Innovation and Commercialization

This document discusses the importance of innovation and commercialization in business. It explores topics like the 4Ps of innovation, frugal innovation, and the process of new product development. The case study focuses on Essence Drinks and how they have used innovation to increase their sales and customer base.

Innovation and
commercialization

Table of Contents
Introduction…………………………………………………………………… 3
Main body……………………………………………………………………… 3
P1 describes Innovation and examines its importance with respect to organisation
in comparison with invention………………………………….. 3
P2 elucidate how organizational vision, leadership, cultural and team work can
figure in innovation and commercialization……………………………. 5
P3 4Ps of innovation and use of innovation funnel 6………………………..6
P4 Development of Frugal innovation ………………………………………8
P5 Importance of commercial funnel and the process of new product
development………………………………………………………………….. 9
P6 innovation business case for Organizational including numerous source of
funds …………………………………………………………………………11
P7 different tools to retain intellectual property for longer period …… 13
Conclusion 14
REFERENCES

INTRODUCTION
Innovation indicates some thing new along with some creativity as it involves some art or
introduction to some new features in the things. Also it is considered as new method of thinking.
Innovation is tends to be associated with business as well as to technology. On the other hand
Commercialization is the activity which is linked to corporate and business. Its main purpose is
to increase the customer base by using various tools of marketing and promotion which helps to
make the product and services familiar to audience. As both the elements plays significant role in
business and leads to increase chances of business survival and growth. The organization that
was selected under the project is essence drink. Akshay Kumar is the founder of the organization
. Before two only he has stated his company with the innovative drink known as Healthy mango
lassi. With this product the business entity increase its sales and widen their capacity of
distribution. In this project various different topics are discussed such as innovation and their
importance in comparison to the term invention. How leadership, vision, culture and team work
can shape commercialization as well as innovation. In the reports discussion on 4 p’s of
innovation are also done and innovation funnel use are also explain to shape the idea which is
innovative. In which manner frugal innovation are tends to be develop are also explain by giving
most suitable example. Importance of NPD and commercial funnel are also briefly discuss in
context to innovation commercialization. For the purpose to assess funding Innovation business
case are tends to be build. Different tools are tends to be used in the organization for the purpose
to protect, retain as well as develop intellectual property and knowledge (Kralli, 2020)
TASK
P1 Define Innovation along with explaintion of their importance in context to the organisation in
comparison with invention?
Innovation means something completely new to you with respect to creation of goods and
services or adding some features and characteristics in the existing products and services.
Company on continuous basis make innovation in their product in terms to provide satisfaction
to their clients in a better and significant way and also to provide many benefits to the
organization that attracts or force consumers to purchase products & services from market and
achieve competitive advantage. Different innovative techniques of innovation are implemented

by entity to sustain in the market for long duration of time period. Organization Essence Drinks
develop new innovative healthy drink with innovative features and qualities in order to meet the
demand of customer and raise chance of their survival by increasing their sales and revenue(
Bereuter, 2028 )
Importance in terms to innovation
Higher satisfaction to consumer : Organization try to innovate those products which are already
available in the market or produce new drinks in terms to fulfil customers need in most
appropriate and effective manner. The basic requirements must be fulfilled by the Essence
Drinks through the new healthy drink project. Products become successful due to their energy
level as it leads to make an individual fit and healthy. It is beneficial for the business entity to
make variation in the existing products which supports to attaining high level of satisfaction and
engaged their customer for long term. This helps them to get the loyalty from their customers
which directly or indirectly raise their brand value in the market. If the organization received
positive response from audience/ clients than it tends to gain high revenue and results to motivate
their workforce to improve their performance and increases productivity.
Competitive advantage can be gained: In the situation of competition every company try to
defeat other competitive firms in the open market by makes available innovative products. The
Essence Drinks organization also tends to make innovation in the healthy soft drink that leads to
boosts up the immunity level of person as it leads to provide tough competition to existing
companies which is their rival and helps o increase their share in the competitive market by
attracting large part of audience (Lacasa., 2018)
Enhance the market share: Business entity uses innovation in their drinks which supports to
capture wide market ratio by attracting large customers towards their offering products in an
unique and innovative way. With their healthy soft drink it tends to expand their business in
Global market because it is capable enough to boosts up at maximize level the immunity power
of person who consume it on daily basis. To determine success rate of the project organization
do various research

Invention: it means when any organization has made a physical appearance of their idea for the
first time in the market. This concept is commonly used by the company to solve the issue which
was faced by consumers in the market. Selected firm implement different ideas of invention for
the purpose of organization growth & success. Due to the rise of Covid- 19 the world the
company is concerned with respect to inventing their goods and services in such a manner so that
they can boost the immunity power of the targeted people in a more productive way as compared
to before. Following innovative idea provide benefit to the company to achieve competitive
advantage with regards to their rivals. Waste can also be manage in an effective manner which
tends to avoid pollution.
The difference between the term invention as well as on Innovation is discussed below:
Basis Innovation Invention
Meaning It means a kind of additional
Changes and creativity in the
characteristic of Services and
product.
Invention is the situation when
firm or industry introduce
product in the market for first
time. It is considered totally
new in competitive market.
Required skills It involves Technical, strategic
skills, marketing skills as all
these required compulsorily.
By using technical skills it
can be perform by anyone.
P2 Discuss in what manner organizational vision, leadership, cultural as well as team work can
figure in commercialisation and innovation ?
Innovation & commercialization plays a significant role in business success. Through research &
development activities business entity can innovate their product as well as to create the
innovative goods in the competitive market by using marketing tactics which is
effective .Essence Drinks company follow various tactics in terms to develop innovative product.
It is used to compete with competitors. The Essence Drinks use vision culture and teamwork .

Vision Statement: As health drink is offer to audience as the main vision of business is to keep
each individual healthy. innovative ideas are use by firm so that it become possible to attain their
vision in most appropriate and positive manner..
 Culture: involves assumptions & beliefs which are stated that in what manner employees
of the company use their knowledge & skills so that they can achieve the goal on time .
Essence Drinks innovative health and energy drinks through understanding various
aspects related to , leadership, ownership, communication, team work etc.
 Leadership: democratic style of leadership is used by Essence company to manage their
operations of business globally. At the time of taking decisions discussion are done with
the work force of the concern. Firm tends to select the most suitable idea in order to
achieve productivity from their employees. By using in leadership style organization can
motivate their employees.
Teamwork: As per skills and knowledge grouping is done so that it is beneficial in the
administration in terms to achieve an innovation. The Essence Drinks give their staff proper
training so that they achieve the goals on time in effective way (Wang, 2020) (Ubaka, 2018)
P.3. briefly describe 4 p’s of innovation by using innovation funnel ?
Product: With respect of Essence Drinks, organization adopts the innovation which helps
them to work as a pioneer in respective industry new innovative product are used by
company or have to do some changes in the products which already exist.
Position:. Essence drink introduce in the market different varieties to that to increase their
customer base and revenue from it.
Process: .The Essence Drinks has an internal procedure in terms to sale their products and to
compete with their rivalry companies. It improves production level and profitability of the
concern.

Paradigm: This model supports to find various ways to complete their task and to achieve
common objectives in an effective manner.
Innovation Funnel: introduce the new product in the market company use some process . it is
follow to achieve long term benefit in terms to profit.. There are several stages of the
innovation funnel which is mentioned below:
Idea Generation: it is initial stage where research & development unit used to introduce the
idea.
Concept of investigation:. In second stage concept is being tested through identifying future
customers and find out available resources which helps to complete the task.
Feasibility of study: evaluation of idea is done on the basis of technical, rational and
economical aspects. management department is responsible to identify loopholes so that firm
can study feasibility in suitable way.
Development stage: launching of new product is done under this stage.
Post release phase: time to time feedback are taken from audience to make improvent as per their
demands (Jevnaker, 2019)
P.4.Development of frugal innovation?
Frugal innovation refers to a process which helps the company to demolish the complexness
during the process of the production of goods and services. The main objective of
implementing this innovation is to determine the effective products and keep the healthy
individuals. This Frugal innovation helps the company to eliminate those returns features
which are not beneficial for the organisation. The process is discussed below:
Find opportunities in adversity: under this the main objective is to find the opportunities
which can be used to prevail the problems in order to improve the performance of the
organisation. With the context of the chosen organisation, the company used to manufacture
dustbins which will be helpful in keeping the environment clean. The innovative idea with

respect to new features such as waste recycled dustbin hatchling increasing the performance
of the business and apps them to enjoy long-term sustainability in the market
Use less and perform more: at this step the company used to identify the resources which can
be helpful in order to innovate their ideas. This helps in determining the demands of their
targeted customers in order to bring higher efficiency in operations of an organization. The
Chosen organization used to determine the demands of their targeted customers in order to
perform in a better way while providing the used material it helps in reducing the cost of their
manufacturing dustbin.
Think and act flexibly: at this stage the company used to determine the strike and inflexible
orders with respect to examine the changes which are needed by the company in order to
satisfy the desires of their customers.It is very difficult for the company to modify their
strategies but to overcome the problem the management department has to emphasize such
improvement in their products.
Use simple methods: this states that every company e must use simple methods of their working
and operations which helps them to complete their task in an effective way. This helps them to
create a proper understanding of the designers of their customers in order to determine and
develop their strategies. The simplicity helps them in improving and attaining the competitive
wages in the market and also so helps them to identify necessary changes and alternating in the
products.
Include the margin: at this stage the overall customers needs to be recognized and the company
must analyses such requirements which will be beneficial for the company as well as customers
Follow your heart: this state says that the management department of the organization must be
strongly passionate towards their work which will be helpful in managing the BIG Belly and
helps them to alter the existing products which can result in capturing a greater share of the
market while satisfying the needs and wants of the targeted audience.
P5 Importance of commercial funnel and the process of new product development

Commercial Funnel: It is the funnel which is used to transform all the targeted customers into
two clients. the net income of company is tends to be increase through acquiring more new
features with respect to the product in order to attract the customers. It bridges the gap between
targeted audience to customers . It is known as sales funnel. The management team of Essence
Drinks organization used to determine the cost As well as selling price of their new products
which supports to increase their sales as well as profitability of organization.
New product development: In order to stay successful the face of manufacturing products every
company uses Different techniques during the execution of new product development processes.
The process to new product development are as follows-
Idea generation: with an idea of generation new item develop . for this systematic search is done
which helps to develop hundreds of ideas. The Essence Drinks Company has developed
innovative ideas o develop healthy & tasty drink.
Idea Screening: In this ideas is tends to be filtered to pick out the good one. In this step
organization tends to observe every idea and determine which is best alternative . Essence
Drinks started to develop drink which is good in taste and also boost up immunity power .
Concept development and testing: Essence Drinks used to take follow on continuous basis
customers so that issues can be find out and take to initiative on time to resolve the matter.
Marketing strategy development: In this company develops as well as test their product in the
market. Through using effective marketing strategy company promote their new product.
Essence Drinks prepares budget for marketing and promotional activities.
Business analysis: once the company has decided the product concept in marketing strategy then
the management can evaluate the business attractiveness of the proposed new product. In this
step the company uses to review the sale cost and profits from the new products and find whether
the new product has satisfied the objective of the company or not. The research and development
department of the Essence Drinks used to determine the total risk budgeted profits and the cost
which are prepared by the finance team.

Product development: as project is being passed from the business test than it is converted to
the physical product which turns product idea into marketing offering. Essence Drinks research
check quality of the new product and also find out loopholes..
Test marketing: before commercialization it is perform . In this product and its proposed
marketing program are tested Essence Drinks the research and development unit has decided to
offer the product to audience as free samples.
Commercialisation: It is known as last stage to NDP , in this product is ready for the purpose
commercialization. Essence Drinks serves the product through stores and also to provide online
facility to customer. It will be helpful in retaining their services for long term.
P6 innovation business case for Organisational including numerous source of funds ?
Business case: Following case is linked to organization that tends to demonstrates the
Reason behind for being a proper project. All the functions are explain by the company which
are going to be performed by them. To Take better decisions, Business care use the most in the
organization. As the company
, Essence Drinks tends to be required to design different business cases before innovating their
service and product in the market so it become possible to operate the business smoothly and
survive in the competitive market . Following steps are follow in this case sucgh as describe as
under.
Executive Summary: Innovation as well as commercialization both are consider as major
aspects that supports organization to survive in the world of competition. Essence Drinks uses
different starategies and promotional tool to product their product. It leads to support in
determining targeted customers due to which organization can achieve the targets which is set by
them during Specified time period . It is beneficial in attracting outsiders such as shareholders,
investors, in order to take decision to make investment.
Overview of the company: Essence Drinks is the most famous brand in terms to energy drink in
the world. It is commonly considered as volume organization which offer the people the tasty
and healthy drink. The important goal of organization is to attract large customer and tends to

provide satisfaction to people that they pay the value for quality and make their consumers
healthy as well as happy. As the company Essence drink use creative and innovative ideas with
the intention to manage the wasteful material in such a way so that it tends to avoid unnecessary
cost.
Vision: to make such type of drink which provide energy and also healthy to people it is the
vision of company “Essence Drinks”
Mission: Essence Drinks mission statement is to make available such type of drinks for
personal as well as to commercial purpose.
Available Opportunity in the market: Essence Drink must manage the public waste in an
effective manner that supports to grab long term opportunities .
The organization determined that demand of innovative product will tends to be raised in the
upcoming years for the reason to commercial purpose.
Competitive edges: The Healthy & tasty Drink must be able to maintain the health of the
consumers and helps to achieve competitive advantages because there not existence of private
company who make proper management of wastage through any type of product.
Size and growth possibilities: The size and scope of Healthy drink is huge because enhancement
in Global Warming is the major issue which is faced by every country as it is danger on the
health of the people.
Target market: general public of the country is targeted by the organization. Essence Drinks has
As per the need of nation general public is the people who are targeted by the company so that
firms product is used by them in their daily life. To create awareness various different types of
sessions and campaigns are conducted in which benefits of these drink are discusses with the
audience and explain the way it is beneficial for individual or society.
Strategy: high low pricing strategies are followed by Essence drink which tends to improve ratio
healthy drinks sales ratio. Organization use increase the cost of product in the situation when it
is more demanded by clients and end users . company tends to lower the price when is not
demanded or if there is existence of tough competition,.

Promotional strategy: as Essence Drink company use the tools of digital marketing and social
media to make the product popular between audience as it tends to increase their sales as well as
maximize their revenues.
Funding: as Essence Drink is invited there is a healthy drinks project then there are large number
of investors are tends to be invited to invest their funds in the product which will be helpful in
raising the funds. These healthy drinks are used by company for personal and commercial
purpose . the brand also reduce their prices so that the general public can also be afford to
purchase and also making use of it daily lifestyle.. in this waste things manages.
P7 different tools to retain intellectual property for longer period? l
Intellectual property is the element through product or things can be protected from misuse In
term to safeguard the products essence drink use this method.
Patents: it is a tool that supports to receive license to the ownership about their idea as it can not
be used by anay other person without taking prior permission from appropriate authority..
Essence Drinks make their idea & innovation patents to gain competitive advantage.
Trademark: it is mark, symbol, alphabet, design , logo which make the product differentiate
from other available number of items. It can be registered for specific time period. Essence
Drinks uses this in order to protect their identity in the market and increase its brand value.
(Oliver, 2019)
CONCLUSION
After deep study and analysis it tends to be conclude that innovation Plays a most significant role
in business. as organization or business success is depends on it also. To survive in the
competitive business environment it necessary to make change time to time. Innovation is
adventurous in modifying customers with regards to improve their existing product. With
innovation frugal, NDP process as well as 4Ps of innovation is added value to the organization
business plan also plays a major role in executing their innovative plans and to get capturing the

market. For commercial purpose every organization make some initiatives and frame some
strategies so that to increase business revenues by creating awareness and attracting lart part of
audience. For promotional purpose different tools of marketing are used to attract large number
of people. Thus it is observe that both innovation and commercialization are important to
business to get success.

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