Effective Strategy for Creating Innovative Products and Services

This assignment provides an overview of the importance of innovation in business and product design. It highlights the need for companies to utilize modern technology to develop unique beverages that can provide competitive advantages. The assignment also explains different funnels such as the Innovation Funnel, Commercial Funnel, etc., and their role in creating effective strategies for innovative products and services. Additionally, it discusses the distinction between invention and innovation, emphasizing the importance of innovation in business success.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P 1 Innovation and its value to organisations in comparison with invention.........................1
P 2 Innovation and commercialisation is shaped by vision, leadership and teamwork of firm. .3
P 3 Explanation of 4Ps of innovation and the use of the innovation funnel..........................4
P 4 Developments in frugal innovation and its use in Essence drinks..................................6
TASK 3............................................................................................................................................7
P 5 Importance of the commercial funnel and the application of new product development 7
P 6 Innovation business case to access funding.....................................................................9
TASK 4..........................................................................................................................................10
P 7 Different tools that can be used by venture to develop, retain and intellectual property10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation can be simply defined as a process which is creating new opinion and ideas in
order to maximise the profits by seeking attention of large number of customers. This also aids in
maintaining brand image in the marketplace (Teece, 2010). The main aim is to develop new
product and services for fulfilling all the need and request of purchaser in an appropriate manner.
In the present era, innovation is increasing day on day so that number of consumers can be
enhanced towards services as well as products of organisation. This present report is based on
Essence drinks which is started by Akshay Kumar who is the founder of this firm. He had set up
his firm with one drink that is known as mango lassi in the market of United Kingdom and his
business was on the height in the first year because of using innovation based formula and
distribution capability. In this project, the company wishes to create an innovative new range of
drinks by not moving away from lassi. The different types of innovation funnels are described in
this project that can be used by venture in designing strategies of producing innovative goods
and services.
TASK 1
P 1 Innovation and its value to organisations in comparison with invention
Essence drink has been prepared by innovation activities so that effectual growth
and development of the venture can be carried on. This also aids in manufacturing products in
minimum period of time. Some creative process should be used by corporation in order to
produce healthy drinks that helps in attracting large number of customers towards their services.
For doing this, it is essential for the firm to focus on the needs and demands of users prior to
developing products (Teece, 2010). They have to determine that what type of drinks are more
preferred by them including their taste, flavour of drinks, choices , etc. so that they can design
products as per that. Innovation plays a vital role in context which is explained below :
 Innovation helps in manufacturing new type of goods and services which would be
totally different from those of their challengers.
 The products that is designed by taking use of innovative activities are liked by most of
the people as well as government.
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 Advertisement can be done to large extent by taking help of modern technologies and by
this way, organisation can make aware of their new productivity to large number of
citizens in their nation as well out of the country.
 It is very easy to do copy of any thing such as any goods or services of others. On the
other hand, these days it is very complex task to develop a new one. But when venture
starts being innovative by generating new or creative products and services, then they can
feel proud on themselves and enjoy their own idea of making new things without copying
any other's model (Tebbe, 2011).
 Managers of Essence drinks are creating new strategies by taking aid of technology and
trying to invent something new and unique.
 This would aid in earning high profits as almost all people will like to taste their new
drinks.
 The top level management of Essence drinks are attempting to apply fresh policies and
schemes in order to make modification in their present products or services.
It is to be noted that there is big difference between invention and innovation which is
explained below :
INNOVATION INVENTION
This can be simply referred as a term of
making change in existing things which is
already present in marketplace by taking care
of demands and request of users (Stokes,
2011).
Whereas this is the creation or generation of
new thing which has not been produced by any
person or any of the venture.
This is a practical idea of developing any thing. But this is the theoretical idea of generating
any thing.
This needs collaboration of technical,
marketing and strategical skills.
While this needs some scientific skills.
For example, it is very essential to make
modification in the present products of Essence
drink by changing their ingredients and making
it more pure for attracting more and more
For instance, the cited company should focus
on formulating new drinks which has not been
manufactured by their competitors (Difference
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customers. between Invention and Innovation, 2016).
P 2 Innovation and commercialisation is shaped by vision, leadership and teamwork of firm
Essence should make some visions and mission so that they can achieve desired
ambitions and objectives needed by the organisation. The way in which vision, leadership,
mission and team work is done provides a shape to the innovation and business models. This can
be clearly understood by below written points : Vision: The objectives or vision of Essence drinks is effectively shaped by innovative
process. The aim of the company have to be clear otherwise innovation cannot be
happened in the same sector and in turn no profitability would be attained by firm. So, the
cited enterprise should have to design some clear vision for continuing the process of
innovation. Leadership: Organisation should recruit strong leaders as effective leadership is
important for making any kind of change in production as workers may resist such
change and try to hinder this work (Sawyer, 2011). Therefore, a good leader is the only
person who can motivate their personnel in making changes by showing them their bright
future and direct them right path for achieving the aims and objectives of corporation. Culture: Culture is closely linked with innovation because firm should design their goods
and services according to the tradition or culture of citizens. If they would not do so then
no one will like their modified products and due to this selling rate of venture decreases
drastically. For instance, if cited company is going to design any non – vegetarian drink
and some people are vegetarian then, they will not prefer those drinks and in turn
company have to face losses. Thus, it can be said that products and services are those
things which should be made as per the demand of users.
 Team work : Team work is very essential at the time of making innovative products as
this change can not be bring alone. Innovation is the outcome of labour of a whole team
where members contribute a lot for achieving the mutual goal and objectives. It is said
that a collection of activities can be done efficiently when each and every individual
works together for attaining same ambition. This will consume less time as efforts of so
many employees are present in it. There should be a coordination among all team
members otherwise conflictual situation get created which is not good at the time of
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doing innovation. This would adversely impact on the performance of corporation, so a
strong team head should be present for handing all the people and showing them right
direction by resolving their conflicts.
Therefore, it can be stated that culture, vision, team work and leadership are some
important factors that is responsible for providing a good shape to innovative processes. But if all
these elements is not managed properly then it also act as obstructor of innovation.
P 3 Explanation of 4Ps of innovation and the use of the innovation funnel
An innovation funnel is commonly used to explain the steps that is taken at the time of
developing any product or process. The main intention of all innovation is to produce goods that
can meet the need of market in economic or manufacturable form. Innovation funnel consist of
three main steps which is described below :
 Investigations : This is the first step where collection of new concepts and ideas is done
so that knowledge and information base of the venture can be increased. This data is
accumulated by doing research on competitors, current market, need of customers,
present partner's idea, university connections, etc.
 Development : In this stage, those ideas which are generated from first step would go
through screening ( Innovation Funnel, 2016). This includes matching of concepts and
ideas with the goals of corporation and a conclusion is made after deciding both are
associated with one another or not. After that resource are allocated to workers for
developing new products and services on the basis of that result. Here risk analysis is also
done so that all risky factors can be eliminated which can create problem in future.
 Shipping products : This is the last stage which assures that the selected ideas deliver on
the ventures' objectives that were expected at the time of starting the organisation. After
that new goods and services are released or shipped to the market place so that customers
can purchase it in large quantities.
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(Source : Innovation Funnel, 2016)
The 4Ps or the innovation mix is a model which was given by John Bessant and Joe Tidd. This
can be simply defined as a tool that enables organisation to find out what the innovation process
can improved and used in their business. It provides a correct direction where they should go and
which of the areas are needed to more innovated. The 4Ps of innovation that can be used by
Essence drinks are explained below : Product innovation : The cited venture should do innovation in their goods and services
so that they can be modified efficiently. It can be done by working together in a team as
all members would give their best in making modifications (Lundvall, 2010). Market
place normally give importance to those person who come up with new and innovative
ideas as this draws the attention of large number of customers. Process development : This also plays an eminent role while making innovation based
products. Process of manufacturing should be changed and have to be more advanced so
that a unique good will be produced from that. This would increase the productivity and
also make the work very easy. Essence drink corporation should invest large sum of
revenue for developing their processing and by this way they become successful in
creating new products. Position change : This concentrates on the alteration of positions or designations of
employers and employees . For example, the cited firm can change their managers as
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Illustration 1: Innovation Funnel

management is that thing that controls working of overall organisation. New managers
would come with creative ideas and start manufacturing of products in new way. By this
way, they helps company in the task doing innovative drinks in the case of present
venture.
 Paradigm : This is the last factor that combines the whole 4Ps. Here channel
advancement should be done that is nothing but integration of different processes
(Leonard and Rayport, 2011). This is needed to be happen as it helps in achieving the
particular targets and objectives effectively.
P 4 Developments in frugal innovation and its use in Essence drinks
Frugal innovation is most suited tool for developing innovation based goods. This is
nothing but the process of minimizing the complexities and cost of a product and its process of
manufacturing. Essence drink should introduce frugal engineering in their business so that they
can reduce the complexness of various procedures and costing of preparation of their products.
As company can use low budget in designing their goods, they would produce cheaper products
for the customers. The contribution and importance of frugal innovation can be underpin by
following points : Increase in innovation methods : This engineering aids in increasing the number
innovative based procedures that is used for creating a new product consisting of good
quality (Kline and Rosenberg, 2010). By this way, Essence drink can easily create best
quality beverages and attracts more people towards their services. Extra features of current goods : This method also aids in adding more new features in
their current product. This can be done by changing the quantity of commodities and
adding new ingredients in their drink. This in turn seek attention of large number of
users as people would love to drink new taste of lassi.
 Decrement of manufacturing amount : By taking use of frugal innovation, company
can attempt regarding minimizing the revenue that get used at the time of producing and
developing modified products. Besides this, Essence drink can buy their raw materials at
cheaper rate without compromising with quality and can offer those goods to poor
sections of society so that they can also enjoy the taste of their drinks.
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By this way, Frugal innovation can be utilised by Essence drink in developing new products and
services at minimum price. This also provides so many latest techniques and methods of creating
innovative goods.
TASK 3
P 5 Importance of the commercial funnel and the application of new product development
Commercial funnel is also known as sales funnel that refers to the process of buying that
ventures leads consumers through while purchasing goods. For attaining the targeted aims and
objectives, Essence drink should take use of concepts of commercial funnel. The value or
significance of this funnel can be understand by following points : Organise investigation programs : The cited firm should attempt in gathering all the data
and informations in order to modify their business strategies and services in appropriate
manner. Essence drink needs to execute new technology and techniques which si proved
to be more suitable for them. Reputation : This is very essential for the corporation to make a good image in front of
people as well as workforce and this funnels supports that in doing the same. Tools for analysing minds : The commercial funnel contributes in examining the needs
and demands of whole customers present at local as well as international level (Goldberg,
2013). Transformation in quality of products : Venture should change the quality, physical
appearance, way of presentation, shape, quantity and structure of their goods and services
as per the request of users. This is made so easy by using this funnel. Remove additional costing : Sales funnel also aids in minimizing the extra costs by
cutting needs of additional things which is not so much necessary (Huizingh, 2011). Developing modern technologies : This method helps in introducing new and advanced
technologies so that production can be done most effectively and a best quality product is
designed in minimum time interval.
 Profitability : This methodology also assists a lot in earning large sum of money as
innovative goods seek attention of large number of citizens.
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(Source : Commercial funnel, 2010)
Coming to New Product Development, it is a collection of all the processes that bring
new goods and services in the market place. This is also explained as procedure by which
innovation can took place. Essence drink should use NPD process as people get bored by using
same type of product and a new taste would attract them a lot. Also, development of new goods
or services helps in increasing the selling rate of venture and in turn profitability gets
incremented drastically. This also supports firm in giving good competition to the other rivalries.
Some of the improvement can be made in the existed products that can be done by using
following steps : Growth in several types opinion : Before creating any type of advancement in the current
goods, company should take views and opinions of their workers as well as customers so
that they can make a different plan which will be completely unique from their
competitors. Investigation and development : Essence drink should do deep research on the needs and
requirements of people as well as on the goods produced by their challengers (Drucker,
2014). They have to collect data and information that can bring revolution in their
business.
 Manufacturing of products : The final step is produce the product after doing all
investigations and examining ideas of different people. Company shopuld try to produce
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Illustration 2: Commercial funnel

innovative drinks so that they can increase their turn over and make themselves a popular
brand.
This can be said that the cited venture should use concepts of new product development
as well as commercial funnel in their business so that they can bring some flavours of lassi.
P 6 Innovation business case to access funding
Business case is a appropriate methodology and technique that can be utilised by the
Essence drink for earning huge amount of profitability by attracting most of the users towards
their innovative products and services (Gassmann, Enkel and Chesbrough,2010). The main
intention for selecting this business case is to maintain and control obstructors of the enterprise
which emerges at the time of manufacturing process. Some of the steps that is covered in this
business case are listed below : Executive summary : Essence drink is a corporation that produce or offers drinking
items to their consumers and are famous for producing several flavours of mango lassi.
Akshay Kumar is the founder of this company who run and control the whole business
activities of making lassi. He earned a tremendous amount of profit at the staring year.
But after two or three years, due to emergence of large number of rivals, company has
been facing losses. So, he wants to develop new and innovative drinks so that their
challengers remain in their back and he move forward by increasing their selling rate. Objectives : The primary objective of this corporation is to use modern techniques and
develop unique products and services which are not made by any of their challengers so
that they can seek attention of large number of customers towards their modified
drinks. Solution : The cited firm try to remove all the issues and problems that comes at the
time of manufacturing activities. They should also take use of modern technology in
order to create best quality lassi. They can mix juice of two fruits and design a new
drink. Research of customers : It is very important to do surveys and find out the current
requests and demands of users. They should examine what type of beverages are
preferred by most of the civilians of UK. They also determine different flavours liked
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by people. After doing all the researches, they can start the process of manufacturing
(Dahlander and Gann, 2010). Development and design of strategies : This is also important for the cited firm to
formulate new strategies so that they can design innovative products and services. Necessity of capitals : In order to design new products, company requires large sum of
money so that they can run their business process more effectively (Edquist, 2010).
 Expectable benefit : After doing all the process of production, cited enterprise wishes
to earn more profits so that can return their investments or the money which they had
used in all such activities.
TASK 4
P 7 Different tools that can be used by venture to develop, retain and intellectual property
The intellectual properties, artistic work, innovative activities, etc. of the venture needs to
be protected so that no other one use that in his business. Some of the tools that can be utilised
for developing, retaining and protecting intellectual properties of Essence drink are described
below : Trademarks : This is nothing but a sign that is used by an enterprise for identifying their
brand and differentiating themselves from other one. Owner can put their signature as the
sign of mark for their specific goods and services so that no other one copy their
designing of products. Copyrights : This used for protecting original work of authorship. This is a legal term
that represent rights of creator over his artistic work. It should be in tangible form or are
shown as words on paper, notes, etc. Patents : This states to the sole right on an innovation. It provides legal possession to
proprietor or business man which permits them to decide how and who would use their
property or inventory works (Chesbrough, 2010). Person who use their properties without
asking them are punished by the legal authorisation.
 Trade secrets : This is the method of securing or conserving private or confidential data
which the firm does not want to unwrap or disclose so that their competitors do not take
advantage of this.
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CONCLUSION
From the above based report, it can be summarised that innovation is the process of
creating new ideas which are used for modifying the existed things or products so that large
number of people get attracted towards it. This aids a lot in earning huge profits and maintaining
good brand image. It is different from invention as this is the discovery of some ting new which
do not exist in the current world. Managers of Essence drink should take use of modern
technology in order to design some unique beverages so that they can earn comparative
advantages. Different funnels such as innovation funnel, commercial funnel, etc. are explained
here for making a good strategy of creating innovative products and services effectively.
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REFERENCES
Books and journals
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Dahlander, L. and Gann, D. M., 2010. How open is innovation?. Research policy. 39(6). pp.699-
709.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation. R&d
Management. 40(3). pp.213-221.
Goldberg, D. E., 2013. The design of innovation: Lessons from and for competent genetic
algorithms (Vol. 7). Springer Science & Business Media.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kline, S. J. and Rosenberg, N., 2010. An overview of innovation. In Studies On Science And The
Innovation Process: Selected Works of Nathan Rosenberg (pp. 173-203).
Leonard, D. A. and Rayport, J., 2011. Spark innovation through empathic design. In Managing
Knowledge Assets, Creativity And Innovation (pp. 355-369).
Lundvall, B. Å. ed., 2010. National systems of innovation: Toward a theory of innovation and
interactive learning (Vol. 2). Anthem Press.
Sawyer, R. K., 2011. Explaining creativity: The science of human innovation. Oxford University
Press.
Stokes, D.E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
Tebbe, J., 2011. Where good ideas come from: The natural history of innovation.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Online
Innovation Funnel. 2016. [Online]. Available through :
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>.
Difference between Invention and Innovation. 2016. [Online]. Available through:
<http://keydifferences.com/difference-between-invention-and-innovation.html>.
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