Innovation and Commercialization: A Case Study of Mr. Green's Healthy Drinks

This report explores the concept of innovation and commercialization through a case study of Mr. Green's Healthy Drinks. It examines the importance of innovation and its distinction from invention, analyzing how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. The report delves into the 4Ps of innovation and the application of the innovation funnel to examine and shape innovative ideas. It also explores the role of frugal innovation in the context of Mr. Green's business, evaluating its effectiveness in bringing about cost-effective improvements. The report further examines the commercial funnel and the application of new product development (NPD) processing for commercializing innovation. It builds an innovation business case for Mr. Green's Healthy Drinks, including ways to access funding and measures to test, iterate, and improve its effectiveness. Finally, the report evaluates different tools that Mr. Green can use to develop, retain, and protect knowledge and intellectual property, providing an evidence-based evaluation of these tools in the context of the wider business environment.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................2
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................3
M1 analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation........................................................................................4
LO2..................................................................................................................................................6
P3 explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................8
M2 analyse and apply the innovation funnel in organisational context of Mr Green’s healthy
drinks...........................................................................................................................................9
M3 evaluate the role of frugal innovation in organisational context of Mr Green’s healthy
drinks.........................................................................................................................................10
LO3................................................................................................................................................11
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation......................................11
P6 Build an innovation business case for an organisation, including ways to access funding
[M4]...........................................................................................................................................11
M4 Measure its overall effectiveness using appropriate techniques available to test, iterate and
improve......................................................................................................................................13
LO4................................................................................................................................................14

P7 Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge
and intellectual property............................................................................................................14
M5 Evidence-based evaluation of these different tools in the context of the wider business
environment...............................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

LIST OF TABLES
Table 1: Seven sources of innovation..............................................................................................4
Table 2: Four Ps of innovation........................................................................................................6

LIST OF FIGURES
Figure 1: Innovation and invention..................................................................................................2
Figure 2: Seven sources of innovation.............................................................................................5
Figure 3: 4Ps of innovation..............................................................................................................6
Figure 4: Frugal innovation for sustainable development...............................................................8

Introduction
Innovation and commercialisation is the concept which is adopted by the organization who wants
to change the little bit of think in their existing product without moving towards any new product
and then commercialise the product in the market with proper marketing plan. The report will
cover the case study of Mr Green owner of the Healthy Juice who launched Milkshake in the UK
market at high rate but due to competition their sales get reduced. This problem can be resolved
with the help of the innovation idea which will be discussed in this report. This report will cover
the importance of innovation funnel and role frugal innovation in this organization and how they
can use these processes to bring the innovation in their drinks. This report will also create the
business case for the organization which helps them to conduct their plan in the market. Some of
the protective rights will also be discussed through which Mr Green can protect its innovation.
1

LO1
P1 Explain innovation and determine its importance to organisations in comparison with
invention
Innovation and invention are the two terms through which any organization or their owners plan
to bring any new product or services or some improvisation in their existing product. Owner of
Healthy Juice (Mr. Daniel Green) started Healthy Juice organization in which he launched one
drink which is a healthy milkshake but now he not getting huge profit so wants to bring some
improvisation in the drink but without changing the juice concept. This will show that the idea of
Mr. Daniel Green is related to the innovation not invention (Drucker, 2014).
Comparison between invention and innovation
The major difference between invention and innovation is that, invention is the introducing any
new process or creation of new product in the market for the very first time. But innovation is to
make some improvisation and changes in the existing product to bring some improvement. For
example: When Mr. Daniel Green create the Healthy Milkshake in the UK market for the first
time then it is invention but now he wants to bring some changes in their existing juice without
moving towards any other product them it is called innovation (West and Bogers, 2014).
Importance of innovation as compare to invention
Innovation concept is adopted by the owner so that they can reduce the cost of launching any
new product which saves their operational and other cost. On the other side, if they take
invention concept then this will require high investment because for this they require new chief
or new employees who make the new drink. This will show that considering the innovation
concept is effective as they can make changes in their existing product without changing their
whole business setup.
Figure 1: Innovation and invention
(Source: KS Yong, 2012)
2

P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Importance of organizational vision to shape the innovation and commercialisation
To bring the innovation in the Juice and to commercialise the Juice in the UK market, it is
important to have the clear and sorted vision of the Healthy Juice organization and its owner Mr.
Daniel Green. Clear vision help the owner and team members to make the effective strategies
against the short or long term innovation goal (Kesting et al, 2015).
Importance of leadership to shape the innovation and commercialisation
Leadership in innovation is the technique or philosophy which combines the various styles of
leadership so that leader can influence the employees for producing the innovative Juice and then
commercialise the product in the market with attractive marketing strategy.
Importance of organizational culture to shape the innovation and commercialisation
Motivation between the employees of Healthy Juice organization is important through which
individual allocate their efforts to implement the ideas of innovation. This is also concluded that
organizational culture motivates the new innovation and improvement in their Juice together and
prevents the losses which they are bearing in the UK market (Autio et al, 2014).
Importance of teamwork to shape the innovation and commercialisation
Teamwork is not only important to complete the innovation project but it also requires cover all
the essential steps of innovation strategy. Success of the innovation project depends upon the
working style of the team members and their understanding with each other. Working in one
team will help to share the ideas and suggestions which will complete the innovation and its
commercialisation in effective way.
3

M1 analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
Table 1: Seven sources of innovation
Sources of innovation Detailed description
The Unexpected Identifying the market so that manager can look up to the
opportunity is the most important. It is all about particular type of
the product in the greater or lesser demand than the anticipated.
The effective way can exploit the unexpected success in business.
The Incongruity This is all about discrepancy among what is or what should be.
This source is the key for developing the wider success of the
business but with the effective trick. The best place to look for the
incongruity is the customers (Seven sources of innovation, 2018).
Process Need The process source include to identifying the process of the
organization required for this innovation which will be come from
the existing skills and capabilities.
Change in market structure Every time the structure of the market changes due to which
internal structure of the organization will also change. To get the
success in the market it is important to identify the market changes
and according to this make the changes in their own regulations
and policies.
Demographics This will depend upon the income level of customers, population,
age range and human education. With this they can conduct their
STP (segmentation, targeting and positioning) objectives.
Change in meaning, perception and
mood
With the changes in the customers taste and preferences it is
important to bring innovative products like flavoured Juices or
natural product Juices in the market (Drucker, 2014).
New Knowledge This source includes the use of technology to bring innovation and
promotion of the product in the market.
4

Seven sources help to foster and develop environment of innovation
Healthy Juice organization can foster or develop their culture and environment of innovation by
using these seven sources of innovation which bring opportunity to them for establishing their
position in the market again (Amankwah-Amoah, 2016). These seven sources cover all the
essential requirements of the owner when they decide to improvise their existing Juice. They
need to conduct market research in which they need to identify the changes in the market
structure and customers taste. According to this they can decide the innovation plan and
implement that in their existing process.
Figure 2: Seven sources of innovation
(Source: Self created, 2018)
5

LO2
P3 explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
Table 2: Four Ps of innovation
Four Ps of innovation Brief description
Paradigm This will include how do members can frame what they want to
do. This will depend upon the level of imagination team members
have to bring the innovation.
Product This element helps to identify what they want to offer in the
market. This will help to decide the improvement required in the
existing Juice (Four Ps of innovation, 2018).
Process This element help to evaluate how they create plan to offer the
innovative product. Through this organization can identify the
effective process for brining the innovation plan.
Position This is the last step which helps to identify the target and the
market where they need to commercialise their new innovative
drink.
Figure 3: 4Ps of innovation
6

(Source: http://blog.dataorange.de, 2018)
Use of innovation funnel to shape and examine the idea of innovation
Innovation funnel is the process which brings the new idea in the life. In the new drink
development process the innovative funnel is the most common model which is used to evaluate
the concept and ideas of drink products. The key parts of innovation funnel are related to the
opportunity assessment, insights ideation, conceptualisation, benchmarking, on go process and
launch (Vanhaverbeke and Cloodt, 2014). With the help of innovation funnel process, the owner
of Healthy Juice can identify the market opportunity then they can create the idea for juice
innovation. Process and concept to set the benchmark in the market with the innovation funnel
can help them to launch their new drink or Juice in the market.
7

P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation is also defined as the frugal engineering which is used as the process by the
organizations and their team members so that they can reduce the complexity and the overall cost
of the products and their production. With the help of this process the owner of Healthy Juice can
bring or discover the new models for their business. There are various types of developments
which are related to the frugal innovation and that provide the major benefits to the innovation of
their existing product (Zeschky et al, 2014). Frugal innovation is the concept which urges the
respond in business for limiting the resources such as- material or financial. This process also
turns the constraints of resources into the innovation of new Drink or Juice in the UK market.
With the below diagram it will be cleared that, frugal innovation and development include the
circular of economy, open for innovation and maker of the improvisation movement. On the
other side, this also includes to share the economy, social innovation and co-creation of the
product.
Figure 4: Frugal innovation for sustainable development
(Source: open-ecosystem.org, 2018)
For example: The Healthy Juice organization and its owner want to bring improvisation in their
drinks without moving from Juice concept. With the help of frugal innovation the owner (Mr.
Daniel Green) can bring the new ideas and multiple of suggestions for innovation in their Juice.
They can bring changes in the existing drink with frugal ideas. This concept will provide ideas so
that they can sustain their growth in the market by adopting the innovation idea such as- adding
some dry fruits in Milkshake or pieces of fruits in the shake and make decide taste of shakes.
8

M2 analyse and apply the innovation funnel in organisational context of Mr Green’s healthy
drinks
Innovation funnel is used by the organizations like this Healthy Juice so that they can increase
the overall value of their business in the market which is the prior and important requirement of
Mr. Green. Innovation funnel process is used by the Mr. Daniel Green owner of the Healthy
Juice so that they can bring the new ideas and concept innovation of juice and commercialisation
of the product in the market (Wang, 2017).
Innovation funnel in this organization bring the idea of creating innovate shakes or juices by
adding dry fruits or pieces of fruits in the juice or shakes. They can also apply the different types
of shakes such as- Banana shake or mango shake with some of the dry fruits. This identified
innovation funnel can be applied in the Healthy Juice of organization of Mr. Green with the help
of building and managing the whole process of innovation. Following are the steps through
which innovation funnel can be applied in the Mr. Green Healthy Juice organization:
 They first step which can be used by Mr. Green is to focus on the wide mouth of the
funnel. This step is taken by the owner of Healthy Juice to increase their knowledge and
base of their information. To apply this step, they need to clarify the perspective of their
objective. They need to gather the relevant information about their competition,
customers and their taste (Steps to apply innovation funnel, 2018).
 The second step is related to the finding the market segmentation. It is important for Mr.
Green to identify the target audience to whom they want to target for their new and
innovative product. The ideas which can be generated by the organization in the first step
are need to be screened. The screening process which involve the matching of the ideas
through the goals of innovation.
 The third step included in the applying of innovation funnel is related to narrow the
segments of the funnel. The organization need to ensure that their innovative ideas in the
shakes can meet the objective of organization which is related to set their position in the
UK market. This will help to bring the improvisation in the market.
9

M3 evaluate the role of frugal innovation in organisational context of Mr Green’s healthy drinks
As it is already discussed that frugal innovation is the process or step which is used by the
organization to identify the new ideas for existing product innovation by reducing the cost of
resources and other material. This is basically a settlement of the innovation with the available
resources and capital of the organization. In the given scenario, Mr. Green is the founder of
Health Juice in which they launch Milkshake as a drink in the market. For sometimes they gain
high revenue with publicity but due to high competitive further their brand image not and
demand of Milkshake goes down. Now they want to improvise their product but do not want to
move from Juice or drink. This requirement of the organization can be fulfil by adopting the
concept of frugal innovation (Zeschky et al, 2014).
Mr. Green can take the frugal innovative in which they can bring the changes in the drink with
the existing and available resources, capital and material. This will reduce the chances and need
to high and new investment which will innovative the drink in available human and financial
resources. This will show that role of frugal innovation is the most effective and appropriate in
the context of Healthy Juice organization of the Mr. Green as he wants to make the position in
the UK market but within the budget. The limitation of budget and investment is the major point
for which Mr. Green decided to take the concept of innovation and for this frugal innovative is
best process.
10

LO3
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation
Importance of commercial funnel
The concept of commercial funnel is to introduce the drink product in the market with which the
Healthy Juice organization can make the high revenue or income. This is important and essential
in this business because this follows the systematic and standard approach to launch the new or
innovative drink in the market. Commercial funnel is essential for generating the profitability of
the drink or shakes to their customers. The dry fruit shakes or new flavoured shakes are as per
the economic status of their customers so that they can afford the drink. Commercial funnel is
important to prompt the new ideas, then work on the idea, conduct the market research and final
launch the product. This will also help Mr. Green to understand the potentiality of the market and
the competitors who are the main reason for their sales reduction (de Abreu Fernandes and Litz,
2017). Mr. Green can use the commercial funnel to transform their drink into the commercial
product and make the plan to set the price, quality and quantity of the drink with the high
revenue.
Apply NPD for commercialising their innovative drink
Product development can be done by identifying the targeting customer and their expectations.
For achieving the benefits of competition the Healthy Drink has to improvise their drink within
the short life cycle. This step will improve the current productivity of product and performance
of their employees. So, the concept of new product development and its process can reduce the
failure risk which is related to the time and cost utilization (Santoro et al, 2017). It is also
identified that expectations and parallelize of the activities in the product development can make
the production fast. This concept will also provide the tools and team support.
P6 Build an innovation business case for an organisation, including ways to access funding [M4]
Executive summary
This innovation business case is related to bring the innovative and new taste of drink or shake in
the UK market. This is mainly related to again make the brand image in the market among all the
competitors. This will include the customers, market research, and product, objective and
funding.
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The main problem
The main problem or issues for which innovative of existing drink is selected is that, Mr. Green
owner of start the business in the UK by the name of healthy juice and in the initial stage they
earn high profit and sale. But due to competition in the drinks their sales get decreased for this
they adopted the concept of innovation as they do not want to move away from the drink or juice
concept (Wonglimpiyarat, 2016).
Customers
It is important for the owner of healthy juice to select the customer so that they can target that
segment only. As the drink is healthy and tasty so children, young people and adults all the age
group people can be selected as the customers.
Solution
As per the identified problem, it is analyzed that brining innovative drinks and shakes in the UK
market for the customers as the best solution. They can add some dry fruits in their shakes to
make it heavy and better in quality. They can also make the different flavours of shakes other
than milkshake like mango and banana shake.
Reason behind this innovation
The main reason behind this innovation is to enter in this competitor market and make their
position with the quality of drink. This innovation brings the changes in their drink quality and
helps them to enhance their sales.
Customer research and conduct survey
Mr. Green needs to conduct the research through which taste and preferences of the customers in
the current time can be identified. They can also conduct the interview or questionnaire survey in
which they ask about the customers taste in that survey (Tanev et al, 2015).
Try to sell the innovative drink
They need to commercialise their drink and for which they need tom create the marketing plan in
which they can promote their drink or shake in the targeted market.
12

Development and design plans
This plan is required to set all the requirements of the innovative and commercialisation project.
They need to create the well structured plan in which all the essential process and steps need to
be covered (Charles et al 2017).
Investment requirements
Within the investment requirement they need to discuss about the arrangement of funds. They
can invest the funds through some of the sources such as- own funding, bank loan, financial
institutions, government grants, debits and equity and venture capital. They can select any source
for funding in the innovation project. Investment and funds are required in the development plan,
marketing and project management.
Expected benefits
With this business case, Mr. Green founder of healthy juice expected to get financial, social and
environment benefits. This business case helps them to resolve the problems with the innovative
drink solution.
M4 Measure its overall effectiveness using appropriate techniques available to test, iterate and
improve
Effectiveness of business case
With the help of quantitative tool, the team members of healthy juice have identified the
effectiveness of the developed business case. This tool is used under which survey is conducted
by the team from the selected customers. With the help of the survey the effectiveness of the
business case is identified that the concept of shake innovation and drink innovative is effective
as the solution because customers are getting attracted towards the drink and this has increase the
overall sales of the organization (Fugard and Potts, 2015).
13

LO4
P7 Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge
and intellectual property
There are various types of tools that can be used by Mr Green so that he can develop the drink,
retain the innovation, protect their internal and innovative knowledge and intellectual properties.
Following are the tools which help the owner to sustain with their rights in this innovation and
commercialisation project:
Copyright and included rights
The Healthy Juice organization can protect their literacy work or artistic work by which they
bring the idea of innovation in the drink through copyright. This includes the protection of their
computer data and programs which save their innovation details. For example: this organization
can protect the marketing data with the copyright in which name of organization and their recipe
of making drink is included (Williamson and Sanfilippo, 2015).
Trade market, utility model and patent right
These tools can be used for protecting the drink innovation. For example: Mr. Green can use the
patent right to protect their drink bottle packaging and tagline of the drink. They can use trade
make to protect the information of the organization and the employees. On the other side, the
utility model is used to protect the machines used for drink or shake production.
Rights for industrial design
Industrial design right can be used by Mr Green protect their drink pack design, tagline or other
internal detail of the innovated drink. For example: Mr Green used industrial design right so that
nobody can copy their bottle design and make duplicate product.
M5 Evidence-based evaluation of these different tools in the context of the wider business
environment
The organization can achieve many benefits with the intellectual property tools because this will
protect the internal information of the organization, resources details and ideas used for the
innovation (Delgado et al, 2013). For example: With the copyright they protect the name of the
organization and with trademark they can protect the logo or any tagline of their business. This
14

will reduce the duplicity issues for the organization and they can achieve competitive benefits
also. On the other side, the trade secret and the layout of the designs are also protected with the
IP tools and sustain their growth in the market.
15

Conclusion
This innovation and commercialisation report has concluded that, Mr Green can adopt the
concept of innovation in the Juice organization so that they can bring the improvisation in the
existing drink or shake. This report has concluded that, with the innovation funnel and frugal
innovation they can make changes in the existing product and with the available resources. This
has reduced the operational cost and efforts of employees to start new business with new
product. The report has concluded that by adding some dry fruits or pieces of fruits to make new
flavour of shake is the innovation which can bring in their drinks.
16

References
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