Report on Innovation and Commercialization: Essence Juices Analysis

This report provides a detailed analysis of innovation and commercialization strategies, using Essence Juices as a case study. It explores the importance of innovation, comparing it with invention and identifying various sources of innovation. The report discusses fostering an innovative culture, the 4P's of innovation, and the application of the innovation funnel. It also examines frugal innovation, commercial funnels, and the creation of an innovation business case. Furthermore, the report identifies tools for protecting intellectual property and knowledge, offering a comprehensive overview of innovation and commercialization principles in a business context. This resource is contributed by a student and is available on Desklib, a platform offering AI-powered study tools and a wealth of academic resources for students.

INNOVATION AND COMMERCIALIZATION

Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
Innovation and its importance....................................................................................................3
Comparison between Innovation and Invention.........................................................................4
Different Sources of Innovation...................................................................................................5
Fostering and Developing a Culture and Environment of Innovation.........................................6
Organizational Vision, Culture, Teamwork, and Leadership in Development of Innovation and
Commercialization.......................................................................................................................7
TASK 2..............................................................................................................................................9
4p’s Of Innovation and Use of Innovation Funnel In Respect Of Essence Juices........................9
Development of Frugal Innovation............................................................................................12
Evaluation of Frugal Innovation in Essence Juices.....................................................................13
TASK 3............................................................................................................................................14
Commercial Funnel and its Application.....................................................................................14
Innovation Business Case and its Effectiveness.........................................................................16
TASK 4............................................................................................................................................18
Different Tools that Protect the Intellectual Property and Knowledge....................................18
CONCLUSION.................................................................................................................................21
REFERENCES...................................................................................................................................22
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INTRODUCTION
The business operations of the organizations in the industry have been enhancing and changing
with time. It has been observed that the new companies and organizations have been using
innovative techniques and methods for managing their business functions and operations.
Similarly, an innovative product is introduced by Mr Daniel Green in the beverage industry
which is a healthy juice. This innovative product has attracted the huge attention of the
customers in the first three years but after that, it loses its popularity which affects the business
(Aarikka-Stenroos and Sandberg, 2012). This report will be focusing on understanding the role
of innovation in the business operations. In addition to this, the issues faced by the product of
Mr Green will be solved through appropriate methods and techniques. There are several
aspects which need to be considered during the innovation such that it helps in accomplishing
the required objectives effectively.
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TASK 1
Innovation and its importance
The potential factor that helps in accomplishing the required benefits during the business
operations of an organization in terms of economic development is called innovation. Also, it is
an effective process that helps in attaining uniqueness in the products of the organization which
further provide huge success in the market. Innovation is the major element that leads to
different changes in the product which further provides popularity to the product. The other
meaning of innovation is that it is a process where new philosophies are used by the
organization in developing values for enhancing the operations and functioning effectively
(Bogers and West, 2012). The innovation in this modernized world is done effectively through
healthy communication and adequate technology.
Figure – Innovation
[Source - https://indiansnews.com/world/indians-invisible-innovators/]
Innovation is essential to the success of a business such that innovation is important for
business development. The innovative ideology and thinking are helpful in managing and
handling the business challenges appropriately. In addition, the innovation also helps in
attaining improvement in the business environment. Moreover, the areas where innovation
plays the major role are technology advancement, delivering customer needs, and change in
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business environment (Chun, et al. 2015). The innovation in the organization could be of
different kinds such as:
 Business Model Innovation
The business structure of the organization enhanced due to the use of innovation in
building products and services. Also, the changes in the business should be considered
for building new business models.
 Process Innovation
Advanced strategies and methods are identified for conducting the operations smoothly
which further helps in reducing the time and gaining high profitability.
 Product Innovation
The existing products are improved and new products are introduced according to the
needs of the market.
Here, the Healthy Juices needs innovation in their business functioning so that they acquire
adequate enhancement and growth. The major issue which is observed by the company is drop
in sales as the competition has been increased. The innovations in business operations will
effectively manage the situation and result in desired outcomes.
Comparison between Innovation and Invention
An action through which a process or device is invented called the invention. Further, it is an
enhancement of the products, processes, or devices by utilizing advanced measures. The focus
of the invention is on building new products while the innovation focuses on selling products
effectively (Eesley, et al. 2014). The procedure of invention comprises of several
implementations of strategies and methods in the operations and functioning for attaining
desired outcomes. Still, the invention and innovation possess a huge difference between each
other. Innovation is also called commercialization of invention as the new products are
developed through invention and further innovation assist in gaining high sales.
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Figure – Innovation vs Invention
[Source - http://www.getgrok.com/2011/07/buzz-word-debrief-innovation-vs-invention/]
Here, the company could enhance their product line by introducing more variety of healthy
juices like different kinds of milkshakes. This action will be considered as innovation in the
existing products and services but when a new product is introduced by the company then it
would be known as the invention.
Different Sources of Innovation
Innovation has several sources and Peter Drucker has effectively explained the innovation
sources as follow:
 Change in Perception
The thinking and perception of different people lead to innovation in the business.
Background plays a major role in the development of perception in people.
 Demographics
Innovation also relies on the aspects of the distribution of area, age, individuals, etc.
 Incongruities
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The incongruity generally based on the expected scenario and actual scenario just like
reality and assumption.
 Industry and Market Structures
The most appropriate time for implementing changes in the business operation is when
the needs of the market could be easily implemented in different segments of the
business.
 New Knowledge
Acquiring information and new knowledge will help people in conducting processes and
observations effectively that lead to innovation.
 Process Need
Innovation is required due to the ineffectiveness of processes which are building several
issues.
 The Unexpected
It is the situations which occurred due to unexpected events, success, or failure in
business.
Fostering and Developing a Culture and Environment of Innovation
Mr Daniel Green has the responsibility of enhancing their product according to the market
requirement. The increased in the competition has been influencing their sales and revenue at
great extent. The existing processes should be assessed regarding finance, research, marketing,
development, management, etc. The innovative culture in the organization could be fostered
and developed by recruitment of skilled labour that assists in smooth operations and
functioning of the organization (Ettlie and Rosenthal, 2012). The Healthy Juices could use
different methods for building healthy relationships with consumers and gaining competitive
advantage. The methods are online delivering, ordering, and building connection with
individuals. Also, the innovation could be attained through utilizing advanced approached for
enhancing existing operations.
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Organizational Vision, Culture, Teamwork, and Leadership in Development of
Innovation and Commercialization
The vision, mission, culture, and teamwork of an organization effectively achieved through
innovation and commercialization. For Healthy Juices, the vision is to attain a peak in the
market due to their innovative products. The innovativeness of their products provides strength
to the vision. Also, the employees fulfil their required roles effectively so that company
accomplishes their objectives which showed healthy organizational culture. The employees
work in teamwork manner along with the superiors that result in smooth functioning (Hausman
and Johnston, 2014). Teamwork also helps in attaining high productivity, employee’s unity, and
organizational culture. The leader used their leadership traits in building appropriate strategies
for business growth. Also, the role of diversity is essential in it as people have different views
and opinions.
Figure – Innovation to Commercialization
[Source - http://wiki.p2pfoundation.net/Solution_Development]
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In the current scenario, Healthy Juices has been facing the drop in their sales such that they
require innovation in introducing more products into the market. The competitors have
affected the sales of the company at the great level. The leader of the organization has the
responsibility of motivating employees for accomplishing the business objectives and also helps
in managing the issues (Huizingh, 2011). The use of suitable methods and strategies helps in
effectively fulfilling the vision and missions and also maintaining strong leadership in healthy
culture and teamwork in the organization.
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TASK 2
4p’s Of Innovation and Use of Innovation Funnel In Respect Of Essence Juices
The 4P’s model of innovation has been given by Joe Tidd and John Bessant. This tool is helpful
in gaining successful innovation which further provides positive improvement. The model has
been explained in four categories such as:
Figure – 4P’s of Innovation
[Source - http://knowledge-innovation.purot.net/dimensions-of-innovation]
 Product innovation
The framework for new products and services are improved regarding their
characteristics. The innovative products help the organization in achieving their business
goals easily. For instance, the most successful product innovation is split AC which has
several benefits (Kim, et al. 2011). Here, the Healthy Juices introduced healthy
milkshakes in their business which attracts huge consumers from the UK.
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 Process Innovation
When the products and services are manufactured through innovative practices which
effectively change the current process is called process innovation. The business
operations attain effectiveness and become efficient through innovative processes. For
instance, the automation technology has resulted in the effective manufacturing of
clothes, foods, etc.
 Position Innovation
It focuses on the change regarding market, requirements, and people positioning. It
could be stated that the re-positioning of the products from one place to another for
gaining higher growth rate and profitability (Kutvonen, 2011). For instance, ALDI used
several approaches for building their business in the different market which needs
several people and place. Here, Healthy Juices needs another position for selling their
products for high growth.
 Paradigm Innovation
It majorly focuses on the dominant paradigms or innovative examples. It generally relies
on the mental models that refurbish the current organizational structure according to
the needs of the business.
The development of information base and knowledge is essential for the innovation funnel.
There are three steps in the funnel which helps in accomplishing required objectives. It assists
in developing more ideas that help in introducing more products and services through
innovation. In Healthy juices, innovation funnel helps in building new ideas that assist in
business development in terms of employees, customers, stakeholders, etc. Further, the
perception and ideology should be string towards the accomplishment of objectives (Makri and
Scandura, 2010). Moreover, the new methodology could also help in gaining innovation for the
organization.
The funnel narrowing segment is the next step of innovation funnel where the ideas are
screened for gaining the most suitable one. The suitable ideas will help the organization in
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accomplishing their objectives effectively. Healthy Juices needs to develop new ideas for
gaining growth in their business (Nathan and Lee, 2013). Also, the proper utilization of allocated
resources should be done.
Figure – Innovation Funnel
[Source - https://www.sketchbubble.com/en/presentation-innovation-funnel.html]
At the third step, the appropriate idea is selected and further implemented to work so that the
objectives are attained. For Healthy juices, it is an important step because different issues are
faced by them in business due to inappropriate strategies that result in low sales. The use of
innovation funnel in business will help in gaining huge sales.
Implementation
The innovation funnel is helpful for Healthy Juices in gaining new ideas for the business that
further help in gaining growth in their sales. The first step of innovation funnel helps the
Healthy Juices in identifying innovative ideas for the customers and implementing it
appropriately for accomplishing the goals (Snow, et al. 2011). In next step, the suitable idea is
developed and selected that provides innovation in the business. At last, the ideas and
perceptions are implemented for fulfilling the need of the market and gaining desired
outcomes. Further, the organization delivers products and services to the consumers.
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