Innovation and Commercialization Importance & Value

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A ..........................................................................................................................................1
1. Innovation and its comparison with Invention.........................................................................1
2. Importance & Value of innovation for the organization and conversion of YOYO drinks
company into an innovative company by Mr. Bond....................................................................2
3. Different types of innovation and their pros and cons.............................................................3
4. 4P's of Innovation & its support to the capability and management of the Innovation and
advise to the YOYO drinks regarding the form of innovation....................................................4
5. Use of New Product Development processes and innovation funnel for the purpose of
driving innovative ideas or products to the market by YOYO drinks.........................................6
6. Frugal Innovation & their usage by the organisations and recommendations for YOYO
drinks regrading frugal innovation...............................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation refers to the process of thinking or producing or doing something new which
is making existing ideas or products or process more comfortable for the users (Ogutu and Qaim,
2019).
YOYO Drinks Company is a British small company whose business is to sell the mango
lassi in the market. It was started 3 years ago. Currently company is not making expected profits
due to entrance of competitors in the market.
Present report will highlight the innovation & its comparison with invention, importance
of innovation and innovation mix. It will tell about the types of innovation, innovation funnel
and frugal innovation.
PART A
1. Innovation and its comparison with Invention
Innovation
Innovation is a concept which is popular in every aspect whether it is science or business
or human life or something else. Innovation refers to the term which can be define as the new
ideas or new process or new methods added to the existing products or services or devices or
procedures in order to make it more valuable and advanced for the customers and companies as
well (Tidd and Bessant, 2018).
Invention
Invention is an idea which is popular in every aspect whether it is science or management
or human life or something else. Invention refers to the term which can be define as the new
ideas or imagination or process or device or methods. It is the process of implementation of
introduce fresh ways to do things or knowledge. For the creation of innovation, people need to
think out of box so that they can discover new things to which people never thought. It is
considered to be a process of converting an idea into a solution which can increase the customer
value (Etzkowitz and Zhou, 2017).
Differentiation of Innovation and Invention
Basis Invention Innovation
Meaning Invention is considered to be
something new which never
Innovation is considered to be
an up-gradation in existing
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happen before. things in order to make it more
easy.
In simple words Creation of something new
which never existed before
(Berry and Berry, 2018).
Adding features to something
which is already existing for
the purpose of creation value.
Scope It is limited to the research &
development department of the
organization.
It spread all over the
organization.
Required Skills For the invention, scientific
skills are required.
For the innovation, marketing
and selling skills are required.
Example Introduction of computer is an
example of Innovation.
Introduction of laptop is an
example of invention
(Christensen, Raynor and
McDonald, 2015).
2. Importance & Value of innovation for the organization and conversion of YOYO drinks
company into an innovative company by Mr. Bond
Importance & Value of Innovation for the Organisations
Innovation is a common word in today's competitive corporate world where many
companies and businesses are doing innovation in their products or services or production
methods or supply chain methods or any another aspects of the business in order to make it more
competitive for the companies. Importance of innovation for the companies are as follows -
Innovation helps businesses to solve their problems permanently which improve their
efficiency of the activities, which is beneficial for the organisations.
Innovation brings values to the products or services of the organisations by adding more
features in that which increase the productivity of the organisations (Biemans, 2018).
Innovation helps business to stand out from its competitors because that particular
business has something new which another business don't have. This also helps in attraction of
customers and enhancement in the brand image of the company which is good for the
organisation to grow more.
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It is also important for the business because it helps them to increase the return on the
investment which is made by the stakeholders for the company's funds for the purpose of
maximize their wealth (Kogan and et.al., 2017).
Explanation of conversion of YOYO drinks company into an innovative company by Mr.
Bond
Mr. Bond is the chief executive officer of the YOYO drinks company. He wants to do
something innovative in their products so that their business can make the same profit which the
business used to before the entering of competitors in the market. Company only focuses on the
mango lassi and don't want to stop selling the lassi. In order to make their business more
innovative, company can sell varieties such as apple, strawberry, masala, chocolate, mint, kiwi,
spiced and kesar lassi etc. along with the combination of any of the lassi flavours demand by the
customers. Like this, YOYO Drinks Company can make their business more innovative (Blank
and Newell, 2017).
3. Different types of innovation and their pros and cons
Types of Innovation
There are various types of the innovation which is based on the two dimensions – Market
and Technology. On the basis of these two dimensions, 4 innovative matrixes existed which lead
to 4 types of innovation (Lusch and Nambisan, 2015). These 4 types of innovation are as follows
-
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Architectural Innovation – Architectural innovation refers to the change in the components of
products but the key technology in the product is remain same. These products are sell to the new
market by the company.
Radical Innovation – Radical innovation refers to the type of innovation in which the idea or the
technology being used to make innovative product is completely new. This innovative product is
being sell into new market (Bain and Kleinknecht, 2016).
Incremental Innovation – Incremental innovation refers to the type of innovation which is
considered to be the most common innovation. In this type of innovation, Company will use the
existing technology in their innovative products and will sell it to the existing market.
Disruptive Innovation – Disruptive Innovation refers to the type of innovation in which
company make their products innovative by using new technology but sell these products to the
existing market.
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(Illustration 1: Types of Innovation
Source: Types of Innovation, 2015)

In the context of the “YOYO Drinks Company”, Mr Bond will use Disruptive
Innovation Approach for their business to make it innovative (Types of Innovation, 2015).
Pros and Cons of the Incremental Innovation and Disruptive Innovation Approaches
Innovation Approaches Pro Con
Incremental Innovation
Approach
It helps companies to improve
the societies' living standards
and their life styles.
It can be expensive for the
small business as their profits
and operating costs are low.
Disruptive Innovation
Approach
It helps companies to improve
their productivity and
efficiencies.
It can lead customers to do
resist of new technology or
new market or new products
which can lead company to
pay heavy loss as well as costs
(Link and Morrison, 2019).
4. 4P's of Innovation & its support to the capability and management of the Innovation and
advise to the YOYO drinks regarding the form of innovation
4P's of Innovation
4P's of innovation refers to the innovation mix. It is a kind of tool which discover the
company about their innovation process which is supposed to be improve in the business process
and help in increase the efficiency and productivity of the organisation (Deng and et.al., 2018).
The innovation mix (4P's) are as follows -
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P – Product – Product refers to the core for the business, on which company is operating its
business. This element mainly focuses about how can a company make its products or services
innovative.
P – Position – Position refers to the target market or target customers to whom company wants
to sell its innovative products or services. This element focuses on the new market segment for
whom the products are new.
P – Process – Process refers to the series of steps through which company can create an
innovative product in order to generate customer’s values for the organisation. Company can
make their process innovative by using various kinds of technologies.
P – Paradigm – Paradigm refers to the change or improve in the way, company do business. This
change can be positive or negative. This change can be in business model or business
environment or business policy or business process etc. (Innovation Space 4P's, 2015).
Innovation Mix in the context of YOYO Drinks Company
Product - Here company will do add more flavors in their products to make it innovative.
Process - Here company will use Lassi Making Blender and Lassi Making Machine.
Position - Here company will focus on their existing market i.e. - UK market.
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(Illustration 2: Elements of Innovation
Mix
Source: Innovation Space 4P's, 2015)

Paradigm - Here company will add online business model in their physical store model(Ono and
et.al., 2017).
Here company will use the product innovation as they are bringing more flavours in their
products in order to reduce the competition in the market. Company do this so that they can
maintain their position in the market as well as their profitability.
5. Use of New Product Development processes and innovation funnel for the purpose of driving
innovative ideas or products to the market by YOYO drinks
New Product Development
New product development refers to the process of making new products and introducing
that products to the market. It is considered to be as a process of product designing and product
launching. New product development process is as follows -
Idea Generation – In this stage, the ideas are strike in the mind. The ideas can come from
anywhere and can be in any form.
Idea Screening – In this stage, Company do screening of ideas and try to find out about the
feasibility of ideas. If there is any idea which cannot be convert into physical form, that idea will
be rejected by the company.
Concept Testing – Here, company will do test the ideas from the perspective of the customers.
Company will try to understand that is the idea help customers or not. Is the idea will make
customers more comfortable or not (Su and et.al., 2017).
Market Analysis – After concept testing, company will do market analysis in which they do
pestle analysis, swot analysis, market research and competitive analysis in order to decide the
marketing, branding, selling and another business strategies.
Product Development – Here after planning about everything, company will do the
transformation of the idea into the actual product. Here the product is made in the form of
prototype.
Product Testing – After developing product, Company will do call the particular group of their
loyal customers and give them the new product for the purpose of testing it and taking feedback
from them. If there is any modification required, company will do that modification in their
product and start making real products (Droby and et.al., 2016).
Commercialization – After making the products, Company will conduct the program where they
will officially launch their products into the market.
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Innovation Funnel
The innovation funnel is a kind of tool through which company is able to stream the new
ideas which can be screened for the feasibility. It helps organisation to create action plan for the
innovative products. The main purpose of innovation funnel to generate so many new ideas for
the business so that business can work on any of the new ideas which is profitable for the
business (Link and Morrison, 2019).
Use of New Product Development Process and Innovation Funnel in the context of YOYO
Drinks Company
With the help of innovation funnel, YOYO Drinks company can generate as many as
possible new ideas for the business. For the checking of the feasibility of every new idea
generate by the company, Business will use NPD process so that it can be beneficial for the
company to choose viable idea for their organisation. YOYO Drinks company will adopt the
stages of NPD process which is required for the development of new Lassi in the company and
innovation funnel will help in viewing the ideas that is being using in the NPD process for the
better development of the Lassi (Innovation Funnel, 2019).
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(Illustration 3: Innovation
Funnel
Source: Innovation Funnel, 2019)

6. Frugal Innovation & their usage by the organisations and recommendations for YOYO drinks
regrading frugal innovation
Frugal Innovation
It is also known as Frugal Engineering. It refers to the process of removing non-essential
features from the products in order to decrease the costs of products and complexity of the
products (Lam, Khoo and Lee, 2019).
Innovation Frugal in the context of YOYO Drinks Company
This can be applicable to the YOYO Drinks company as this approach will help company
to use less resources in making innovative lassi for the enterprise. There are various phases
where innovation can be done for the future. It is important for the business at it will help firm to
gain long term profitability due to low price of the products. Therefore, it is important to use
frugal innovation in the organization so that it will help in limiting the use of resources for the
production of products. (Meijer and et.al., 2019).
CONCLUSION
From the above study, it has been summarized that innovation and invention are
considered to be similar to each other but in reality, they are different concept. While invention
indicates the new things and innovation indicates the up-gradation in existing things. Both
concepts are important and must be focus by the companies to gain competitive advantages.
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REFERENCES
Books and Journals
Bain, D. and Kleinknecht, A. eds., 2016. New concepts in innovation output measurement.
Springer.
Berry, F.S. and Berry, W.D., 2018. Innovation and Diusion Models in Policy Research.
In Theories of the policy process. (pp. 263-308). Routledge.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Blank, S. and Newell, P., 2017. What your innovation process should look like. Harvard
Business Review.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review. 93(12). pp.44-53.
Deng, J., and et.al., 2018. Sodium‐Ion Batteries: From Academic Research to Practical
Commercialization. Advanced Energy Materials. 8(4). p.1701428.
Droby, S., and et.al., 2016. The science, development, and commercialization of postharvest
biocontrol products. Postharvest Biology and Technology. 122. pp.22-29.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Kogan, L., and et.al., 2017. Technological innovation, resource allocation, and growth. The
Quarterly Journal of Economics. 132(2). pp.665-712.
Lam, M.K., Khoo, C.G. and Lee, K.T., 2019. Scale-up and commercialization of algal
cultivation and biofuels production. In Biofuels from algae. (pp. 475-506). Elsevier.
Link, A.N. and Morrison, L.T., 2019. Estimating the Probability of Commercialization.
In Innovative Activity in Minority-Owned and Women-Owned Business. (pp. 63-72).
Springer, Cham.
Link, A.N. and Morrison, L.T., 2019. Estimating the Success of Commercialization.
In Innovative Activity in Minority-Owned and Women-Owned Business. (pp. 73-81).
Springer, Cham.
Lusch, R.F. and Nambisan, S., 2015. Service innovation: A service-dominant logic
perspective. MIS quarterly. 39(1).
Meijer, L.L.J., and et.al., 2019. Barriers and drivers for technology commercialization by SMEs
in the Dutch sustainable energy sector. Renewable and Sustainable Energy Reviews. 112.
pp.114-126.
Ogutu, S.O. and Qaim, M., 2019. Commercialization of the small farm sector and
multidimensional poverty. World Development. 114. pp.281-293.
Ono, L.K., and et.al., 2017. Perovskite Solar Cells Towards Commercialization. ACS Energy
Letters. 2(8). pp.1749-1751.
Su, Y., and et.al., 2017. Progress of microalgae biofuel’s commercialization. Renewable and
Sustainable Energy Reviews. 74. pp.402-411.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Online
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Innovation Funnel. 2019. [Online]. Available
through:<https://www.toolshero.com/innovation/innovation-funnel/>
Innovation Space 4P's. 2015. [Online]. Available through:
<https://innovationmanagementsite.wordpress.com/2015/09/07/innovation-space-4ps/>
Types of Innovation. 2015. [Online]. Available through:
<https://techblog.constantcontact.com/software-development/types-of-innovation/>
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