is the Invention. Wm. & Mary L. Rev.. 53. p.1855.
De la Mothe, J. and Paquet, G. eds., 2012. Local and regional systems of innovation (Vol. 14).
Springer Science & Business Media.
Flanagan, K., Uyarra, E. and Laranja, M., 2011. Reconceptualising the ‘policy mix’for
innovation. Research policy. 40(5). pp.702-713.
Freeman, C., 2013. Economics of industrial innovation. Routledge.
Gibbert, M., Hoegl, M. and Valikangas, L., 2014. Introduction to the special issue: Financial
resource constraints and innovation. Journal of Product Innovation Management. 31(2).
pp.197-201.
Gomulkiewicz, R.W., 2014. Licensing Intellectual Property: Law and Applications. Wolters
Kluwer Law & Business.
Hancock, A.M., 2016. Intersectionality: An intellectual history. Oxford University Press.
Joyce, C., and et. al., 2016. Copyright law (p. 542). Durham: Carolina Academic Press.
Komninos, N., 2013. Intelligent cities: innovation, knowledge systems and digital spaces.
Routledge.
Lundvall, B.Å. ed., 2010. National systems of innovation: Toward a theory of innovation and
interactive learning (Vol. 2). Anthem press.
Mudambi, R., 2011. Hierarchy, coordination, and innovation in the multinational enterprise.
Global Strategy Journal. 1(3‐4), pp.317-323.
Naphade, M., and et. al., 2011. Smarter cities and their innovation challenges. Computer. 44(6).
pp.32-39.
Pattee, H.H., 2012. Laws and constraints, symbols and languages. In Laws, Language and Life
(pp. 81-89). Springer, Dordrecht.
Pisoni, A., Michelini, L. and Martignoni, G., 2018. Frugal approach to innovation: State of the
art and future perspectives. Journal of Cleaner Production. 171. pp.107-126.
Sytch, M. and Tatarynowicz, A., 2014. Exploring the locus of invention: The dynamics of
network communities and firms' invention productivity. Academy of Management
Journal. 57(1). pp.249-279.
Online
4 P's of Innovation Mix. 2015. [Online]. Available through:
<https://innovationmanagementsite.wordpress.com/2015/09/07/innovation-space-4ps/>.