Innovation and Commercialisation - YOYO company

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Innovation and its importance to organisation in comparison with invention.......................1
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................4
LO 2.................................................................................................................................................5
P3 4P's of innovation and how innovation funnel is used to shape innovative ideas.................5
P4 Concept of frugal innovation, its development and how it is used in companies..................8
LO 3.................................................................................................................................................9
P5 Concept of commercial funnel and how new product development helps in innovation and
commercialisation.......................................................................................................................9
P6 Innovation business case for YOYO drinks, including ways to access funding.................12
LO4................................................................................................................................................13
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is a process through which company can innovate its product or create new
products by implementing new techniques and tools. Innovation is important for every company
to grow and develop in the market (Bashmakov and et.al., 2015). It is a process collecting
information like new ideas, strategies from internal and external environment and use them in the
product and create a better products. Innovation can be distruptive or incremental. Company who
implement innovation regularly has a higher chance to enter in global markets.
Commercialisation means introducing product all over the world, it increases market share and
profitability. Present report is based on YOYO company, it produces lassies and want to add
innovation in its products by introducing spicy kiwi and mint lassi. Report will contain the
concept on innovation, how it differs from invention and why it is important for company to
implement innovation. It also contains different types of innovations and their advantages and
disadvantages. Report also tells 4P's of innovation and how it supports capability to innovate,
how innovation funnel is useful in generating ideas and the process of new product development.
Further report will also contain the concept of frugal innovation and how it has developed over a
period of time (Greco, Grimaldi and Cricelli, 2015).
LO1
P1 Innovation and its importance to organisation in comparison with invention
Innovation is a course of action where new ideas are converted to a useful product which
have some value in the market. The company YOYO Drinks is a UK based company founded by
Mr. Bond 3 years before. At the starting of the business company just launched a mango lassi
and a rapid growth was seen in just year years. The reason was the innovative idea of making
that drink and make it reach to potential customers. In fourth year as number of competitors
came in market decrease in sale was there. Mr. Bond thought to make some innovative range of
drinks without removing lassie from the list (Hau, 2016).
This is what innovation is all about, when leaders of a company take risk in hand to bring
new opportunity for the firm and compete in market then they create new product with different
ideas, These ideas are refered to as Innovation. YOYO drinks also started working on these ideas
and invented new range of drinks. For these same YOYO drinks implemented various skills to

develop there existing product in market and to give competition to the rivarly new range of
drinks were invented (Kim and Park, 2018).
The two types of innovation YOYO drinks used for developing new product are :-
 Incremental Innovation
 Disruptive Innovation
Incremental Innovation:- It is the common form of innovation where with help of existing
technology existing product is been improved to increase its value in the eyes of the customers
by either adding some extra features in it or redesigning it and presenting it in the existing
market. This help out in increasing the productivity of the business and improves position of the
product in the market. YOYO drinks did not change the product mango lassi from the list,
instead of that they redesign its flavour and launched new drinks with the existing product in
existing market (Kuratko and Hoskinson, 2016).
Figure 1. Incremental Innovation
Disruptive Innovation:- In this type of innovation where new technology is used in existing
market to come up with new innovative product which can create need of there product in eyes
of customers. It become tough for the established companies to compete with new products
Illustration 1: https://www.google.com/search?
q=increamental+innovation&oq=increamental
+innovation&aqs=chrome..69i57j0l5.10670j0j

innovated with help of new technology. YOYO drinks come up with new innovative products
where they added different ranges of drinks in there existing maket only. It become tough for the
rivalry to compete with such innovation and YOYO drinks again was able to made good position
in the market (Laurell, 2018).
Figure 2. Disruptive Innovation.
Pros and Cons of Incremental and distruptive Innovation:-
Change in technology is very beneficial for a firm as it help in increasing the productivity
of the business. Sometimes disruptive innovation become problem for the organisation as
company starts to develop or innovate new technology but funds are not available. In such
condition incremental innovation is very helpful fro YOYO drinks as without any use of excess
funds it will result in market positioning of the firm. Incremental innovation can be easy for a
firm as continuous improvement reach to near perfection and can bring new opportunity for the
firm. But on other side to bring new scope in the same market disruptive innovation is necessary
as it help in achieving huge profit. But it will be risky for YOYO drinks as there is no guarantee
for success of such products. There are less companies in market who are able to perform
distruptive innovation (Lipkova and Braga, 2016).
Illustration 2: https://www.google.com/search?
ei=8HcpXdetFYb-
9QP1_Ly4AQ&q=disruptive+innovation&oq=diinnovation
&gs_l=psy-

Invention:- It basically determine about new creation of either a product or any
procedure which have never been introduced previously in an organisation. It is some what
different from innovation as innovation occurs when we make some changes in an existing
product or procedure where as invention is introduction of new technique or procedure which no
one have thought about previously. For example YOYO drinks have invented mango lassi which
no one have previously brought into market that brought a huge success for them. But after 3
years of successful business there firm was on risk and for that case they made an innovation on
there existing product and also brought new range of products in eyes of customers (Paradkar,
Knight and Hansen, 2015).
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
For taking company's growth up in the market leaders vision should be clear then only he
can guide other employees to follow a path to reach the objective of the company. When
leadership style are good then it helps in building a good cultural environment for a team to work
in. When a team work together it leads to generation of new ideas and teams always come up
with an innovation which can be beneficial for generating a new product which can make a good
positioning in market and commercialisation of the great product (Purchase, Kum and Olaru,
2017).
Vision:- If a leader is visionary then he can focus on growth of the business and will be
able to search different opportunity for the firm. YOYO drinks CEO Mr. Bond's vision was clear
then he worked on different opportunities coming towards the firm. When his business was in
loss he look up for different ideas which helped him out to again take his business in the market
with same potential. Vision should be clear to all the leaders working in the company. As they
will guide there employees on basis of this vision only which will shape out the innovation and
commercialisation.
Leadership and culture:- If a leader is able to solve problems of employees as well as
business related issues with his creative ideas then he is a good leader (Scedrova, Morgan and De
Luca, 2019). Mr. Bond also motivated their employees to work hard and do proper research and
development of the product so that the result related to innovation will be better next time. He
helped out the people working in the organisation by laying seeds of innovation culture. It also

helped out in commercialisation as customers were also encouraged to try the new innovative
product. In this way they were able to hold there business.
Teamwork:- When all are working in a team it results in highly innovative task as so
many minds work together to provide various solution for a single problem. The performance is
satisfactory as results are good. YOYO drinks employees worked in a team and come up with
innovative ideas to bring back there products in market and give competition to there rivalry. The
basic reason behind that was there trust toward the leader and firm (Schmitz and et.al., 2017).
This helped out the employees to shape out the commercialisation and come up with the new
products in the market.
In this way all these aspects plays an important part to shape innovation and
commercialisation in the firm. All are interlinked to each other as if vision is not clear then
employees of YOYO drinks will not be able to understand what to innovate and how the product
can be improved. For the same leaders of YOYO drinks have to give proper guidelines and
support so that team can work together for generating new innovative ideas to take there new
range products in market (Tijssen, 2018).
LO 2
P3 4P's of innovation and how innovation funnel is used to shape innovative ideas
There are 4P's of innovation which YOYO company need to apply to innovate its
product.
 Product: It refers to innovation of products and services so that company attracts new
customers. It is the process of introducing new products or new packing styles. Under this
innovation company need to decide how to improve product quality, how to make
product more appealing then the previous one? YOYO company need to innovate its
products by adding new flavours of lassie i.e. spicy kiwi and mint lassi according to
availability of seasonal fruits or it may change the packing of the products and also
provide it in different quantities. This can be named incremental innovation (Bashmakov
and et.al., 2015).
 Paradigm: It refers to change in the way business runs. It is also termed as radical
innovation where change occur in the organisation. This change need not be always
positive so while doing this type of innovation company need to keep all the positive

aspects in mind which increases profits. YOYO company need to use this innovation by
introducing healthy snacks for customers. It benefits company in entering in new markets
(Laurell, 2018).
 Process: It refers to innovation of production process in such a way that it runs smoothly
and efficiently. For making run process smoothly company need to recruit skilled
workers. YOYO company need to hire skilled candidates and implement new techniques
in production process so that productivity is increases. If workers are not able to run new
machines than company need to provide training to them.
 Position: It refers to innovation in the positioning of a product in the customers mind
thus creating brand awareness. It is a style of communication or introducing a product in
the market. YOYO company need to introduce healthy drinks and position them as 100%
healthy drinks to customers. Company need to aware customers about health so that they
purchase their products (Paradkar, Knight and Hansen, 2015).
Innovation funnel:
It is a process of generating ideas on constant basis. It is a process where ideas are
generated to create new products. It has 3 steps.
Illustration 3: 4P's of innovation

 Mouth of funnel: It is the first step of innovation funnel where aim is to generate and
gather many ideas as possible. YOYO company need to gather knowledge and ideas from
outside the organisation. Information can be related with competitors, new technologies
etc. Ideas can be gathered from internal and external environment both (Schmitz and
et.al., 2017).
 Narrowing the funnel: In this step ideas collected from first step is analysed and
screened . This is the process of matching ideas with the objective of the company and
check whether it creates value or not. YOYO company need to screen all the ideas so that
company can find out whether ideas is matching their goal or not.
 Select the best idea: The last step is to select the best idea from all the ideas collected. It
is the process of selecting and implementing the best idea which is suitable in achieving
organisational goals.
By using innovation funnel for making new flavours of lassi's YOYO company may enter
into global markets by fulfilling customers need and providing them with new and innovated
products. It is beneficial for company to go for commercialisation (Hau, 2016).
Illustration 4: innovation funnel

P4 Concept of frugal innovation, its development and how it is used in companies
Frugal innovation:
It is a process of reducing the cost of production process and cost of products and
services. Generally it refers in removing of unessential parts or features from products.
Minimising resources in the production, delivery and development process or using them in such
a way that it incurs lower cost of products. By using frugal innovation companies can expand
their business globally. Frugal innovation is a process of finding strategies and solutions by using
less resource. Thus this innovation can be inexpensive. Frugal innovation is an art or creativity to
develop and promote those ideas and products using limited resources. YOYO company need to
implement frugal innovation as company want to introduce spicy kiwi and mint lassi. YOYO
company can use innovative ideas and strategies to market their products which is beneficial for
business to enter global markets at low cost (Laurell, 2018).
Frugal innovation is important for companies who want to enter in global markets.
Making business commercialised incurs huge cost, this innovation help companies in reducing
the cost by using limited resources. It helps company in gaining competitive advantage. It is
beneficial for companies in increasing market share globally. For e.g. Samsung produces variety
of smart phones to its customers in UK and other countries. UK customers are sophisticated and
have good earnings thus Samsung decided to launch phone with new features and functions. UK
customers are willing to spend more on phones than India. Second e.g. is of Renault, Renault has
opened frugal engineering centres focusing on producing no-frills cars. Company started to
produce cars for countries which has low earnings like Russia.
Development of frugal innovation:
In 2010, economist have thrown a light on frugal innovation and from then it is emerging
and helping in fast expansion of business. It is a process of redesigning goods and services to
reduce cost and providing value to customers. It benefits company in reaching large customer
base having lower income (Tijssen, 2018). As market is developing companies are using frugal
innovation in their process for e.g. portable ultrasound devices, net-banking etc. YOYO company
can also develop frugal innovation like:
 Social media: Company need to engage customers through various social media sites.
Company need to promote and market its products on social platforms so that it reduces

the cost of marketing and advertising. Social media helps company to reach a huge mass
of audience at one time. Thus company finds out the likes, dislikes of the customers
through comments and by using this YOYO company may improve the product. It
reduces the cost of marketing which in-turn reduces cost of products. YOYO company
need to use social media to reduce the cost of marketing (Scedrova, Morgan and De
Luca, 2019).
LO 3
P5 Concept of commercial funnel and how new product development helps in innovation and
commercialisation
Commercial funnel:
It is also called sales funnel. It defines the journey of customers towards purchase of
products and services (Importance of sales funnel, 2018).
Importance of commercial funnel:
 It is useful in choosing marketing strategies according to the awareness of products and
services (Lipkova and Braga, 2016).
Illustration 5: sales funnel

 It is beneficial for YOYO company to make strategies in relating with the customers.
 By attracting new customers by spreading awareness and make them purchase products,
it increases sales and productivity of company.
 It helps in facing competition by identifying the interest of customers.
 It helps in growing business in global markets.
New product development:
New process development is the process of introducing new product in the marketplace.
Company need to engage in new product development because of change in customer needs,
advance technology and increase competition. YOYO company also need to implement new
product development process as they want to introduce spicy kiwi and mint lassie in the market.
Company want to introduce new flavours of lassie to attract new customers and enter in global
markets to face competition. It will increase sales of the company (Kuratko and Hoskinson,
2016). There are various stage of NPD process:
Illustration 6: new product development

 Idea generation: The first step is idea generation where company collects information
from various sources and generate ideas. Ideas are collected by internal source of
company's employees, by doing SWOT of company, by doing market research, or by
customers and competitors. YOYO company need to generate ideas from these sources
and then find out the need for producing a product with innovation (Kim and Park,
2018).
 Idea screening: This step includes screening of ideas because not ideas are good. From
all the ideas best idea is selected on the basis of customer needs, company strength,
weakness, ongoing trends, affordability etc. YOYO company need to look at all these
points before selecting the idea. It is essential to look at these point because customers
may not like the flavour which company will be introducing.
 Concept development and testing: In this step, strategies are developed or blueprints in
order to achieve that idea. Ideas are converted into concepts. YOYO company need to
develop concept, a vision, blueprint or strategy for the idea. Then this concept is brought
to target customers. Company test the concept on target market. Company tries to
identify how customer feels about concept?
 Business strategy: The stage of concept development helps to find out the final concept
to develop a product. YOYO company need to build strategies to promote their flavoured
lassie in the market (Lipkova and Braga, 2016). It also includes the pricing strategies,
competition and costs involved in the process.
 Product development: After the concept is developed and strategies are made, the
concept in converted into physical product. After analysing markets YOYO company
produces spicy kiwi and mint flavoured lassie.
 Test marketing: In this stage the product is ready to be tested in the market and get
feedback. YOYO company need to test their lassie in the market so that they can collect
feedbacks from the market and know whether their product is being liked by the
customers or not. If there are any changes to be done than company will have to add
changes in the product (Purchase, Kum and Olaru, 2017).

 Commercialization: This stage includes that, if products are ready then marketing
strategies also need to be ready. Company uses marketing mix. YOYO company need to
provide information to all the departments and be ready to introduce the product.
 Introduction: The last stage of new product development is to introduce the product in
the market. This is the most important stage. YOYO company need to introduce the final
product in the market (Greco, Grimaldi and Cricelli, 2015).
New product development process may lead to enter in global markets if the products is liked by
the customers.
P6 Innovation business case for YOYO drinks, including ways to access funding
YOYO drinks have done an innovation in there products when a sudden decrease in sale
was seen. They come with a new product Spicy kiwi and mint lassi which was quite different
from there previous product mango lassi. The product was innovative and delicious in taste then
that from other drinking products and without putting much efforts the product reached there
potential customers. The product brought new scope for the firm as it was a new flavour for the
customers and was available to them at a reasonable price. For customers it was a healthy drink
and most of the people use it in there breakfast. The demand was less in starting but as the
product awareness increased the demand of the product raised and helped out to do more
research and development with respect to the product. Brand recognition was increasing and
customers satisfaction level was seen high (Paradkar, Knight and Hansen, 2015).
When feedback of customers were taken they were satisfied with the product. The reason
they gave for this satisfaction was that the drink was good and different in taste then a common
lassi and most of the mothers problem was solve as there children didn't like fruits and milk but
they were enjoying this heathy drink full or fruits. Initial sale of the drink was not that much high
but frequently it increased. In this way they were able to get competitive advantage with new
innovative product and strategies. This increased productivity of the firm and helped in brand
recognition. Overall turnover of the firm increased and gradually started giving tough
competition in the market (Schmitz and et.al., 2017).
Although the risk was high and chances of losing market share to competitors was there
but YOYO drinks go through the risk and able to attract new customers by innovating new

product that is spicy kiwi and mint lassi and launching it in the existing market. It was easy for
the firm to make improvement in the drink and launch it again in the same market as customers
were already aware about the product and loyal customers generated awareness to other
customers. If this product was launched in new market then risk would have been increased as
firm was not aware about the competitors of the new market. The company worked so hard on
research and development and brought new innovative idea and strategy towards the firm to
bring new opportunities. These opportunity resulted in growth of the firm and generated huge
revenue (Laurell, 2018).
LO4
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.
YOYO drinks can develop, retain and protect knowledge and intellectual property by
three fundamental tools:-
Patent:- When a company invent some thing irrespective of any product or idea, They
must take patent of that product as inventor has property right which protect their invention from
others so that others can not use, make and sale there product in there name. YOYO drinks
should Patent there innovative drink so that no other organisation can take there idea and sell it
with there name.
Trademarks:- When an organisation invent some thing or do some innovation in it they
give certain name to the product so that it is recognisable to potential customers. These can be in
symbol form or any name given to the product. It might also include some images in it. These
trademarks help the customers to make product identified among all other products. YOYO
drinks also have trademarks which keep them safe from Meetoo products in the market
(Scedrova, Morgan and De Luca, 2019).
Copyright:- This application is basically for literacy, musical, dance styles works so that
no one is able to copy others ideas of expressions.
Therefore from above all tools it has been concluded that it is beneficial for the YOYO
drinks to use these tools for protection of there brand from other firms so that they can not use

there ideas for selfish reasons. There are high chances that YOYO drinks ideas and new
innovation can become common in market. Thus, Mr. Bond should design new ideas through
legal patents. He should also trademark his product by using some logo and name on the new
product so that this make it look different from other companies product (Tijssen, 2018). As
there are chances that MeeToo products may confuse the potential customers and there scope in
market get vanish. Copyright is a tool not applicable with respect to YOYO drinks as it is not
related to any artistic or musical work. But using these tool help the organisation to take a safe
side by protecting there products with legal systems. Company should search for firms who are
working in there fields only and should generate a legal awareness among them about YOYO
drinks trademark and patent policies.
CONCLUSION
From the above study it has been concluded that Innovation plays an important role in
development of the organisation and bringing new opportunity for the firm. Organisations vision,
leadership style, culture and teamwork can help in developing a innovative product which can
bring new scope for the firm. These following also help in shaping innovation and
commercialisation. Further the report concluded how 4P's of innovation can be used for shaping
new ideas in the firm. The developments in frugal innovation in organisational context and
importance of commercial funnel and application of NPD is also been concluded in the report. At
last the report concluded on different tools that YOYO drinks used for intellectual property right.

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