Review and Analysis of Business Innovation Resources

This assignment requires a thorough analysis of various business innovation resources, including academic articles and research papers. The sources cover topics such as product design, marketing strategies, entrepreneurship, and innovation policy. A total of 20 references are provided, with some dating back to 2012. The assignment details include a suggested title, meta title, meta description, and a summary paragraph.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Innovation and its importance to organisation in comparison with invention.................3
P2. Impact of vision, leadership, culture and team-work on innovation and commercialisation
................................................................................................................................................4
M1. Analysis of different sources of innovation along with development of culture of
innovation...............................................................................................................................5
LO 2.................................................................................................................................................6
P3. 4 P's of innovation along with the importance of innovation funnel...............................6
P4. Developments in frugal innovation along with example.................................................7
M2. Analysis of innovative funnel with respect to organisation............................................7
M3. Role of frugal innovation in an organisational context...................................................8
LO 3 ................................................................................................................................................1
P5 The importance of the commercial funnel and the application of New Product
Development processing for commercialisation of innovation..............................................1
P6 Build an innovation business case for an organisation, including ways to access funding.. .2
M 4..........................................................................................................................................4
LO 4.................................................................................................................................................5
P7 Evaluation of different tools for retaining, developing and protecting knowledge and
intellectual property................................................................................................................5
M5. Evidences of these tools in business environment..........................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation can be defined as a process of generation of a new idea or creative thoughts
with the objective of gaining the competitive advantage over the rivalry firms. While on the other
hand, commercialisation may be defined as a process of introducing a new product in the market
with the objective of earning profit. Essence drinks, one of the newly found companies in
London in the beverage industry. The company has been founded by Akshay Kumar two years
ago by using traditional distillation techniques for making drinks. This report will include
explanation on innovation along with its importance to the organisation. Apart from that,
analysis of different sources of innovation would be done along with explanation on 4 Ps of
innovation. Furthermore, importance of commercial funnel along with commercialisation of
innovation would be discussed. Finally, different tools for evaluation of wider business
environment would also be done.
LO 1
P1. Innovation and its importance to organisation in comparison with invention
Innovation and invention
Innovation may be defined as generation of a new and creative idea within an
organisation in order to take the organisation to attain new heights of success by achieving
competitive advantage over the rivalry firms(Tsai, 2015). While on the other hand, invention can
be referred to as creation of a new product or process and then introduce it in the market for the
first time. Invention cannot be done in the absence of innovation. Hence, in order to undertake
invention, it is essential to undertake innovation as innovation is the first step towards making
the product available to the end customers. Thus, in the absence of innovation company would
not be able to run its business smoothly in long run.
Importance of innovation in comparison with invention
Innovation plays a vital role in gaining the competitive advantage over the rivalry firms
by beating the competitors as the new and creative ideas helps the company n enhancing their
position with regards to the competitive firms. While on the other hand, invention is concerned

with putting the innovative idea into action. Thus, in the absence of innovation, invention has no
worth. For example: innovative idea of Akshay Kumar to launch a healthy mango lassi in the UK
market helped him in taking the business to achieve new heights of success within a period of
two year. Hence, because of innovative idea company was able to grow its business rapidly and
invent the mango lassi in the UK market.
Apart from that, the basic reason behind success of innovative companies is that the
innovation is spread across the entire organisation rather than a particular department. This is so
because innovation is done on existing products and this in turn attracts the participation of all
the employees of Essence Drinks to work towards the attainment of the objectives of the
company. While on the other hand, invention is concerned with only a particular department of
the Essence Drinks that is research and development because intense research is required before
inventing any new product in the market(Maritz and Donovan, 2015). Hence, in the absence of
adequate innovation, essence drinks wont be able to invent the new product successfully in the
market.
Furthermore, innovation has huge importance then invention because it could be carried
out in a very short period of time as well as with low cost. For example: in essence drinks, as
soon as Akshay Kumar sees drastic decrease in sales, he must generate an innovative idea such
as protein lassi and then make all the efforts to successfully invent it in the UK market which in
turn will help the company in increasing the sales and beating the competitors in the race to
capture major share in the beverage industry.
P2. Impact of vision, leadership, culture and team-work on innovation and commercialisation
Vision – vision of the company is to fight the competition and capture the major market
share in the beverage industry by undertaking innovation and invention of protein lassi as it
would help in attracting even diet conscious people to come and have intake of the lassi of
Essence Drinks.
Leadership – leadership may be defined as an act of leading a particular group of people
in an organisation. The major role of a leader is to motivate and inspire members of the
organisation to increase their productivity towards they attainment of the objectives of the
company. Leaders play a very important role in motivating the employees of the company to
generate innovative and creative ideas with the objective of commercialisation. In the absence of
efficient leadership, company wont be able to bring innovation within an organisation.

Culture – culture may be defined as social behaviour or norms that is witnessed in the
human societies or within a particular group of people and this in turn has huge impact on
innovation and commercialisation within an organisation. For example: essence drinks should
encourage cultural diversity at the workplace in order to bring innovation and commercialisation
at the workplace(Ahn, Minshall and Mortara, 2015). Diversity fosters innovation through
encouraging the employees to generate new and creative ideas as people from different cultures
would generate different opinions and this in turn will help the company in generating pool of
ideas. Since the company is planning to expand its operations, it is very important for company
to bring cultural differentiation because there are wide number of cultures and a company can
run its business smoothly in long run if and only if it values all the culture equally.
Team-work – team work helps in both innovation as well as commercialisation. This is
so because in a team two or more than two people work and each person has its own set of ideas
and opinions; this in turn helps the company in generating pool of ideas and then the most
creative and innovative idea can be selected from among these pool of opinions. Hence, team-
work helps in bringing innovation within an organisation. Even when the idea is generated all the
members of the team work together towards attainment of common objective which in turn helps
in carrying out commercialisation effectively and efficiently.
M1. Analysis of different sources of innovation along with development of culture of innovation
There are seven main sources of innovation which has been laid down by Peter Drucker.
These seven sources include the unexpected, the incongruity, process need, industry and market
structure change, demographics, changes in perception and new knowledge. Essence drinks uses
the unexpected source of innovation in order to analyse the market crucially and determine the
drink which would be highly demanded so that the company can undertake manufacturing of that
drink which is in high demand such as protein lassi in order to achieve the objectives of the
company effectively and efficiently.
Furthermore, company can develop an innovative culture n the organisation by
motivating the employees to generate creative ideas. Company can motivate its employees
through rewards, recognition, incentives and compensation. Hence, company should make
immense emphasis on development of innovative culture within an organisation in order to take
the business to achieve new heights of success.

LO 2
P3. 4 P's of innovation along with the importance of innovation funnel
Since innovation is carried out in the entire organisation in order to take the business to
achieve new heights of success; it is essential to understand the application of 4 P's of
innovation. These 4 P's are as follows:
Product – the most important element within an organisation is product because the
success of the organisation mainly depends on this element. It is very important for every
organisation to bring constant innovation in its product in order to attract new customers as well
as to retain the existing customers(Resnick and et.al., 2016). For example; essence drinks will
launch an innovative drink in the market that is protein lassi which in turn will help in attracting
diet conscious people towards the intake of lassi.
Process – organisation should bring constant innovation in their processes in order to
survive in this competitive world. For example: essence drinks have to bring innovation in its
processes as it has to supply new drink in the market. Even the company should lay strong
emphasis on bringing innovation for the purpose of reducing the cost of producing drinks as it
would be beneficial for both the customers and companies. This is so because by decrease in cost
company can earn more profit as well as charge affordable prices from the customers which will
in turn help in retaining existing customers as well as attracting new customers.
Position – position is an efficient promotional activity performed by an organisation with
the objective of establishing their existence in the competitive world. For example; essence
drinks undertake position innovation through social media advertising which in turn helps the
company in reaching large number of people at the same time.
Paradigm – paradigm is that element of innovation; which is concerned with specific
innovation category. It takes into consideration the changes towards attainment of the specific
objectives of an organisation. For example; essence drinks main area of focus is bringing
innovation in lassi's rather than moving towards any other drink.
Importance of innovation funnel
Innovation funnel is a very popular approach which is used by various business
organisations for the purpose of examining and shaping the innovative ideas within a business
organisation(Fernandes and Brandão, 2016). Innovation funnel plays a vital role in these regards
because it helps in describing the steps that are laid down in order to develop a product. It

includes three steps. First and foremost step is to attract pool of ideas and make emphasis on
motivating the employees to generate more creative ideas. Then the next step is to screen all the
ideas crucially that is analysing all the positive and negative aspects of ideas and then finally the
last step is to select the best and the most creative idea which would contribute maximum
towards attainment of the objectives of the company.
P4. Developments in frugal innovation along with example
Frugal innovation may be defined as that segment of innovation which aims at reducing
the complexities as well as cost of goods and its production. Frugal innovation is basically
carried out with the objective of removing the non-essential features of the product so that the
company is able to serve the needs of the customer in the best possible manner through reducing
the cost and increasing the quality. For example; frugal innovation is used by the Essence drinks
in order to reduce the cost of the company in manufacturing drinks through utilizing the
resources in the best possible manner which in turn will even help the company in reducing the
debts. Apart from that, frugal innovation even helps the company in reducing the environmental
constraints which in turn helps in achieving the sustainable development(Dincer, 2017).
Hence, with the help of sustainable development, company would be able to increase its
brand image and this in turn will help in reducing the complexities in working of the company as
the company would be viewed as a reputed company as it is concerned with the well-being of the
customers. Moreover, frugal innovation will even play a vital role in encouraging new
technology by investing huge amount of funds in research and development department which in
turn will help in reducing the cost of producing the drinks. It even contributes in fast growth of
market as due to frugal innovation the demand of drinks of the company would increase. Hence,
frugal innovation plays a vital role in taking the company to achieve new heights of success by
reducing the complexities in working as well as reducing the cost of production.
M2. Analysis of innovative funnel with respect to organisation
Innovative funnel approach is widely used in Essence Drinks in order to take the
company to achieve new heights of success. Company first motivates its employees to generate
new and creative ideas as many as possible which in turn leads to availability of pool of ideas
with the company. After that company screens all the ideas crucially that is it analyses each and
every idea through various perspectives and then finally company will select the best idea which

will help the company in gaining competitive advantage over the rivalry firms. Hence, with the
help of innovative funnel company would be able to bring innovation within an organisation.
M3. Role of frugal innovation in an organisational context
Frugal innovation has played a vital role in an organisation such as it has helped in
reducing the cost of a company through optimum utilisation of resources and this in turn has
helped the company in overcoming its debts(Johannessen, 2017). Apart from that, it has also
helped in reducing the complexities in working by adopting sustainable development which in
turn has helped the company in enhancing the brand image. Moreover, frugal innovation also
played an important role in encouraging innovation in technology.

LO 3
P5 The importance of the commercial funnel and the application of New Product Development
processing for commercialisation of innovation.
Commercial funnel:
It refers to the buying process that helps to company in leading the customers by
purchasing products. It is also helps to delivering the products and services to the potential
customer that starts from sales lead and ends with deal transaction. It also helps to gathering
various contact information of the customers who need the product and services of the
organisation(Kotsi and Slak Valek, 2018).
Importance of the commercial funnel:
It helps to pick a marketing strategy: Commercial funnel plays an important role in
choosing the right marketing strategy. It is a method of communication directly with the
customers. So, they help to understand the needs and wants of the customers than accordingly
makes the appropriate marketing strategy.
It helps to generating sales: By doing the marketing research the Essence drinks are
able to know their potential customers needs and wants then implements effective marketing
strategy that helps to generate more sales as well as profitability of the company.
It helps to relate the customers with the company: With the help of commercial
funnel, the Essence drinks describe their product description in regional as well as other
languages that helps to cover the wide range customers and effects their point of view towards
the products.
The application of New Product Development process
Idea generation: The first step of new product development is generating new ideas by
the internal source such as Suggestion from employees, SWOT analysis as well as through
marketing research. Furthermore, through external source such as getting feedback from
consumers, searching in differentiate markets for new product idea(Tan and Zhan, 2017).
Idea screening: In this stage, the Essence drinks screening the ideas before selecting and
rejecting. The company studies all the idea carefully than reject the bad idea and select the good
idea.

Concept testing: After the idea screening, the Essence drinks company is conducted
concept testing. Under this they selected small group of people and give full information about
new product and then the company ask their view point about the product. This testing is done
after knowing the reaction of the consumers towards the product.
Business analysis: It is an important stage where the detail analysis is done by find-
outing the commercial profitable, cost, demand and competitors of the new product. Here, the
Essence drinks study about the new product is profitable or not from business point of
view(Stages process steps of new product development,2019).
Product development: Here the Essence drink decides to introduce new product in
market. The company takes all the steps related to manufacturing and distributing new product as
well as deciding marketing mix and branding of the new product.
Test marketing: It means introduce new product in very small market and if the new
product is successful in small market than it is introduced in large market. In addition, if the
product fail than the Essence drinks find out the reasons and implement changes then again
introduce in small market.
Commercialisation: After the successfully implementation of the Test marketing, the
Essence drink introduce new product on large market as well as large investment on product. It
promotes their new product through advertisement, newspapers and radio etc.
P6 Build an innovation business case for an organisation, including ways to access funding.
Executive summary:
The Business plan of the Essence drinks will include marketing objective of new product
that is protein lassi. In addition to this it also describes marketing mix of new product.
Furthermore, business plan includes STP and budget for introducing of protein lassi in the
market.
Marketing objective:
The objective of protein lassi is to create potential demand among the consumer and
enhance the profitability of the Essence drinks.
Marketing mix:
Product: The company introduce new product that is protein lassi to fulfils the demand
of the consumers(Nagamachi and Lokman, 2015).
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Price: The Essence drinks use penetration pricing strategy for attracting customers
towards new product.
Place: The company uses mass place strategy for their protein lassi that helps to target
large amount of customers in one time.
Promotion: Essence drink promotes their protein lassi through advertisement on TV,
social media marketing and hoarding etc.
Segmentation, targeting and positioning:
Segmentation: The Essence drinks segments their market on the bases of geographical
area. According to research it is the best way to introduce their protein lassi in market because in
summer season the demand of the protein lassi is higher that helps to enhance selling of the new
product(Homburg, Schwemmle, and Kuehnl, 2015).
Targeting: The target market for Protein lassi is those people who are health conscious.
It includes teenagers, adults and aged people.
Positioning: The essence drinks position themselves on the bases of their strengths,
weakness, needs and wants of the customers and the position of their competitors for their
protein lassi.
Budgeting:
The following is given the estimation of budget for the new product that is protein lassi
introduced by the Essence Drinks.
Total Estimated Expenses of the organisation:
Expenses types Cost
Raw-material $400
Labour $600
Manufacturing $400
Marketing and distribution $1500
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Total expenses $2900
Monitoring & controlling:
The business plan is monitored by the management of the Essence drinks that have to
compare the performance to the standards and controlling on the wastage material that helps to
create an effective management in the organisation(Tuli and Shankar, 2015).
Ways of accessing funds:
There are various ways of access funding which are helpful for Essence drinks company
to implement new business idea such as:-
1. Bank loan or Venture capital – it is one of the most efficient way of accessing funds in
the case of operating a new business or generating funds for the long term growth of a
company.
2. Bootstrapping – it is that that experimental stage in which personal financial resources are
used.
3. Investors – they are required for the purpose of growing the business and taking it to new
heights of success.
4. Friends and family – this is used in that case in which there are no personal financial
resources and there is a need to borrow additional funds which can be taken by inviting
friends and family
M 4
The Essence Drinks can measure their overall effectiveness by using sales analysis
technique as well as profitability analysis technique. With the help of profitability analysis
technique, the Essence drink can compare their profits with the past year profits as well as
compatitors profits. It helps to company to understand their present position against their
competitors. By using sales analysis technique the Essence drinks can compare their sales with
the competitors as well as find out the dimensions of the less selling.
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LO 4
P7 Evaluation of different tools for retaining, developing and protecting knowledge and
intellectual property
Various tools that are used by a business organisation for the purpose of developing,
retaining and protecting knowledge and intellectual property are as follows:
Patents
This tool is used by essence drinks for the purpose of protecting their inventions from being
copied. It is a very important tool because it can prevent a company from incurring huge losses if
some other person or company adversely uses the invention of the former.
Strength Weakness
 Patents gives organisation right to
protect invention from manufacturing,
copying, importing or selling.
 Company can license patent for others
to use or can even sell
 Application of patent is based on
technical information which is used by
firm to make invention publicly
available.
 Applying for patent is lengthy and time
consuming process
Trademarks
Trademark is used by the company with the objective of providing ease to the customers in
recognising the company. This in turn helps the company in retaining the existing customers by
preventing their divergence to the similar brands in the same industry.
Strength Weakness
 The biggest strength of trademark
symbol is protection of logo or
companies’ symbols from competitors.
 It enables exclusive right to firm to sell
its products nationwide which are list d
in registration.
 The major weakness of trademark is
that owner is accountable for show
proof of registration within particular
intervals like the first submission is
after 5 or 6 years.
 It is weakest form of intellectual
property protection because it protects
only marketing concepts and not
always product.
Copyrights
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Copyright play a vital role in protecting literacy, music works and artistic work. Apart from that,
that are even used by business organisations to protect the brochures of the company annual
reports as well as other documents.
Strength Weakness
 The biggest strength of copyright is that
it gives owner of the intellectual
property protection for work.
 It enables right to produce and
reproduce where copyrighted material
of without approval by law.
 Limits protecting of useful and valuable
products.
 It offers less predictability in standards.
When it comes to essence drinks, they use patents for protect their inventions from being
copied.
M5. Evidences of these tools in business environment
As per the opinion of (Moser, 2016) patent is that form of intellectual property which
prevents the right of the owner to prevent its inventions from selling, making, using and
importing by any other person or company.
According to (Burmann and et.al., 2017) trademark may be defined as a symbol which
helps in identification of a particular product or service as well as it helps n differentiation it
from others.
CONCLUSION
From the above study, it has been summarised that that innovation and commercialisation
both play an important role in achieving the objectives of the business effectively and efficiently
through gaining the competitive advantage over the rivalry firms. Apart from that, importance of
vision of the company, leadership, culture and team-work were discussed with respect to
innovation and commercialisation. Even 4 ps of innovation were discussed in detail along with
the concepts of innovation funnel and frugal innovation. Furthermore, tools such as patents and
trademarks were discussed as they are used by business firms to retain and protect intellectual
rights.
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REFERENCES
Books and journal
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Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Fernandes, G. and Brandão, L.E.T., 2016. Managing uncertainty in product innovation using
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Tsai, S.P., 2015. Dynamic marketing capabilities and radical innovation
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