Innovation Studies: Industry Structure & Long Range Planning

This assignment focuses on understanding the dynamics of innovation within industries, with a particular emphasis on long-range planning. It requires an in-depth examination of several academic papers, including 'Innovation Studies': The Invention of a Specialty by B. Godin, Industry Structure: Theory and Practice by D. Teece, and various others on topics like open innovation, technology commercialization, and regional innovation networks.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P1 Innovation and its significance in comparison to invention..................................................1
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................4
P3 4Ps of Innovation and the concept of innovation funnel.......................................................4
P4 Explanation of developments in frugal innovation................................................................4
TASK 3............................................................................................................................................5
P5 Importance of the commercial funnel and the application of New Product Development....5
P6 An innovation business case for an organisation, including ways to access funding............6
TASK 4............................................................................................................................................7
P7 Tools used to develop, retain and protect intellectual property and knowledge....................7
CONCLUSION................................................................................................................................8
REFERENSES.................................................................................................................................9

INTRODUCTION
With the change in the current business scenario need for innovation and invention has
also changed. It is a broad concept as thorough implementation of innovative technique growth
and advancement in the operations of business can be experienced. Innovation is a process
through which the capacity of an existing product is increased which further helps in producing
more and reducing the total cost of production (Aarikka-Stenroos and Sandberg, 2012).
Contradict to it invention is another technique which brings an entirely different way of doing
work. To raise the customer satisfaction level changes are required so that their interest can be
maintain (Walsh, 2012). Essence drinks was introduced two years back and received a very good
response. It deals in beverages which has a very big market. Therefore, it is important for the
management of refereed organisation to ensure continuous improvement changes in the product
so that it can be considered as better from other in the same field. The following report will talk
about the need of change and how it can be made possible by discussing the different concept of
innovation in the products so that more business can be earned.
TASK
P1 Innovation and its significance in comparison to invention
Since the beverage industry has a very good number of consumer innovation has become
more of requirement instead of being just a choice to it. It by making changes in the existing
products can attract more and more customers. The importance of innovation for Essence
beverages are listed below in the following manner:
Assist in facing increased competition – Rivalry is the biggest factor that hampers the
growth and development of an organisation. Pressure for essence drinks increases when a new
product is launched in the market which has different feature that can attract more customers.
Since entrepreneur are now becoming cleverer and faster by conducting the market research they
come with a product that can capture more market share. In that case innovation can help the
refereed organisation in achieving the competitive advantage. It by adding something new to the
existing product can maintain the interest of customers (Bagchi-Sen, 2010).
Help in surviving in globalisation – In the previous time the competitors were present
within the boundaries of own countries but now the scenario has changed. Brands from global
level are available which offers new variety to consumers and hence become a major problem for
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the companies like Essence drinks. This way it is left with no other option but to implement
different innovation programs in the business so that apart from maintaining hold in the own
country new open market can be captured.
Adapting to black swan events – Since the business environment is dynamic in nature it
is important that culture of being innovative is being implemented in the organisation. Being
innovative mean that the work force is ready to accept the change which are beneficial for the
brand (Bogers and West, 2010).
It is observed that the concept of innovation is being considered same to that of invention
which is not true (Thore, 2012). Innovation is a process through which better solutions are
provided in order to meet the demand and on the other hand invention can be refereed as a
unique system that results into an entirely fresh process or application. The big difference
between both the terms is further described in the following table:
Innovation Invention
It is a part of whole organisation as innovation
can be done in any division by making change
in its existing code of conduct.
This concept is related to the research and
development department as they work towards
discovering what new can be introduced.
Alteration in the existing practices or product
can be observed after implementing
innovation.
It results in a completely changed product
service.
Can be made possible even with a very less
amount of investment.
It is a costly and a time consuming activity.
Require normal or basic knowledge To invent something purely different it is
necessary that skilled individual is employed.
M1
With the help of communicating the advantage of implementing change in the organisation the
referred enterprise can foster change and experience a better working surroundings.
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P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Organisation like Essence drinks cannot ignore the significance of innovation as it has to
work on marinating change on continuous basis to survive in the market. They are doing
different sorts of explores in various fields. This is the fundamental reason that they are
influencing a business to a new soft drink like a healthy mango lassi which is now exceptionally
famous in UK market. Effective authority is essential for an association in the event that they
need to give something better to their clients. The management of essence drinks drive their
employees to think in an unexpected way, by giving them opportunity so they can make drinks
which are different and offer same in the market. These pioneers don't force their thoughts on the
work force of organization. The production team is given all the important assets which are basic
in changing over a thought into reality.
Essence drinks has a clear mission to be a leading provider of soft drink. For this they
need to include something important for the general public, which isn't conceivable without
doing innovations (Bogers and West, 2012). Commercialisation of new item and thought is vital
on the grounds that if refereed to association don't charge any sum for merchandise and ventures
they are giving are giving to society than they won't have cash to grow their business and convey
better things to potential customers. It is exceptionally troublesome for a solitary individual to
advance something and afterwards market it. Each individual has a point of confinement; he/she
can't do all errand. Them are numerous associations who are putting parcel of assets in
innovative work however they don't have great group which is the primary reason that they are
neglecting to adapt up to new difficulties identifying with innovation. e.g. Essence drink like
kick-start,Tizer and Anty Gin. are competing in UK market for gaining the top level in recent
past they have shown excellence in leadership by having a clear vision and common goal as well
as implementing innovative ideas in the world of commercialisation.
Procedure of commercialisation – First step is to discover the issues which should have been
illuminated. At that point they have to break down different assets which are fundamental in
procedure of building up an answer (Wonglimpiyarat, 2010). In the wake of taking vital
information from investigation improvement and planning of item is finished. A model is made
in following stage, this will give noteworthy data about costing of ware. In last advance, the
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greatest inquiry emerges is that where this advancement can be tried and created. There are some
different focuses which management ought to consider while playing out this activity like check
whether the thought or drink is new, for the market, are there other individuals too who are going
through the same thought. Organization need to obtain rights identifying with licenses and
copyrights. An item can't be sold by persuading individuals that it is new, organization need to
educate potential clients regarding its use (Ettlie and Rosenthal, 2012). Legitimate promoting
procedure is fundamental keeping in mind the end goal to popularize a product. On the off
chance that advancement is giving returns as indicated by desire of firm than the refereed
organisation can make an extension arrangement so that market share can be increased and hence
growth can be experienced in less time period.
In an organisation innovation is greatly affected by the culture too as if it is found that the
culture in organisation is such which do not support change than it becomes difficult to
implement same. It is required that the working staff is cooperative so that the change is easily
implemented as the consent of people working in an enterprise is required.
M2
Innovation funnel can be used to reach at the best decision for the referred enterprise like
selection of appropriate medium can be used through funnel so that product can be made in reach
to customers.
TASK 2
P3 4Ps of Innovation and the concept of innovation funnel
In order to implement change in the existing products of the company management can
use the concept of 4ps as it helps in taking the right decisions regarding the right product process
position and paradigm which are important areas of business. Each of these factors operates in
the following manner for the refereed organisation.
Product innovation – It is the most important concept as product is the heart of essence
drinks. It is important for the production team to ensure changes on continuous basis in the
variety which they are offering in the market so that consumer do not lose interest in the brand
and remain its permanent potential customer.
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Process innovation – In order to make something better with the same available
resources it is better that new procedure is adopted so that it can be evaluated that what process
can bring best results to the management. It is due to the reason that changing the existing code
of conduct may help in increasing the capacity of resources which may further reduce the total
cost of production.
Position innovation – It is another important concept through which the sales of given
organisation can be in creed. Under this process of innovation change is not done in the product
or its process but new markets are identified where the organisation can sell its existing products
and can raise the total revenue (Gambardella and McGahan, 2010). Thus innovation has changed
the mindset of customers in right way. Position of brand has changed from his earlier place to
another place just because the view of consumers has changed towards position of product.
Normally position has to be made in the minds of customers but innovation has changed
preference and mindset of customers in great manner.
Paradigm innovation – this model is in connection to the mental models. Under this the
employees are motivated to give new ideas and management may result into an entirely different
service. For instance, in context to the refereed organisation making the products available
through new can be addition of fresh service which may contribute in increased sales.
Apart from 4ps the company must analyse the steps in development of process. They should
understand that purpose of all innovation is to make products which helps a company in meeting
marketing needs in economic and manufacturing firm. Like in essence company they must have
a good idea and review it next they must take certain measures to cover markets and customers
which can be achieve by building a good business plan and finally monitor the process after the
execution of that plan.
P4 Explanation of developments in frugal innovation
It is a positive process that helps management in reaching to the final product by going
through a less complicated process. Under this concept the organisation ignores the complicated
process and adopts a competitively simple procedure so that costs can be minimised. A company
can innovate new things with existing items which helps in minimising cost in effective way.
Having recycling with exist products make company to have productivity in their working. There
are different principles on which this concepts works on which are as follows:
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 Engage and iterate – It says that management does not need to do the same labour every
time in order to come up with the innovative plan and can use the same plan in different
ways every time.
 Flex your assets – By investing a part of total earnings in innovation as it will give better
results in the log run. Essence drink has investment in innovation reduces the cost of
company and helps to get stable In long run.
 Sustainable answer – In order to reach at the best solution management needs to go
through different ideas so that best solution can be achieved.
 Shape behaviour of customer – Under this the response of clients is noticed so that it
can be identified that what actually is demanded by them (Godin,2012).
The essence drink makes investment in innovation which helps the organisation in
reducing the cost structure of firm. The firm makes decision of all such through making research
an all those things which affects the decision in entity.
According to funnel several ideas are generated and based on that they select the best ideas and
applies best engineering method to make it more compatible in market and finally they
implement that process likewise essence company can use this method for prospering in
competitive market.
M3
Frugal innovation is an effective criterion through which without doing much investment
better results can be achieving. The total cost of the organisation can be minimised using this
concept.
TASK 3
P5 Importance of the commercial funnel and the application of New Product Development
Commercial funnel is important for every business organisation it provides a guideline or
step to process an innovative idea. One must not be confused with innovation idea and as well as
funnel, in innovation a new idea is generated but a funnel is a process which starts from
innovative ideas to the implementation of that idea. It is a refinery process that facilitates
producer to have well defined new idea which they will impose on production or take is in exact
manner. It took production from early stage, fuzzy ideas to ultimate end where product will be
launched. It has so many systematic part that took, reviewing, measuring, assessing the
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innovation and in last introduce well defined produce and service. Innovation funnel has its own
importance in concern with beverage company, because people attract with innovative food
items.
Some of its importance are as:
 Enhance quality: A beverage company, directly is connected to the consumable item
where customers are always seeking for new thing that attracts them. Commercial funnel
helps a business in production and innovation that provide better quality of food because
food would concern with preservation. Hence, beverage company needs to provide those
quality products that which can preserve and their quality will be reduces by time
(Huizingh, 2011).
 Growth and loyalty: Products in beverage company is the crucial part for it and it helps
in binding customers with company. For intense growth in beverage company it is
mandatory to deliver good quality with some innovation which get its customers. Growth
can be coming with effective workforce that increases company's working capacity and
increase serving size in market. These all things provide high customer loyalty.
 Creativity promotion: an organisation needs creative people in their organisation that
gives creative ideas and that ideas will refine in innovation funnel to gives ultimate end to
innovative idea. It’s a proud moment for worker when his idea comes into action and it's
a part of promotion.
Following are the steps which termed as the process for new product development. These
should have to take in account by management so that better and effective gains could be
accomplish. Essence drink have to take them in account:
 Idea generation: generation of idea is the major key that influences the process of
innovation funnel. Ideas are come up with all those products that are available in market
and their presence mark some of those this that are not available in market (Kim, and
et.al., 2011).
 Screening: screening is all about searching all the factor that helps in execution of idea in
organisation. If it is not, then manager need to avail those in organisation and took it in
action. Screening is also for seeking scope of new idea whether it's idea working in
market or not.
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 Testing and development: testing is referring to checking a sample apart from whole
production. Testing should be taken by experts and checking its correctness with actual
idea and develop the product in accordance with innovation.
 Product development: here mass production is beginning. Few small changes are done
in this stage according to its design and any other thing that related to product.
 Commercialisation: this stages depicts that some promotional tool is used by promoter
that gets eyes on new product. Cause now people really needs eye candy products.
 Launch: after promoting marketed product, product will be in market so the customer
will buy if from retailer (Lindič and et.al., 2011).
The processes of new product development need to be commercialised in the large
market as this helps in attracting many more customers towards the new product developed.
Innovation in the existing products do need commercialisation to increase the productivity and
product introduced.
It shows how through the concept of innovation funnel and commercialization funnel an
organisation can reach to better and effective decisions which are capable of giving more
effective results.
P6 an innovation business case for an organisation, including ways to access funding
Essence drink is the beverage company that deals in drinking products in UK market.
Executive summary: essence drink company deals with beverages industry and they are
targeting all consumer relating to all sector in UK. Company always seeks innovative technique
so they can offer some new products to its customers. Majorly the point is, company who do
more innovation and introduction of new product in market tend to have more reputation and
more customers.
Target: beverage company majorly focussing on households and kids. Cause this company
offering good range of consumable product so more of households are engage with it. Innovation
are always attraction for kids, here new stuff that will be eaten by them they will also attract to it
that helps in increasing in business growth and have word of mouth publicity.
Solution: solution is related to effective promotional strategy that promote products in every
market. And also connect with operation of or uses of product. Cause the business deals with
beverages and customer needs those types of product that they will take use easily. Like if
promoter promoting drink product then the product should be attractive, better packaging,
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customer friendly, tests needs to be good. These attributes are considering in regards of solution
(Rafinejad, 2010).
Why innovation is important: Now a day’s peoples are attracting to new things, what comes in
market. For paying extra customers wants some new and rare high quality in their chosen
product. it's from consumer's view. In perspectives of organisation, its needed by firm that they
keep going with innovation it helps in getting more market and build consumer loyalty.
Customer research: It refers to what customers’ needs to have in market or in hand. Up
gradation in product is necessary for potential customer and for current customers too.
Customers research held for taking idea from market what market actually needs.
Funding: Funding is all about finance for innovation, it’s hard for small businesses to collect all
the resources for change in product or making a new product. For that companies will go with
loan facility or borrowing fund from other to make innovation possible.
Expected benefit: Past date will be used in new production launching. And any result or return
that a company will be having in future is determining here (Schoonmaker and Carayannis,
2010)
There are different number of sources for a fund get identify which have to take in
account by management of a company. Hence, Essence drink have to determine all sources of
finance properly in order to make their innovation project successful for further implementation:
 Banks: One of a major source for which Essence Drink will going to arrange fund is
bank. They can raise money from financial institutes on some interest and repay it within
a particular time period. But a major problem with this source of fund is that banks
usually charged high interest rate from their lenders.
 Relatives: Another major source of finance is relatives whom support in order to make
things correct. But business do not have to take this factor in account as this might lead to
create conflicts and issue between two parties.
TASK 4
P7 Tools used to develop, retain and protect intellectual property and knowledge
There are few techniques available which help companies to protect from any threat.
Those tools are as follows:
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Trademark: This is necessary for a firm to have its trademark through which it gets recognised
in the market. Trademark is the proof for any product that this item is of ESSENCE company.
Nobody can steal the mark of any company, if anybody uses trademark of any entity without
knowledge than they can make a sue against the illegal firm (Snow and et.al., 2011). Tere it a
disadvantage is also there by having trademark that if any item of fir harms anyone than they can
easily avoid to use the product of the same company.
Copyright: According to the copyright act, 2012 it is clearly stated that only creator have a right
to use its products and thing properly and make its distribution according to will. This legislation
supposed to be for a limited time period and have a liability as well. Essence Drink products are
eatables in nature and they are also specific in nature as well. Hence, they do not take copyright
on their products manufacturing.
Patent: If ESSENCE has made any new product and which is satisfying the consumers than they
have to make it patent as soon as possible, so that no other company who is in competition can
use their innovation, idea in a similar manner. Having a patent with company gives strength to
work (Teece, 2010).
CONCLUSION
From the above given study this has been summarised that innovation and invention are
both important and separate terms for an organisation. By implementing them better and
effective results can be achieved along with the effeteness in total cost. Different concepts like
frugal, funnel are also studied which shows how they help administration of essence drinks in
doing better business and achieving the competitive advantage.
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m1REFERENSES
Books and Journals
Aarikka-Stenroos, L. and Sandberg, B., 2012. From new-product development to
commercialization through networks. Journal of Business Research. 65(2). pp.198-206.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Bogers, M. and West, J., 2010. Contrasting innovation creation and commercialization within
open, user and cumulative innovation.
Bogers, M. and West, J., 2012. Managing distributed innovation: Strategic utilization of open
and user innovation. Creativity and innovation management. 21(1). pp.61-75.
Ettlie, J.E. and Rosenthal, S. R., 2012. Service innovation in manufacturing. Journal of Service
Management. 23(3). pp.440-454.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2).
pp.262-271.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva, 50(4). pp.397-421.
Huizingh, E.K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kim, S. K. And et.al., 2011. The effect of R&D, technology commercialization capabilities and
innovation performance. Technological and Economic Development of Economy. (4).
pp.563-578.
Lindič, J., and et.al., 2011. Deploying information technologies for organizational innovation:
Lessons from case studies. International Journal of Information Management. 31(2).
pp.183-188.
Rafinejad, D., 2010. Innovation, product development and commercialization: Case studies and
key practices for market leadership. J. Ross Publishing.
Schoonmaker, M. G. and Carayannis, E. G., 2010. Assessing the value of regional innovation
networks. Journal of the Knowledge Economy. 1(1). pp.48-66.
Snow, C. C. And et.al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management. 28(1). pp.3-16.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Thore, S. A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
Walsh, P. R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon
Valley. The Journal of Technology Transfer. 35(2). pp.225-236.
Online
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Difference Between Invention and Innovation. 2016. [online]. Available
through:<http://keydifferences.com/difference-between-invention-and-
innovation.html>. [Accessed on 13th November 2017].
Innovation Funnel. 2016. [online]. Available through:
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>. [Accessed on 13th
November 2017].
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