Innovation and Commercialisation

Innovation and Commercialisation INTRODUCTION 3 TASK 13 P1.Define innovation and solve difference with invention.3 P2. Innovation and Commercialisation INTRODUCTION 3 TASK 13 P1.Define innovation and solve difference with invention.3 P2.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Define innovation and ascertain its importance to organisations and difference with
invention.................................................................................................................................3
P2. How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation...................................................................................................................5
TASK 2............................................................................................................................................6
P3.The 4Ps of innovation and explain the use of the innovation funnel to examine and shape 6
innovative ideas......................................................................................................................7
P4. Frugal innovation and its use in organisation...................................................................9
TASK 3..........................................................................................................................................10
P5.The importance of the commercial funnel and the application of NPD processing for
commercialisation of innovation..........................................................................................10
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
..............................................................................................................................................12
TASK 4..........................................................................................................................................14
P7.The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..............................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is the process of converting the invention or idea into the products and
services which produces the value for which the clients or customers are paying. The innovation
will further result in satisfying the needs and demand of customers (Aarikka-Stenroos, Sandberg
and Lehtimäki, 2014). This is all about making the product new by innovate it by which the
expectations of the customers are fulfil. In present report, the discussion will take place in
context of Essence Drink, which is a UK based company and sells the mango Lassi about two
years. The organisation earned the great profit in two years but the sales tends to decline when
the firm entered in third year and now they want to enhance their sale by innovate their product
of Lassi. This report will mainly emphasize on the invention and innovation along with the 4P's
of marketing. Essence drink will also be going to apply the frugal innovation and innovation
funnel in the context of the firm. In addition with this, the development of new product and the
commercial funnel will also be discussed to commercialise the process of innovation. Along with
this, the budget is also estimated for the firm and at last, the tools for protecting the knowledge
and intellectual property will also be discussed in the context of the organisation.
TASK 1
P1.Define innovation and ascertain its importance to organisations and difference with invention.
Innovation is said as the significant of the positive change. This is all about something
new or making changes to the existing product. This is to create or produce something more
effective by the unique ideas. This is not just meant of inventing something but it is about
bringing the change in your business model and adopt the change in the working environment
just to deliver the better products and services to the buyers (Brunswicker and Van de Vrande,
2014) . Thus, this is to recommend to the manager of the Essence Drink to innovate their product
of Lassi by adding some more flavoured to it, just like with mango Lassi, they can also sell the
pineapple lassi, apple lassi, mix fruit lassi so that the fruit lovers customers get attract and buy

their product and their sales tends to increase. Innovation can be beneficial for the firm in the
following different ways -
1. Innovation will help the firm to solve the impossible problems in the organisation.
2. Innovation will also help the workforce to enhance their productivity and profitability by
increment in the sale of their products.
3. Innovation shows the unique and hidden qualities in the employees by which they came
to an unique idea of innovating something new in the existing products.
4. Innovation can help the firm to beat their tough competitors and rivals.
5. Innovation will also aid in increasing the brand value and brand recognition.
6. The main benefit innovation provide is have the new partnership and positive , strong
relationships with the employees as well as with customers (Brusakova and Kosuhina,
2015) .
Hence, the firm Essence drink will able to enhance their sale by the above benefits, as
these advantage of innovation will aid them to increase their sale by innovating their existing
product of Mango Lassi.
Comparison Chart of the Innovation and Invention
This is clearly stated that invention is the process of creation of entirely new product
which is never seen before and on the other hand, Innovation is the process of making changes in
the existing product so that firm can increase its sale and maximise more profits. Thus it is
known that the Essence Drink has decided to innovate the Lassi product rather than inventing the
new product. Here is the comparison chart which will define better about both terms -
Basis of Comparison Invention Innovation
Meaning This is about the occurrence of
an idea or invention of the
product which is never been
produced by anyone.
The innovation is define as the
implementation of the idea in
the existing product in order to
make it the new innovative
product.
What is it ? It is the creation and formation
of the new product.
It is about adding the value to
the product which already
exists in the firm in order to

innovate it.
Skills Required Required knowledge, scientific
skills, financial aid and
competence.
Required technical knowledge,
strategic and marketing skills,
financial support.
Concept The fresh idea and its working
in theory.
This is the concept of practical
implementation of the fresh
idea.
Occurrence This is occur when a new idea
strikes in the mind of a
scientist.
This occurs when the firm
feels the requirement to bring
some changes in their existing
product.
Concerned with This is to be concerned as the
Single product or process.
This is the combination of the
various products and
processes.
Activities The invention is restricts only
to the research and
development department.
The innovation is explored in
all over the organisation.
Examples The invention of telephone,
electricity and the printing
press, etc.
Introduction of the
smartphone, TV, tablet, etc.
P2. How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.
This is important to have the clear mission and vision, and an effective culture and leadership
in the organisation so that the goal and objectives of the firm can be attained in better manner.
This is known that the vision, leadership, culture and mission plays the important role in the
innovation of a product. Therefore, this is essential for the firm Essence Drink to set a clear
vision and mission, which should be circulated among the employees so that the firm can sustain
in the marketplace for long period of time (Carayannis, Grigoroudis and Goletsis, 2016) .

1. Vision – The vision of Essence drink is to satisfy the needs and demands of the
customers. The firm is trying to innovate their products by providing the flavoured Lassi
to the buyers so that they get attract and buy their product by which their sales gets
increases. Along with this, if Essence Drink set a clear vision then it will become very
easy for them to understand that which type of product is required to innovate so that they
can attain their goals and objectives.
2. Culture – The culture of the firm Essence Drink must be delight and cheerful so that
each employee has the courage and energy to innovate their existing product and helps
the firm to enhance its sale again. The positive and strong culture helps the firm to
innovate the Lassi by adding different flavoured such as pineapple, apple, and fix fruits
Lassi, etc. Along with this, having diversity in culture of employees at workplace will
help Essence Drink in making positive working environment, so that their staff members
can think and make changes in their product accordingly.
3. Teamwork – The teamwork is essential in a firm to divide the large task into smaller
group so that the target of the firm can be accomplish in effective time frame. This is to
suggest the firm Essence Drink that they should build the teamwork in their organisation
so that their employees can be able to communicate more, which will help them in
innovating the product of lassi.
4. Leadership – The leaders is the one which lead, motivate and encourage his team to
work accordingly and perform their task in such a manner so that the goal of Essence
Drink can be attained. The effective leadership is essential to have in an organisation so
that the leader can guide his team that they have to innovate this product of Lassi.

TASK 2
P3.The 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.
Innovation mix is the business model which states the 4Ps of the innovation. The founder
of this business model is John Bessant and Joe Tidd. The 4Ps of the innovation process are stated
as below -
1. Product : This is about what the company is offering to their targeted customers, as the
Essence Drink is innovating its product by adding more flavours to it. Thus, the firm will
offer the different types of flavoured Lassi to their customers by which their sale gets
increased.
2. Process : This is about how the firm will going to deliver its product to customers. A
proper process should be adopted and followed by the employees of Essence Drink in
order to gain the attention of more customers towards their Flavoured lassi product so
that the sale get increased.
Illustration 1: 4Ps of Innovation

3. Position : The firm is going to analyse the actual position in the marketplace and where it
can get more customers and how they can know the needs and demands of the customers,
so that they can make the changes in their product as per the requirements of the
customers (Carayannis, Grigoroudis and Goletsis, 2016) . This is all about defining the
possible customers and the market segment.
4. Paradigm : This is all about knowing the need that why the product is developed and
what are the uses of this product and defining customers the need of this product.
Innovation Funnel – This is the business model used by many organisations in order to
measure the ideas and conceptualize the products. This is used to define the steps which are to be
used in the development of the existing product. The main aim of this is to find the actual
position of the innovative product in the competitive marketplace. The steps of this model are
outlined below -
1. Opportunity Assessment : This step will analyse and examine the requirements and
expectations of the buyers or purchasers along with the information which is to be
required by the firm to innovate their product of Lassi so that the proper innovation can
be done and the goal can be achieved.
2. Insight based Ideation – This step will define the types of products just to know that
which opportunity will be applied for the innovative product of Essence Drink and this
can be evaluated by doing the research by the direct sources like surveys, online surveys,
etc.
3. Conceptualization – This step will hire an consultancy which will give rise to the idea of
Flavoured Lassi and innovative and design it in such a way that more and more people
get attract towards that and the sale of the firm get increased.
4. Evaluation and Benchmarking – This step will get the feedback and reviews for the
customers by offering them the sample of the flavoured lassi and test the product by
getting the reviews by the purchasers (Chesbrough and Bogers, 2014) .
5. Go/No Go – After the evaluation and testing process, the consultancy will analysis that
the product is beneficial for the customers or not, and this will get further opportunity or
not and the cost of the product is affordable by the buyers or not.

6. Launch – Finally at this stage the Flavoured lassi is launched in the market of UK and
which will be loved by the UK population by which the sale of the firm Essence Drink
gets increased.
P4. Frugal innovation and its use in organisation.
Frugal Innovation – Frugal Innovation is the process of reducing or cutting the cost and
complexity of the goods and the production of the goods. This is generally used to remove
toeliminate the non-essential features from a durable or innovative product. This is very
important for innovating the product and will be very beneficial in developing the extra elements
in the real services of production. Thus, the firm Essence Drink is bringing the flavoured Lassi in
the market so that their sale can be enhanced.
1. New Market opportunities – Before launching the innovative product in the market it is
necessary to know that which product is offered by the other firms in the market and
what strategy is going on in the world of competition (Fabrizio and Tsolmon, 2014) . By
investigation the firm can be able in resulting the positive outcomes by bringing its
innovative product of flavoured lassi in the marketplace.
2. Resources – This is necessary for the firm to utilize the maximum resources for the
development of the product so that the firm can be able to remain in the competitive
market for long period of time and gain or maximise their profit margins.
3. Innovation funnel – This is used to define and describe the stages for the development
of the innovative product (Fu and Mu, 2014) . This is stated that the firm is bringing the
new product in the UK market, such as Essence Drink is bringing the Flavoured Lassi in
the competitive market to gain the attention of more customers by which the sale of the
firm gets enhanced.
Frugal innovation consists of two sections which are stated below -
1. Problem – When a firm is innovating their existing product, there are lots of issues or
problems which the organisation have to face, so this is essential for the firm to identify
the issues before innovation and find the solutions to resolve those problems, so that the
firm can be able to innovate their product of Flavoured lassi in an effective way.
2. Related to Product – The firm should work on finding or ascertaining the type of
medium by which they can promote or advertise their product so that by this they can

gain the attention of more customers and the business goals and objectives of the
organisation can be accomplished successfully (Kilelu, Klerkx and Leeuwis, 2014) .
Generating idea of innovation
To innovate a product for the increment in the sale, it is necessary to investigate the
condition of the market and the needs and expectations of the customers, so that the product get
innovated with the requirements of the purchasers and the target of the firm also get achieved.
The following steps to describe the frugal innovation are stated as below -
 Screening new Idea – As this is known that planning is the initial phase of doing
anything, thus the proper planning is to going to be done to innovate the product as per
the expectations of the customers.
 Idea Screening – This stage will screened the innovative product of flavoured lassi.
 Testing – This stage will test the innovative product by offering the sample of flavoured
lassi to the customers and getting the feedback and reviews of the customers.
 Internal analysis – This stage will going to identified and utilized the product in an
effective manner.
 Review Competitive Market – This stage is to check whether the product which is
innovated by the firm Essence Drink is appropriate and fulfilling the requirements of
customers or not.
TASK 3
P5.The importance of the commercial funnel and the application of NPD processing for
commercialisation of innovation.
Commercial funnel is said to as the sales funnel or revenue funnel which is refer as the
purchasing process of the firm when the buyers are buying the products. This will demonstrates
the journey of the customers towards the purchasing of the product or services. This funnel is
divided into three phases such as -
 Pricing Policy – The Pricing policy of the innovative product of Essence drink will be
set by the commercial funnel, and the prices of Flavoured lassi is going to be moderate
(Neither low or high), so that each and every customer can able to afford it as lassi is
loved by each individual son they will get attract towards the price and will definitely buy
it (Libaers, 2014) .

 Helps in improving the growing Business – Commercial funnel will help the firm to
identify the level of the buyers and then fulfil the expectations of the customers, by this
the firm can enhance the sale and maximise the profit margins.
 Growth by advanced technology – The innovative product of flavoured lassi is used to
launch with the help of advanced technology and by promoting and advertising this
product the business growth of the organisation can be enhanced. Implement investigation programmes – To innovate the product, this is essential to go
through the requirements and expectations of the buyers. Therefore, the commercial
funnel will assist the firm to bring their innovative product in the competitive market.
Steps for the process of new Product development Idea generation : This step will used to define and bring the innovative product in the
market by knowing the requirements of the customers. In context with Essence Drink, the
firm will innovate the product of lassi by adding more flavours to it. Idea evaluation : This step will used to eliminate the non-essential elements from the idea
which was innovated by the consultant. Concept definition : This step will finalised the innovated product of flavoured lassi. Strategic analysis : This step will going to define that the business strategy which was
adopted for the innovative product of flavoured lassi is appropriate or not and the cost
which was estimated an the profits margin was gained or not. Product development and testing : This step will going to develop and test the innovated
product of flavoured lassi. The firm will provide the flavoured lassi to the customers and
get feedback from them. Market Testing : This step will going to define the exact time which is to be needed to
innovate that product, and marketing testing is done after getting the reviews from the
buyers. The owner of Essence Drink will estimate the time for innovating the product. Commercialisation : The price of the innovated product will be ascertained as per the
marketing plan of the product (McKelvey, 2014) . The price of the flavoured lassi is
moderate.
 Product launch : This step will finally launched the innovated product of Flavoured
Lassi.

P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Business case is the process of the things which are to be needed in the completion of the
product which is innovated by the firm. To develop the innovation business case, it is essential
for the company to estimate the budget for the entire business.
Estimated Total expenses of the Firm
Type of expenses Cost
Manufacturing expenses $300
Raw material expenses $500
Labour expenses $550
Management expenses $200
Marketing expenses $250
Total $1850
Estimated Total Revenue of the Firm
Name of the
product
Price of the
product
Quantity of the
product
Revenue from single type of
product
Mango Lassi $ 2 200 $400
Orange Lassi $ 2 100 $200
Pineapple Lassi $ 2 200 $400
Litchi Lassi $3.50 100 $300
Plain Lassi $ 1.50 400 $600
Total revenue $1900
Therefore, estimated total profit of the company may be – (Total Revenue – Total Expenses)
= ($1900 - $1850)
= $ 50
The things which are to be required are as follows -
1. Executive Summary : The summary is about the product of flavoured lassi which is
innovated by the firm Essence Drink for which they are required the marketing strategy

which includes the SWOT analysis, PESTLE, etc., by which the product will be launched
effectively and tends to enhance the business growth of the firm (Paradkar, Knight and
Hansen, 2015) .
2. Problem : In this we examine the issue and problems which are to be faced by the firm
while innovative their product.
3. Solution : The solution of the issue or problem faced by the firm essence drink, and the
solution must be so easy to understand.
4. Mission statement : The mission of the firm is to satisfy the needs and demands of he
customers, and provide them the best quality products.
5. Resources : The resources which are required to innovate the products must be utilize in
proper way.
6. Market analysis : This will analyse the market condition and the requirement of the
customers by which the firm will innovate the product as per the needs of the buyers.
7. Cost and benefit analysis : After analysing and examining the market, the cost and the
profit margin will be analysed by the firm.
8. Expected benefits : The expected benefits in innovation a product can be financial
benefits, social benefits, environmental benefits.
Ways of funding
As this is known that fund is the backbone of the every company and without this non
firm can be able to operate their business nor they can innovate their existing products. The fund
can be gained by many ways such as - Bank and Financial institution : The fund can be collected by taking the credit by the
bank and other financial institution, so that the firm, can innovate their existing product.
 From family and friends – The fund can also be collect by the family and friend in which
no interest have to be paid by the firm and can innovate the products (Partanen, Chetty
and Rajala, 2014) .
Therefore, The firm Essence Drink will collect the fund from the bank and other financial
institutions as this will provide them security and keep their fund secure.

TASK 4
P7.The different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.
The Business organisation is adopting the legal tools to protect and secure the
innovations from the unexpected parties.
This is essential for the firm Essence Drink to protect their firm from their rivals so that
they can gain and maximise the profits from their innovative product, for such protection the
government has made some laws which are outlined as below-
 Copyrights – In this the rights are given to the innovator who has innovate the product so
that they can protect their created and designed or innovated work from the other firms.
This tool is having the strength as this prevents the product of the company from being
stolen and misused. On the other hand, this is also having the weakness which states the
inability of work, copyright does not allow the firm to permit openly to anyone to use the
product, even when they are not using it for their profit.
 Trade secrets - This is about the secret information of the commercial belief, therefore
this cannot protect the firm from any potential risks (Pellikka, 2014) . Trade secrets is
having the advantage of no registration cost and no disclosure is required in this, while
on the other hand this is also having the disadvantage which states that the tool is not
effective for product invention and this can be patented by others easily.
 Patent – This is the right which is provided to the owner who has innovated that product,
without their permission no one can be able to access that product, this provide the full
security to the firm Essence drink. Patent is having the advantage as this is the effective
tool against the imitators and this exclusive right. On the other hand, this is having the
disadvantage that the cost of registration is very high.
 Roles of branding – The well and managed brand can be the first source of strategic
direction and competitive advantage. The buyers are also identifying and purchasing the
branded and trendy clothes. Along with this, the organisation is developing and creating
the market position for the organisation who is innovating their products. This gain the
loyalty of customer and bring consistency in the market as an advantage, while on the
other hand the disadvantage is that if the product or services experiences a negative event
than that will become attached to the brand.

Therefore, the essence Drink is using the copyright tool to protect and secure their
innovate product as this will beneficial for the organisation as this will provide the creator or
producer a piece of intellectual property, the sole right to reproduce and produce their work.
CONCLUSION
From the above mentioned report, it has been concluded that Innovation is all about
innovating something new by implementing the one idea into the existing product. The firm has
gained the knowledge of the invention and innovation along with the adoption of the innovation
funnel and frugal innovation to process the innovation. Along with this, the business case is
developed for the new innovated product along with the estimated budget which will help the
firm in gathering the useful information about the product they are innovating. At last, the tools
are also have been discussed in context with Essence Drink to protect the intellectual property
and knowledge of the firm so that no other firms can copy their creativity.
REFERENCES
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