Review and Analysis of Innovation Studies

This assignment involves a thorough analysis of various innovation studies. It includes reviewing research papers on innovation cycles, geographies of innovation, incubator mediation, and product innovation commercialization. The studies cover topics such as the importance of connecting open innovation to strategy, structuring innovation funnels for R&D projects under uncertainty, and what frugal innovation is. Additionally, it involves examining online resources like the Innovation Funnel tool. This comprehensive review provides a detailed understanding of different aspects of innovation and its commercialization processes.

Innovation and
Commercialisation

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
P1. Defining innovation and determination of its importance to company in comparison with
inventions. ..................................................................................................................................3
P2 Analysing the way organization vision and leadership, culture and teamwork can shape
innovation and commercialization. ............................................................................................6
TASK 2............................................................................................................................................7
P3. Identifying the 4 P's of innovation and identifying utilization of innovation funnel for
shaping innovative ideas.............................................................................................................7
P4. Development of frugal innovation and analyzing the way it is used in the organizational
context ........................................................................................................................................8
TASK 3 .........................................................................................................................................10
P5. Importance of commercial funnel and application of new product development ............10
P6. Building innovative business case for an enterprise ..........................................................10
TASK 4..........................................................................................................................................11
P7. Evaluating the different tools which company can utilize for developing, retaining,
protecting intellectual property ................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation can be defined as changing procedure which is conducted in order to make
more effective products. It includes implementation of new ideas in order to bring improvement
in existing goods or services. In present competitive environment, innovation is essential in order
to achieve leading position in an industry. Commercialisation can be referred to as procedure
through which new product or services is launched in the market. Innovation is also very much
essential in order to drive an organisation towards success.
The report have focus on analysing the difference between innovation and invention.
Study also emphasizes on exploring the way organisational vision, leadership, culture and team
work can shape innovation in context of Essence drinks. The importance of commercial
innovation will be highlighted in the report. Some tools will be suggested which can be used by
organisation for retaining as well as protecting knowledge and intellectual property.
TASK 1
P1. Defining innovation and determination of its importance to company in comparison with
inventions.
Innovation can be defined as the process of developing new products or services. It is the
procedure which can also be executed for bringing improvement in existing goods or services.
Innovation can also be referred to as procedure of translating the ideas into products or services
which creates value for customers. It can also be considered to be as application of better
solutions for meeting the requirements of customers or market. Whereas, invention can be
defined as execution of fresh thought into reality. In context of essence drink, it is very much
essential for an enterprise to facilitate both invention and innovation as it will assist them in
accomplishment of desired business objectives. In addition to this, by facilitating innovation as
well as invention, essence drink company can gain competitive advantage in the market
(Pynnönen, Hallikas and Immonen, 2019).
Innovation is very much crucial in order to deliver high level of satisfaction to customers.
In context of essence drink, an organization should facilitate innovation as it will assist them in
maintaining the business sustainability in long run. Innovation is basically a creation of new
ideas which are not just represented by implementing new ideas and processes. For instance,
digital payment method. In context of essence drink company, the drivers of innovation are
courage, thinking, differentiation and intellectualize.

Invention is completely different from innovation. Invention is basically involves
creation of completely new products. For instance, invention of mobile phones.
Distinguished between innovation and invention are :
Innovation Invention
Meaning Innovation can be defined as
innovating or creation of
something new. It also
involves bringing
improvement in existing goods
or services.
Invention can be referred to as
creating completely new
device or procedure which
never exist before.
Significance Innovation is important in
order to drive firm towards
success. It is also very much
crucial for maintaining the
leading position in industry.
Innovation is very much
essential in order to retain
profitable customer from long
time. Innovation is also
important in order to foster
business growth.
Invention is very much
important in order to
accomplish desired business
objective. It is very much
essential in order to attract
more new customers.
Purpose In context of Essence drink,
the main purpose of innovation
is to gain competitive
advantage.
The main objective of firm in
context of invention is to solve
specific business problem in
new way.
Actions Innovation includes bringing
improvement in existing
products or services.
Invention involves discovery
of new procedures as well as
ideas.
Reach In context of essence drink,
innovation is spread within an
Invention is restricted to the
research and development

enterprise. department with an
organization.
Concept It is the secondary thought to
related to the development of
existing goods or services.
It is the primary thought
related to the development of
brand new product which does
not exist before.
Sources of ideas The competitive environment
Need recognition.
In context of essence drink
Drivers of innovation are
Decline in sales and
profitability of an organization
(Do, Volery and Reboud,
2018). Decrease in the
demand for specific company's
product in the market.
Ideas related to the invention
of new product is generated
through market analysis. In
addition to this, main source
of invention is innovation in
industry.
Occurrence Innovation take place when an
enterprise realizes the need for
bringing improvement in
products or services.
Invention takes place as soon
as an idea strikes in person's
mind.
Concerned with Innovation is mainly
concerned with bringing
improvement in multiple
existing products.
Invention is mainly concerned
with creation of single product.
Examples The most example of
invention is telephone.
The example of innovation is
launch of of I phone by apple
company.

As compared to invention, innovation is much important as it provides company an ease
in adapting themselves to changes in macro environment. It is the procedure which has
supported essence drink in fulfilling the needs and meeting the expectation of customers in the
market. In context of essence drinks, an organization has introduced new flavors in the drink
which has assisted business entity in achieving success.
P2 Analysing the way organization vision and leadership, culture and teamwork can shape
innovation and commercialization
Diversity can be helpful as well as beneficial in context of facilitating innovation at
workplace. As it enables the bringing of new ideas together which can be implemented in order
to solve specific business problem in new way. In context of essence drinks, it is the open culture
which enables employees to share their views as well as ideas. Implementation of ideas into
reality is only possible through an effective team work. Development of the clear vision is very
much important in order to enables an individual in making their significant contribution in the
innovation procedure. It is the clear vision which provides employees with the ideas related to
execution of activities which are required to be performed in order to accomplish desired
business objectives. Innovation procedure is completely based on the leadership. It is leader who
create vision (Bilandzic, Foth and Hearn, 2018.). In addition, to this, adaptive structure is very
much important in order to sustain the procedure and make it effective. The manager in essence
drink company is required to clearly defined the goals, mission and value of an organization, as
this tactic will assist team member in getting the guidance in order to help an enterprise in
commercialization. Leader is a person those who facilitate innovation. Leaders are those people
who inspire employees to facilitate innovation. In context of Essence drink company, leaders by
recognizing as well as appreciating the creativity of an individual encourage other people to
facilitate innovation. In addition to this, leaders in an essence drink company created the open
culture in an enterprise in order to enable employees to share their views as well as opinions.
They have taken high initiative to create creative culture at workplace for supporting workers in
development of creative ideas.
For example, In context of essence drink company, it is the organizational structure
which has assisted an enterprise in facilitating innovation. Vision of an organization has assisted
employees in realizing the needs as well as importance of innovation at workplace. In context of
essence drink, leaders communicate the vision to employees and provide the strategies as well as

instruction to their subordinates which can be helpful for them in order to implement new ideas
(Ardito, 2018). Vision of the essence drink company is to provide customers with the best
quality of healthy drinks as well as services to clients, for this an enterprise need to bring
innovation. So vision of an enterprise has great effect on invention as well as innovation
procedure. Teamwork is very much important in order to identify as well as implement
innovative ideas. For example, In context of essence drink , leaders in an enterprise is required
to ensure that all the employees are working for accomplishment of set business goals, as it will
assist firm in providing quality as well as best services to customers. It is the team which assist in
formulation as well as implementation of innovation procedure to supports in
commercialization.
TASK 2
P3. Identifying the 4 P's of innovation and identifying utilization of innovation funnel for
shaping innovative ideas
Innovation can be defined as the procedure through which an enterprise develop the new
ideas for bringing improvement in existing products or services. In context of Essence drink, the
4 P's in innovation mix which an organization apply are:
Paradigm : It can be referred to as planned procedure which is executed by companies in
order to bring positive transformation in the way different business activities are performed. In
context of essence drink, manager in an enterprise has developed an effective plan in order to
conduct business in changing situations and conditions. As company is planning to launch
healthy drink with innovative flavor in the market, it would be difficult for an enterprise to
influence people to buy product.
Product: It is basically goods which are offered by an enterprise to customer in exchange
of money. In context of essence drink organization, launch of new healthy drink with innovative
flavor will assist an enterprise in increasing business value. Introduction of launch of innovative
essence drink will support firm in gaining the competitive advantage. Product is one of the main
element in the innovation mix though which innovation as well as commercialization is done.
Procedure: It is basically a way through which companies delivers products or services
to customers. Success of an enterprise is completely dependent on the length of the procedure
involved in the delivery of goods or services. If in case the delivery process is short then it will
increase the chances of success (Kim, Park and Paik, 2018). Lengthy delivery procedure can lead

to the high level of dissatisfaction among customers. In context of essence drink, it is essential
for an organization to make the product delivery procedure short as it will help firm in providing
high level of satisfaction to customers. It will also assist will help an enterprise in ensuring
success.
Position : In context of essence drink company, by facilitating invention as well as
innovation an organization want to achieve leadership position in industry. Business entity
intends to achieve leadership position in the market by providing quality services and products to
customers.
Innovation funnel of essence drink
It can be referred to as procedure of developing new ideas. Innovation funnel describes
the phases by which an idea could be best in context of providing better services to customers.
Innovation funnel can be beneficial as well as helpful in maximizing the goals as well as
objectives. In context of essence drink , initial phase in the innovation funnel includes gathering
of information about the customer's needs as well as demands. It is a phase in innovation funnel
which mainly deals with identification of the best ideas in order to cater the needs and demands
of customers. The next step in innovation funnel includes screening of ideas which has been
generated (Morrish, Whyte and Miles, 2019). This phase also includes selection of the best ideas
which can be implemented for meeting the expectations of clients. Then the last phase is the
evaluation of idea in context of the opportunities as well as consequences faced by an enterprise
due to execution of specific ideas. In context of essence drink, implementation of idea related to
the launch of healthy drink with innovative flavors can help an organization in increasing its
sales and profitability.
P4. Development of frugal innovation and analysing the way it is used in the organizational
context
Frugal innovation can be defined as procedure of inventing new products or services in
relation to the scarce resources of nation. Idea of inventing new products or services is also based
on other external variables such as political, environmental, legal and social factors which might
influence an enterprise's decision related to facilitation of innovation. It is changes in macro
environmental factors such as social, economic, political and environmental variables which

might encourage an organization for frugal innovation. All the external factors in business
environment plays very crucial role in shaping the innovation procedure. Frugal innovation can
be defined as procedure of developing a product by minimizing the expenses to a greater extend
(Schot and Steinmueller, 2018). It is considered to be as modified ideology where investigation
shows that an organization can gain win-win situation by taking high initiative for reducing the
poverty from the society. Frugal innovation is mainly concerned with identifying the suitable
ways through which an organization can create high quality of goods within limited budget.
Some of the example of frugal innovation is Toyola charcoal stove, 3 D printer, Tat nano car
etc.
In context of essence drink organization, development of frugal innovation has assisted an
enterprise in minimizing the complexity in production procedure and has provided firm an ease
in delivering quality services to customers. In context of essence drink, the fundamental
objective of an enterprise behind implementation of frugal innovation is to redesign the
procedure through which flavored healthy drinks are made (Lawton Smith, Bagchi-Sen and
Edmunds, 2018) . In context of essence drink company, business entity has implemented frugal
innovation in order to provide high value proposition to customers.
In context of essence drink, sales and revenue is considered to be as lifeblood of an
organization. (Wonglimpiyarat and Billington, 2018). An organization might might take the
possible innovative ideas which are as follows :
Getting social : An enterprise can engage its customers Through social media by creating a
compelling interaction between business as well as public. The company's social media persona
will be driven by the partner with a reputable online marketing firm.
Sponsor community events : Essence drink organization is required to capture the marketing
opportunities as it will assist an enterprise in fostering business growth. Business entity can form
strategic partnership with other organization in the market, as it will support firm in fostering
business growth. Essence drink organization can participate in the social program as it will assist
them in getting the high brand visibility in the market which is very much important top increase
sales (Wang, 2017.). The eight important steps which can be taken by an enterprise to derive an
innovative and new drink includes :
 Be first to market and find the price-inelastic and latent demand.
 For operating profit growth, the company has to reshape the portfolio.

 To delivery of operating profit growth, the company has to link the performance of the
function.
 Don't get trapped by the balance of power; the company should tackle it.
 The company should create a value-creating mid-term strategy to its retail partners.
 Make targeted and efficient use of commercial investment.

In context of essence drink it is required by an organization to form strategic partnership
with other enterprises in an industry, as it will provide them ease in generating brand awareness
in the market.
TASK 3
P5. Importance of commercial funnel and application of new product development
Commercial funnel can be defined as the buying process that companies lead customers
through when purchasing products. The commercial funnel is also recognized to be as purchase
funnel. It basically demonstrates the journey of customers before purchasing the products or
services from company. Commercial funnel consists of basically five phases these are
awareness, opinion, consideration, preferences and last is purchase. In context of essence drink
company which is located in United Kingdom. Business entity only offers only one healthy drink
to customer that is mango lassi . In context of essence drink , firm has able to increase the sales
of its products due to its distribution capability as well as innovative formula. It has been
analyzed from the given case scenario that there has been great decline in the sales of firm during
the third year (Vanhaverbeke and et.al., 2017). The reason for decrease in the sales of healthy
drinks offered by essence drink company is launch of flavored lassi by other s in the market. An
enterprise in order to deal with specific problem is required to offer health drink with different
flavors to customers. In addition to this, business entity need to concentrate on the quality of
drinks, as it will provide firm an ease in attracting more number of customers (Weissbrod,
2019.). Firm can introduce healthy drink in different flavors as well as an organization can add
highly nutrition value in the drinks.
The process of new product development includes different stages these are :

Generation of ideas: It is the phase where essence drink has taken the high initiative for sourcing
of ideas related to the product development. Business entity has conducted the market research
which has assisted them in generation of ideas related to product development.
Screening of ideas: It is stage, when screening of ideas is done by manager in order to address
viable ideas. Manager in essence drink has taken opinions from employees, investors and
customers related to product development.
Concept development: Marketing manager in essence drink has executed through research for
identifying the potential costs, revenues and profits arising from the product. Market research has
also helped firm in identifying the target market as well as customer group on the basis of
segmentation is done by organization.
Product development: In context of essence drink, manager ha finalizes the actual flavor as well
as packaging of mango lassie.
Commercialization : It is a phase, when the product that is flavored Lassie is finally launched by
essence drink company in the market.
P6. Building innovative business case for an enterprise
From the give case study, it has been analyzed that there is great decline in the sales and
profitability of essence drink organization. Management in an enterprise need to find innovative
ideas for increasing sales. Personalized marketing and direct distribution strategy can assist
business entity in increasing sales. In addition to this, marketing manager in essence drink
organization can use digital technology such as social media for promoting products or services.
As digital marketing strategy will assist an enterprise in reaching to the wide number of
customers. It will also help business entity in promoting the brand at large scale. In addition to
this, an enterprise by launching the innovative products can attract more number of customers
(Tanev, Rasmussen and Zijdemans, 2015).
Advertise is considered to be as another effective promotional tool which can be adopted
by essence drink organization. The factors which are required to be considered by marketing
manager in essence drink company are money, message, media, and measurement before
implementing the idea of promoting products or services through advertisement method (Teng,
and et.al., 2019). The different tools which can be utilized by business for the direct marketing is

internet, broadcast, print media etc. In addition to this, environmental testing can be performed
by essence drink organization for measuring the effectiveness of new product which is to be
launched in the market. In context of essence drink organization, manager need to create a
budget for business.
TASK 4
P7. Evaluating the different tools which company can utilize for developing, retaining,
protecting intellectual property
In context of essence drink, an organization can utilize different tools for developing as
well as protecting intellectual property rights these are :
Patent : In context of any invention, the patent right is considered to be as property right of
inventor.
Advantages of Patent : the main advantages of the patent is that it assist in preventing the copy
invention. It also assists in preventing the use of invention without permission of inventor.
Disadvantages:The main drawback is making the application for patent means sharing of
particular information about invention public ally disclosed. In addition to this, making the
application for patent can be quite time-consuming procedure.
Trademark : It is basically symbol, design, logo of company which assist customers in
identifying the products or services offered by particular brand. Trademark helps firm in
differentiating its products or services from that of competitors (Weyrauch and Herstatt, 2017.).
In context of essence drink organization, business entity can attain trademark for a tagline,
captions and business name.
Advantage of trademark: The main advantage of trademark is that it assist owner in protecting
the logo from being copied by the competitors. The major drawback of trade mark is that it is
possible to obtain basic protection for a mark from federal courts.
Copyright : It is only granted to the owner who has reproduced the material. The application of
copy right is marked with the intention of protecting the expression of ideas. It is considered to
be as an effective tool for developing as well as preventing the creative work (Osoro, Kirama and
Vermeulen,2017).
In context of essence drink organization, business entity can utilize the data protection
policy for protecting the intellectual property right. It is required by enterprise to identifying the
requirement which needs to be fulfilled in order to get intellectual property right eligible for

trademark as well as copyright. In addition to this, business entity is also required to take legal
actions for their workers in order to protect intellectual property right. In addition to this,
Manager in essence drink company is required to provide training to employees related to the
techniques which can be utilized by them from preventing their personal data from being used by
other person (Yin, Shi and Yan, 2014). Business entity is required to implement special policy
as well as system for storing of information, as it will assist them in ensuring the legal and fair
use of important business information.
CONCLUSION
It has been concluded from the report that innovation is very much important that helps
firm in order to maintain its leading position in industry. The other fact which has been
discovered from the study is invention occurs through the innovation in industry. It has been
concluded from the assignment that business vision, organizational structure has great effect on
innovation procedure. From the above report it has been summarized that an effective team work
is very much essential in order to ensure successful implementation of procedure at workplace.
The other fact which has been discovered from the study is that by implementing the frugal
innovation firm can develop innovative product within limited budget.
It has been suggested that an enterprise is required to conduct through market analysis as
it will assist them in generation of new ideas. An enterprise is provided with suggestion to
facilitate both invention as well as innovation, as both strategies will help them in maintaining
long term business sustainability in the market.

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Online:
Innovation Funnel. 2017. [Online]. Accessed through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>.