Innovation and Commercialization Report

This report analyzes the importance of innovation and commercialization for Essence Drink, a company offering mango lassi in the UK market. It explores the 4Ps of innovation, the innovation funnel, and frugal innovation. The report also examines the commercial funnel, new product development processes, and intellectual property protection strategies for Essence Drink's innovative preservative-flavored lassi.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and determine its importance to organisation in comparison with invention......1
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................3
TASK 2............................................................................................................................................4
P3 4Ps of innovation and use of innovation funnel to examine and shape innovation ideas......4
P4 Frugal innovation ..................................................................................................................6
TASK 3............................................................................................................................................6
P5 Importance of commercial funnel and application of new product development processing
for commercialisation of innovation...........................................................................................6
P6 Innovation business case .......................................................................................................8
TASK 4............................................................................................................................................9
P7 Tools that organisations can use to develop, retain and protect knowledge and intellectual
property.......................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Innovation is the procedure which involves several activities to uncover new way of
doing things. Although, it can de define as an act of inventing, making as well as producing
something (Rasmussen and Eliason, 2017). In simple terms, innovation is process in which idea
or invention get translated within goods and services which create value for customers amount
paid. This report is based on Essence Drink who is offering healthy mango lassi within the
market of United Kingdom. Respective organisation has introduced two years ago and its
founder is Akshay Kumar. In third year sale of Essence Drink decreases due to the number of
competitors entering within market. Thus, company think to bring some innovation for capturing
market again.
This report will going to cover various elements of innovation that will utilise for doing
innovation in Lassi. Along with, value of innovation for respective organisation as well as
comparison of innovation with invention. Furthermore, some aspect will explain and how they
shape innovation of lassi i.e., vision, leadership, culture and teamwork. Most important part of
assignment is 4P's of innovation and that will discuss for analysing innovative ideas. In last
section of report, frugal innovation will be highlighted as well as commercial funnel will
implemented for new product development within market area. Moreover, business case of
Essence Drink will explained and intellectual properties also which utilise for protecting
innovation product.
TASK 1
P1 Innovation and determine its importance to organisation in comparison with invention
Innovation is procedure through which company or an individual convert their thoughts
and ideas into product and services which help in growth of organisation as well as provide value
to the amount spend by customers (Osoro, Kirama and Vermeulen, 2017). Essence Drink is
small scale organisation which offering mango flavour lassi within the market of United
Kingdom. Because of single product with no innovation sale of respective company decrease
after 3 years. So to come out with this, Akshay Kumar who is founder of Essence Drink think to
do innovation in lassi by bringing preservative different flavour lassi (chocolate, banana and
saffron). There are several importance for Essence Drink behind bringing this innovation.
Explanation of these are as follows :-
1

 One of the major importance behind doing innovation is lassi is to attract customers and
increase sale of Essence Drink again (Zahedi, Mirghfoori and Morovati Sharif Abadi,
2018). In addition to this, need and want of customers will get satisfied by offering
preservative flavour lassi (Chocolate, banana and Saffron).
 Along with this, brining innovative lassi in market help Essence Drink in building their
goodwill within market area. Moreover, sale of company will also enhance which result
in profit maximisation and accomplishing goals of business.
Although, innovation play important role within organisation because it assist in overall
growth and development of Essence Drink. The same company is introducing preservative
flavour lassi in the market of United Kingdom for satisfying customers and increasing sale.
Furthermore, innovation and invention both are differ from each other. Lassi is USP of Essence
Drink so owner of firm want to apply innovation in their existing product instead of replacing
them through invention. Thus, Essence drink in not doing invention if they will do so then move
from their USP which result in automatic decreasing sales (Difference Between Invention and
Innovation, 2019). difference between innovation and invention are as follows :-
Basis Innovation Invention
Meaning In innovation thoughts and
ideas has been added within
existing goods and services
very first time. Essence drink
is implementing innovation by
bringing preservative flavour
lassi within market area.
On the other hand, invention
simply means bringing new
thing within market which
never exist before. Thus,
Essence Drink is not
implementing invention in
their operations because Lassi
is their USP and they don't
want to move from it.
What is it Simply, innovation is the
procedure which add value to
the product already exist
within market.
Through invention company
come with new product in
market.
2

Skills required For doing innovation there is
requirement of various skills
such as marketing, technical,
strategic and so on.
Only scientific skills are
required for doing invention.
Concern with It is Collection of several
goods as well as procedure.
Invention is related with the
specific procedure as well as
product.
Activities Innovation is the process
which spread within Essence
Drink entirely.
Invention is limited within
research & development
division.
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
It is very much essential for the organisation to decide the vision and goals for the
effective functioning of the organisation. The management of Essence Drink must also ensure
that these goals and objectives are conveyed to the employees. So that they can help in making
better plans and actions (Hora, 2016). With the help of this Essence Drink will also be able to
increase the market share and profitability in the systematic manner. If the vision of the
organisation is clearly stated than it will lead to smooth functioning of the activities and
operations of Essence Drink. So if the management of Essence Drink wants to improve its
innovation and commercialisation than vision, leadership and better teamwork needs to be
formed in the systematic manner. The explanation for these points are stated below-
Vision- The major Vision of the organisation is to offer various flavours of lassi such as
chocolate, saffron and banana flavour lassi to their potential customer's. Focus of the
organisation is to maintain and enhance the health of individuals by providing them various
varieties of lassi. As by introducing these new and innovative flavours in the market Essence
Drink want to become the top leader. This can be done by satisfying the need and demand of the
customer's. So that the desirable position is attained within the limited period of time.
Culture- It is generally concerned with values, rules and norms of the organisation.
These are formed for maintaining the internal environment of the organisation (Ke and et.al.,
2016). It is the duty of the management of Essence Drink make better rules and regulations so
3

that organisational goals are achieved. The focus must be emphasised on maintaining a positive
and friendly relationship among the superior and subordinates of the organisation. This is
because by doing this better ideas related to various flavours of lassi can be generated.
Teamwork- It is essential for Essence Drink to form various teams as with the help of
teams work can be equally distributed among each and every member of the team. Some of the
common types of teams in Essence Drink are cross functional and virtual teams. Future goals and
objectives of Essence Drink can be easily achieved by encouraging the team members in the
effective and efficient manner. The team members will directly help in providing innovative
ideas and plans regarding the flavours of lassi.
Leadership- Using appropriate leadership style will lead to innovation in the products of
Essence Drink. This is because by using these styles the manager or leader of the organisation
will be able to provide better guidance to the subordinates (Henttonen and Lehtimäki, 2017).
Leader of Essence Drink can sale and profitability by guiding its subordinates in the appropriate
manner. This is because team will be properly managed and chances of conflicts or disputes will
be reduced. The leader of Essence Drink must know how to extract work from its team members.
As if this is known than better plans and strategies can be made for the achieving organisational
and individual goals.
TASK 2
P3 4Ps of innovation and use of innovation funnel to examine and shape innovation ideas
Innovation mix is the model utilised for bringing something innovative in the market
area. There are 4Ps of innovation i.e., product, position, process and paradigm. Explanation of
these in relation of Essence drink are as follows :-
 Product: Innovation in product help essence drink is delivering satisfactory products to
customers according to their need. Respective company is launching preservative
flavoured lassi which can be used by customers after 6 month also at anywhere. This will
result in increasing sale and profit maximisation.
 Process: As Essence drink is a small scale company that offers preservative flavoured
lassi to the population of UK (Mollick and Robb, 2016). For gaining better position and
increasing sale it is necessary for company to obtain proper process. Generally, the
4

effectual working process aids in maintaining quality of lassi and also the employees’
performance which assist in reducing chances of mistakes.
 Position: It is related to the position of Essence Drink offering within market or for
customers. Thus, by analysing present market company can identify requirement of
customers. Thus, by these activities company can take better place in market by
satisfying customers and building good image (Datta, Mukherjee and Jessup, 2015).
 Paradigm: It is related to the modifying perceptive of viewing business. Paradigm
includes seeing similar thing within distinct way.
Innovation funnel is the tool utilise for describing steps which take place for development
of product or process. Furthermore, aim of innovation is to gain better place in competitive
business environment. Explanation of this, in relation to Essence Drink and their innovative
preservative flavour lassi are as follows :-
 Opportunity assessment – It is first stage in which essence drink analyse market data,
information related to customers and many other related to innovation. Motive behind
this is to identify opportunities present for new product extension.
 Insights based ideation – Within second stage opportunity suitable for strategy of
Essence Drink will identified. Thus, after it several type of product will imagine which
will take benefits in present market (Yu and et.al., 2016) . In relation to this market
research will be conducted through surveys, focus groups, online communities,
crowdsourcing etc..
 Conceptualization – In this stage, Junior innovation consultant hired by Akshay Kumar
will frame entire innovative idea which come out in stage of ideation which is
preservative flavour lassi in the market of UK.
 Evaluation and benchmarking – Organisation approach to their present customers and
test preservative flavour lassi on them for taking their feedback and identify that product
will work or not.
 Go/No Go – After doing test and taking feedbacks of customers suitability of innovative
concept has been identified. So that, decision will make to work on it will take place as
well several other points are also considered like manufacturing, margins costs and other
items which are not relevant to the preference of customers.
5

 Launch – In this step innovative concept of preservative flavour lassi will launch in
market of UK.
P4 Frugal innovation
Frugal innovation is the process that find new business model, Redesign products,
recognise value chain to serve users who are facing extreme affordability constraints within
appropriate style. Various organisation are following innovation funnel for developing extra
elements within current product. Below mention are some steps of frugal innovation:
Generating idea of innovation: In term of innovation it is essential to monitor market so
that better outcomes can be gained according to needs. Thus, manager of essence Drink have to
do market research in proper manner for identifying customers need ans wants.
Screening new idea: New idea generated from market research should be screen in the
right way for identifying that need of customers will fulfil or not.
Idea screening: Innovative idea of preservative flavour lassi will be screened.
Testing: It is important to test product for identifying that it is as per requirement or not.
Internal analysis: This procedure is identified with administration of assets and utilised
as best part or the best way.
Review marketplace: It is important to take customers review after bringing preservative
flavour lassi in the market of UK.
TASK 3
P5 Importance of commercial funnel and application of new product development processing for
commercialisation of innovation
Commercial funnel is the framework which have three phase that assist in utilisation or
improvement in existing product by applying various plan as well as policies. In addition to this,
it is crucial for essence drink to apply commercial funnel in their working for success of product.
Explanation of this are as follows :-
Pricing policy: Essence drink is offering their preservative flavour lassi in moderate price
to existing as well as potential customer of United Kingdom. Because this pricing will be
affordable by every type of people existing in market area. With the assistance of commercial
funnel respective firm will set p[rice after identifying behaviour of customers at different price.
6

Improving ways of growing business: In this procedure commercial funnel play critical
role for growth as well as development of company. Primarily, it has been analysed that
respective funnel assist firm in fulfilling need and want of customers in effectual manner. If
Essence drink will satisfy their customers then automatically it result in increasing sales and
gaining competitive advantages.
Emergence of advance technology: Herein, essence drink is implementing funnel in
their working for launching product in innovative as well as competitive market area. Apart
from this they are coming up with preservative flavour lassi which can used while travelling.
Process of New Product Development
There is process process of New product development which will assist Essence Drink in
bringing Preservative flavour lassi within market of UK. There are several step involved in it
explanation of these are as follows :-
Idea generation: It is the first step of new product development in which idea of
preservative flavour lassi introduced in market by conducting proper research. Thus, it is
important to gather accurate information related to customers preferences as well as taste for
developing product according to the requirement. So that, idea relate to preservative flavour lassi
is will developed.
Idea evaluation: It is second step which come after idea generation, in this idea will be
evaluated for removing any type of obstacles from generated idea which is not related to this.
Concept definition: Herein, next step after idea evaluation on preservative flavour lassi is
concept definition. In which entire concept will explained that Essence drink is offering different
flavour lassi i.e., chocolate, banana and Saffron. That can be use by customers while travelling
which make it popular within market of United Kingdom.
Strategies analysis: In this step manager of Essence Drink ensure that their innovative
idea of preservative flavour lassi will play attractive role in market area of United kingdom. In
addition to this, their pricing strategy is moderate so that product will be in affordance of every
people and result in increasing sale as well as generating revenue.
Product development and testing: Within this stage, it is important for an association to
test is preservative flavour lassi before bringing it in market because quality and taste checking is
necessary for identifying that product is as per demand or not.
7

Commercialisation: It is necessary for an organisation to have a commercialisation in its
product so that they can launch their product with proper marketing plan.
Product launch: In the last step innovative product i.e., preservative lassi will launch
within competitive business environment.
P6 Innovation business case
Business case is the document in which all the necessary information gathered by
organisation that help in achieving goals and objectives of Essence Drink are mention. All
elements related to daily basis operations of respective organisation are mention (Song and et.al.,
2016). Thus, all important information are mention in business case which is necessary for
working of organisation.
Executive Summary: Business case of Essence drink will include all the information
related to introducing of preservative flavour lassi i.e., chocolate, saffron and banana. In
addition to this, it is important to frame market strategies in proper manner before bringing
product in market area. It must involve SWOT, PESTEL as well as porter's five force model so
that all these will assist respective firm in growth and success of business.
Mission statement: Essence Drink mission is to offer health preservative lassi with
different flavours because firm believes in offering healthy drinks which result in happy
customers. Below mention is statement purpose of Essence Drink are as follows :-
 Make sure that quality material will utilise for production of preservative flavour lassi.
 Set their goodwill within the market of United Kingdom by some innovative offering in
market. Satisfy customers need and make them happy by offering products beyond their
expectation.
Resources: Essence Drink require several resources for gaining success in the market of
United Kingdom such as raw material for production, funds and many more. This is required for
fulfilling daily basis requirement of respective company in proper manner.
Market analysis:It is necessary to conduct market analysis for identifying customers
preferences and level of competition because Essence Drink is bringing their preservative flavour
lassi within competitive business environment.
8

Financial projection: There is requirement of funds i.e., £20,000 for bringing
preservative flavour lassi within the market of United Kingdom.
Ways of funding: For an organisation funds are the backbone without these it is not
possible to do organise daily basis activity of Essence drink in effective manner (Carayannis,
Cherepovitsyn and Ilinova, 2016). Thus, Respective organisation have to generate funds which
is necessary for brining their innovative product in market of United Kingdom i.e., preservative
flavour lassi. There are several ways through which fund can be generated explanation of these
are as follows :-
 Bank and Financial institution: This is known as most popular and best source of fund
generation. Because bank and financial institutions will be safe and secure method
through which Essence Drink can generate funds. But while giving loan bank take some
security from loan taker against the given amount. Although, principle amount is paid
with interest to bank by the loan taker. From family and friends – Essence Drink can also generate funds through friends or
family members also. It have some benefits also like no need to pay interest amount as
well as security for taking money.
Thus, best source of fund rising for Essence Drink is bank and other financial institutions
because there is no such type of risk are involved in this type of fund generation source.
TASK 4
P7 Tools that organisations can use to develop, retain and protect knowledge and intellectual
property
It is important for an organisation to protect their innovative protects and services so that
no other can copy it. There are several tool introduced through governmental bodies with the
motive of providing protection to any type of innovation. Essence drink can use any of the
intellectual property for protecting their innovation i.e., preservative flavour lassi. Explanation of
the same are as follows :- Trade Secrets – This type of protection is given to special formulas, program or any
techniques developed by an individual. Moreover, there are some aspects which will not
covered within trade secrets such as employment law, contract law and so on. Thus,
9

respective intellectual property is not suitable for Essence Drink because it will not help
them in protecting preservative flavour lassi. Trademarks – It is an protection given to organisation words or its combination,
symbols, designs and so on which is created for presenting any business. Symbol of
trademark is TM which placed at the end of word and indicates claimed protection as
well as means that trademark is register. But innovation in lassi in product which don't
require protection of respective intellectual property. Copyrights – It is given to creative work like drawing or writing. Copyrights in mainly
taken for blog posts, designs, movies, software, architectural drawings and so on.
 Patents – It given to any kind of product and process innovation as well as exclusive
control over the idea is given to inventors which shows that how it will use. There are
three type of patents i.e., utility, design and plants. Essence drink can take patent of their
preservative flavour lassi for protecting it from others.
10

CONCLUSION
From above discussion of report it has been concluded that, innovation is crucial for
every organisation because after sometime sale of company get decrease due to chance in
customer need and want. Thus, it is necessary for an organisation to bring some innovation in the
existing products and services so they can attract customers from market area. Decrease sale of
Essence Drink has been covered by bringing innovation in the existing offering and it also result
in customer satisfaction, increasing sales, profit maximisation and so on. In addition to this, it is
necessary to protect innovation through intellectual property so that no other can copy innovative
product. Furthermore, innovation funnel is the tool that will help company in coming with some
innovative offering within market. The same funnel aids Essence Drink in bringing their
thoughts in reality and result in customer satisfaction as well as increasing sales.
11

REFRENCES
Books and Journal
Rasmussen, T. E. and Eliason, J. L., 2017. Military-civilian partnership in device innovation:
Development, commercialization and application of resuscitative endovascular balloon
occlusion of the aorta. Journal of Trauma and Acute Care Surgery, 83(4), pp.732-735.
Osoro, O., Kirama, S. and Vermeulen, P., 2017. Factors Affecting Engagement and
Commercialization Of Innovation Activities of Firms in Tanzania. Tanzania Economic
Review, 4(1-2).
Zahedi, A. E., Mirghfoori, S. H. and Morovati Sharif Abadi, A., 2018. An integrated map to
developing the innovation and commercialization potential of Iranian knowledge-based
companies. Cogent Business & Management, 5(1), p.1523345.
Hora, M., 2016. From Innovation Success to Commercialization Success: Technology Ventures
and the Impact of Alliance Partnerships. In United States Association for Small Business
and Entrepreneurship. Conference Proceedings (p. CS1). United States Association for
Small Business and Entrepreneurship.
Ke, W. and et.al., 2016. Employing lead thiocyanate additive to reduce the hysteresis and boost
the fill factor of planar perovskite solar cells. Advanced materials, 28(26), pp.5214-
5221.
Henttonen, K. and Lehtimäki, H., 2017. Open innovation in SMEs: Collaboration modes and
strategies for commercialization in technology-intensive companies in forestry
industry. European Journal of Innovation Management. 20(2), pp.329-347.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review. 58(2), pp.72-87.
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&d Management, 45(3),
pp.215-249.
Yu, Y. and et.al., 2016. Improving the performance of formamidinium and cesium lead triiodide
perovskite solar cells using lead thiocyanate additives. ChemSusChem. 9(23). pp.3288-
3297.
Carayannis, E. G., Cherepovitsyn, A. Y. and Ilinova, A. A., 2016. Technology commercialization
in entrepreneurial universities: the US and Russian experience. The Journal of
Technology Transfer. 41(5). pp.1135-1147.
Song, Z. and et.al., 2016. Perovskite Solar Cell Stability in Humid Air: Partially Reversible
Phase Transitions in the PbI2‐CH3NH3I‐H2O System. Advanced Energy
Materials, 6(19), p.1600846.
Online
Difference Between Invention and Innovation. 2019. [Online]. Available through:
<https://keydifferences.com/difference-between-invention-and-innovation.html>
12

13