Innovation and commercialisation - Essence Drinks Assignment

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Explain innovation and difference between innovation and invention .................................3
P2 Explain organisational vision, leadership, culture and teamwork helping in innovation and
commercialisation.......................................................................................................................4
TASK 2 ...........................................................................................................................................5
P3 4P's of innovation and use of innovation funnel to shape innovative ideas...........................5
P4 Development in frugal innovation.........................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and application of new product development (NPD)
processing for commercialisation of innovation ........................................................................8
P6 Innovation business case for an organisation ........................................................................9
TASK 4 .........................................................................................................................................10
P7 Different tools used by organisation to develop, retain and protect knowledge and
intellectual property .................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is defined as change in process and creation of more reliable and effective
ideas, products and processes (Boruah and Das, 2017). In a business, innovation is referred as
implementation of new and creative ideas for improving the current state of product or service.
Innovation increases the level of success of a business. Commercialisation is defined as the
process of launching of a new product or a production method by any company. This is the final
stage of implementation of new ideas in a product and it includes financial projections and
reporting systems. In this report a case of Essence Drinks is considered. This company launched
a new drink in UK market and earned profits. This report describes innovation and the
importance to organisations and comparison with invention. It also describes hoe a
organisational vision, leadership, culture and teamwork help in innovation and
commercialisation. The 4 P's of innovation and use of innovation funnel for shaping innovative
ideas are explained in this report. In addition to this, the importance of commercial funnel and
application of new product for commercialisation of innovation and a innovative business case is
mentioned. As last of the report different tools that are used to develop, retain and protect
knowledge and intellectual property are explained.
TASK 1
P1 Explain innovation and difference between innovation and invention
Innovation is occurred when a change happens. Innovation in any product does not
ensure that it will be beneficial for the company (Difference Between Invention and Innovation.
2019). Every technology requires updations and improvements for leading in the competitive
world. Innovation is defined as the act of creating changes in the current product or process and
introducing new and innovative ideas in it. On the other hand, invention is creation of a new
device or product in the market. There is a slight difference between invention and innovation as
invention is creating something and innovation is process of making changes and implementing
innovative ideas into a product.
Difference between invention and intervention
Invention Innovation

This is the occurrence of a new and
innovative ideas for a process or product that
has never been introduced before.
Innovation is the implementation of ideas for a
process or product.
This means a new product is created. This is addition of value to already existing
product or service.
This is just a theoretical idea ad it requires
scientific skills.
This is practical implementation on innovative
and new ideas. This requires technical and
strategic skills.
This is concerned with a single process or
product.
This is a combination of different products and
processes.
This is controlled by research and
development department of the organisation.
The activities involved in the implementation of
making changes in the product are spread over
whole organisation.
Akshay kumar launched a new drink i.e. healthy mango lassi in UK and due to this innovation
this company made profits there but after a certain period of time, the sales of company declined.
Therefore, it is important for this organisation to implement a new and innovative idea in this
lassi for increasing sales of the company.
P2 Explain organisational vision, leadership, culture and teamwork helping in innovation and
commercialisation
Organisational Vision
The vision of an organisation is a statement that demonstrates the way by which a
company operates in order to achieve a benchmark. The vision of any company influences the
innovation and invention process (Easter, 2019). This statement motivates employees to work
hard and achieve the goals of the company. In case of Essence Drinks it's vision is to become
successful and increase sales every year. This guides the management of the company to make
innovative ideas that has to be implemented in product or process of the company.
Leadership
Leadership is defined as the process of managing a company in effective manner so that
goals and objectives are achieved in specified time frame (Ferasso, 2018). There are different

types of leadership styles adopted by managers and leaders such as democratic, autocratic,
laissez-faire, participative, consultative, decisive etc. Leadership style directly affects the
innovation and commercialisation of the product or process. Akshay Kumar uses autocratic style
of leadership in the company. This means that he has to make decisions for implementing an
effective change in process or product of the company and maximising sales in UK.
Culture
Organisation culture is defined as assumptions, beliefs, values and way of
communicating in the company. This includes expectations, philosophy, experiences of the
organisation that guides the behaviour of employees. Culture depends on shared customs, beliefs,
attitude and regulations that are developed at a workplace (Knoke, Missikoff, and Thoben,
2017). It is essential for organisations to establish a culture where individuals decides every
possible activity that can be applied in the company for reducing cost and increasing production
and provision of services. They should not experience a “rest period” and exploit new ideas. He
employees of Essence Drinks must make maximum utilisation of ideas and employees must
improve their knowledge base for enabling innovations like technological, physical or other
innovation. The culture of making innovative ideas and evaluating ideas helps the leader in
transforming organisation into innovation drivers in operational field.
Teamwork
Team is defined as the group of individuals that come together and perform tasks for
achieving specific goals and objectives of the company (Meyer and et.al., 2018). Team is
defined as a dynamic concept used for solving problems at workplace. A good teamwork reduces
time in accomplishing tasks and goals of the company. The Essence Drinks company of Akshay
kumar has effective team that can innovate and commercialise products and process. When there
are good teams in the company then subordinates can provide innovative ideas for achieving
goals and objectives of the organisation in given time frame. Team work helps in formulation of
process of organisational commercialisation and innovation.

TASK 2
P3 4P's of innovation and use of innovation funnel to shape innovative ideas
Innovation deals with the process of creating new thinking and ideas in an organisation.
There are basically 4 P's of innovation that are termed as innovation mix and this is used by
leaders and managers of a company for introduction of innovation. These 4 P's were given by
John Bessant and Joe Tidd. These 4 P'd are implemented by Akshya Kumar in Essence Drinks
for improving the sales and profit of the company. These P's are discussed below-
Product innovation- It is beneficial for companies to make innovations and changes in
the products of their company. Customer satisfaction reliability increases if company offers same
quality of product with new and creative innovations in it (Moreddu, 2016). Akshay Kumar can
add dry fruits like cashews, almonds, raisins, etc. in it's existing Lassi. This will attract health
conscious people. This Lassi Will attract more customers as it will give good pleasure and taste.
Process – Every organisation follows an effective process for functioning. This process
leads to establish a good position in the competitive market. Essence Drink is a company that
offers healthy Lassi to customers in UK. This must adopt a process that will help in reducing cost
and improving the quality of product. Moreover, an effective process of working helps company
to deliver quality products to customers and increase customer satisfaction.
Position- This includes the position of company in marketplace. Organisations examines
current position of company n market and makes effective plans for increasing the position of
company in front of customers. In context of Essence Drinks, it should make effective changes in
Lassi for satisfying its customers.
Paradigm- This is a planned process of an organisation to handle changes that take place
while implementing ideas and innovations in product of company. This is making a different
aspect of the present status of the company.
Innovation funnel is defined as the process of development of new ideas in a product that
provides better and good services to customers (Olaniyi and Prause , 2016). There are various
types of ideas and creativity that can be applied to products for increasing customer satisfaction.
There are different types of funnel that helps in creating and processing of ideas. This leads in
achieving goals and objectives of the organisation in less time. The first step of innovation funnel
in case of Essence Drinks is that it has to collect information about Lassi's demand. The
managers should know how an innovation this product help in attracting customers.

Opportunity assessment- This is the initial stage of the innovation funnel. In case of
Essence drinks, the leaders and managers analyses demands and needs of customers and the
preferences of people for consuming Lassi and ideas about changes that can be applied to Lassi.
Insights based ideation- This includes formulation of strategies that can help in
maximising the sales of the company by implementing innovative changes in the product. A
market research is conducted for knowing various opportunities that help in increasing market
position and sales of the company. In Essence Drinks, they can conduct market research by
several ways like focus groups, surveys, questionnaire, online communities, crowd sourcing,
online survey, etc.
Conceptualization- This is the step in which organisation designs actual concept from
the ideas collected by customers in the initial stage (Páez-Avilés and et.al., 2015). This company
is adopting innovation in Lassi and offering a Lassi with dry fruits to cherish royalty and health.
Evaluation and Benchmarking- This step includes actual implementation of the idea
into product. This innovative product is then served to people and feedback to know they liked
the product or not. Essence drink offers lassi with dry fruits to customers in UK and after that
feedback is taken from customers to know whether they like it or not.
Implement or not implement- After taking feedbacks from customers, the company is
able to estimate success of the product. The innovation manager of Essence Drinks take decision
for keeping this product or make another innovative change in product so that profit
maximisation of the company occur. The innovation manager considers different concepts such
as cost, margins, consumer behaviour,etc. while making decision.
Launch- his is the last step of the innovation funnel. The product is finally launched in
market. The innovative Dry fruit Lassi is introduces by Essence Drinks in UK to increase the
customer base.
P4 Development in frugal innovation
Frugal innovation is defined as the process of finding new business model, recognising
value chain and designing product for satisfying customers. Frugal innovation is the way by
which companies create high quality products with limited resources. This is also known as
reverse innovation or inclusive innovation (Pfotenhauer, and Jasanoff, 2017). Essence drink is
introducing a new Dry Fruit Lassi in UK and building it' s market share and maximising profits
of the company.

New market opportunities- The organisation identifies the opportunities in market for
growth of the company. The market study will help company to know about he preferences of
consumers and making effective changes in the existing products of the company. It is beneficial
for all companies to keep innovating the products for increasing the level of satisfaction of
customers. This will also help in gaining more profits and increasing customer base.
Resources- Resources are the major asset of any organisation. It is necessary for
organisations to utilise resources in an effective manner. Proper utilisation of resources in a
company will help the company in sustaining in market for longer period (Schmidt and et.al.,
2018). Frugal development requires resources and Essence Drinks must use it's resources
properly.
Innovation Funnels- This is development of new products in accordance to remain
successful in market. Innovation funnel is important for companies to develop and formulate
business model. Essence drink is innovating a new product i.e. Dry Fruit Lassi in UK and this
innovation has a huge impact on innovation funnel.
TASK 3
P5 Importance of commercial funnel and application of new product development (NPD)
processing for commercialisation of innovation
A commercial funnel is defined as a framework that helps in utilisation and reformation
of current goods by implementing several policies and plans in the organisation. This framework
consists of three phases. It is essential for Essence drinks to follow this kind of funnel to become
successful n market.
Pricing policy- Essence Drink is offering Lassi and other drinks at affordable price to it's
customers. Funnel framework is used to set price of products by analysing the need and
preferences of customers.
Improving ways of growing business- The funnel framework helps to understand the
needs and requirement of customers. If any organisation is providing products and services to
consumers on the basis of their needs and demands, it will help in increasing customer
satisfaction. If Essence Drinks adopts this funnel then growth in business is assured.
Emergence of advance technology- Essence Drinks is offering Dry fruit Lassi in UK
and this is served in eco friendly packings. This reduces wastes and do not harm environment.

Implement investigation programmes- It is advisable for company to conduct a market
research before introducing product with innovation in market (Servajean-Hilst, and Calvi,
2018). This will help in implementing effective changes in products for satisfying customers.
Process of NPD
Idea Generation- This is the first step which involves generation of idea in the product
and conducting a research to analyse needs and demands of customers. In case of Essence
Drinks, the leader thinks of introducing dry fruit Lassi to people of UK.
Idea evaluation- This is the implementation of new innovative idea in product. In
Essence Drinks, Dry Fruits are added in Lassi and it is made more healthier and tastier.
Concept definition- The concept of this Dry Fruit lassi should be effective in order to
increase customer base (Ustyuzhantseva, 2015). Dry fruit lassi is royal and enriched with
cashews, pistachios, almonds, raisins, macadamia and nuts.
Analysis of strategies- The strategy of Essence Drinks is to ensure that new product, Dry
Fruit Lassi is attractive and enjoyed by customers. This product should be competitive in
marketplace and help in maximising sales of the company.
Product development and testing- Product testing is necessary for any company to know
whether this product will be successful or not. Essence Drinks ensures that Dry Fruit Lassi is
healthy and tasty.
Commercialisation- This is the process of launching of new product. Essence Drinks
must take care to launch new products in market to attract customers.
Product launch- At this stage, product is launched and introduced in market.
P6 Innovation business case for an organisation
Business case is defined as written or verbal document that contains information about
goals and objectives of Essence Drinks.
Executive summary- Essence Drinks is introducing Dry fruit lassi in market of UK. It is
essential to develop strategies and business models that will help in maximising sales of the
company in UK. The innovation in products of company help in success of business.
Mission statement- The mission of Essence Drinks is to make healthy and tasty
beverages and drinks and increase customer satisfaction.

Resources- Essence Drinks require different resources like raw materials, funds, milk,
dry fruits, etc. for success in business.
Market analysis- This is done for knowing the possibility of success of innovative dry
fruit lassi in UK market.
Financial projection- The fund needed for this dry fruit lassi is £15,000.
Types of funding- There are different types of funding or ways through which Essence
drinks can take funds is bank or financial institute or family or friends.
TASK 4
P7 Different tools used by organisation to develop, retain and protect knowledge and intellectual
property
There are various ways by which Essence Drinks can protect innovation of Dry Fruit
lassi. Innovation requires to prevent itself from safety by using government tools.
Patent- This is an intellectual tool that provides rights and authority to the owner from
preventing the product from exploring. Essence Drinks has to take patent of Dry fruit lassi to
prevent selling of this product by any other company.
Trade Sectors- This is secret or proprietary information of commercial values. This
includes various laws like contract law and employment law. These are not appropriate for
protecting Dry fruit lassi from harm.
Copyright- This is a legal term that explains authority and rights for protecting original
products, literary and music. Essence drinks must take copyrights to protect itself from other
individuals.
CONCLUSION
From the above report, it has been analysed that innovation is important for organisation
for running a successful business. Creativity helps companies in increasing sales, profit
maximisation and customer satisfaction. Innovation requires protection so that other individuals
or companies cannot copy it. This is done through copy rights, patent and trademarks. The
innovation funnel is the best tool when innovations are offered in products. Innovation helps
companies in satisfying needs and demands of customers.

REFERENCES
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competence centres as knowledge, consensus and innovation spaces. R&D
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