Innovation and Commercialisation

This document discusses innovation and commercialisation in the context of YOYO drinks. It explains the concept of innovation and its comparison with invention, the value and importance of innovation to an organization, and how vision, culture, leadership, and teamwork shape innovation and commercialisation. It also explores the types of innovation, the new product development process, and the use of the innovation funnel in driving new ideas and products. Additionally, it discusses frugal innovation in an organizational context.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................2
explain innovation and its comparison with invention...........................................................2
Value and importance of innovation to organisation.............................................................3
Types of innovation with focus of disruptive and incremental innovation with its pros and
cons.........................................................................................................................................4
4Ps of innovation and supports capability and management of innovation...........................5
Explain Frugal innovation in organisation context................................................................7
PART B............................................................................................................................................8
BACKGROUND OF COMPANY WITH PROBLEMS.......................................................8
Use of commercial funnel to provide solution to problem.....................................................9
Details of innovative new drinks product proposed...............................................................9
Marketing opportunity of innovative new drinks and meets the needs of stakeholders........9
Overview of industry and competition.................................................................................10
Financial projection and source of funding..........................................................................10
Sources of funding................................................................................................................10
Techniques for testing the effectiveness of new drinks........................................................11
Evaluate the tools to protect the innovation.........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
1

INTRODUCTION
Innovation is the modern term that means unique idea in the form of methods or style and
the creative thoughts. Commercialisation refers to the process of introducing new goods and
services into the market place. It does mean to direct launch in the market but includes a move
from laboratory into commerce. In current market area company are working up with the
innovative idea and products that will enable to beat the competition and attracts more
customers. This report is related to YOYO drinks which is found by Mr. bond in UK. Here,
company provide a healthy mango lassi to achieve the global market. Firm face the problem of
decreasing its sales and increase its competitors. To overcome this problem they innovative their
lassi with organic multi flavour lassi which is very healthy. It explains the the concept of
innovation with their difference. Different types of innovation and method to require to
commercials it, also explains the frugal innovation with NPD funnel and at last make a business
plan and find tools to protect it(Ge and et. al., 2017).
PART 1
explain innovation and its comparison with invention
Innovation and invention – Innovation refers to an activity of improving on or making a
essential contribution in an existing goods, services and a process. On the other hand invention is
the process of creating and launching a product offering of a company for the first time into the
market(Henttonen and Lehtimäki, 2017). For instance, when YOYO drinks manufactures drinks
is called innovation but when they modified it by using different organic flavours is called an
invention according to the customers taste and preferences(Liao and et. al., 2016).
Comparison between innovation and invention
Basis Innovation Invention
Concept Turns a new idea into
commercial success or
widespread use.
Fragmentation of new idea or
concept
Activities Innovation is spread across the
organisation
Invention is limited to research
and development department.
Skills It requires multiple skills like It needs a scientific skills
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marketing, finance and
planning.
Example When a company owner thinks
to innovate new idea
according to the customers
preferences like innovation in
drinks as per demand etc.
It is related to product designs,
business model and working
prototypes.
Value and importance of innovation to organisation
Importance of innovation
Meeting customers needs- It is an important term in innovation because it requires the
business to know the customer's needs and according to that they provide the products this will
increase the profitability of the firm. In context of YOYO drinks, Bond analyse the customers
taste and make a innovation so they can fulfil demand and satisfy customer. It helps in earning
more profits and give competitive advantage in the market place.
Gaining competitive advantage- It is very important to gain the rivalry advantages, when
there is many competitors are available in the market it can reduce its sales to overcome this
company need to innovate their product and enhance its sales. In YOYO drinks, they decrease in
its sales while increase in number o0f competitors so the owner of the company think to launch
its innovation in its existing products this will help in reduce the competitors and increase the
sales(Yin and et. al., 2015) .
Reinforcing brand name - Develops the brand name is the most essential task for any
company. It also shows the effective corporation of the team members in increasing band image.
In context of YOYO drinks, owner think to innovate in existing product “lassi” to attract more
customers and earns more profits.
Explain organisation vision, culture, leadership and teamwork can shape innovation and
commercialisation
Innovation and invention both are essential part of the business growth and survival of the
company. It can provides information regarding vision, leadership, culture and teamwork who
support the organisation to increase its proficiency and sales(Mollick and Robb, 2016). In this
YOYO require to analyse this terms to innovate new product which require workforce, a healthy
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environment and a clear vision. There are some elements to support innovation are described
below-
Vision- Its vision is to become the biggest beverage company in the UK, while
providing healthy drinks to the customers like mango lassi and more innovative drinks that
attracts more new consumers(Weng and et. al., 2017).
Culture – It refers to the social actions and attitude that found in the organisational
working place. It includes beliefs, values, customs ,art and ability and capability of an individual
in the groups. Culture helps the organisation to innovate new product which is favourable to
market and increase the brand image. There are different types of culture that was found in the
company like task culture, collaborate culture and power culture(Ge and et. al., 2017). In YOYO
drinks, they remove the power culture and apply task culture so every employee will participate
and share their innovative ideas that would help the firm to increase its sales and revenue.
Leadership style- There are various types of leadership style that a leader of the
organisation use to complete the task on time with efficiency and effective(Bashmakov and et.
al., 2015). In YOYO drinks, leaders follow the democratic or transforming leadership style
where they give freedom to their teammates to participate in the decision making process of
innovation which give the best results because there are many different mind who involve in
creation of new idea process. Here managers also use transformational style that help employees
to complete the task on time with effectiveness and will increase the company profits(Weng and
et. al., 2018).
Team work – It refers to the corporation and collaboration between the group of people
who perform a common task in desired time and earns more profits, increase brand image of the
company(Arora, Cohen and Walsh, 2016). For example- when the employees in the organisation
works in a team to achieve the common goal this will help in earning more revenue and growth
of the company. It also increase the productivity of an individual employees. YOYO drinks
innovate their existing drinks to attract more customers for this it require effective team who
work for a common goal to achieve the target and increase the sales.
Types of innovation with focus of disruptive and incremental innovation with its pros and cons
There are different types of innovation that a company can use to increase its sales and
revenue. It includes architectural innovation, radical, incremental and disruptive innovation.
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Incremental innovation – It refers to the most common form of innovation. In this firm
can do small and short improvements in the existing products, services, processes and methods.
It mainly focus on the improving and upgrading the current product to earn more revenues and
growth. In context of YOYO drinks it improves their lassi in an innovative way so it will attract
more customers.
Advantages - it saves the cost of manufacturing the new products. It saves the cost by
doing modification in old product.
Disadvantages – It is not suitable when there is a need of major or rapid change.
Disruptive innovation – It refers to a innovation that is done in applying new technology
or processes in the company current market. In this new technology is used which is more
expensive and sometimes it much harder and riskier for the company. In context of YOYO
drinks, manager could innovate in the product and applying new technology in their lassi and
delivers it to current market. This helps in maximising market growth.
Advantages – it helps YOYO drinks to earn more profit and capture the wide area,
because of using new technology in the product helps in attracting new customers.
Disadvantages – it is much more expensive for the company and it also a risker process
because using new technology in lassi of YOYO drinks attracts or not.
4Ps of innovation and supports capability and management of innovation
Innovation is an activity that includes four essential elements like person, process, press
and product. YOYO drinks innovates its existing product to attract customers and increase sales.
Four Ps of innovation is explained below-
Product- It is an important term in innovation where goods produced in an innovative
way and identified the user. Here managers of YOYO drinks ensures that the innovation in lassi
is unique that is different from the rival firms and helps in increasing sales(Henttonen and
Lehtimäki, 2017).
Process- It refers to that process which is involve in the planning step of manufacturing
the innovative product. In this manager of YOYO drinks ensures that their creation is very
effective to earn the sales and increase the revenue.
Position - This is related to the promotion of the innovative products and communicate it
the persons who are interested to buy this. In context of YOYO drinks, manager can introduces
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an organic lassi which is for healthy person but as per the today’s demand it is perceived in a
fashion. Due to this they need effective promotion technique to attract large customer base and
who are very conscious about their health. It helps the YOYO drinks to earn more profits with
more selling.
Paradigm innovation – It is the last part of the innovation process which shows how a
person frame what organisation can do to attract more people. In this YOYO drinks manager can
examine the customer behaviour about the development of their lassi and according to that they
innovate and modify their mango lassi to organic lassi(Hrdy, 2015).
How new product development processes and innovation funnel used in YOYO drinks to
drive new ideas and product
New product development process
It is the basic method of introducing the goods and services in the market place to the
customers. It is essential to create attention of consumers and it differentiate from the rival firms.
In this YOYO drinks, plans to innovate in existing flavoured mango lassi with organic multi-
flavour lassi and in minimum cost of producing. This drink is very effective for the customers
who are very conscious about their health. It this drink there is no synthetic pesticides, artificial
colour and flavours that is not good for health. Here the company use honey, chocolates and
fresh fruits in making the organic multi-flavour drink.There are different stages in launching the
organic multi-flavour lassi in the market.
Idea generation- In this step YOYO drinks examine the SWOT analysis and current
market trends which help in distinguish from other competitors by generating innovative ideas
which earn more revenue and growth.
Screening the idea- This step includes the cost that was cut in production process. This
will benefits the profits of YOYO Drinks.
Testing the concept- It is done after the idea generation where YOYO drinks research the
market by knowing the customers needs and wants of the product and services.
Business analytics- In this process YOYO drinks analysis the whole market. It is a way
in which manager examine the external factors that affect the business product its evaluation and
modification.
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Marketability test- This method provides the company a test panel where they provide
valuable information and done last minute changes and tweaks. In this YOYO drinks test their
product on some people and if there need to improve the product they will do that.
Product development- After analysing the market and test the product it a time to
modify the drink i.e. lassi that will attract more and more customers. Here the YOYO drinks
introduce the organic multi-flavour lassi to attract more people.
Commercialisation- After done all the steps YOYO drinks launch it into the market and
attract more peoples in the market place.
Innovation funnel
It refers to the mechanism that enables in achieving the growth in the future by
innovating the product, it is also called funnel management process that is used by many
companies to create an unique and realistic actions. In this funnel managers carefully and
continuously monitor the rules and strategies that they used in fragmenting the product. There
are various steps that the YOYO drinks follows.
Investigation- It is the first process of innovation funnel where firm investigate the
market and generate a situation according to the environment for their innovative product. In this
method YOYO drinks monitor and identify their future growth and sustainability on the basis of
their unique drinks.
Market investigation- It also an important step to examine the whole market where the
product is launch and deliver to its customers. In context of YOYO drinks, marketing manager
need to identify all the facts and figures as per their product requirements that will help company
to increase its sales and profits(Paradkar, Knight and Hansen, 2015).
Delivering products- This is the last stage where the company finds the best idea to
delivers the unique products to its customers. In YOYO drinks, managers selects the
best ides and find the best promotional tool to successfully deliver their unique product
to the targeted customers (Zhou, et. al., 2018).
Explain Frugal innovation in organisation context
Frugal innovation
It refers to the process of eliminating the simplicity and cost of a product and its
manufacturing and it is called frugal engineering. It removes the unwanted features from the
durable goods in order to sell in developing nation. This means trading in the form of quality of
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products offerings with reasonable price. The main reason of the firm to innovate this is to
maximise sales and profits in the market place .
(Yang, G. and et. al., 2018)
Finds opportunities in adversity- This is the first process in frugal engineering. It assist
an organisation to find and take the opportunities at the time of difficult situation. In YOYO
drinks, it decrase its sales and increase competitors that is the biggest challenge in front of the
firm to overcome this it innovate an existing drink by using organic multi- flavour lassi to
increase its sales and proficiency and it will reduce the competitors in the market(Hrdy, 2015)
(Bashmakov and et. al., 2015).
Use less and perform more- The next process of innovation funnel suggest that YOYO
drinks use resources very effectively and efficiently that reduce the cost of production and
increase in revenue.
Think and act flexible- In this step manager of YOYO drinks thinks very flexibly as per
the demand of the customers. It help the firm to easily understand consumer in the market and
helps the employees in making the drink.
Use simple methods- Manager use those methods in manufacturing the product which is
easily understood by the employees who make it(Yang and et. al., 2018).
Include margins- YOYO drinks, managers will leave a margin so they make changes if
the customers required.
Follow your heart- In this step YOYO drinks fulfil and satisfy their customers taste and
preferences that will lead in increase the sales and brand image in the UK.
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PART B
BACKGROUND OF COMPANY WITH PROBLEMS
Innovation is the modern term that means unique idea,new imaginations in the form of methods
or style and the creative thoughts. Commercialization refers to the process of introducing new
goods and services into the market place. This report is related to YOYO drinks which is found
by Mr. bond in UK. Here, company provide a healthy mango lassi to achieve the global market.
Firm face the problem of decreasing its sales and increase its competitors. To overcome this
problem they innovative their lassi with organic multi flavor lassi which is very healthy It
explains the the concept of innovation with their difference. Different types of innovation and
method to require to commercials it, also explains the frugal innovation with NPD funnel and at
last make a business plan and find tools to protect it(Yang and et. al., 2018).
Use of commercial funnel to provide solution to problem
Commercialization funnel
It refers to that process which the organization use to introduce their new product and services to
the market. It is an broader term that includes distribution,marketing, customer support, sales and
production process which is very essential to achieving the sales success of an unique product
offerings(Yin and et. al., 2015). It in YOYO drinks attracts users and clients by reviewing the
content by using official website. It is very useful to recognize their product in number of
customers. And satisfy the needs of the user. It will create the brand loyalty in the mind of
consumers.
Details of innovative new drinks product proposed
In this YOYO drinks, plans to innovate in existing flavored mango lassi with organic
multi-flavor lassi and in minimum cost of producing. This drink is very effective for the
customers who are very conscious about their health. It this drink there is no synthetic pesticides,
artificial color and flavors that is not good for health. Here the company use honey, chocolates
and fresh fruits in making the organic multi-flavor drink.
Marketing opportunity of innovative new drinks and meets the needs of stakeholders
It create a great opportunity for YOYO drinks company to innovate new drinks because there are
many people who are health conscious as well as taste conscious an this organic multi- flavour
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lassi attracts more and more customers it also attracts stakeholders to invest in the innovation
because it fulfills the demand of the customers. It will increase its profits while attracting
customers and stakeholders. It is the biggest market opportunity for the company(Weng and et.
al., 2018).
Overview of industry and competition
YOYO drinks is started before three years ago by Mr. bond . They offered mango lassi and
increase its sales but at fourth year it reduces its sales because there rival firm copy their
products and sale it low price this would affect the company sales and proficiency. Due to this
they need to modify their lassi after researching the market. They identify the people are more
conscious about their health and prefer organic products due to this YOYO drinks manager can
modify their lassi by using organic product and flavour so that they maximise their profits and
share.
Financial projection and source of funding
It is very important for the company to project and analyse the finance resource so that they
can arrange their funds according to that and innovate their lassi that heslp in enhancing the
market share. For this they need to analyse where to invest money to earn high returns.
Following are the areas that can be shown below.
Funding for market research- it refers to the research which allow the YOYO drinks to find
the target market and get feedback from the clients which help them in their innovation.
Desk based research- it helps company to collect secondary data to achieve the task. In YOYO
drinks it helps in collecting the data related to the customers and who will consume it.
Product development- it refers to the process of launching the product, idea through market
release and beyond. YOYO drinks launch its product by their innovation.
Expect Sales and profits- YOYO drinks expects to increase its sales by 20% after innovation
and profits will increase by 30%. The main of the firm is to increase its sales and revenues within
a company and at the same time long term sustainability in the market(Weng and et. al., 2017).
Sources of funding
There are various source of funds that the firm use to satisfy the need of cash in term of
money. It includes various sources like venture capital, bank loan, savings, donations etc.
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bank loan- it is an amount of money loaned by a bank to a borrower at some interest rate
for a certain period of time. It is very secured type of loan in which bank is involved (Paradkar,
Knight and Hansen, 2015). This type of loan is beneficial for innovation in product and process.
It is very flexible in nature and gives the tax benefits to the clients. It also have some drawbacks
in this lots of paperwork is required.
Venture capital- it refers to that loan which is done online like there are many investors
available at one place who are interested in spend their money in other business. It is less
secured because sometimes there is a chance of loosing information about the business.
Here YOYO drinks choose bank loan where the bank give the funds in innovating the
products. After sometimes the loan will be repaid at some interest rate and it is very
secured type of loan. It also helps in earning profit and working efficiency of a worker.
Techniques for testing the effectiveness of new drinks
YOYO drinks follow and adopts the technology in their organic lassi to deliver it to
customers with a fresh and delightful taste. In this they use sanipolymer technology that
would purify lassi within the container itself and it also enhances the durability of the
packed organic multi- flavour lassi. It also helps in earning more and more profits and
increase the market growth in the current market place.
Evaluate the tools to protect the innovation
Intellectual property rights
It is a very important term for every business enterprise because they set the organization value
more in front of the rival firms because in this firms offers the different and unique product to its
customers. There are different types of intellectual property rights includes patent right,
copyright, trademark etc. which help the firm and individual in creeping the product or idea from
other person or organization It refers to that right that is given to an individual over its
innovation(Mollick and Robb 2016).
Patent- It is a license that was granted by the government of the country for certain
period of time. It is given to the sole owner for its innovation that is exclude from other
people making, using, selling of the innovation . It is the strongest protection where an
individual protect its innovation form others.
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Pros- the major trump card of patent is that it stop other peoples to sell, manufactures,
and trading the invention without taking proper permission.
Cons- The drawback of patent right is that it is very time consuming and a very long
process.
Trademark- It refers to an expression or sign that identifies goods and services from
particular source from those to others products.
Pros- By using this right it helps the owners and gives the right to use the trademark
symbol. It helps in stop copying the similar work.
Cons- The major disadvantage of trademark is that a person pay a fee for their trademark
product and it is depends on the number of classes of products and with some additional
fees.
Copyright- It is that legal right which is granted for the original work of author's. It
provides distribution, usage rights for the author and the exclusive publication.
Pros- It helps in creeping the work use by other people. In this people have the sole right
to produce or reproduce their own work.
Cons – the main drawback is that it is only useful for the authers not the businessman and
in this work are only authorized and this right not provide the ownership.
Here, YOYO drinks would choose patent right where they protect their drinks by using it from
competitors. It will provide security to their creation and prevent from creeping. If any
competitors will use this drink without the permission than the firm sue the case on rival firms.
This will down the brand image of the competitors and helps in increase the sales and profits of
YOYO drinks.
CONCLUSION
This report conclude that innovation and commercialisation both are important part of the
organisation to increase the sales, brand image, proficiency and the market share in the current
market. It involves various factors such as vision, mission, leadership,teamwork and culture that
can assist in shaping the firm innovation and invention. At the time of creating the new product
firm use 4 Ps of innovation with innovation funnel. Furthermore it includes the frugal innovation
also called sales innovation where the firm analyse the facts and figures in innovating the
products. It also help in increasing sales by satisfying the customers demand. It also explains the
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importance of commercialisation that helps in new product development process. After making
all this, firm build a business case to know what source of funds they used in innovation, its
benefits, source of innovation etc. and at last firm use various intellectual property rights to
protect their innovation.
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