Innovation and Commercialization: A Case Study of a Healthy Juice Company

INNOVATION AND
COMMERCIALIZATION – HEALTHY
JUICE COMPANY

CONTENTS
INTRODUCTION............................................................................................................................. 2
TASK 1............................................................................................................................................ 3
P1 INNOVATION AND IMPORTANCE OF INNOVATION FOR HEALTHY JUICE COMPANY................3
P2 ANALYSING HOW ORGANIZATION, VISION, LEADERSHIP, CULTURE, TEAMWORK CAN
SHAPE INNOVATION AND COMMERCIALIZATION......................................................................5
M1 ANALYSING DIFFERENT SOURCES OF INNOVATION AND DETERMINING HOW IT CAN
FOSTER AND DEVELOP AN ENVIRONMENT AND CULTURE OF INNOVATION............................6
TASK 2............................................................................................................................................ 9
P3 4P’S OF INNOVATION AND USE OF INNOVATION FUNNEL FOR HEALTHY JUICE COMPANY.....9
P4 EXPLAINING DEVELOPMENT IN FRUGAL INNOVATION AND ITS USE WITHIN THE HEALTHY
JUICE COMPANY...................................................................................................................... 13
M2 APPLYING INNOVATION FUNNEL FOR HEALTHY JUICE COMPANY....................................13
M3 EVALUATING THE ROLE OF FRUGAL INNOVATION FOR HEALTHY JUICE COMPANY..........14
TASK 3.......................................................................................................................................... 15
P5 IMPORTANCE OF COMMERCIAL FUNNEL AND APPLICATION OF NEW PRODUCT
DEVELOPMENT (NPD).............................................................................................................. 15
P6 & M4 INNOVATION BUSINESS CASE FOR HEALTHY JUICE COMPANY AND ANALYSING WAYS
FOR ACCESS FUNDING............................................................................................................. 19
TASK 4.......................................................................................................................................... 22
P7 USE OF INTELECTUAL PROPERTY TOOLS FOR PROTECTING KNOWLEDGE..........................22
M5 SUPPORT BASED EVIDENCE AND EVALUATION OF DIFFERENT TOOLS IN CONTEXT OF
HEALTHY JUICE COMPANY.......................................................................................................23
CONCLUSION............................................................................................................................... 24
REFERENCES.................................................................................................................................25
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INTRODUCTION
Innovation is the process of innovating something new by translating the ideas into goods and
services. In the present competitive environment, it is essential for an organization to constantly
innovate its products and services in order to remain competitive in the business. The purpose
of this assignment is to make readers understand the importance of innovation within the
context of an organization.
The chosen organization for this assignment is the Healthy Juice Company whose founder is Mr
Daniel Green. Daniel Green started the company with one single product in the market and it
was a healthy milkshake. In the first year a dramatic rise in sales was seen but in the third year,
sales got declined with the increased number of competitor companies in the market. The
reason for sales decline for uniformity in products and in this report, some suggestions will be
given to Mr Daniel Green for bringing diversity in products so as to survive in the market.
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TASK 1
P1 INNOVATION AND IMPORTANCE OF INNOVATION FOR HEALTHY
JUICE COMPANY
INNOVATION
It basically refers to translating an idea into some product or service that in turn creates value
for which the customers will pay some amount in order to purchase that product or service. It is
the combination of knowledge acquired by different sources for developing a new product or
service (Kline and Rosenberg, 2010).
IMPORTANCE OF INNOVATION
The main purpose of bringing innovation in business is to diversify the product offering to the
customers by renewing, changing or making improvements in the product or service. Innovation
helps a firm to retain loyal customer base in the business as the varying demands of customers
are met from time to time (Petkovska, 2015). The importance of innovation for the Healthy juice
company is mentioned below.
 Business Competitiveness
By bringing innovation in business the healthy juice company will gain a competitive ability by
offering quality products at competitive costs that meet the quality standards (Yee and Eze,
2012).
 Productivity
Innovation helps in improving the productivity as diversified products will be developed by
healthy juice company and it will be consumed by a variety of customers. It is evident that more
supply and demand of products will increase due to innovation (Manyika, et al. 2011).
 Improved products and Meeting the demand of the consumers
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If innovative products are offered then customers develop a perceived notion that products are
of good quality. Moreover, firms give more emphasis on improving the quality of meeting
customer standards (Manyika, et al. 2011).
 Adapting to new trends and market changes
Innovation is also required because market changes rapidly and so are the demands of the
customers. The products are improved and modified as per the market needs thereby helping
firms to sustain in the market (Manyika, et al. 2011).
INVENTION
The invention is the process of inventing something new that has never been invented before.
For example, the invention of the electric bulb, the aeroplane etc. (Wagner, 2016).
COMMERCIALIZATION
It is essential for firms to commercialize its products so that it can be consumed by the
customers. Manufacturing the products isn’t enough as firms also need to introduce its product
in the market for getting consumed so that company gains profit (Frishammar, et al. 2012).
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DIFFERENCE BETWEEN INNOVATION AND INVENTION
Innovation Invention
Innovation refers to making changes in the
existing product for gaining commercial
success.
It refers to the creation of a new idea or
concept that was never introduced before
It requires technical expertise, knowledge
about current market trends and competence
The invention requires financial help,
knowledge and competence
The activities are spread all across the
organization
Activities in Invention are restricted to R&D
centre
Innovation brings changes in the organization. The invention may bring changes in
organization’s policies, procedures and
practices.
P2 ANALYSING HOW ORGANIZATION, VISION, LEADERSHIP, CULTURE,
TEAMWORK CAN SHAPE INNOVATION AND COMMERCIALIZATION
VISION
The mission and vision statements are critical elements of an organization’s strategy. Without
these elements, the employees of the organization will be directionless as vision describes the
values of the organization. It is essential for Healthy Juice Company to have values as it inspires
employees and gives them a sense of purpose (Cummings and Worley, 2014).
LEADERSHIP
A leader in an organization is a person who leads and directs a team under him. The role of a
leader is to motivate the employees of the company and helps them in their day to day tasks.
The leader of healthy juice company will ensure that all member of the team unites together for
achieving one common goal of the company (Sarros, et al. 2011). It is essential that company
used various types of leadership techniques in order to motivate employees to achieve the
mission and vision statement of the organization.
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