Report on Innovation and Commercialization in Health Drink Industry

This report delves into the critical aspects of innovation and commercialization, particularly within the context of a British health drink company facing market challenges. It elucidates the differences between invention and innovation, emphasizing the importance of innovation for organizational growth and adaptation. The report further explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. It details the 4Ps of innovation (Product, Process, Position, and Paradigm) and explains the use of the innovation funnel to refine innovative ideas. Finally, the report discusses frugal innovation and provides examples of its application, advocating for its implementation to enhance business growth through strategic innovation. Desklib provides students access to similar solved assignments and study resources.

Innovation And Commercialization
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Table of Contents
Introduction......................................................................................................................................3
LO1 explain the context for innovation and determine the difference between invention and
innovation........................................................................................................................................4
LO2 Explain the different types of innovation................................................................................7
Explain developments in frugal innovation and provide examples of how it is used in an
organizational context. [P4].............................................................................................................9
LO3 Discuss the process required to commercialize innovation...................................................11
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................17
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Introduction
Each of the business organisations needs various commercialisation and innovation, in order to
make the business grow and develop. It is very important for the targeted audience to know what
product, service, idea or goods a company is offering. For this reason the commercialisation of a
product is quite important, then people will get to know what are the potential benefits, they will
get out of the product. The competition is the market for each of the product has become very
high, for a reason the business organisation should give the targeted audience a proper kind of
reason after buying a particular product. For the sake of good promotion, innovation in
commercialisation is quite important. However, the new thoughts to promote a product in
different ways are quite important. This report states that the there is a British businesspersons
whose company does the business of health drinks. Now Mr. Green’s company is facing huge
competition in the market, and the popularity of their product has gone down in the market.
Through this project, the significant research is done on innovation, to uplift the product in the
market.
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LO1 explain the context for innovation and determine the difference between invention
and innovation.
Explain innovation and determine it is important to organizations in comparison with
invention. [P1]
Innovation has the ability to bring certain development, growth and changes in the segmentation
of the product in order to bring some sort of advancement in the market through different types
of technological advancement. It helps in both the internal and external stakeholders of the
company. The employees take time to understand the process of the technological advancement;
this is why when the organisation is considering a new technology for the use, the company
should always focus on the maintenance of the employees. The work environment of the
company should be better. It can be stated that the process of innovation brings certain
transformation and modulation of the product, so there are high chances to attract the customers.
This report states that the there is a British businesspersons whose company does the business of
health drinks. The health drink company was doing great in the market from the past two years,
it was in the top of the business game, but there are several health drink companies who serves
the same kind of product. Now Mr. Green’s company is facing huge competition in the market,
and the popularity of their product has gone down in the market. Through this project, the
significant research is done on innovation, to uplift the product in the market. The innovation
consultant of Mr. Green’s company should be able to give him that kind of idea that will help the
company to direct towards success (Bloom et al., 2016).
On the other part, through the process of invention includes new introduction to the products
those are very new. As per as both, the factors of innovation and invention are there in the lime
light that does not mean invention is mandatory in the project. It is not important to add both the
factors. The reason after this is, innovation itself have the ability to modify the products and the
features too. The invention would have been new, if Mr. Green would have thought of launching
an entirely different product in the market. Hence, the company of Mr. Green thought of
innovation, which will help to make its market big. Mr. Green can include new type in the
products that will encourage his company to get a large number of customers. This entire process
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needs a research of the preferences and choices of customers in order to keep the sales ratio high
(Boudreau and Lakhani, 2015).
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Explain how organizational vision, leadership, culture and teamwork can shape innovation
and commercialization. (P2)
Innovation takes a product towards a development and commercialisation means takes a product
towards the goal of making a good image of the product. The leadership, organisational vision,
culture and teamwork helps the company to shape.
Vision
Vision of an organisation makes identification in the mind of the customers. The organisational
vision has the ability to help the leader to lead the organisation towards the way of its future
path, to make the business organisation continue their business. Mr. Green can include new type
in the products that will encourage his company to get a large number of customers. This entire
process needs a research of the preferences and choices of customers in order to keep the sales
ratio high. The proper knowledge of a company helps the leader to direct the organisation
towards a proper direction (Kleinknecht, 2016).
Leadership
Leader plays one of the most essential parts in order to lead an organisation. Every organisation
has their own set of goal and objectives to achieve. In order to achieve that targeted goal the
employees need the proper work environment to do the work in better manner. Each employee of
the organisation needs motivation, the factor of motivation is quite important to get good work
from them. A good leader always motivates and inspires the employees to get the work done.
The current situation of Mr. Green’s health drink company is in a critical situation, the leader
need to work according to the way the innovation consultant is asking the leader to do.
Culture
The aspect of the culture explains about the factor of work culture. When an organisation puts
immense pressure towards the employees, they are unable to do the work properly. This factor of
maintaining a good work culture in the company is the responsibility of a leader. As per as the
leader knows the situational problem of health drinks of Mr. Green’s company, there are
different ideas which the employees need to provide towards the company. The work culture
plays a huge role in this; it is suppose to be correct (Wallace, 2017).
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Teamwork
In an organisation, there are different departments who take care of their own work. Now there
are in the departments there are separate teams for different project. Each of the team and the
members of the team need to work in a collaborative manner. In different situational contexts at
times the team members do not agree to each other, and then work goes through the problems.
The employees of Mr. Green’s company should keep all this in mind.
There are different source of the innovation, by which business organisation can develop those
factors are identification of the weak areas of the company, change in the market structure,
demographics, few changes in the preparation of the work and so on. There are ways on which
the way of life projection towards us changes. Factors of the modification may be unacceptable
towards the employees; the management of the company of Mr. Green needs explain all the
factors in a collective manner to the employees. The organisation of Mr. Green should give the
company proper reasons to influences the employees, otherwise, the innovation will never be in
progress (West and Bogers, 2014).
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LO2 Explain the different types of innovation.
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. [P3].
The process of innovation requires 4P’s of innovation in the organisation those are, product,
process, position and paradigm. They are explained below.
Product
The ‘P’ of the innovation states about the product. The product, which the company of Mr.
Green is making, should maintain the good quality. Each of the company who makes a product
to serve the market requires need of the targeted customers. That means the product should
maintain the quality of it. Otherwise, it is not going to create a demand for it. The demand of the
required product will be able to give the product a good set of market share. Then only the
company will be able to give good competition to the other companies who are there in the
market with the same product (Boudreau and Lakhani, 2015).
Process
Process is the second part of the innovation mix model. There is different process to make a
product stand out in the market. There should always be a broader dimension of the project of
innovation in which the employees are suppose to work on. There are few of the elements, which
is associated with the products, those elements are the packaging of the product comes, added
freshness should be maintained until the time the consumer have the product, the process od
delivery should also be smooth enough.
Position
Position is the third part of the model of innovation mix. The product or the good, which the
organisation is making, positioning has the ability to take the competition forward in the market
and create a good coverage out of it. It gives them a meaning to create a meaning or an image in
the eye of the market in society. Whenever the image of the company is clear to its targeted
audience then it has the ability to make the organisation more acceptable towards the customers.
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In order to make this happen the marketing team should work properly for the sake of the
promotion (Bloom et al., 2016).
Paradigm
Paradigm gives an entire new direction to the scenario to make the business happen in a proper
way. Mr. Green can think of reviewing and considering few of the factors those are market
research, manufacture marketing, sales and others, this has a ability to make some change in the
process.
Innovation funnel:
The innovation funnel is a process, which is taking place along with all the other, processes
which eventually together lead to the formation and sale of the final product. The inputs at the
starting stage, research and development, are large and gradually are refined with every
consecutive stage towards the end, which is the delivery and shipping of the final product. It
includes various formations of methods and ideas. A good amount of the innovation idea has the
ability to create an effective product, which the customers will give a response to. Mr. Green has
used the inn ovation funnel in order to create the steam line in a proper manner (Witell et al.,
2016).
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Explain developments in frugal innovation and provide examples of how it is used in an
organizational context. [P4].
It is identified that at the time when Mr. Green started his business off, (two years ago) at that
time one thing that Mr. Green did not thought of that is the use of the modern technology in term
of polishing the segment of marketing. As per as the time is 21st century, the population of UK
has different mediums through which they can identify the better ways to promote the product in
various innovative manners. The vision of the work constantly changes within the coming times,
and there are constant growing works in the market. It is very difficult for the company of Mr.
Green to launch a new range of product and expect it to be successful in the market. This is why
the use of the innovation funnel is important. Therefore, it is necessary to implement the plan of
frugal in order to increase the business with innovation (Lusch and Nambisan, 2015).The
diagram of the innovation funnel explained below.
Figure 1: Frugal innovation
(Source: Curtis and Sweeney, 2017)
The frugal innovation originates different situational risks in the market. The primary goal of this
strategy is make an understanding of adjusting with the customers who still exist to buy products
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from the company, in order to achieve the financial goals the company have. This goal can be
easily take care of, without doing any sort of loss in the expenditure of the company. The
company needs to recover maximum amount of loss in the sector of the resources.
Most of the people, who are there in the segment of the marketing and in research of the product
development, it is observed that in each of the research the preference and the choice of the
customers is the thing that requires more of the attention. In order to maximise the product sales
in the market, it is important to utilize the natural resources. It is important for the sake of
creating a new market of the product. Some of the other strategy is there that has an ability to
motivate the business by introducing new technology towards the product which is new in Mr.
Green’s company. Another factor that is advisable to Mr. Green’s company, which is there is a
huge scope of improvement if they observe what the other competitors are doing, to make the
survival intact in the market. The packaging of the product can also be changed, because it
makes an effect in the mind of the customers. The first attention of the customers does not go for
the quality of the product; they just go for the looks of the product. Factors of the modification
may be unacceptable towards the employees; the management of the company of Mr. Green
needs explain all the factors in a collective manner to the employees (Kim and Lui, 2015).
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LO3 Discuss the process required to commercialize innovation.
Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialization of innovation. [P5]
As per as the time is 21st century, the population of UK has different mediums through which
they can identify the better ways to promote the product in various innovative manners. The
vision of the work constantly changes within the coming times, and there are constant growing
work in the market. It is very difficult for the company of Mr. Green to launch a new range of
product and expect it to be successful in the market. This is why the use of the innovation funnel
is important. Therefore, it is necessary to implement the plan of sales in order to increase the
business with commercialisation (Tavassoli and Karlsson, 2015).The diagram of the commercial
funnel explained below.
Figure 2: commercial funnel
(Source: Guisado-Gonzáez et al., 2015)
There are three stages of the commercial funnel. Those are explained below.
 Phase of Investigation
The phase of investigation is the first phrase of commercialisation funnel. The business
organisations of Mr. Green need to investigate in which way the other companies are projecting
their products. For what kind of reasons the competitors of Mr. Green’s company s getting more
preferences from the customers, what are the areas they need to develop a bit more to get the
potential customers of the market.
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