Innovation and Commercialization: A Comprehensive Guide for Mr. Green's Healthy Drinks

This report delves into the concepts of innovation and commercialization, exploring their significance for organizations like Mr. Green's healthy drinks. It examines the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. The report further analyzes different sources of innovation and how organizations can foster an environment conducive to innovation. It explores the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. The report also discusses frugal innovation and its application in Mr. Green's context, evaluating its role in achieving customer affordability and market competitiveness. The importance of the commercial funnel and new product development (NPD) processing for commercializing innovation is highlighted, along with the development of an innovation business case for Mr. Green's organization. The report concludes by evaluating different tools for developing, retaining, and protecting knowledge and intellectual property, emphasizing their importance in the wider business environment.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
Task 1...........................................................................................................................................................1
P1. Explain innovation and determine its importance to organizations in comparison with invention. .1
P2. Explain how organizational vision, leadership, culture and teamwork can shape innovation and
commercialization....................................................................................................................................2
M1. Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation....................................................................................................3
Task 2...........................................................................................................................................................5
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.......................................................................................................................................5
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..............................................................................................................................6
M2. Analyze and apply the innovation funnel in organizational context of Mr. Green’s healthy drinks
.................................................................................................................................................................7
M3. Evaluate the role of frugal innovation in organisational context of Mr Green’s healthy drinks.....8
Task 3...........................................................................................................................................................9
P5. Explain the importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation..........................................................................9
P6. Build an innovation business case for an organisation, including ways to access funding.............10
M4. Measure its overall effectiveness using appropriate techniques available to test, iterate and
improve..................................................................................................................................................11
Task 4.........................................................................................................................................................12
P7. Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................12

M5. Evidence-based evaluation of these different tools in the context of the wider business
environment...........................................................................................................................................13
Conclusion.................................................................................................................................................14
References..................................................................................................................................................15

LIST OF FIGURES
Figure 1: Frugal innovation framework based on pattern based approach..................................................6
Figure 2: Innovation funnel.........................................................................................................................7
Figure 3: Action point of the organization ti succeed in frugal innovation.................................................8
Figure 4: Intellectual property (IP) protection mechanisms......................................................................12

Introduction
Innovation means to improve the existing product or process with some new ideas concepts and values.
Presented report will discuss the concept of innovation and invention with discussion on the fact how
organization can shape innovation and commercialization through business vision and leadership. Also
report will discuss 4Ps of innovation with discussion of frugal innovation. Also the importance of the
commercial funnel and new product development will be discussed. Business case will be developed
with focus on the intellectual property protection tools.
1

Task 1
P1. Explain innovation and determine its importance to organizations in comparison with invention
Definitions
Innovation can be defined as the process to translate the new ideas, method or product so that new
values can be created for the customers. It simply means to introduce something new in the product or
services those are adding values or importance to the existing values. Therefore, innovation is a process
to generate new ideas in economic cost to satisfy the customers in business. It can be implemented
through the imagination, application of information and initiative for more values through resources. In
context of business, innovation is considered as the approach to meet the new demands and satisfaction
points of the customers (Damanpour and Aravind, 2012).
At other side, invention can be defined as the idea for product or processes which was never introduced
before and it results as creation of new product. It is an original idea driven from the scientific skills and
mainly concerned to the single process or product.
Example
The concept to form the juice of oranges is an invention which has later promoted on other fruits to
create juice. However, the changes in the juice flavours and packaging are innovations over time to meet
the satisfaction of customers.
Importance to the organizations
Innovations helps the organizations to sustain in market and come from the competitive environment as
the customers are more inclined to the new or enhanced features to meet their demands. The
organizations also has importance of the innovation to add values to the products or services whereas
invention is essential to reduce the cost and efforts for the business practices and lead with high
profitability and efficiency (Gokhberg and Meissner, 2013).
1

P2. Explain how organizational vision, leadership, culture and teamwork can shape innovation and
commercialization
Organizational structure and creative business environment impact the innovation and
commercialization because these are the major motivators for the innovative practices. For example, if
management has unique and creative goals whereas also demand new approaches to simply the
operations then employees also adopt the innovative approaches to support the business.
Vision
Healthy Juice has vision to sustain with new products those are improved over the existing products.
The vision of the organization helps to achieve the innovation in products because the market is
changing and competition in increasing (Damanpour and Aravind, 2012). Also the organization has to
commercialize the sustainability vision to convert the idea into the profitability for business.
Leadership
Effective leadership helps to engage the employees in business and simplify the efforts to achieve the
market objectives. Leadership for the high performance, creative solutions to the workplace issues and
product improvements results in the form of innovative outcomes. Motivating leadership can improve
the process of innovation and commercialization for faster outcomes. However, sticky behaviour for the
employee can hinder the innovation in business.
Culture
Healthy Juice can adopt the flexible and performance directed culture to foster the innovation.
Experimental culture at workplace supports the employees for creative solutions to the problems (Amit
and Zott, 2012). Culture can foster the innovation and commercialization but internal disputes can
impact the innovative directions of the business.
Teamwork
Good team always lead to better solution for the problems. Internal bounding can simplify the business
operations and products through the collaborative approaches. Also the teamwork reduced the cost and
time to meet the innovative solutions and commercialization but the poor teamwork can enhance the
cost and reduce the efficiency.
2

M1. Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
Peter Drucker has introduced seven sources of the innovative opportunities to the organization those can
be used by Healthy Juice to meet the competitive benefits and lead with high sustainability.
Unexpected: The organization can continuously study the market so that competitive scope can be
determined. Market study helps to cover the unexpected benefits through the timely solutions to the
customers.
The incongruity: The organization can make advantage of the gap between product and demand so that
desired product or service can be provided to the customers to attract the market and enhance the
profitability. Improved product can be introduced by organization to meet the sustainability objectives.
Process need: Healthy Juice can determine the potential weaknesses in the business process and solve
them through innovative solutions. It helps to reduce the cost and time and enhance the profitability
(Drucker, 2014).
Industry and market structure change: It is required to move with the market structure and industry
which has main impacts from the regulations. For example, the organization can change the market
structure according to new trends and demands.
Demographics: Income level, population, product preferences like demographic characteristic should be
analysed by the organization to become flexible according to market. It helps to achieve the right
solutions for the business operations.
Changes in perception, meaning, and mood: Changes in market or customer purchasing power should
be analysed to design the product or process which can meet customer satisfaction. It is required to
continuously monitor the market and customer expectations for sustainable changes.
New knowledge: Technological advancements have opened new doors for business expansion.
Therefore, new knowledge can be used to enhance the effectiveness of the business (West and Bogers,
2014).
3

Therefore, the organizations can use the above approaches to foster the environment of innovation. For
example, Healthy Juice can use incongruity method to introduce new product with demanded features to
sustain. Also the organization can use new knowledge to enhance the market share.
4

Task 2
P3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas
The organization can use the following 4Ps of innovation so that possible enhancements can be made in
business or product to meet the goals and objectives:
Paradigm: The organization can analyse the paradigm of the business which means to change the way to
do business. For example, Healthy Juice can use online marketing in comparison of the traditional
physical marketing to enhance the customer base. Also the advertising of products can be made effective
and closed to the social values.
Product: The organization can improve the existing products for the customers to add values and attract
the market. It means to be innovative for continuous changes for betterment in product.
Process: Business operations to deliver the offerings to the customers can be analyzed and improved to
save the cost and time (Alsanad and Abdel-Razek, 2016). It can be used in innovative way to reduce the
human power and improve the efficiency. Process can be optimized for investment and enhance
profitability.
Position: Innovative thinking can be used to determine the potential market for the product. It helps to
determine the position to distribute the product and increase the sales.
Use of the innovation funnel
Innovation funnel is useful to describe the stages those can be used in product or process. It is used to
determine and create the process to meet the customer satisfaction in economic or manufacture-able
forms. For example, first stage of opportunities can be analysed with trends, perceptions so that second
stage, ideas, can be generated for product. Such ideas can be mapped with suitable technology to deliver
the final product.
5

P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation can be defined as the process to find new business structure, configure the values
chains and make changes in the product so that resources constraints can be used positively to achieve
sustainability and scalability. It means to use resources in their most effective manner to provide
functional solutions (Neumann et al, 2017). Pattern based approaches can be used for the development
in the frugal innovation where following stages can be used for new product:
Figure 1: Frugal innovation framework based on pattern based approach
(Source: Author)
Example: Healthy Juice has introduced the combination of the fruits to create the multi flavour juice
products those are economic in price and has high quality. It is frugality for the better values to the
customers and attracts market for high profitability.
6
Research on existing frugal innovations
Examine solutions
documentation
Identification of frugal
innovation
determine cmparable market services
Problem description
Documentation of problems
Deducation of problems
Applied solution
Abstraction of solution
Pattern documentation
Deducation of patterns
relation between frugal innovation, patterns and
problem
Analysis of relation
documentation of results
Deducation of pattern
systems

M2. Analyze and apply the innovation funnel in organizational context of Mr. Green’s healthy drinks
Mr. Green can use the innovation funnel with the detailed modularization of the stages so that resources
and capabilities can be utilized to launch the desired product in market.
During the idea development stage, the organization can communicate the challenges to the employees,
customers and shareholders and then help them to submit their ideas for new product to overcome the
challenges. In concept development stage, ideas can be synthesized to ensure that most of the
participants are satisfied and organization can meet scope in market. Once the concept of product is
determined, than organization can move toward the launch process where business plan and case can be
prepared with detailed activities for the outcome and then development of the product starts
(Hakkarainen and Talonen, 2014). The business can test and validate the product according to the
demand of customers. Product can be launched if it satisfactory.
Figure 2: Innovation funnel
(Source: Sopheon, 2018]
7

M3. Evaluate the role of frugal innovation in organisational context of Mr Green’s healthy drinks
Mr. Green has to consider the importance of the frugal innovation in the business to ensure that the
prices and quality of the product is affordable at target customer market. Healthy drinks can use frugal
innovation to determine the product for the market benefits and competitive growth whereas it also helps
to understand the potential customer expectations for the services. For example, Mr. Green can analyse
the preferences of the customers for the product and then introduce the new product or small packages to
meet their affordability (Basu et al, 2013). For instance, the big packets of the juice are less preferred in
small family or by individual so that organization can provide small sachets those can deliver more
values to the organization but also more preferred by the customers.
Therefore, Mr. Green can use the frugal innovation for the new juice product through the analysis of the
business operation, market competition and customer preferences. The organization can use frugal
innovation to standardize the approach to conquer the market where product ideas can be mapped with
the existing issues (Bhatti and Ventresca, 2013). Mr. Green can make of frugal innovation to ensure
customer affordability, engagement of customers in business improvement and to create the value chain
through the product features. However, economic suitability, innovation cost and price on product
should be managed through the frugal innovation model.
Figure 3: Action point of the organization to succeed in frugal innovation
(Source: Author)
8

Task 3
P5. Explain the importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation
Importance of the commercial funnel
Commercial funnel means to introduce the product in market through which the organization makes
revenue. It is important for the business to follow the standard or systematic approach for the product
launching. Commercial funnel is important to generate the profitability from the product or service to
the customers which is economic or adaptable for the customers. The organization has importance to
prompt an idea, work on it, market analysis and launching the product. It also helps the business to
understand the potential market and sales (Hakkarainen and Talonen, 2014). Mr. Green can use
commercial funnel to transform the idea or product into the commercial product which is well planned
for the price, quality and distribution to make revenue.
Application of new product development
Product development is mainly enforced through the new customer demands and expectations. To
achieve the competitive advantages, the organization has to produce the new products within a short life
cycle which enforces to improve the productivity and performance in development team. Therefore the
processes of the new product development have application to reduce the risk of failure for cost and time
utilization. It also has application to early understand the demands and overlap or parallelize the
activities of the development for faster production (Kahn, 2012). It also provides cross-functional
teamwork and advance support tools. New product development has application to strategically launch
the product.
9

P6. Build an innovation business case for an organisation, including ways to access funding
Introduction: The organization has need of innovation business case to analyse the problems and
suggest the most suitable solutions. It also includes the major requirements for the final product as
solution.
Problem: The organization has problem to sustain with same products and earn revenue so that business
is planning to introduce new product to attract market. The problem also persists to manage the
customer base and enhance the business operations.
Solution: Within the frame of juice products, business can introduce new product to meet customer
satisfaction and affordability. The solution is to introduce high quality product within the economic
price which is also easily available and innovative.
Innovative reasons: The product is innovative because it is packed juice which can be served also after
a long time. Besides it, the product is made from more than two fruits those make it as an energy drink
for the customers (Charles et al, 2017).
Design and implementation plan: Sustainable technology is used to prepare the product whereas the
design has integration of mostly available fruits. It is planned to implement within 6 months where the
organization has major focus on the potential market segment.
Funding: The product development has fund from the organization, bank and shareholders. Also the
sponsors and distributors are contributing in the packages to support the business.
Expected benefits: The organization can achieve the benefits in the term of competitive growth and
profitability. It also can help to achieve the sustainability.
10

M4. Measure its overall effectiveness using appropriate techniques available to test, iterate and improve
The organization has effective return with the innovation business case because it has used rapid
prototyping technique to test the customer requirements and demands. The technique is also used to
iterate for the quality and improvements. The finalized design and quality aspects are applied on the
product to meet the customer demands. However, quality function deployment is used as major tool for
the testing of the product. During the use of the technique, it is ensured that the product has adequate
quality and services along with the price according to the customer expectations. Overall effective of the
innovation business case is good because it has proper integration of the customers and business for the
sustainable product development. For example, to measure the product effectiveness, the organization
also can use survey and forums to understand the customer expectations and meet the trending demands
through the market analysis and monitoring.
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Task 4
P7. Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge and
intellectual property
Mr. Green can use the following tools according to demand to ensure that intellectual property is
protected for the business profitability and adaptable competitive growth:
Patent, trade secret and utility model: Such tools are used to protect the innovative products and
process. For example, Mr. Green can use patents to protect the formula for particular product. Also
patent can be used to use a slogan or product packing design. Trade secrets are useful to protect the
business information among the employees and others. Utility model is also effective to protect the
resources and machines of the business for the production or process. In this manner, it is useful to
protect the processes or products from the business.
Copyrights and related rights: The organization can protect the artistic or literary work through the
copyrights. It also includes the protection for the computer generated data or programs. For example, the
organization can protect the data of the marketing through copyrights which include business name and
trade slogans (Williamson and Sanfilippo, 2015). It also includes the protection for the computing
software those are custom build.
Industrial design rights: It is used to protect the design and packing of the product for the end
customers. For example, the packing for the juice can be protected to avoid the duplicate packages in the
market.
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Figure 4: Intellectual property (IP) protection mechanisms
M5. Evidence-based evaluation of these different tools in the context of the wider business environment
The organization has benefits of the IP tools for the protection of the business information, resources
and approaches as it helps to achieve the competitive benefits and sustain with high profitability. For
example, the organization can take copyright for the business name whereas trademark can be used to
scale the business through particular taglines (Delgado et al, 2013). For example, Healthy Juice is
copyright for the business whereas ‘Cold Pressed Juices and Juice cleanse’ is the tagline or trademark
for the business. It helps to avoid the duplicate product in market and ensure customer loyalty. At other
side, trade secrets and layout designs related tools help to protect the business information for the
sustainability and profitability and preserve the originality of the product in market.
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Conclusion
Report has concluded that innovations are essential in the business to achieve competitive goals. The
organization can use the innovative ideas to introduce new product for the market benefits. Also
innovation funnel and frugal innovations can be used to systematize the business operations for the
product. The organization can use new product development process along with intellectual property
protection tools to ensure the security in the business. It is concluded that business can use 4Ps of the
innovation to enhance the profitability.
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References
Books and Journals
 Alsanad, D.S. and Abdel-Razek, R., 2016. Mapping technological innovation: methodology and
implementation.
 Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review, 53(3), p.41.
 Basu, R.R., Banerjee, P.M. and Sweeny, E.G., 2013. FRUGAL INNOVATION. Journal of
Management for Global Sustainability, 1(2).
 Bhatti, Y. and Ventresca, M., 2013. How can ‘frugal innovation’be conceptualized?.
 Charles Jr, O.H., Schmidheiny, S. and Watts, P., 2017. Walking the talk: The business case for
sustainable development. Routledge.
 Damanpour, F. and Aravind, D., 2012. Managerial innovation: Conceptions, processes, and
antecedents. Management and organization review, 8(2), pp.423-454.
 Delgado, M., Kyle, M. and McGahan, A.M., 2013. Intellectual property protection and the
geography of trade. The Journal of Industrial Economics, 61(3), pp.733-762.
 Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
 Gokhberg, L. and Meissner, D., 2013. Innovation: superpowered invention. Nature, 501(7467),
p.313.
 Hakkarainen, K. and Talonen, T., 2014. The innovation funnel fallacy. International Journal of
Innovation Science, 6(2), pp.63-72.
 Hakkarainen, K. and Talonen, T., 2014. The innovation funnel fallacy. International Journal of
Innovation Science, 6(2), pp.63-72.
 Kahn, K.B., 2012. The PDMA handbook of new product development. John Wiley & Sons.
 Neumann, L., Wecht, C. and Gassmann, O., 2017. Insights on Organizational Processes and
Structures for Frugal Innovation.
 West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management, 31(4), pp.814-831.
 Williamson, T. and Sanfilippo, J., 2015. Intellectual property protection.
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Online
 Sopheon, 2018 [Online] [Accessed through] < https://www.sopheon.com/idea-concept-
development/ > [accessed on 4th April, 2018].
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