Managing Innovation for Commercial Success

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION................................................................................................................................3
Task 1....................................................................................................................................................3
P 1- Innovation and its importance in the organisations in comparison with invention..................3
M 1- Different sources of innovation and how an organisation can foster and develop an
environment and culture of innovation............................................................................................4
P 2- Importance of organisational vision, leadership, culture and teamwork in shaping innovation
and commercialization.....................................................................................................................5
Task 2....................................................................................................................................................6
P3: The 4 P's of Innovation as well use of Innovation procedure for examining and shaping the
innovative ideas of the employees of the Essence Drinks...............................................................6
P 4: Ways to Develop Frugal Innovation with suitable examples...................................................7
Task 3....................................................................................................................................................7
P5: Importance of Commercial funnel and Utilization of the New Product Development
procedure for the Commercialisation of Innovation........................................................................7
P6: Building an innovation case for The Essence Drinks including various ways of accessing
funds.................................................................................................................................................9
Task 4..................................................................................................................................................10
P7: Evaluating various tools that the Essence Drink uses to develop, protect and retain
knowledge as well as intellectual property with suitable examples..............................................10
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................13

INTRODUCTION
In this report we will learn about Innovation and Commercialization and how they these
elements are important in the business world. The procedure of converting an thought of creation
into a product or service that makes value for which customers can pay. A thoughts must be
applicable at an economic value and must full fill a particular demand or want. This report will help
us to understand that creation includes intentional application of visions, data and enterprise in
deriving various value from roots and includes all the procedures by which fresh thoughts are
created and reborn as useful goods and services.
This report will also determine Commercialization or Invention procedure and strategy helps
an organisation to introduce a new product or service in the market. The procedure of Development
is divided into stages, from the first presentation of the product in the market. The organisation that
is considered as provided in the case study includes the Essence Drinks.
TASK 1
P 1- Innovation and its importance in the organisations in comparison with invention
Innovation is that procedure which is brought in the organisations for their further
development in market. This procedure make them have some competitive advantage among their
competitors which also help the company to increase their market share. Innovation includes using
creative mind to make things better and attract more and more customers towards the organisations
(Kolychev and Prokhorov, 2015). Innovation enhances the quality of products and services which
are provided by Essence Drinks. On the other hand invention is making new product and services
and launching them in the market.
Importance of innovation in an organisation.
 Competitive advantage- Innovation made in the organisation help them to gain competitive
advantages among their competitors. Innovation in the Essence Drinks will help them to
increase their market share. Having some competitive advantages is necessary to grow in the
market. Innovation makes quality changes in the products which gains competitive
advantages. These advantages are important for the cited company to gain in the market. On
the other hand invention of new products take time to attract the customers and have some
stand in the market. They will take some time to make their place and then can give
competitive advantages to the company.
 Customer satisfaction- Innovation in the products and services will make the customers
satisfied. This will also attract new customers towards them. Making customer satisfied is
the most important part for company because it increases their revenue. This will help in
increasing their market share. Essence Drinks will be able to satisfy all of their customers by

following the procedure of innovation (Mahr, Lievens and Blazevic, 2014). Innovation
brings that changes in the products and services that are desired by their customers. On the
other hand invention brings new products. It is not necessary that customers will like the
new product. It can take time for customers to understand the quality of the product.
 Involvement of stakeholders- Innovation procedure to be followed in the organisation will
involve their stakeholders in the business operations. Involving stakeholders is necessary to
effectively and efficiently implement the innovation in the products and services of the
company. Stakeholders are the person who are directly or indirectly related with the
workings of company. Involving stakeholders will make Essence Drinks understand their
perceptions about the innovation. This will also help the company by gaining some creative
suggestions from the stakeholders for innovation. Invention can bring resistance from the
stakeholders because they can feel insecure by the invention. Invention can bring positive
change as well as negative change in the current situations of the company.
 Increasing productivity- Productivity of the company can be increased by the procedure of
innovation. Innovation brings the suitable changes in the business operation which increases
productivity of organisation (Hallstedt, Thompson and Lindahl, 2013). Productivity of
Essence Drinks can be increased by using innovative technologies in their working style.
Productivity enhancement will also increase the profits of the company. On the other hand
invention takes time to be implemented and this is not sure that it will increase the
productivity of the company.
This states that there is the difference between innovation and invention. Innovation is
procedure of making creative changes in the existing products or business operations of company.
On the other hand invention is the procedure of making whole new products and services in the
market. Innovation involves less amount of risk in its implementation while invention involves high
level of risks. Procedure of innovation gives quick results but invention take time to give results to
the company.
M 1- Different sources of innovation and how an organisation can foster and develop an
environment and culture of innovation.
There are many sources by which innovation can be implemented in the company.
 New technologies- New technologies which comes in the market can be used Essence
Drinks to make innovation in the company.
 Preferences of customers- preferences of customers changes with time. This crates the
need for organisation to bring innovation. Essence Drinks should understand the needs of
customer to implement innovation in their business.
 New competitions- This brings the extreme need to bring innovation in business operations