Innovation and Product Development

This assignment delves into the significance of innovation in product development. It examines how businesses leverage innovation to meet customer demands and requirements, ultimately leading to increased customer satisfaction and market competitiveness. The document analyzes various aspects of innovation, including its influence on attracting customers and achieving business goals.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its significance to company in comparison with invention...........................1
P2 How vision, leadership, teamwork and culture of firm can shape innovation &
commercialization.......................................................................................................................2
TASK 2............................................................................................................................................3
P3 4P's of Innovation and use of innovation funnel to analyse & shape innovative ideas........3
P4 Developments in frugal innovation & how it is utilized in organisational context...............4
TASK 3............................................................................................................................................5
P5 Significance of commercial funnel & application of new product development processing 5
P6 Develop innovation business case for firm including methods to access funding................7
TASK 4............................................................................................................................................8
P7 Evaluation of various tools use by firm to develop, protect and retain intellectual property
and knowledge............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation refers to a process that is utilized by company in order to make themselves
differentiate from others. In this, firms modify their products by adding new feature in it that
assist in attracting large group of customers (Anthony, 2017). For innovation, new ideas are
required and these are applied by business enterprise to further satisfy expectations and needs of
customers. In current scenario, implementation of innovation becomes necessary in order to
maintain sustainability in market. This report is based on Essence Drinks which deals in
beverage sector and offer variety of drinks to customers. This assignment includes innovation
and its importance as well as role of vision, culture, leadership and teamwork in shaping
innovation and commercialization. 4P's of innovation and use of commercial funnel is also
defined. Apart from this, process required to commercialize innovation and range of methods for
protecting ideas are included in this report.
TASK 1
P1 Innovation and its significance to company in comparison with invention
Innovation refers to a process that is implemented by company in order to satisfy needs
and requirements of customers in an effective and efficient manner. It often viewed as
applications of solution that meet unarticulated, new or existing needs of market. Every firm
brings innovation in their existing product on regular basis in order to maintain their strong
position and long term sustainability in market. For bringing innovation in product, service or
process, an idea is required. Essence Drinks is a company that deals in beverage industry and
offer various flavours of drinks to customers. Innovation assists firm in offering better products
to customers. It provides competitive advantage to company in market and support in its growth
and success (Bain and Kleinknecht, 2016).
Significance of Innovation:
Increase productivity of firm: Innovation is a process that supports business firm in
attaining high productivity and profits. New idea helps business in bringing innovation in their
existing goods which attracts customers more. Innovative idea helps company in making
optimum utilization of resources and producing goods at minimum cost and in minimum time.
Administer competitive advantage: Introduction of new goods and services in market
that completely satisfy needs and requirements of consumers provides competitive advantage to

company in market. By bringing innovation in their products, Essence Drinks enables to get
attention of large group of customers and gain competitive advantage over their rivals in market.
Optimum utilization of funds: Innovation concept is utilized by firm to differentiate
themselves form others in market. It helps firm in making appropriate use of available resources.
All this assists Essence drink in enhancing efficiency of their production process that assists in
producing high quality drinks and offering them to consumers. It also assists in reducing cost of
production (Bar-Cohen, 2016).
Difference between innovation and invention:
Basis Innovation Invention
Meaning It is defined as a process of
implementing new ideas or
concept for manufacturing of
new goods and services. In
this, a new feature is added in
existing goods.
When a company introduced a
completely new product with a
new idea for the very first time
in market, then it is termed as
invention. Those goods are
introduced which has been
never made before.
Concept Main concept of innovation is
to add value in existing
product.
In this, a completely new
product is developed that is
been never introduced before.
Required skills Marketing, technical as well as
some other skills are required
for bringing innovation.
Scientific skills are required in
process of invention.
Activities Activities related to innovation
are interrelated with various
functional departments of
company.
Activities that are associated
with invention are limits up to
research & development
department of company.

P2 How vision, leadership, teamwork and culture of firm can shape innovation &
commercialization
There are various factors which affect business either in positive or negative way, so it is
essential to consider these factors (Biemans, 2018). As per change in external factors of business
environment there is requirement of various policies which can be used to achieve goals and
objectives. Essence drinks is the company which has various types of drink to serve. But as per
requirement it is essential to make changes in business. There are various policies which can be
in effective and efficient manner.
Not only external but also internal force has impact on business. These factors can be
effectively used as per requirement. There are many policies which can positively used to get
task done in better and effective way (Champagne and et. al., 2015). To perform policies in
better way, top level management has to take care of internal policies in better way. Internal
environment of organisation, vision, mission, leadership, culture, team work, etc. have vital role
in performing activities in better and effective way.
Vision- There is some motto for which business is running. These are ultimate goals
which can be effective with the help of change in business policies. Due to change in idea
generation, there is change in vision also. Hence vision plays important role to innovate pan
flavour in essence drink.
Culture- Culture means surroundings within business. There is important role of culture
to perform business activities in better and effective way. While innovating new flavour it is
essential to make communication with all the workers and hence they are well aware about their
roles and responsibilities and there is no confusion regarding to activities.
Leadership- Leadership means to guide or direct. There are many workers working in
company, so it is essential to assist them while they are facing problem. This can be done in
effective way by manager and hence they achieve targets in better and effective way.
Teamwork- Teamwork is effective when there is good communication channel, so
employees prefer to work in team. Every person has some good skills while innovation this can
be beneficial to approach them to work under team, so efficiency and quality can be achieved
(Chrisman and et. al., 2015).

TASK 2
P3 4P's of Innovation and use of innovation funnel to analyse & shape innovative ideas
Application of innovation concept in business enterprise assists in constantly meeting
needs and requirements of customers. It also helps in attracting large group of customers by
offering them high quality of goods and services which are innovative in nature. Profitability of
company is also increased by bringing innovation in products and it assists in maintaining strong
position of firm in market for long term (INNOVATION AND 4Ps OF INNOVATION. 2016). 4P's
of innovation used by Essential Drinks are as follows:
 Product: It includes addition of tangible as well as intangible features in existing goods
that are offered to customers. The company Essence Drinks bring innovation in their
product and develop a new product by adding a new flavour in it.
 Process: This factor depicts the steps that are require for execute development. For
accomplish successful execution, it is exceptionally important for firm to have required
assets, for example, monetary, technical, HR and some more. With this firm can get most
extreme advantages of advancement. Further, it is likewise exceptionally basic to offer
legitimate preparing to representatives so they can contribute more in achievement of
firm.
 Position: Company measure performance of their product in market. Various
communication tools are used by company for promoting their product in market and
attract large group of customers towards it. By using these tools, firm communicate value
and benefits of their product to customers.
 Paradigm: This innovation is based to shaped the product and innovation properly
according to need and want of all end users. Management found that Lassi can be an idea
for enhancing sales but with a time spam customers needs and wants get changed and
thus third year sales get reduce. Hence, management have to build new innovation and
for this again analysis have to get done for all end users to provide such products which
easily get combine with lassi.
P4 Developments in frugal innovation & how it is utilized in organisational context
Frugal innovation is defined as the process of lowering down the cost and complexity of
goods as well as its production. It refers to eliminating features from durable product which are
not essential to sell them in developing goods. It is the concept that is based on how to do

maximum with minimum (De Massis and et. al.., 2015). It refers to the way in which firm
develop high quality products and services by utilizing minimum resources.
As indicated by idea of economy in which assets are constrained in number and
organizations need to utilize them by appropriate examination. This procedure totally connotes
the capacity of an organization under which they prompt improve less scope of assets. This guide
in dissecting the effectiveness of a firm where they have an opportunity to met with all client
commitments in a satisfactory way. For winning an ever increasing number of clients,
organization will prompt utilize item advancement design through which they can achieve more
number of clients. Each business element need to create parsimonious advancement in an
association for making their item more created and finest with restricted assets. This concept is
used by Essential Drinks and can be better understand by below defined principles:
 Find various opportunities: According to this principle there can be solution to all the
problems in an easy manner. All issuers can be converted into various opportunities and
thus firm can solve issues properly and efficiently (Jamieson, 2018).
 Do more with less time: Researcher can find solution to all issues through collected
information and not by performing further research.
 Think and act flexible: It is crucial that problem solver can think in a flexible manner so
that they can find solution to all problems.
 Keep it simple: Problem solver can choose method which solves all issues in simple
manner and it saves tome and costs.
 Include margin: Due to this principle it can customers in process of problem solving . As
firm can get find solutions.
 Follow your heart: All persons follow their passion and dream so that they can achieve
them.
TASK 3
P5 Significance of commercial funnel & application of new product development processing
Commercial Funnel is an idea whose emphasis stay on distinguish the ways which help
firm in create more measure of benefits. A firm frame and execute number of plans however
there remain vulnerability about what will be the arrival that firm will get in future. In such cases
this funnel facilitate firm in determining the idea which will give best outcomes to firm in least

measure of time. One of the primary point of this funnel remain to expand the offer of
organization's items for produce huge measure of benefits (Juma, 2015).
This process is starts with identification of various ideas by which company can generate
profits. Ideas are refined by this funnel and best idea is selected. A few ideas take additional
time in its execution as contrast with other. Finally an idea is chosen by firm to create benefits.
Significance of commercial funnel for business association can be comprehended by following
points:
 Increase quality of goods as well as services.
 Contribute in progress and development of firm.
 Advance inventiveness (Innovation Funnel. 2016).
Stages of new product development
Idea generation:-
Under this stage whatever the idea individual designed by individual which is innovative
and unique and person is think to execute idea in form of products and services. For example
management team of essence drink in order to strengthen their product portfolio come with
innovation in the form of flavoured lassie in pan taste (Mowery and et. al., 2015).
Idea screening:-
Their are different types of idea but the few are selected which are feasible and provide
good outcomes in future. Under this different factors are consider like company strength,
weaknesses, customer needs and affordability. For example this innovation of lassie in pan
flavour must be implemented on the basis of company budget and demand of customers.
Concept development and testing:-
The third stage is related to the development of concept on the basis of which product has
been tested in market place in other word concept is consider as blue print of idea. For example
essence drinks must prepared their proper concept of testing on the basis of which they are able
to launch product in market.
Business strategy:-
Next step is related to formulation of strategy related to business after analysing the
tactics of rivals on the basis of which they make changes in existing strategy that allow them to
get better outcome in respect of products (Melissen, 2016).
Product development:-

Once the strategy has been made next step is related to transform product concept into
actual tangible products.
Test Marketing
Unlike concept testing, here the actual prototype is introduced for research and feedback.
Actual customers feedback are taken and further changes, if required, are made to the product.
This process is of utmost importance as it validates the whole concept and makes the company
ready for the launch.
Commercialisation:-
The last step in NDP process is to launch the product officially in market by using
different marketing strategies and tactics in order to promote and create the awareness among
customers regarding the innovation they made in products services.
P6 Develop innovation business case for firm including methods to access funding
Essence Drinks is a company that deals in beverages and offers variety of drinks to
customers. Firm serves various juices and drinks to their potential consumers and satisfy their
needs by adding new flavours in their products. An innovative product developed by firm is
Lassi with paan flavour. This will help company in attracting large customers towards the new
product. Steps that are involved in innovation business case are defined below:
Executive Summary: Essential Drinks provides various kinds of drinks and juices to
customers (Smink, Hekkert and Negro, 2015). Their main aim is to manufacture and provide
such product to customers that satisfy their needs. This is done only with the assistance of
innovation. Its main advantage is that it assists in attracting large group of customers towards
company.
Target: Main target of company is all age group people of United Kingdom as it is such
kind of drink that is healthy for people. They can enjoy new taste and flavour of drink. It is the
drink that provide some value to customers in turn of money paid by them. They feel satisfied
after drinking Paan flavoured Lassi.
Solution: It involves the aspect related with process that is used by firm in manufacturing
of product and the features that the add in their good. It is essential for firm to produce such kind
of product that satisfy needs and requirements of customers in better and effective manner.
Why product is innovative: It is essential for firm to offer unique products to customers
that administers them some value and encourage them to pay some extra amount for getting

some extra features in product. For instance, Essential Drinks provide a new flavour Lassi that is
different from normal one. For getting this new flavour, customers are ready to pay extra
amount.
Customer reach: In this step, firm requires to conduct research in order to understand
requirements of customers in better way. Its main benefit is that it assists company in upgrading
features of their products as per the needs of customers (Van Oort, 2017).
Funding: It is an important resource that is required in executing innovation. Essence
Drinks can take loans from financial institutions or banks. Some other sources are also available
by which firm can get funds for implementing innovation within firm.
Expected benefits: It includes those benefits that firm gets after implementing innovation.
Data and information related to past are used by firm in order to get an idea about future gains.
This will help firm in forecasting their future sales (Wallace, 2017).
TASK 4
P7 Evaluation of various tools use by firm to develop, protect and retain intellectual property and
knowledge
In various parts of world people create and develop new and innovative ideas so that they
can create innovative products which are very different from each other. This helps them in
developing and retain data. Hence firm use different tools to develop,retain and protect
intellectual property and knowledge. Tools used by Essence drinks are:
Trademark: It is sign of organization. Through this tool it can protect the logo of
company. Hence no other competitor can use this unique logo. This is very beneficial and helpful
for every firm so that it can protect the distinct logo and it can also give strong competition to
other rivals in the market. Main advantage is no other rival can steal the logo. Main disadvantage
is that it has to spend huge money to obtain this right. If firm damages society through their
items people do not purchase products from firm.
Patent: If company can create new ideas and thoughts then it can protect new idea
through patent. Essence drink has created product which is very healthier can be consuming it for
single day person can remain healthy for 10 to 15 days. Hence this idea can be protected through
patent. Advantage is that no other competitor can steal their idea and disadvantage is that they
have spend huge money to obtain this right. Thus as a result they can give tough competition to
other rival in market .

Copyright: This is the process which can protect the music,poems and literary work.
Company can protect the images and pictures in online sites which is used for promotional
purpose. Hence as a result they can use different methods to obtain this right. Advantage is that
they can protect images and symbols which is used to promote the company. Disadvantage they
has to spend huge money to obtain this right (Wolin, 2016).
Help from professionals: There are different professional people such as lawyers and
account ant who can give suggestions to various issues as they had knowledge of various laws.
Advantage is that any problem can be solved in less time (Wilson, 2014). Hence they can give
competition to other firms. Disadvantage is that firm have to spend huge amount of money to
obtain this right.
CONCLUSION
As per the above mentioned report, it has been concluded that innovation is the concept
that is very essential for company in order to maintain its sustainability in market for longer
period of time. It assists firm in its high growth and success. Innovation starts with having a new
idea. In this, some additional features are added by firm in existing goods which helps them in
attracting large group of customers by satisfying their needs and requirements.

REFERENCES
Books and Journals
Anthony, S. D., 2017.The Little Black Book of Innovation, With a New Preface: How It Works,
How to Do It. Harvard Business Review Press.
Bain, D. and Kleinknecht, A. eds., 2016.New concepts in innovation output measurement.
Springer.
Bar-Cohen, Y., 2016.Biomimetics: nature-based innovation. CRC press.
Biemans, W., 2018.Managing innovation within networks. Routledge.
Champagne, P. A. and et. al., 2015. Monofluorination of organic compounds: 10 years of
innovation.Chemical reviews.115(17). pp.9073-9174.
Chrisman, J. J. And et. al., 2015. The ability and willingness paradox in family firm
innovation.Journal of Product Innovation Management.32(3) pp.310-318.
De Massis, A. and et. al.., 2015. Product innovation in family versus nonfamily firms: An
exploratory analysis.Journal of Small Business Management.53(1.). pp.1-36.
Jamieson, P., 2018.Innovation in wind turbine design. John Wiley & Sons.
Juma, C., 2015The new harvest: agricultural innovation in Africa. Oxford University Press.
Melissen, J. ed., 2016.Innovation in diplomatic practice. Springer.
Mowery, D.C. And et. al., 2015.Ivory tower and industrial innovation: University-industry
technology transfer before and after the Bayh-Dole Act. Stanford University Press.

Smink, M. M., Hekkert, M. P. and Negro, S. O., 2015. Keeping sustainable innovation on a
leash? Exploring incumbents’ institutional strategies.Business Strategy and the
Environment.24(2). pp.86-101.
Van Oort, F. G., 2017.Urban growth and innovation: Spatially bounded externalities in the
Netherlands. Routledge.
Wallace, D., 2017.Environmental policy and industrial innovation: Strategies in Europe, the
USA and Japan. Routledge.
Wolin, S. S., 2016.Politics and vision: Continuity and innovation in Western political thought.
Princeton University Press.
Online
INNOVATION AND 4Ps OF INNOVATION. 2016. [Online]. Available through
<http://www.bizexcell.com/innovation-and-4ps-of-innovation/>
Innovation Funnel. 2016. [Online]. Available through
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>