Annotated Bibliography on Innovation Management

This assignment involves creating an annotated bibliography on the topic of innovation management. The provided sources include various academic articles and books that discuss different aspects of innovation, such as brand management, intellectual property rights, and supply chain management. The sources also explore the impact of innovation on businesses and industries, including the effects of supply chain management on technological innovation and the role of guanxi in China's advanced bio-energy technologies. The annotated bibliography is likely to provide a comprehensive overview of the current research and knowledge in the field of innovation management.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Innovation and its importance within the organization as compared to invention.................3
P2 Factors that shape the innovation and commercialisation......................................................4
LO2..................................................................................................................................................6
P3 Determine the 4 p's of innovation and describe the use of innovation funnel to examine and
shape the innovation ideas...........................................................................................................6
P4 Developments in Frugal innovation and also its determine its uses in organization..............7
LO3..................................................................................................................................................7
P5. Importance of Commercial Funnel and Application of New Product Development............7
P6. Build an Innovation Business Case and Ways of access Funding.........................................9
LO4................................................................................................................................................10
P7 Evaluate the different tools that organization uses in order to develop, retain and protect
knowledge and intellectual property..........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is termed as the the action of creating new ideas for development of product
such as additional features in existing products, improved design, launching of the new product
etc. Commercialisation converts the ideas, research or prototypes into viable products.
Innovation and commercialization coordinates with each other in order to deliver the innovation
shore services and programs which connects the vast array of expertise. This report will be based
on Essence Drinks and this company basically deals with only one product which is “Mango
lassi”. Due the huge competition in the market, company have to adopt the innovative products
in order to sustain in the market for long term. This study will help in understanding the
importance of innovation within the organization.
Furthermore, it will explore various factors such as vision, culture, leadership and
teamwork which helps in achieving the innovation and it will also promote various ideas which
fosters and develop the environment and culture of innovation. It will also introduce 4p's of
innovation and identifying the use of innovation funnel. The present study will also helps in
building the detailed innovation business case. Different tools are also described which supports
the nature of innovation.
LO1
P1 Innovation and its importance within the organization as compared to invention
Innovation is one of the main aspect which strengthens the value of the company in the
market by bringing new products and it attracts more customers and thus helps in maximised
sales. In order to increase the sales of the its product in Essence drink, company need to perform
different kinds of innovation which helps the business to sustain in the market (Stojčić Hashi
and Orlić, 2018). There are various different types of innovations generally performed by the
enterprise such as:
Architectural: This is the overall technology skills and lessons which are applied in the different
market within of the product. This innovation is important for the increasing the approach of new
market as long as the new market is receptive.
Radical: This innovation involves the development of new industry in order to carry out the
business process.
Incremental: It is most common innovation which utilize the existing technology and creates
the value to the customer in the form of adding features, design, changes etc. This is important
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for the essence company to adopt this innovation because it assures the changes within existing
product which attracts consumers.
Disruptive: This allows the application of the new process into the existing products in the
market via the latest technology. It is very important for the organization to adopt such
innovation because it helps in providing the same products with various other concepts. It allows
the users to consume dynamic qualities of the product within one existing good.
Comparison chart between innovation and invention
Innovation Invention
Invention can be defined as the creation of the
product or the introduction of the process for
the first time.
The occurrence of an idea for a product or
process that has never been made before is
called invention.
Inventions includes various real life examples
such as invention of iPhones, GPS, Invention
of fire, wheel, optical lenses etc (Gosens and
et.al., 2018).
On other hand, innovation occurs when the
organization make a significant contribution to
the existing product, process or service.
It can also be termed as adding value or
making a change in the existing products.
P2 Factors that shape the innovation and commercialisation
Creating new ideas is the main purpose of innovation, whereas invention helps in
actualising this innovation within the organization. Essence Drink company deals with one main
speciality that is Mango lassi and after the new competition enters into the market, Essence
company suddenly felt huge decrease in the sales. So in order to bring new innovation into the
products of the UK, the company is planning to aid more flavours to the main product of the
company that is Lassi. In order to execute such plan, manager need to effectively communicate
the new ideas among all the staff members within the Essence drink. To implement the
innovation within the drinks, company need to develop an effective plan, manager need to
coordinate various activities within each department of the firm. To innovate new flavour, the
staff members need to be provided proper information and skills regarding the use of such
flavours.
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Although, for commercializing a new product in the market, there are various different
types of factors which affects the process of innovation. Commercialization can be termed as the
process that ensures the aggregation of the all the innovation, invention, marketing and
communication in order to achieve the main objectives of the firm (Lee And et.al., 2018).
However, this innovation may or may not be liked by the customers. So managers need to
initially develop the testing product in order to gain the reviews and feedbacks of the consumer.
This helps in decreasing the risk in innovating new concepts within the firm.
Vision: The vision of the Essence drink company is to provide the variety of flavoured drinks
toComparison chart between innovation and invention the customer. So manager of the
organization need to train the employee to produce the best quality of drinks. Also, it is required
to discover the resources which meets the main objectives of the firm. Finally the
commercialization of the new product into the market is the way to enter into the market by
launching the new product. So the vision of the Essence drink has a great impact on the
innovation and invention process of the company. Also, Essence drink company is going to
develop its online presence via use of technology which all the company to increase its sales.
Leadership: Leader need to motivate the employee for execution of new ideas within the
business in order to effectively implement the innovation within the Essence Drink organization.
Leadership is one of the main factor which allows the employees to sustain the changes within
the company. It helps in increasing the sales of the firm and thus higher profitability. Leadership
is the method of organizing a company according to the organizational goals and objectives
which leads towards the success of the company (Marks and Gottlieb, 2018). There are various
different types of leadership styles which enables the leaders of The Essence company to clearly
communicate the new process and main visions of the company to the workforce in order to
carry out effective and efficient operations. Such leadership styles includes Democratic,
autocratic, participative and laissez-faire. Democratic and participative style is used by the
Leaders of Essence Drink which involves the employees in providing suggestions and ideas to
innovate new process within the firm.
Culture: Organization culture is the aggregate values, norms and attitude of the employees who
are the actual preserver of the company as they know the process of doing things in Essence
drink company. It is one of the great aspect which encourages the employees to implement new
innovation and ideas within the organization. Culture influence helps in creating positive
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environment at workplace and thus it motivates and satisfy the workforce. However, cultural
differences has impact on the process of innovation and commercialization of Flavoured drinks.
Effective culture can help and shape the process of the innovation and commercialization.
Team work: Effective team of the Essence Drink need to be dynamically developed in order to
handle multiple operations. In order to accomplish the main objectives and goals of the company,
it is very important to perform the tasks according to the guidance provided by the leaders and
managers of the company (Yu And et.al., 2018). So dynamic team members within the
organization helps in formulating the process of an organizational and innovation along with the
effective commercialization of the product.
LO2
P3 Determine the 4 p's of innovation and describe the use of innovation funnel to examine and
shape the innovation ideas
Innovation mainly deals with the process that helps in refreshing the regular functional
tasks of the business in form of developing new ideas and concepts into the business. In order to
accomplish the main objective of implementing the action according to the plan of the
organization. There are 4 P's of innovation which enables the organization to identify the positive
and negative consequences of employing innovation within the firm (Kadir and Salim, 2018) . It
is commonly called as innovation mix which helps in enhancing the main areas of the business.
Paradigm: This is the specific innovation category which deals with the employees of the
organization to face the changes of being taken innovative ideas. This Innovation mix mainly
concerned with the changes within the organization. As the Essence Drink company has
innovated new concept of servicing flavoured drinks to the customers and establishing the online
presence of the company to increase customer interaction and maximise the sales of the
enterprise. Paradigm Innovation mix allows the company to analyse the consequences of the
main innovation as a testing which helps in preparing the staff to bear such consequences.
Process: This is the main innovation product which will contribute the company to wards
increased sales and profits. This is one of the important concern as Essence Drink have innovated
new drinks so it may effect the choices of the customer. So the possibility of the success is
mainly determined by the process of production, resources, process of delivery etc.
product : This is main thing which has its physical process and offered to the customer for the
final consumption. This will be valuable to the organization and helps in aiding competitive
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advantage. This is one of the important aspect on which the innovation and commercialization is
done.
Position: Innovation in Essence Drink company may gets effected very badly as it can be
referred as the Promotion in Marketing Mix (Sharma and Kumar, 2018). So it is one of the
objective in innovation and commercialization of the new product.
P4 Developments in Frugal innovation and also its determine its uses in organization
Frugal innovation is the process of inventing new product or services in terms of new
idea towards new scarce resource of the company. It is design innovation process in which the
needs and context of the citizen in developing the world in the form of appropriate, adoptive,
affordable and accessible services and products. It basically helps in discovering new model,
reconfigures value chain and redesigns product to serve the users who generally face the
affordability constraints in a scalable and sustainable manner. Essence company adopts FI in
order to sell the flavoured drinks at low prices. This helps the company in attracting all the kinds
of consumers such as poor, middle class, high class etc.
Moreover, the Essence Drink company generally develop the frugality in order to cut the
R&D expenditure and manufacturing cost of the firm. It can be identified as cost innovation and
good enough innovation which allows the organization to provide for the low technology
products helps in providing the solution for low and medium markets.
Application of Innovation Funnel in Essence drink organization
It is the process of developing the new idea by describing the steps which allows the firm
in identifying the best for providing the better services to the customers (Patel and Pearce, 2018).
There are different types of funnel which by which the ideas can be driven or processed and it
helps in achieving the main objectives of the firm.
In addition to this, The innovation funnel is a mechanism that enables a constant streams
of ideas that can be screened for viability within Essence drink company. The innovation funnel
process is the popular approach for the innovation that is used by many companies in order to
create an innovative action plan. There are various steps involved in application of the
innovation funnel within the Essence Drink company such as:
 Ideas
 Criteria
 Finetuning/testing
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 External environment
LO3
P5. Importance of Commercial Funnel and Application of New Product Development
IMPORTANCE OF COMMERCIAL FUNNEL
Commercial funnel is a system that helps organisations and individuals to able to stream
the ideas which can be screened for attainable. It helps them to innovate successfully. It is also
known as Funnel Management Process. It is a popular approach which is used by various
companies for innovation (Goffin and Mitchell, 2016).
For the innovation, Essence Drinks has to offer different flavour of lassi with superior
quality. Due to increasingly competition in the market of UK, company has to face so many
issues. In the context of Commercial Funnel, the company has to make sure that customers are
aware about the different flavours being offered by company so that they can take interest in
their drinks. After knowing about the products offering, customers will take into the interest in
the products and for give it tries, customers will purchase those products.
It is important for the Essence Drinks Company because it helps company to pick the
marketing strategies accordingly. For example – In the initial 2 years, company had enhanced its
brand image which can help company to attract its customers towards new products by using
advertising strategies or personal selling strategies. It helps business to sales more drinks as it
helps company to know that how to attract the customers towards business for the longer time
(Heding, Knudtzen and Bjerre, 2015).
APPLICATION OF NEW PRODUCT DEVELOPMENT (NPD)
After decreasing the sales of mango lassi. Essence Drinks Company did brain storming to
generate more ideas in order to come with new idea which is “offer new flavours of lassi”. After
generating idea, company did screen and found out that customers will love to try new flavours
of lassi. Company did make new flavours and testing it by tasting the new flavours. After that,
company started preparing the marketing strategies in which they mainly focused on the price
and promotion of the new products. After that they did test of the products with their group of
loyal customers and know about their feedback on the products. After got positive response from
those particular group of customers, company launched its new drinks through different
promotional and marketing strategies (The New Product Development Process (NPD) – 8 Steps,
2018).
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Impact of application of new product development for commercialisation of innovative
drinking products, the scope of further expansion of Essence Drinks Company has opened. It
helps company to grow its market share and earn more profitability. It also helps company to
gain competitive advantages.
P6. Build an Innovation Business Case and Ways of access Funding
INNOVATION BUSINESS CARE
STP STRATEGIES
Segmentation Strategy In this strategy, company will divide the
market into following characteristics such as
Health conscious and foodie
Not health conscious and foodie
Health conscious and not foodie
Not Health conscious and not foodie
Targeting Strategy In this strategy, company will target Health
conscious and foodie & Not health conscious
and foodie audience.
Positioning Strategy Company will choose unique logo for their
brand so that customers can see the logo and
understand the brand. Company can use
various flavours for the good experiences so
that whenever customers has to experience the
taste of lassi, they can come to the company's
shops.
BUDGET
Essence Drinks Company can launch various kinds of flavours of lassi which should be
tasty, sugar free, highly natural and nourishment. Company also can entered into online market
by shipping them to customers who wants it in their home.
For the development of Innovation Business Case, the company have to prepare the
budget which are as follows -
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Expenses Costs
Raw Material £300.00
Manufacturing £500.00
Marketing and Promotion £800.00
Online business £500.00
Management and employees £400.00
Total £2,500.00
Items Units Revenue
Mango flavours Lassi 1 glass £5.00
Plain Lassi 1 glass £5.00
Apple flavours Lassi 1 glass £6.00
Guava flavours Lassi 1 glass £6.00
Banana flavours Lassi 1 glass £6.00
Grapes Banana flavours Lassi 1 glass £8.00
Strawberry Banana flavours
Lassi
1 glass £10.00
Total £46.00
WAYS OF ACCESS FUNDING
Essence Drinks Company needs funding because its sales is decreasing which means its
profits and revenues are decreasing. Thus, for the launch of new drinks and maintain the
sustainability of the business, Company needs funding. For the running business and bearing
daily expenses, company needs working capital and for that they need funding. Company is
starting producing new products and for that they need to purchase more raw materials and more
machines. For that they need funding so that they can purchase required items. For the growth of
the business by entering into new product development market, they need fund which is essential
for the growth of the business (Allen, Qian and Xie, 2018).
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There are various resources available for the Essence Drinks Company which are as
follows -
Angel Investors
It is also known as private investor or seed investor or business angel. Angel investor is
the individual who provide capital/ funding for the business start-up through invest in that
business. Essence Drinks Company can raise fund through wealthy or retired investor who is
ready to invest their investments in the business. With investment, they also provide company
knowledge, network and experience which can be beneficial for the company.
Business Loans
There are some banks who provide business loans to the small and medium size
enterprises and startups. Essence Drinks Company can raise money from that banks and financial
institutions who is ready to provide them money. But here, company have to pay regular interest
in return.
Venture Capital
Venture capital is a type of private equity. It is most common resources for the existing
business to raise funds for growth and expand the business. Essence Drinks Company can raise
fund from venture capitalists. But for that company need to sale their shares to the venture
capitalists and make them their financial partners (Kutzin, Yip, and Cashin, 2016).
LO4
P7 Evaluate the different tools that organization uses in order to develop, retain and protect
knowledge and intellectual property.
Essence Drink is the health drink company of the UK because of the effective distribution
capability and innovative formula, the company has achieved an intense rise in the sales of the
flavoured drinks. So this innovation within the product attract large number of consumer towards
the flavoured drinks offered by the Essence company (Castaldi, 2018). So there is a lot of need
for the company to develop, retain, protect the intellectual property of the basis. So below
provided tools will help in protecting the company fundamentally. Essence drink can develop
and protect knowledge and intellectual property with the help of three fundamental tools which
are described below:
Patent: As the essence Drink company is offering a healthy drink to the people so in ordre to
increase sales of the firm when the company has adopted various innovation within the
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organization, the patent is the property right of the investor. This may be considered as a non
obvious and useful invention which allow the organization to protect the rights of such
innovation from other competitive firms. Patents are meaning and territorial which helps in
protecting the rights of the company in utilising the and non revealing the main ingredients used
in the drinks.
Strength – It will give company the right to stop another company to produce same kind of lassi.
Weakness – Getting patent take too long time, thus it is time consuming process.
Trademark: It is the protection of design, logo or sign that identifies the product of a specific
source or company (Shipley, 2018). It can be generally termed as a logo or brand tag which is
used to represent the product of the Essence Drink company.
Strength – It will help in protecting the business from using their logo by another company.
Weakness – For the trademark, company has to pay a huge amount of the fee for the registration
as well as for the renewal.
Copyright: In case if the company is developing any software for the the efficiency of the
process then creative worrks like computer programs, artistic works and sound recording and
music can be protected by the trademark. Trademark is only granted to the owner to reproduce
the material order to introduce the unique tagline, caption, name and logo for the essence drink
company. It helps in securing the confidentiality and allow the company in protecting the
knowledge of the organization by using the data protection policy. The data can be protected via
various steps such as use of Dada that adopts the fairly and lawful practices. Personal data need
to be stored and staff required to be provided proper training to maintain such data etc.
Strength – It helps business to protect the misuse of the business process by another company.
Weakness – It doesn't give business an ownership for creating something new.
CONCLUSION
From the above study, it has been summarized that innovations is happening since a long
time. It plays an important role in growth of the organization. But not always, innovations helps
organization to sustain its business for long time. Sometimes, it can be harmful for the business
because of high costs of products or competition between companies. Commercialization is a
part of innovation where organization launches its innovative products and services to the world.
It impacts every aspects of the organization whether it is internal or external. There are various
innovative ideas around the business world but not all the ideas are attainable. Commercial
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funnel is an important part of innovation of products of organization. Without them,
organizations and individuals are not able to screen the innovative ideas.
Innovative products and services can't be sale directly to the customers. For that company
need a proper framework which is created by New product development process. NPD plays an
important role in commercialization of products and services. Also, for the expansion or startup,
company needs funding which can be raise by various combinations of resources. Intellectual
property is a part of organization as it saves organization by copying the name, products and
brand for selling their products.
REFERENCES
Books and Journals
Allen, F., Qian, M. and Xie, J., 2018. Understanding informal financing. Journal of Financial
Intermediation.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Heding, T., Knudtzen, C.F. and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Kutzin, J., Yip, W. and Cashin, C., 2016. Alternative financing strategies for universal health
coverage. In World Scientific Handbook of Global Health Economics and Public Policy:
Volume 1: The Economics of Health and Health Systems. (pp. 267-309).
Stojčić, N., Hashi, I. and Orlić, E., 2018. CREATIVITY, INNOVATION EFFECTIVENESS
AND PRODUCTIVE EFFICIENCY IN THE UNITED KINGDOM. European journal of
innovation management. 21(4). p.564.
Gosens, J. and et.al., 2018. The limits of academic entrepreneurship: Conflicting expectations
about commercialization and innovation in China’s nascent sector for advanced bio-
energy technologies. Energy Research & Social Science. 37. pp.1-11.
Lee, V.H. And et.al., 2018. The effects of supply chain management on technological
innovation: The mediating role of guanxi. International Journal of Production
Economics.205. pp.15-29.
Marks, P. and Gottlieb, S., 2018. Balancing safety and innovation for cell-based regenerative
medicine. New England Journal of Medicine. 378(10). pp.954-959.
Yu, H.T. And et.al., 2018. Impact of renal function on outcomes with edoxaban in real-world
patients with atrial fibrillation: a nationwide cohort study. Stroke. 49(10). pp.2421-2429.
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Kadir, K.A. and Salim, J., 2018. Intellectual Property Rights (IPR) Management and Monitoring
Framework for University Innovation Centre. In Knowledge Management nternational
Conference.
Sharma, G. and Kumar, H., 2018. Intellectual property rights and informal sector innovations:
Exploring grassroots innovations in India. The Journal of World Intellectual
Property. 21(3-4). pp.123-139.
Patel, P.C. and Pearce II, J.A., 2018. The survival consequences of intellectual property for retail
ventures. Journal of Retailing and Consumer Services. 43. pp.77-84.
Castaldi, C., 2018. To trademark or not to trademark: The case of the creative and cultural
industries. Research Policy. 47(3). pp.606-616.
Shipley, D.E., 2018. All for Copyright Stand up and Holler: Three Cheers for Star Athletica and
the US Supreme Court's Perceived and Imagined Separately Test. Cardozo Arts & Ent.
LJ. 36. p.149.
Online
The New Product Development Process (NPD) – 8 Steps. 2018. [ONLINE]. Available through:
<https://marketing-insider.eu/new-product-development-process/>
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