Innovation and Commercialization

Innovation & Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 Explaining the context for innovation and determine the difference between invention and
innovations.......................................................................................................................................1
Significance of innovation in the organisation.......................................................................2
LO 2 Explaining the different types of innovation..........................................................................5
4P's of innovation...................................................................................................................5
Frugal innovation and usages in organisation........................................................................6
LO3 New product development and innovation funnel...................................................................8
LO 4 Evaluating the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..............................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation refers to the process through which individuals identifies solutions for the
existing problem or the common problem through which all are going through. Whereas,
commercialisation is considered as the launching or introduction of new product or services at
marketplace which will satisfy needs and requirement of customers in right direction. It is also
termed as the way through which company can easily approach targeted customers and also fulfil
their monetary requirements (Aarikka-Stenroos and Sandberg, 2012). The present project is
based on YOYO Drinks which mainly offers Mango Lassi in United Kingdom. The company has
gained huge success in the starting of its three years after the launch of Mango Lassi but with the
increase in number of customers it has faced decline in sales at the entrance of fourth year. This
report will provide information on innovation and invention along with their difference. Also,
various types of innovation with their pros and cons. There is discussion about 4P's of innovation
as well as frugal innovation. There are various type of tool and techniques that are applied by
organisation for their product intellectual property rights.
LO 1 Explaining the context for innovation and determine the difference
between invention and innovations
Innovation is considered as the translation of specific idea into a valuable commodity or
service which satisfies customer's need and also influences them to pay for the same good
willingly. The main purpose of innovation is to enhance sustainability of the company by
satisfying requirements of customers effectively. It also contributes in gaining competitive
advantage at marketplace for attaining success. As YOYO Drink's sales decreases due to more
competitors, so it decided to introduce Tutti-Frutti chocolate lassi.
Innovation is the act of creating, developing and launching of new and various tools
which are processed which are not present in the market (Bogers and West, 2012). Scientific
ideas which have been developed through research work which changed to tangible product. For
existing product which is been concerned with new method and process for improvement in the
product.
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Difference between innovation and invention
In Table 1 you can see a compare between innovation and invention.
Innovation Invention
Innovation occurs when there is a recreation of
an existing product or service (Micheli and et.
al., 2012)
While innovating new products it must be
ensure that it should be creative and attractive
for stimulating new customer as well as for the
existing customer.
Invention occurs when a completely new
product or service is being launched for the
first time.
They are the set of ideas, methods and process
which aid to development of new product or
services (Kim and et. al., 2014)
The skills, knowledge about mar It includes Scientific technology which requires
roles and responsibilities to perform any task or
objectives.
To increase value of something which is
already existing is called to be innovation
(Inauen and Schenker-Wicki, 2012).
Invention means methods which are been used
by the business for creating a unique product
Whole organisation is adopting this activity for
development.
Research and development departments are
places where invention activities usually take
place.
Significance of innovation in the organisation
The creation of new ideas and then implementing them in the existing business leads to
achievement and growth. Innovation plays important role for the organisation and it also is a key
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to success for business development (Datta Mukherjee and Jessup, 2015). New variety of
products and services with innovation strategies can takes to growth of organisation. Moreover,
it helps in bringing efficiency in entire organisation and brings better result. The importance of
innovation has been discussed below:
Exclusive improvement: In today's scenario, what customers demand is something different.
Every new innovation being done by the company in a creative manner attracts its customers.
Every new innovative and creative idea must be executed for achieving the growth and success
by a company. The management must try to improve their employee's skills that increases their
creativity. The management of YOYO drinks should focus on innovative development to capture
huge market share in UK.
Continuous improvement: Innovation gives the organisations an opportunity for continuous
improvement, the managers of YOYO drinks must realize the need of innovation and there is
always a need of creative productivity in a company which is dealing in food & beverages
industry.
Branding: For organisations, the promotion and branding is very important for long term
success and growth. In context of YOYO drinks managers can appoint brand ambassadors for
promotion of flavoured lassi which will help to increase sales.
Using of social media: Social media as a part of digital media is a very attractive platform
nowadays, which is an innovative tool for YOYO drinks, as it will help them in communicating
to large number of people. It will also help them as a company to perform their promotional
activities like uploading an attractive advertisement on YouTube.
Overview of several types of innovation with its pros and cons.
There are many types of innovation that can be used through company to perform
something innovative into its existent products or services. Such as descriptive, incremental and
many other (Eesley, Hsu and Roberts, 2014). Some kinds of innovation which can be utilised
though YOYO Drinks are mentioned below:
Incremental innovation: It is defined as the series of small improvements made to a firm's
present goods, procedures, service etc. This is considered as the most ordinary kinds of
innovation. This usages firm's current technology as well as enhances value to the consumers
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into their present market place. For example: YOYO Drink can utilise incremental innovation for
adding new features to its existent products or may removing any features. Moreover, small up-
gradation to customers experiences can also add value.
Advantages:
With the assistance of this respective can able to add new features into their present
products and also can remove any features. Moreover, this is helpful to add more value to
consumer experiences.
Disadvantage:
The main disadvantage of Incremental innovation is that, it is more time consuming and
more skills are required. So, the company have to provide training to their employees which is
cost bearing.
Disruptive innovation: It is defined as an innovation which develops new market as well as
values network and displacing established market growing companies, products and alliances.
This is also referring as the stealth innovation which includes using new technology or
procedures to organisation's existence market (Ettlie and Rosenthal, 2012). This new one is
costly, have few features, difficult to utilise as well as is not aesthetically easy. So, it is used by
respective company as this will aids them to maximise their sales as well as maintain
sustainability for longer time, e.g. Uber.
Advantages:
The advantage of this disruptive innovation is, through developing something new or
innovative product, disruption grab the attention of different types of consumers. Moreover, it
also concentrated upon a specific problem as well as whose requirements are not offered through
large firm those who are basically concentrated upon profitability.
Disadvantages:
The disadvantage of this innovation for respective company is they have to seek for the
new consumers as well as cannot capable to compete with large firm because it can invest more
money in research and development and come up with a qualitative product for mainstream
consumption.
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LO 2 Explaining the different types of innovation
4P's of innovation
This is considered as a framework tool which can be utilised for exploring the space of
innovation, direction and concentrating in resources. In order to stay competitive, the
organisation have to be innovative but the firms that obtain competitive advantage for long
duration they have to be innovative in all the 4P's. All the 4P's are mentioned below:
Product: By doing innovation within products or services, an organisation may attract a greater
number of consumers which assists them to achieve their objective efficaciously and
appropriately (Godin, 2012). As YOYO Drink planned to introduce Tutti-Frutti chocolate lassi
into existent market for attracting more and new clients. In addition to it, this will also help in
satisfy the consumers requirements.
Process: In this, organisation do innovation in their procedures for improving their present
products appropriately. As YOYO Drink is small scale company which deals in mango flavoured
lassi which assists them to grab the attention of more clients and inspire them to purchase this. It
is essential for them to perform effective procedures that assists them to bring quality products
into market. In simple manner, the appropriate working process help to maintain the quality of
lassi and their employees that aids to get rid of any errors.
Position: With the help of this innovation mix, organisation get to know about their position as
well as its product too into market area for grabbing the attention of more clients and obtain
profit. For this, YOYO Drink may perform market evaluation to get knowledge about the market
trends that assists them to position their innovative product that is Tutti-Frutti chocolate lassi
within competitive marketplace appropriately.
Paradigm: It is the last step of innovation mix which is affiliated to transforming perspective of
the business in order to create awareness regarding products (Hausman and Johnston, 2014).
Also, the firm YOYO Drink can analyse all these things appropriately with diversified future and
it assists them for maintaining effectiveness of innovative lassi, e.g. Amazon.
So, with the assistances of all these 4P's, the firm such as YOYO Drink can aware about
their innovative product that is Tutti-Frutti chocolate lassi effectually as well as target consumers
and influence them to purchase it for enhancing their productivity and sales in UK market. To
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bring innovation support of management by accessing their capabilities by finding out emerging
needs and wants of potential consumers. Therefore, it is recommended to YOYO Drinks to
adopts the product innovation so that they can able to do innovation in its existing products in
easy manner.
Frugal innovation and usages in organisation
Frugal innovation is defined as the procedures of minimising the difficulties as well as
cost of products and their manufacturing (Ke and et. al., 2016). Generally, this is considered as
the obviating non- essential features from a long-lasting product for selling that into developed
countries. Moreover, this is adopted by organisation for finding new model of business, redesign
the products, know about value chain and so on through which company can able to accomplish
their objectives in appropriate manner. Also, it adapted by many firms in order to add on more
features to show offers into market. As the company such as YOYO Drink will think to
introduce Tutti-Frutti chocolate lassi within competitive marketplace. For example: respective
company can use this as its leads to enhanced profit because costs are minimised. Moreover, they
can also adapt this if they do not have more resource for producing more offerings. One of the
effectual examples of frugal innovation which can be considered through YOYO Drink is Tutti-
Frutti chocolate lassi. So, its frugal innovation is discussed below:
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Illustration 1: Innovation Funnel
(Source: Innovation Funnel, 2019)

New market opportunities: This is essential for company to perform innovation into market to
improve their products appropriately and efficaciously (Kim and et. al., 2014). In respect of
YOYO Drink, this is needed to measure the market through that they can capable to understand
the customers’ needs effectively and appropriately.
Resources: This is related to optimum utilisation of resources in order to create new product
efficaciously. So, YOYO Drinks can use the resources properly so that they can make new
products without more wastages.
Frugal innovation: In this, company introduce new product in marketplace for obtaining
competitive advantage (Micheli and et. al., 2012). Respective firm can adopt the frugal
development strategy as through it YOYO Drink can introduce their new product Tutti-Frutti
chocolate lassi effectually.
Frugal innovation is generally compromising of few segments which are as follows:
Problem: According to this, there are many problems which are faced by company during
introducing innovative product in marketplace. As YOYO Drinks launch its new product that is
Tutti-Frutti chocolate lassi, they have to tackle with few issues related to client's tastes, funds and
many more. The company has to provide totals level of marketing segmentation of target market
with having proper level of targeting f market.
Regarding products: It involves issues related to marketing and communication. It is significant
for respective company to do efficacious communication for creating awareness related to Tutti-
Frutti chocolate lassi.
LO3 New product development and commercial funnel
New product development is referring as the lengthy procedure to bring innovative
product into marketplace. Moreover, it is considered as the journey and its roads move form
present product to market. So, the products of YOYO Drink have to goes through a various
stages of new product development which are discussed below:
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Illustra
tion 2: New product development
Idea generation: This is the beginning step of new product development or brining innovation
into their existent products for generating the innovative ideas by doing appropriate research
(Hossain, 2015). Thus, it is significant for them to accumulate information for reforming the
present product.
Idea evaluation: As ideas is developed by the junior innovation consultant will be filtered for
obviating their ideas which are not valuable.
Concept definition: After evaluating the ideas, particular concepts of introducing innovative
product that is Tutti-Frutti chocolate lassi will be approved.
Strategic analysis: In this, the manager of the firm ensure about the ideas of Tutti-Frutti
chocolate lassi is efficacious or not within the business strategy and determine cost, requirements
and others.
Product development and testing: In this, YOYO Drink's innovative product Tutti-Frutti
chocolate lassi will be developed and tested appropriately.
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Market Testing: This is done in respect of company new product Tutti-Frutti chocolate lassi
according to the producers, clients and others. Also, it requires more time at the time of
launching new products into marketplace.
Commercialisation: In this, manager of the YOYO Drinks can determine the cost of their
innovative product that is Tutti-Frutti chocolate lassi with its market planning.
Product launch: It is the last steps of new product development where company launch their
new product that is Tutti-Frutti chocolate lassi into competitive market.
Innovation funnel is considered as the techniques that can be used through company for
developing an offering into organisations. The main purpose of this is to aid firm in formulation
of that products which effectively meets the consumer requirements. For developing its present
products, firm should include some essential steps of this funnel that will aids them to develop,
embedded and evaluate innovation. All that are explained below:
Assessment of opportunity: It is the beginning step of innovation funnel. In this firm have to do
the extended market research that will enable them to accumulate effectual knowledge of the
existing market (Inauen and Schenker-Wicki, 2012). It can be performed through questionnaires,
survey and many others. YOYO Drink can do market research which assists them to find out the
needs of customers. With the help of this, they can able to perform innovative in its present
product that is mango flavoured lassi.
Insights based ideation: In this, the firm such as company will able to identify the new ideas or
strategies proved effectual or efficacious for new product. It leads them to attract a greater
number of clients in appropriately way.
Conceptualisation: It is the third step of innovation funnel where YOYO Drink will hire the
talented and skilled consultant for formulating the effectual strategy related to introducing new
product that is Tutti-Frutti chocolate lassi.
Analysis and benchmarking: In this, the firm like firm will facilitate their products to clients in
order to perform test. Through which, they can get knowledge about the efficiency of Tutti-Frutti
chocolate lassi which is launched by organisation for attracting a greater number of clients.
Go or No Go: After reviewing or getting the feedbacks from clients, it will be conducted.
Through this, the given company can able to determine effectiveness of their innovative product
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that is Tutti-Frutti chocolate lassi. For this, in case clients are liking the innovated product then
they will proceed to make more and sell that in large market. Or if clients do not like it, then it
stops producing more product.
Introduce or launch: So, after conducting the research and development and customers views
regarding innovative products the YOYO Drinks aimed to launch its new product Tutti-Frutti
chocolate lassi in targeted market.
In organisation, commercial funnel is defined as the framework which have 3 aspects that assist
to recreate their present product by executing various profitable plans as well as policies. This is
significant for respective company to introduce Tutti-Frutti chocolate lassi within market. Few
of their utilises as well as significant are explained below:
Pricing Policy
Improving the development of business
Emergence of advanced technology
Implementing the research programmes
Pricing Policy: YOYO Drink is planning to offer Tutti-Frutti chocolate lassi at affordable cost
so that any types of people can buy it. Through the respective firm can set the price of its
innovative product by analysing clients buying behaviours as well as their tastes and preferences.
Improving the development of business: Herein, commercial funnel has critical concept to
grow as well as develop business. At the initial step, it has been examined that this funnel will
assists company to satisfy their clients appropriately. So, company will satisfy their customers
effectually, it will result in sales and profit maximization and gain competitive advantage.
Emergence of advanced technology: In this, YOYO Drink can obtain commercial funnel in
order to launch their innovated product that is Tutti-Frutti chocolate lassi within market.
Implementing the research programmes: For organisation, it is significant to do the
appropriate marketing research for finding the requirements, tastes and so on often clients.
Herein, commercial funnel plays crucial role that is important for launching Tutti-Frutti
chocolate lassi within competitive market area and also maximise their sales with the help of it.
Explanation of innovative new drinks product
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Company is introducing their innovative products that is Tutti-Frutti chocolate lassi which helps
them to attract more or huge clients. This new product has chocolate flavour tastes as the tutti-
frutti present in that make that ore attractive. It maximises respective company sales and profit
again in United Kingdom market.
Summary of marketing opportunity
As YOYO Drink is planning to launch their new product drinks which is Tutti-Frutti
chocolate lassi within market so it has many opportunities in the market. Like, it can collaborate
with some well-known and famous company so that they can able to obtain more opportunities
into market and increase its sales. Also, respective firm can able to offer some kinds of discounts
and coupons which aids them for grabbing the attention of more consumers.
Overview of industry and competition
As YOYO Drink is a small-scale firm that offers healthy and tasty lassi like mango
flavoured lassi. This organisation is related with the food industry. In UK, the industry such as
food and drink sector is known as the important element of respective firm ecosystem which
shows about 15% of manufacturing turnover and opportunities of job.
Within this particular sector, the level of competition is very high as preferences and tastes of the
people are changing. There are many companies which are achieving their needs by doing
innovation in its products according to the demands of the consumers. Thus, there are several
competitors of firm which facilitates different kinds of product regarding food and drinks.
Moreover, this affects them in context of reduction of sales.
Financial projection
In this, the funds are shown which is needed by company for introducing new products.
As YOYO Drink is launching their innovative product that is Tutti-Frutti chocolate lassi within
the United Kingdom market. So, they required about £ 30,000.
As by doing innovation in its existent product, its manager can can do the market investigation as
well as analysis process in order to find out the needs of the customers for manufacturing
products. All these need funds for doing innovation in their present product which is mango
flavoured lassi. It assists them to launch its new product that is Tutti-Frutti chocolate lassi.
Sources of funding
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Generally funding is considered as the backbone of the organisation as without it they are
not capable to do their regular business activities efficaciously. Moreover, funding is defined as
the act of facilitating the financial resources mostly in the forms of money. Few sources of
funding that can be used by YOYO Drinks are explained below:
Banks and financial institution
From friends and family
There are many sources of funding which assists respective company to perform their
operational activities in proper manner. Few sources of funding that can be used by YOYO
Drinks are explained below:
Banks and financial institution: The company can borrow money from bank and
another financial institution. It is usually knowns as the secure source for funding as in this bank
provide security to the company if they take any kinds of loans from them. But herein firm have
to pay interest to the bank or other financial institution in respect of taken money.
From friends and family: YOYO Drink can also borrow money from their family
members and friends. It is important benefits of this particular sources of funding is there are no
requirements to pay the interest amount only the company has to pay the principal money.
Hence, firm can take funds from their friends as well as family for performing the
innovation in its existing product. As n this they do not have to pay any kind of interest only the
principal amount is paid. Also, there is not any certain time period.
Funds that are needed to be raised
As YOYO Drink is introducing their innovative product that is Tutti-Frutti chocolate lassi
so it is essential for them to raise their funds for the marketing, producing, technology etc. this
will assist them to consider appropriate place within competitive surroundings.
Techniques for testing new drinks effectiveness
For testing the efficiency of the respective company innovative product that is Tutti-Frutti
chocolate lassi, so it is essential for them that at starting it test its new product in market area by
offering the free sample to the public of United Kingdom. Because this will assist them in
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finding that innovative product such as Tutti-Frutti chocolate lassi is liked by clients or people or
not.
LO 4 Evaluating the different tools that organisations can use to develop,
retain and protect knowledge and intellectual property
Intellectual property is considered as the wide term which is related to intellect that
means someone who utilises their mind creatively. Moreover, this is the property of individuals
who develops, designs that property applying creativity of their own mind as well as intellectual
property rights. They are Trademark, Copyrights and Patent. This is known as intangible as it
cannot be identified with the assistances of their physical features. For safeguarding the creators
interests, the rights of the intellectual property are developed that provide them the right over its
property as well as prevents others from utilising this without owner permission. There are
several tools that can be applied through YOYO Drinks to create, retain as well as protect
knowledge and intellectual property. These tools are discussed below:
Trademark: This is considered as the expressions, design etc. which effectively
describes the offers from particular sources. This can be defined as a logo or brand. Beside this
the visual components, YOYO Drinks can apply this as a tag line or captions. With the help of
this particular tool, the respective company can able to differentiates their products and offers
from competitors in effective manner. It will maximise their efficiency as well as can further
contribute in developing an effectual brand awareness into market.
Copyrights: There are various creative ideas that are essential to get protected from
offend. Copyright is considered as the tool that provides right to the owner for reproducing a
particular material. If any another firm launch same one then they have to take permission from
owner or law suit. It will enable YOYO Drinks to effectually manufacture particular products
under their own brand and name that will be advantageous for their success in longer duration.
Patent: This is defined as the property rights that will be facilitated to creator in case,
they perform any invention. It is remaining active as well as legitimate for about 20 years after
filling up their application. With the assistance of this, YOYO Drinks can able to protect their
original work from other
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Therefore, the above made discussion is about the entire tool which is marked as the
beneficial for the company in order to have proper enhancing the innovation of new product.
The company as the instance to makes the workforces which is needed to be applied which
makes proper staying protected of in the innovative level of services about there innovative
services. The YOYO drinks is all about well-known for there different level of ideas which make
level of reduction in making there innovative design less common. On the same instance the
manager of company is considered to have designing of services along with level of
understanding in making the systematic legal pattern. The company have the chance to generate
there different level of logo along with legals pattern which generate difference from other. More
extended to that company is not considering the copyright as successful as firm don't have any
involvement of any literacy, artistic and musicals works. The company have proper level of
establishment is establishing copyright and patent which makes the company to give the use of
legal patterns in order to have protection of intellectualist property. However, by presenting the
gained information to a patent and trademark attorney for review and further searching helps the
firm to generate a legal awareness among companies working in the similar industry.
CONCLUSION
From the above report, it is concluded that innovation is significant for operating the
business in smooth and effective manner in order to sustain for longer period in competitive
market. Moreover, it helps firm to maximise sales as well as productivity and obtain competitive
advantage into market. Also, it is essential for company to utilise 4p's of innovation that are
product, price, people, paradigm along with innovation funnels execute innovation into firm.
Also, organisation have to use the new product development process for introducing and creating
a new innovative product within market area.
REFERENCES
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ONLINE
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New product development. 2018. [Online]. Available through: <http://ktvillage.com/article/45>
Innovation Funnel. 2016. [Online]. Available
through:<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>
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