Analysis of Innovation Strategies and Processes

The given assignment involves analyzing innovation strategies and processes, including the 4Ps of innovation, frugal innovation principle, and new product development process. It also requires an in-depth examination of several research papers on innovation management, highlighting key concepts such as creative self-efficacy, resource allocation strategy, and the role of openness in service innovation. The assignment aims to provide a comprehensive understanding of innovation strategies and processes, making it a valuable resource for students and professionals interested in this field.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Innovation and determine its importance to organisations in comparison with invention1
P2.Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation...................................................................................................................2
TASK 2............................................................................................................................................4
P3.The 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas......................................................................................................................4
TASK 3............................................................................................................................................6
P5. The importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation..................................6
P6. Build an Innovation Business Case for an organisation, including ways to access funding 8
TASK 4..........................................................................................................................................10
P7 Evaluation of tools to develop, retain, protect knowledge and intellectual property .....10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is considered as a methods of creating something new into products or
services that develops value for which consumers will pay. It is also the means of modifying the
models of business organisation as well as adopting to changes in surroundings to deliver
effective products or services (Bigliardi and et.al, 2013). This whole report is on Essence drinks
that was introduced 2 years ago and Akshay Kumar is the founder of the company. The firm is
providing healthy mango lassi into the United Kingdom market but after 3 years their sales
initiate reducing. Therefore, the founder thinks to bring something innovative into lassi market of
UK. So, the purpose of this report is to explain innovations and their importance. Comparison of
innovation with invention. The organisational vision, culture, leadership as well as teamwork
that shape innovation. 4P'sof innovation and the utilisation of innovation funnel to examine
innovative ideas. Frugal innovation developments with examples and importance of commercial
funnel. Application of New Product Development(NPD) processing for commercialisation of
innovation. Development of innovation business case including the manner to access funding.
Apart from this, various tools that are use by firm to develop, retain and protect knowledge as
well as intellectual property are also, mentioned in his report.
TASK 1
P1.Innovation and determine its importance to organisations in comparison with invention
Innovation is refers as a process which mostly concentrate on rising something innovative
into marketplace for the longer periods of business success. The company Essence Drink is the
small scale firm that serves healthy mango lassi in UK market. But after few years their sales are
minimising significantly so Akshay Kumar the founder of the respective company think to come
up with some innovative in their products that is lassi. Therefore, the innovator suggests to bring
Green tea lassi with Papaya as it is healthy or tasty as well because this will boost immunity and
soothe a sore throat of people. There are various significance of the innovation for respective
organisation are mentioned below:
 Innovation outcomes in enhancing Essence Drink sales and assists to generate revenue.
Also, new or creative products offerings according to the requirements as well as
demands of consumers outcomes in maximising its satisfaction level and loyalty (Collyer,
2017).
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 This also support in developing goodwill into marketplace that are essential for attracting
more numbers of clients. This aids in attaining the objectives Essence Drink in specified
time period.
Apart from all this, innovation is crucial for whole company as well as the employees as
this act as a growth and improvement tool for firm. So, Essence Drink is plan to come up with
Green tea lassi with Papaya to satisfy the wants and requirements of clients and also for
maximising sales. Furthermore, innovation as well as invention both are generally different from
one another. The USP of the Essence Drink is lassi the founder want to create innovation into its
existing products instead of replacing it from other invention. So, respective firm are not
implementing any kinds of invention as if it will change their USP then its sales minimises
automatically. The comparison between innovation and inventions are explained below:
Basis Innovation Invention
Definition It means applying create ideas into
existing products (Davies and Horst,
2015).
It is occurrence of ideas or thoughts for
goods that have been not performed as
yet.
Concepts Creative ideas are executed in practical
way.
Original ideas and their process into
theory.
Skills needed Many skills are needs like strategic,
creative, technical, marketing and so on.
Herein scientific skills are needed.
Activities Its activities are spreads into whole
firm.
Its activities are bounded up to research
and development section.
What is it This adds value into existing products
or services.
In this newly products will be
developed.
Focus on Its focus on accumulation of various
products and activity.
Its focus mostly on specific methods or
entire process.
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P2.Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
For all firm, it is important to has clear visions regarding predetermined objectives. For
successful growth of Essence Drink and obtaining effective position into market so it is
significant to deliver objectives, mission and vision of the business enterprises to all employees
effectively. Given company should have strategic vision that is needed to for smooth running of
business for longer period by improving the goodwill and image into marketplace (Doloreux and
Shearmur, 2013). Thus, leadership, team work, vision and culture perform crucial role in process
of innovation and commercialisation in many ways because of its vast concept. All there are in
context of company are explained below:
Vision: The vision of Essence Drink company is to provide healthy as well as flavoured
Green tea lassi with Papaya to individuals across UK. Furthermore, it want to improve people's
living through healthy available choices. By Green tea lassi with Papaya, the firm want to
become the leaders of specific market and through satisfying requirements of consumers that
outcomes in business enhancement.
Leadership: Into the process of innovation, firm leaders plays crucial role in executing
the ideas of Green tea lassi with Papaya as its their accountabilities to perform for firm's
development. In respective company, leaders plays essential role in maintaining effective
relationship among workers as well as employer as through this innovation executions become
simple (Etzkowitz and Zhou, 2017). Also, leadership play significant role into organisation as
leaders as well as manager are that people who handle and control whole operations in better
way.
Culture: In innovation process, the culture of the organisation play important role as this
includes values, regulations, norms, beliefs and rules that are executed through senior authority
for successful operations of Essence Drink. If the culture of the firm is comfortable and easy
adapting then it will be simple to execute innovations in existing products that is Green tea lassi
with Papaya. Furthermore, organisational culture should be friendly as well as positive in order
to satisfy workers those who are working in respective company.
Team Work: In firm it is essential to have team for various activities in order to handle
the things easily without having any types of burden on employees. By team work the company
Essence Drinks can attain their predetermined objectives. As at the time of executing innovation
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respective firm has to develop appropriate group that can able to perform on it as well as obtain
success. Although, teamwork is crucial for performing task at specified time periods and in
effectual manner.
TASK 2
P3.The 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
Innovation refers to developing or bringing new idea in the form of goods and services
which consumers have never experienced before. It is creative process which requires creativity
on the part of businessmen to either add some unique element in the existing product or
launching a complete different content (Hu and Zhao, 2016). The main aim of adopting this
practice is to acquire competitive advantage in the market. Innovative formula like mango lassi
in the UK market was the reason for the increased sales of Essence drinks in the first year. There
are four main P's of innovation which are being discussed below in detail:-
Paradigm- This factor is connected to changing perspective of seeing business, It
involves looking at same thing in a different way, Initially lassi was not considered as potential
product to sell in the UK market but the success of essence drinks changed the mindset of lot of
people and as a result many competitors entered into the market with offering wide range of
drinks. It is concerned with changing the the way things have been done in the company bringing
new model in the structure of organisation.
Position- It relates to the perception of customers towards the organisation and what is
the image of society in the market with regards to employees, subcontractors partners etc. Thus
there are various factors on the basis of which people form an opinion about the organisation. It
is essential for the company to position themselves other than just goods selling entity. Living
up to the expectations of buyers is the key element (4P's of innovation. 2015). To be able to
survive in the market Essence drinks has to bring a new different category other than just
offering lassi because the consumers perceive the this organisation based on that only.
Process- This is concerned with not just the process of constructing goods and services
but also other activities like selling, accounting, marketing, supplying etc. Introducing new ways
of performing an activity either by eliminating existing one or modifying, adding additional
processes in the structure. Essence drinks has to bring changes in the manufacturing and
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distribution process of goods. Like the lassies should be sold online or delivery process should be
quick. The company has to bring improvement in this factor so that attention of customers can be
gathered which will result in increased profitability.
Product- It is a very common innovation techniques used by the organisation. Under this
adding new elements in the existing products is the part of innovative strategy. Essence drinks
can offer green tea lassi with papaya flavour and with new packaging, Introducing new product
in the market or enhancing the existing one are the possible ways in order to experiment with the
products. They can be in different colour, sizes, ingredients etc. This strategy help in luring
customers by offering them something new to look forward to.
Use of innovation funnel in examining and shaping idea:
Innovation funnel is model used by the organisation to evaluate and conceptualise new
ideas. It explains the procedure of developing product in order to cater to the needs of market by
creating new innovative products or process. The stages of this framework is opportunity
assessment, insight, conceptualisation, evaluation and benchmarking, feedback and launch
interest and evaluation. Research and development department often uses this method in various
organisation (Keskin Diehl and Molenaar, 2013). Enhance drinks should apply this model by
first acquiring knowledge and think of many ideas as much as possible. Information can be
gathered from various sources such as competitors, customers and various business institutes
afterwards designs should be made and testing needs to be done to check their responses at the
end decisions are made weather to got with the idea or not if yes then products can be launched
in the market.P4 Developments in frugal innovation and their uses in the organisational context
The term frugal innovation refers to innovation in the product and services with the
available resources. This concept is adopted by the businessmen in response to the scarcity of
resources. It can be done through innovation in the design of existing product, processes,
developing technology that can produce innovative products at low cost. There are different
principle of this process are as follows:- Find opportunities in adversity- Following this principle Essence drink has to find new
opportunities that are beneficial for the company sometimes in threats prospective
opportunity is hidden which needs to be identified hence Organisation should
consistently scan the business environment to identify potential elements.
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 Do more with less- According to this essence should find new ways to develop it's
product with in the limited resources. This is based on the optimum utilisation of
resources philosophy. Think and act flexibly- Rigidity can be roadblock in the innovation therefore
organisation needs to be flexible enough to accept changes. Also business being complex
activity requires modification from time to time. Keep it simple- Introducing too many categories can make the work more complex
therefore it should stick to producing one drink by giving complete focus to that.
Involving too many things in the structure can complicate the business. Follow your heart- The organisation should passionately follow their objectives and face
failures fearlessly as bringing change requires ability to overcome tough situations
(Frugal innovation principle. 2019).
 Include your margin- This is associated with gaining complete information about
customers and keep itself updated with their changing taste and preferences. Evaluating
the demands of customers will provide commitment and loyalty from them.
Uses in the organisational context:
Essence is produce innovative lassi by adding new flavours and ingredients like green tea
and papaya. The company has is effectively using existing raw material and techniques and
making new products to gain competitive advantage. It is also connecting with suppliers and
other sources to create innovation in it's operation. For example the company can shorten the
time of delivery and offer quick services to their clients. This will help in improving the
efficiency and profitability of organisation.
TASK 3
P5. The importance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel is considered as a way which consists three phases that applied to
reform recent products through executing various advantageous policies and strategies
(Klingebiel and Rammer, 2014). Thus, it is that funnel which is essential for Essence Drink
growth. Explanation regarding this is provided below:
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Pricing Policy: The company of Essence Drink is providing its products that is Green tea
lassi with Papaya at reasonable cost that can be affordable all kinds of consumers. As usually
clients do not want to pay more for offerings. With the help of commercial funnel firm can
formulate policy for pricing by finding the behaviours of the consumers regarding various
pricing.
Improving ways for business growth: Commercial funnel is considered as a necessary
concepts into the growth of business organisation. As with the assistance of this all levels of
consumers can be identified into funnel then satisfy the wants and requirements of consumers. It
is the methods that outcomes in enhancing level of sales and profitability.
Growth of technology advancement: Essence Drink can can apply this funnel for
introducing its innovation into marketplace that is Green tea lassi with Papaya that can be usually
considered after lunch or dinner.
Execute investigation programs: For Essence Drink, it sis crucial to performed research
so that it can collect information regarding the consumers wants as well as requirements and also
situation of the market. Within this process, commercial funnel play essential role that is
compulsory for bringing the innovated products in marketplace and obtaining success.
New product development is refers as a lengthy process and also it includes various steps
that are mentioned below:
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Illustration 1: New Product Development Process
(Source: New Product Development Process, 2019)
 Idea Generation: It is the initial step to bring innovation into lassi is to develop creative
ideas through conducting appropriate research. Therefore, it is essential to gather
information for innovating existing products. Idea Evaluation: It is the second step, herein ideas that are generated through junior
innovation consultant will be evaluated so that ideas that are not worthy will be obviated
(Nählinder, Tillmar and Wigren, 2015). Concepts Definition: After evaluating the ideas the concepts of launching Green tea lassi
with Papaya will be approved. Strategic analysis: Herein, Essence Drink manager have to ensures that idea of Green
tea lassi with Papaya set in the strategy of business as well as ascertaining cost,
profitability margin and demand. Product development and testing: Herein, Green tea lassi with Papaya will prepared and
its testing are done.
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 Market testing: Herein, Green tea lassi with Papaya marketing testing performed as per
the producers, consumers, feedbacks and reviews. Also, in this appropriate timing for
launching product into marketplace. Commercialisation: In this Green tea lassi with Papaya price will be ascertained with
their marketing plan.
 Product Launch: it is the last step, where the company Essence Drinks launched their
innovative products that is Green tea lassi with Papaya into marketplace.
P6. Build an Innovation Business Case for an organisation, including ways to access funding
Business case is that where firm gather whole essential things which are need for
attaining the business objectives (Park and Jeong, 2013). This is crucial for company to view
overall items so that it can influence upcoming Essence Drink firm operations in successful way.
Furthermore, business case can be build in both manner that are verbal as well as non verbal
which involve appropriate information regarding business and its working.
Executive Summary: Business case of the firm Essence drink that is launching Green
tea lassi with Papaya into marketplace of UK. In order to bring this product, organisation has to
formulate appropriate market strategies that includes Porter's five forces model, SWOT and
PEST so that execution of innovation outcomes in business success as well as growth.
Mission Statement: The mission of Essence Drink is to prepare healthy lassi as it believes in
providing healthy, tasty and flavoured drink that leads towards healthier individuals. Mission
statement purpose Essence Drink are:
 Developing consumer satisfaction through providing products that exceeds the desires of
clients.
 Make sure usage of standard quality raw material for producing healthy flavoured lassi.
 Develop trademark by creative marketing.
Resources: There are various assets, raw materials that are required to be follow by
company in such a means that it can handle innovation in effective ways (Pfeffermann, Minshall
and Mortara, 2013). Appropriate resource arrangement is essential that are need for
accomplishing regular activity.
Market analysis: For Essence Drink, it is crucial to examine market appropriately to
identify competition level, perceptions of consumer regarding lassi and so on.
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Cost and benefit analysis: Green tea lassi with Papaya cost should be decide after
performing the analysis so that consumer tastes towards various cost will be identified.
Financial Projection: For launching the innovative products that is Green tea lassi with
Papaya into UK market the required funds is approx £15,000.
Ways to access funding:
Funds is considered as a backbone of company without this it can not be possible to meet
the day-to-day needs (Rass and et.al, 2013). In order to launch innovative product into
marketplace, Essence Drink required funds that can be produced from various sources which are
mentioned below:
Bank and Financial Institution: the company Essence Drink take loan from bank and
another financial institution. This is a secured process to generate funds for firm as there are
requirements of mortgage for credit. Also, the interest amount should be paid in respect of
principle amount.
From friends and family: Essence Drink can credit money from its family as well as
friends. Its effective advantage is that the firm do not have to pay interest amount only the taken
money are to be paid.
For Essence Drink bank as well as financial institutions is effective sources of generating
revenue as it is safe and secure.
TASK 4
P7 Evaluation of tools to develop, retain, protect knowledge and intellectual property
Protecting the ideas which are developed by the organisation is very important as there
are chances of somebody else stealing or copying your content and make their own. In this type
of situation various tools are available that helps in securing the organisation's innovations
(Thanasopon, Papadopoulos and Vidgen, 2016). These laws are introduced by the government so
that businesses can get separate identity for their goods and services. Loans are also being
sanctioned based on this aspect. Various features can be secured through this like name, design,
logo, idea, thus there are different ways to safeguarding the innovation of organisation.
Trade secrets- This type of property right begins with the inventor keeping their creative
ideas secret. It helps in protecting the privacy of the innovation therefore no body able to
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discover them before the permission of businessmen they remain unknown in the market due to
this tool. Essence can use this means to protect their fresh content from competitors.
ADVANTAGE:
 These are less expensive than other means as no additional fee or registration is required.
 It can represents a competitive advantage which many be tough to reverse engineer.
DISADVANTAGE:
 Trade secrets are difficult to impose.
 It needs diligent attention to the management as well as enforcement of non competition
and non disclosure agreements, documents marking, limiting information access and so
on.
Trademarks- This tools is related to allotting significant sign, design or expression to the
product or services for differentiating them from competitors in the market. Essence drink could
protect the identity of their lassis by registering and assigning a trademark on the packaging.
Various brands use this tool before marketing their products for example apple.
ADVANTAGE:
 The main advantage of its is associated with protecting the rights even on international
level.
 Its effective advantage is that there are not any statutory limitation for the trademarks life.
DISADVANTAGE:
 While adopting this method is tedious as evidence have to shown on regular basis.
 Trademarks are at risk of genericide that occurs when the people starts to associate a
brand with general products of similar utility.
Copyright- It is also one of tool that helps in protecting original work, this is concerned
with granting rights to owner and ensures that based on what condition original work can be used
by others (Wiek and et.al, 2016). This tool could be used by the owner of Essence to maintain no
other company can use their ideas without their approval. For example if company is using
certain music in their advertisement this can be copyrighted to prevent others from using it.
ADVANTAGE:
 It permit others to use it.
 It is not so much expensive as well as easy to register.
DISADVANTAGE:
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 While ownership still remains in the hands of owner is a major drawbacks.
 It protects the expression of an idea not the idea itself.
Patent- Using this tool company can exclude the possibility of others selling, making,
inventing and importing their work. This intellectual property ensures that rights of products,
service or ideas remain reserved in hands of owner. Essence can patent their new innovation by
taking rights from the government for it's product and services.
ADVANTAGES:
 It gives right to protect the innovation from copying, selling or manufacturing.
 It facilitates superior rights when wilful infringement occurs.
DISADVANTAGE:
 This process is also costly and time consuming.
 Patent facilitates for only a relatively short economic life as compared to another IP
types.
CONCLUSION
As per the report it has been concluded that innovation is significant element for the
success of organisation it helps in providing competitive advantage in the market. This is related
to introducing new feature in the existing product or developing completely something new to
entice customers. Though there is difference between innovation and invention where invention
is related to creating something new while the latter deals with differentiation in the product
form. It requires vision, mission leadership, culture and team work on the part of organisation.
There are four main P's of innovation are paradigm, process, position, and product which helps
the organisation in building unique characteristic. Different types of tools such as trademarks,
trade secret, patent and copyright ensures the protection of company's ideas and content from
getting copied or steal. Therefore every organisation has to develop effective business case for
increasing profits and acquiring market share.
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REFERENCES
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Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
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Hu, B. and Zhao, Y., 2016. Creative self-efficacy mediates the relationship between knowledge
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Keskin, D., Diehl, J. C. and Molenaar, N., 2013. Innovation process of new ventures driven by
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Nählinder, J., Tillmar, M. and Wigren, C., 2015. Towards a gender-aware understanding of
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