Innovation and Commercialization: Assignment

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and its importance to firm as compared to invention.........................................3
P2 How business vision, culture, leadership and team work can shape innovation and
commercialization ......................................................................................................................5
TASK 2 ..........................................................................................................................................6
P3 Explain 4P's of innovation and use of innovation funnel .....................................................6
P4 Development in Frugal Innovation .......................................................................................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and new product development application......................8
P6 Build an Innovation Case.......................................................................................................9
TASK 4..........................................................................................................................................10
P7 Tools that firm can use to retain and protect knowledge & intellectual property...............10
CONCLUSION .............................................................................................................................10
.......................................................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Innovation refers to the process and outcome of creating something new that also has
value. In simple words, it can be termed as an introduction of “new method, device or idea”. The
purpose of innovation in organizational context is to make existing product, process,
technologies and ideas more effective that provide high competitive edge to enterprises. It is
often viewed as catalyst for business growth and development (Amit and Zott, 2012). It involve
application of initiatives, imagination and information in deriving higher value from the given
resources that benefits company enormously. The given report is based on Healthy Juice which
is a UK based two year old start-up that deals in providing healthy milkshake to vast consumers.
This report covers how with the help of innovation Mr. Green (owner of Healthy Juice) expand
its product line so as maximise its overall sales and profitability ratio. It include innovation mix,
commercial funnel, application of new product development and different intellectual property
rights tool.
TASK 1
P1 Innovation and its importance to firm as compared to invention
Innovation is defined is the concept which deals with transformation of a new idea into
valuable goods or services for which consumers are willing to pay. For bringing any kind of
innovation, a good idea is required. So, it is crucial for an entrepreneur or an individual to
constantly come up with ideas & creative ways of doing things in distinct manner. Introduction
of innovation within business organisation provides it competitive edge in market and firm is
enable to take advantage over its competitors. It helps the businesses to make themselves distinct
from others. It acts as catalyst for an enterprise in terms of its growth and success. It administers
competitiveness to firm to face challenges effectively in today's competitive world.
Innovation & invention are not similar, these are 2 different terms. Invention does not
mean to bring innovation in company. It is the procedure of change and its adaptation as per the
changing environment. It helps company in offering such services and products that assists in
meeting needs and requirements of customers in more better and effective manner (Ariga and et.
al., 2013). In business organisations, it must be require by business managers to develop an
innovative culture within firm so that skills of manpower can be enhanced and they get

opportunity to think outside the box. It assist in increasing their creativity and they enable to deal
with issues in more better way and resolve problems effectively. Innovation provides
sustainability to business in market so, firms are needed to continuously bring innovation in their
products for maintaining its strong position in market. The main key to success of company is an
unique idea.
Healthy Juice is a rapidly growing company and earn significant profits in marketplace
from last two years. Firm is started with one drink, i.e., healthy milkshake in UK and attain
dramatic increase in sales in first year because of their distribution capability and innovative
formula. As it enters in third year, a significant decline is seen in its sales as various new
competitors have entered in market. As a result, Mr. Green has decided to expand their product
line by introducing Black apple juice (Davila, Epstein and Shelton, 2012). The reason behind
launching this juice is concern of population of UK regarding their health. People of country are
more conscious about their health and in order to take advantage of this, Mr. green decided to
launch this drink. It is a healthy juice and is rich in vitamin A and C. This will assist in
increasing its profitability of firm and also helps in maintaining its position in market. Some
significance of innovation are defined below:
 It helps in increasing sales and profits of company.
 Assists in building strong brand image.
 Provides competitive edge to firm and supports in acquiring large portion of market
share.
 Helps in maximizing satisfaction of customers in effective way.
Difference between invention and innovation:
Innovation Invention
In innovation process, improvements are made
in form of adding features in those products
which are already exist.
In invention process, product is completely
new and it never exist before. It is a kind of
discrete creative act.
A modern idea is applied to existing condition. It can be assessed by individuals as it is a
practical aspect.
It is related with making product available to
end users.
It involves transformation of novel notion in
idea that is substantial.

P2 How business vision, culture, leadership and team work can shape innovation and
commercialization
 Vision: Vision Statement of Healthy Juice “To become the premier innovator of
providing healthy juice and drinks worldwide”. Healthy Juice is a two year old start-up,
launched by Mr. Green that only sells a healthy milkshake. However in its initial year,
company attain a dramatic increase in its sales. But with the passage of time and entry of
new competitors it has become little difficult for them to survive in the market for longer
run and that too with serving only one product (Drucker, 2014). As a result, Mr. Green
has decided to embed innovation by expanding its product line i.e. introducing new range
of juices, drinks and smoothies with different variants. Following its vision statement,
Healthy Juice has come up with an idea of providing organic juice of black apple with
real pulp.
 Culture: Organizational culture defines the shared values, beliefs and assumption of
people that administer the way in which people behave in a company. These shared
values has a strong influence on performance and efficiency of employees. In Healthy
Juice, all business activities and operations are carried out in a proper manner. By
following task culture overall efficiency and productivity of employees increases that
gives shape to innovative ideas.
 Leadership: Leaders of Healthy Juice follows autocratic style of leadership which means
majority of decision is taken by themselves only. But now they have changed its
leadership style to participative or democratic that promotes innovation. As in this style
of leadership, each and every employee gets the chance to come up with different ideas
and leaders select the best among them. Along with this, leaders also involve its followers
in decision making process that makes them feel motivated and valued.
 Team Work: Mr. Green believes that any task or work can be achieved in a better
manner if it has been carried out by equal efforts and contribution of all employees
(Gordon, 2012). Thus, Mr. Green believes in distributing work according to the skills and

potential of its workforce which increases that chances of achieving task in a better
manner.
TASK 2
P3 Explain 4P's of innovation and use of innovation funnel
4P's of innovation model was developed by Joe Tidd & Joe Bessant. This framework
allow Mr. Green to figure out how the process of innovation bring to businesses and how it
improves overall process, models and workflows. The main purpose of this tool is to investigate
possible enhancements in each area of business. It include product, position, process and
paradigm which are in brief discussed below:
Product: It deals with how existing product or services can be improved so as to satisfy needs
and wants of customer in an effective and efficient manner. In other words, it means how to
make product or service more appealing and attractive such that it instantly seize the attention of
customers or become better than other available goods (Huberman and Miles, 2013). For
example: Healthy Juice has decided to expand its product line by introducing juices, smoothies
and drinks of different variants/flavours. Mr. Green has launched organic juice made up of black
apple with real pulp included in it.
Position: It deals with changing the conditions in which goods and services are framed or
communicated among customers. How company can enhance its product image in the eyes of
potential buyers, public etc. For example: Mr. Green can start promoting its new product line on
various social networking sites by posting the genuine review of customer. In addition to that,
they can launch its mobile application as well. As now a days everyone is becoming more health
conscious and taking the advantage of this trend, employee's of Healthy Juice come up with an
idea of serving Black Apple Juice as it is a low fat tropical fruit and rich in Vitamin A & C.
Process: It means changing the workflow and makes it more effective that leads to generate
higher profits for the company. All steps included in preparation process starting from as
supplying, hiring people, workflow and training can be improved that leads to raise company's
profits. What all latest trend can be used in process such that resources can be utilized optimally
and efficiently (Huizingh, 2011). For example: Mr. Green can implant latest technology that
assist them in fulfilling all customer requirements in a cost effective and timely manner.

Paradigm: It deals with how with the help of innovation, one can enhance the way in which they
do business. This change could be incremental or radical. It basically means trying all possible
ways that leverage profits and revenues of the company. For instance: changing the way of
promoting goods and services from print to online platforms.
Innovation Funnel and its Usage: It is used to define the series of steps involved in developing
a product or process. Their main purpose is to create such products or processes that complete
market needs in an economic manner (Jain and et. al., 2013). The goal of any product is to take
an idea from concept to reality that mainly fulfils diverse needs and wants of customer in an
appropriate way. Basically ideas moves within the funnel and reached to market in the form of
end goods and services. Initially there are many ideas that moves in the funnel but with the
passage of time it started become narrower i.e. eliminating all irrelevant ideas whose practically
ain't possible.
P4 Development in Frugal Innovation
Frugal innovation refers to the procedure of minimising the complexity & cost of good sold and
its production. In simple words it means, doing innovation in best possible manner that leads to
use business resources in most optimal manner. Following are the six main principles of Frugal
Innovation:
 Think and act flexibility: According to this principle, Frugal Innovation requires
improvisation instead of forecasting and strategic planning. When thinks go wrong,
entrepreneurs adapt and again begin with small budget and taking little risk. Moreover
they quickly reboot and correct after facing small failures. When Healthy Juice started
facing decrease in its sales, it launch new juice made up of Black Apple which is a low
fat juice made naturally with real pulp.
 Keep it simple: Frugal Innovators looks for good enough solution that are made of low
tech and are simple to use. Here the key principle is “creative simplicity”.
 Include the margin: The main focus of frugal innovator is to first determine what are the
undeserved and unserved needs of market. They are aware of that fact that basic services
should be given to each and every individual (Johnston and Marshall, 2016). Providing
healthy juice and that too made with tropical fruit enables Mr. Green to gain high
competitive edge in the market.

 Follow your heart: According to this principle, Mr. Green neither rely on focus group
nor they worry about investors. They only do what their heart says irrespective of
thinking about profit and loss.
 Do more with less: According to this principle, it is essential to utilize available
resources in an optimal manner rather than seeking for new resources.
 Seek opportunity and adversity: In this principle, current or existing problem is
reframe and best possible solution is made for exploiting opportunity in a better manner.
For instance: Mr. Green figure out that Healthy Drink is facing tremendous decline in its
sales which enable them to expand its product line by introducing new range of drinks,
smoothies and juices with various flavours (Leeuwis, 2013).
TASK 3
P5 Importance of commercial funnel and new product development application
Commercial funnel refers to a visual representation of journey of customer, tracking
process of sales from initial awareness of customers to purchase. This process is cost effective
through which companies are trying to identify proper sources that facilitates firm in offering
innovative goods to customers in effective way. Managers are responsible to determine proper
distribution channels that helps in earning high profits.
New product development:
Some steps are involved in new product development process which are defined as
follows: Idea generation: New ideas are generated in this stage by using various sources. These
sources assist in generating ample of ideas. Idea screening: Many ideas can be generated but only few of them are useful. In this
step, all ideas are screened and their feasibility is checked. Only useful idea is selected
and remaining are eliminated (Manso, 2011). Concept testing & development: After selecting the best idea, it is tested by developing a
prototype of it. In this, idea is converted into concept and developed prototype is tested
on small customer's group. Their feedbacks helps firm in taking decision whether to
further move with that or not.

 Market strategy development: After getting satisfactory results of concept testing,
manager develop various strategies. Various strategies are developed by taking into
consideration many factors like branding, profitability etc. Business and financial analysis: Sales are measured by manager at this stage with
established sales objective. Product viability is checked by them (Schaffers and et. al.,
2011).
 Commercialization: Under this stage, firm finally launch its Black apple juice in market.
P6 Build an Innovation Case
Companies build innovation case with an aim of measuring the amount of risk associated
with investing in process of innovation. Healthy Drink has decided to expand its product line in
order to increase the sales of their products and earn higher profitability ratio. Series of steps
involved in building an innovation case are discussed below:
 The Need: Healthy Drink is a two year old venture that offers only one product to its
customers i.e. a healthy milkshake. However in its 3rd year there was a major down fall in
its sale because of entry of new competitors. Thus, the need for embedding innovation
arises.
 Your Solution: Mr. Green has decided to expand its product line by launching new
products like juices, smoothies and drink and that too with different flavours/variants. For
example: They come up with selling juice of Black Apple that is rarely available. Since
the fruit is rarely found and rich in Vitamin A and C (Stokes, 2011).
 Why it is innovative: It is innovative because the fruit they are using i.e. Black Apple is
rarely found in United Kingdom .
 Customer Research: Before implementing innovation, Mr. Green has done a market
survey in which they investigate about what are the current likes and dislikes of
customer. As a result, they find out that UK people are becoming more health conscious
so they need to do innovation accordingly.
 Investment Requirement: At this stage, company needs to find out various sources of
funding. Generally there are two sources of funding one is Internal and other is External.
Internal means when adequate funds are available within the company only such as

profits, retained earnings. External means when funds are collected from outside source
such as angel investors, individual donor, bank, creditors (Strayer, 2012).
 Expected Benefit: Here, benefit of innovative product on society and its members are
analysed.
 The Ask: Feedback and suggestion from customers are gathered so that Mr. Green can
implement embed innovation successfully.
TASK 4
P7 Tools that firm can use to retain and protect knowledge & intellectual property
For protecting invention of an individual, IP rights are given to them. It is an exclusive
right provided to the inventor. A kind of recognition is given to an individual for its invention.
Some tools are as follows:
Patents: It is a kind of right that is given to person for protecting their invention. By this,
owner gets right to restrict others to copy their product without permission. It assists firm in
taking high advantage in market.
Trademark: It is a symbol, design or word that is provided to owner in order to make
their brand distinctive from others. Healthy drinks use trademark for protecting their brand
copying by others. Main reason behind using this IP right is to make product distinctive from
competitors (Tebbe, 2011).
Copy right: It is the right given for original music, art, dramatic or literary work.
Subsequent utilization can be controlled by a person by getting this right. This protection helps
individual to get right related to display, perform, copy, modify etc.
CONCLUSION
As per the above mentioned report, it has been concluded that innovation is introduced by
businesses in order to create more effective product, processes & ideas. In firms, creativity is
used in innovation to improve performance of person, process, team or organisation. It helps in
increasing profitability of business and leads it towards high growth & success. By using process
of innovation, company adds new features in existing products for satisfying needs of customers
and provides them some value. Several techniques and tools are utilized by firm which assists in
bringing innovation. For understanding and identifying needs of customers in proper way,

innovation funnel is used by businesses. In addition to this, IP rights are provided to individuals
by government to protect their ownership for their discovery.

REFERENCES
Books & Journals
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
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measure it, and profit from it. FT press.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
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headwinds (No. w18315). National Bureau of Economic Research.
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