Literature Review on Innovation and Commercialization

This assignment requires a thorough analysis of existing literature on innovation and commercialization. It involves identifying key concepts, theories, and models related to the topic, such as intellectual property rights, knowledge management, and business model design. The review should also examine the role of virtual collaboration and social capital in product development, as well as the impact of labor union effects on innovation and commercialization productivity. Furthermore, it should discuss forms of knowledge and modes of innovation, achieving a strategic sales focus, and systematizing information for conversion into actionable sales leads. The literature review should provide an overview of the current state of research on innovation and commercialization, highlighting key findings, challenges, and future directions.

Innovation and
Commercialization

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
P 1. Importance of innovation into the organization and how it is different from invention.....3
P 2. Assessment of how vision, leadership, culture and teamwork can shape innovation and
commercialisation........................................................................................................................4
M1 analyses the different source of innovations and environment and culture of the
innovation....................................................................................................................................5
P3 Importance of 4P’s of innovation compared to invention......................................................6
P4 Developments in frugal Innovation with examples................................................................8
M2 analyses ans apply the innovation funnel in the organisational context...............................8
Task 3...............................................................................................................................................9
P.5 Importance of commercial funnel and new product development........................................9
P.6 Innovation business case for organization...........................................................................11
M.4 Effectiveness using of test, iterate and improve.................................................................12
P.7 Different tools of develop and protect knowledge..............................................................12
M.5 Tools use in wider context.................................................................................................13
D. 2 challenges in develop successful innovations....................................................................13
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is the process of creating something new which helps company in launching new
and innovative products which leads to long term sustainable growth and development of the
business. Commercialization is an effective process of introducing this new and innovative
products to the target market which helps in attracting new customers from across the globe.
Innovation and commercialization also helps in higher operational efficiency, performance and
productivity of the business (Biemans, 2018). Essence drinks is a global soft drink company
which was established in 1896 in London. This company is well established for its soft drinks.
The report of this study will focus on inventing mint lassi and also aim at providing high quality
products to its target market.
This study will highlight, the importance of innovation into the organization and how it is
different from invention (Jensen and et.al., 2016). It also helps in analysing how vision,
leadership, culture and teamwork can shape innovation and commercialisation. This report will
examine the 4 P's of innovation which helps in shaping the innovative ideas of business. It
further helps in developing frugal innovation in organizational context. This study will further
identify the importance of the commercial funnel and the application of New Product
Development (NPD) at the time of innovation. Lastly, it willy also build innovation Business
Case for an organisation. Lastly, it will evaluate different tools used by the organization to
develop, retain and protect knowledge and intellectual property.
P 1. Importance of innovation into the organization and how it is different from invention.
Innovation : Innovation is the process of creating new ideas and insights which helps
company to effectively grow their business by launching new and innovative products in the
existing range of products of the business (Berry and Berry, 2018). It is an effective process of
bringing new and innovative idea into the business which helps in growth and development of
the Essence drinks. Innovation helps in building new insights to the products.
Essence drinks focus on innovating their product by developing and launching mint lassi
which leads to higher operational efficiency, quality and standards for organization.
Invention: Invention is an effective procedure of actualizing new ideas and insights into an
action. Invention is a unique method of inventing something new and unique into the market for
the first time. This helps in gaining knowledge and helps company in bringing competitive

advantage into the market which leads to higher operational efficiency and productivity (Datta,
Mukherjee and Jessup, 2015).
Innovation is the major process for growth and development of business which helps in
creating new ideas and insights into the business by effectively producing new range of drinks in
the market. Invention means implementation of new and unique produvts and services into the
organization. Essence drinks aim at launching mint lassi in the market by changing the current
products range effectively and commercializing them in a target market to gain competitive
advantage. This helps in adding value to the current range of products of Essence drinks
(Bernstein, 2015). Innovation helps to add new range of products to the business which leads to
sustainable growth and development of the business. Innovation helps in improved productivity
and helps company reach higher profitability and market share.
P 2. Assessment of how vision, leadership, culture and teamwork can shape innovation and
commercialisation.
The main vision of essence drink was to create and innovate new range of drinks but it
did not want to shift focus from lassi. Essence drink also focus on developing new range of
drinks which leads to higher market share and competitive advantage for business. Organization
goals, objectives and vision helps in creating new and innovative products into the market which
will attract more customers and leads to competitive advantage for Essence drinks (Chun and
et.al., 2015). Use of effective and innovative technology helps in reshaping the business which
will lead to higher operational efficiency and productivity.
Leadership is an effective process which helps in directing and guiding its subordinates to
achieve goals and objective of the company. Essence company uses autocratic leadership style
into the organization which helps them take all the necessary decision and convey the same to its
subordinates (Aarikka-Stenroos and Sandberg, 2016). An effective leader would have positive
impact on raising the productivity, profitability, liquidity as well as efficiency o the business for
the longer terms. There would be effective operational gains as if the entire workforce is being
capable of managing entity’s operations. The motivational support as well as trusts built up
among the employees would be adequate in bringing positive changes in operations. This helps
in encouraging and motivating employees to bring new insights and ideas which will help
develop effective flavour of lassi into the business. Autocratic leadership helps in guiding
employees how to reachh and meet organizational goals. Effective leadership and motivated

employees will aid in promotion of innovation and commercialisation. Leaders will effectively
transmit the ideas and helps in commercializing the product to the set target market.
Culture of the Essence drink is one of the effective ways to help the company in
launching the new products in market where there are different cultures. It is a system where it
shared the assumptions, beliefs and values relates to the organisation. It always shares the strong
influence on the individuals in the organisation and dictate the act, performance of the job.
Diversity at the work would have positive as well as negative impact on the growth as well as
profitability of the entity. People belongs to different culture, background as well as different
ethnic group would have reflected variations in the operational practices. Along with this, the
languages, culture and traditional they belong have differences would be sin in their efforts in the
operations. The variations and preferences of consumers in consuming essence drinks now adays
has determined that, there would be positive impact on designing the best innovation in drinks.
Teamwork in the organisation is one of the most important thing which has been
performed by the group of member's. It is collaborative method and efforts for achieving the
common goals and objectives to complete the task and projects. It seems as the greater
framework of the team in the Essence drink (Aarikka-Stenroos and Sandberg, 2016.). Building a
strong team will be adequate in creatinine collaboration as well as coordination among the
members to support each other and manage the work effectively. However, such collaborative
efforts would result in managing the work perfectly, timely and according to the requirements
on which a equally work load would be divided among the professionals. On the other side, such
efforts would have result in managing the performance as well as increasing employee
commitment within the entity. It can resolve issues and minimise risks of various problems such
as financial and operational.
The level of creative efforts made by team mates in their assigned duties would reflect
positively in managing all the resources. However, it would have impact on bringing new
techniques which shortens their time efforts as well as bringing innovative designs which
satisfies society.
M1 analyses the different source of innovations and environment and culture of the innovation.
Employees innovation and creativity is one of the most essential part for the growth and
success of the Essence drink and according to the time innovation foster the environment and

culture of the organization where it creates clear connection between employees and their
subordinates. Employees are more engaged and more creative ideas refers from others. However,
to bring the adequate invention in the market on which it is being required by the professionals
that they must have proper knowledge, creative thinking as well as motivation. Thus, such things
would have positive impacts on brining the best innovation among the society which would have
impacts on raising business profitability.
D1 analysing the innovation is developed emended and measured in the context of the
organisation.
From analysing the innovation in the developing process is always emerged to the context
of the Essence drink because from analysing and measuring the innovation means the products
and services are liked by the customers or note or they dislike it. It also shows the position of the
product in the market (Rosca, Arnold and Bendul, 2017). The appreciation received from the
society would be beneficial for the organisation in terms of retaining the adequate image,
creating identity as well as generating profits through such sales. Therefore, it creates window of
opportunity for the business in relation expansion of business activities as well as increasing
product line.
P3 Importance of 4P’s of innovation compared to invention
Innovation is one of the major requirements of a business. It ensures that the business is
growing as per the market demands and is fulfilling the needs of its customers. Along with it, to
a business such as essence drinks innovation tends to achieve required profitability and helps in
gaining a better competitive advantage along with market reputation. Below mentioned are the
4P’s of innovation: Paradigm: In paradigm the business tends to see what is required and what is necessary
in order to reach required growth. Essence drink is launching its mint lassi which is new
product to the market. It allowed the business to understand the importance of launching
something like this to the market. Essence company aims at planning how to effectively
carry out their business practices by providing new range of lassi to customers through
innovation and commercialization. This helps company to effectively improve the current
range of products into the target market leads to long term sustainability growth and
development of business.

 Product: The product of essence drink is suitable for all age groups and it can be
consumed as many times as required. Its quality of being organic allows the product to
be more growth oriented for the organization(Weyrauch and Herstatt, 2017.). The mint
lassi is refreshing and boost up the energy of customers. Mint lassi will serve as a
refreshment and mint leaves and roasted cumin powder will be sprinkled to add more
flavor to the lassi. Process: In this the product process is explored. All the step which are going to be take
including supplying, hiring the right people, workflow and training are a part of this step.
Essence drinks provides drinks to the customer by making goods available at stores and
malls and online delivery of lassi is available which helps in reaching target customers
effectively and efficiently.
 Position: This step explores where the product is going to be positioned in the market. It
allows the business to position its product in the market successfully and ensure required
growth. Essence company position their product in the market from where they can
attract large customers of all demographics by effectively offering the best quality
products and services to customers.
Use of innovation funnel in examining and shaping innovation ideas
Innovation funnel refers to mechanism which helps a business such as essence drink to
gain constant stream of ideas which are later screened for viability. This tool helps the
individuals and companies to innovate new products and services successfully. In Essence drinks
the funnel often provides the people working in the organisation with new ideas. These ideas
allow the business to select the appropriate one and innovate required products accordingly.
From the help of the funnel the organisation both shapes and examines its ideas with a better
approach(Yun, 2017).
 The first step towards innovation is developing of idea.
 This leads to screening the idea and effective strategic formulation of plan which
eventually leads to research and development.
 The next step in implementation of idea and plan and then it further leads to actulization
of the idea and monitoring the action plan.

P4 Developments in frugal Innovation with examples
The process from which the cost of production and the complexity is reduced is known as
frugal innovation. The nonessential features of the products or service are removed from the
goods when the organization decides to sell its products and service at a certain place. This
allows the business to grow and reach new level of success. In order to launch this product in the
Indian Market the company is going to make changes in its current product which is mint lassi.
This will help in widening the competitive position of the market and also leads to higher
competitive advantage for the Essence drink company.
The raw materials and production process are going to be the same, only the products
flavor will be changed. This complete process will arrive under frugal innovation technique. In
this manner, while innovating a new product the company has successfully reached new product
development and growth and ensured the use of better growth and development. In order to
remove any deviation the management focus on improvising the process by identifying cause of
deviation and implementing new technology.
M2 analyses ans apply the innovation funnel in the organisational context.
Innovation funnel is a process of the product development which is a common model use by the
company and it also evaluates conceptualize products and ideas. It is a type of opening at wide
which allows many of ideas for entering in market but slowly becomes narrower for allowing the
handful ideas for reaching the light of the day. Innovation funnel is a process which demands for
the each and every ideas is constantly and carefully compared and screened to the criteria and
rules and filters etc. the main core and aim of the innovation funnel is to generate and create so
many ides as possibles with the large portion which will converted and refined into concrete the
development plans.
M3 the role of the frugal innovations in the organizational context.
Frugal innovations refers to the good enough and low cost products and services. It defines
as the product innovation strategy of the developed economy and multinational corporations. It is
one of the institutional theory for analysing the indicators and products innovations for emerging
into new markets. It is essentially built on the frugal ideas and capabilities of the innovations.
The role of the frugal innovations in the Essence drink is to emerging into markets and
organisation for the well known capabilities of the developing the frugal innovations (Wang,
2017).

Task 3
P.5 Importance of commercial funnel and new product development.
Commercial funnel is known as sales funnel that focus on bring strong customers for
increase their productivity and promote their products and serves in markets that helps in
increase profitability. Through this funnel essence drink organization establish long term
relationship with all customers and also understand needs and wants of them and provide
satisfactions to them through fulfill their needs (Riazzi, 2017). Following importance of
commercial funnel:-
Pick market strategy :- sales funnel is important for understand and adopt market
strategy because sales team of essence drink evaluate and analyse of market and knows about
situation of competition and choice and wants of customers for launch new mix fruit lassi. All
these things work as a tool of success in market so these things helps in adopt strategies and
produce products according to need of customers and attract them.
Know about customers :- commercial funnel also important for know about customers
because many types of customers use drink of essence drink organization. Through this funnel it
knows of customers and increase interaction with their all customers because it makes strategy
for launch new drink like mix fruit lassi. Time to time take feedback from them helps for know
about their feelings. After know about all things that it produce products and provide services
according to them.
Focus on right sales leads :- sales funnel of essence drink focus on adopt right customer
that helps in increasing their sales and profit. It majorly focuses on this customer that their
purchasing power is high so they evaluate and analyse all things and provide products a service
after know and analyse their choice because it main purpose is established good and well relation
for long time with customer.
Generate more sales :-through evaluate and pick right customers and strategy helps in
generate more sales of mix fruit lassi. Because sales team of essence drink increase sales through
evaluate their choice and establish relationship with them. So through this funnel it pulls to
customers and satisfy their needs (Le Meunier-FitzHugh and Douglas, 2016).
Systematic monitoring and accountability :- commercial funnel is majorly important
for accountability and monitoring because sales system of essence drink organization carry on

systematic and proper and accountability also maintain and manage in proper way. So
organization easily evaluate all data and information about sales.
New product development process for essence drinks company.
It is a process of taking product and services from conception to market that helps in provide
new products and services to customers. It processes includes many stages that helps in develop
new products in market. Eight stages include in new product development process :-
Idea generation :- essence drink generate new ideas for development of new product. So
it makes strategy for generate ideas for innovate mix fruit lassi. That means it develops and
innovate new ideas for all flavour mix in one lassi.
Idea evaluation :- after generate ideas that next step are taken by essence drink is
evaluation of ideas that mix fruit lassi purchase by customers or not. So it analyses strength and
weakness of organization and needs of customers. Essence drink evaluate all needs and wants of
customers than produce products.
Concept development and test :- organization test and development of concept for
develop new products. Test of product by organization in target market and sale products to
chosen customers and attractive packaging for increase sales.
Business strategy analysis and development :- through this stage essence drink decide
marketing and branding. It makes profitability and marketing mix and other strategies for new
product development. It evaluates through this that competition situation in market, cost of
products and strategies of price that helps in face competition and beat to it.
Product development :- after evaluation of all things like sales of new products than
organization develop and promote products through take feedback and improve products.
Market testing :- through this organization researcher of market and identify target of
group of customers (Mohamad, Mohamad and Backhouse, 2015).
Commercialization :- through this stage it fixes price of products so essence drink fix
price of products according to target profit.
Product launch :- final stage of new product launch that helps in move products to
manufacture to market according to strategies and plan. That helps in increase sales and demand
of mix fruit lassi.

P.6 Innovation business case for organization.
Executive summary :- essence drink is organization of United Kingdom that sales food
and beverage products. It is mainly popular for mix fruit lassi but now it declines these products
and focus on launch new product like mix fruit lassi.
Vision and mission :- essence drink has vision is increase sales and demand so for this it
launches new product like mix fruit lassi. It main vision and mission adopt all new technologies
for improve performance and increase production.
Objectives :- for launch of new product so organization has need of many things for
produce, improve and promote new launched product. Technology is also main need for launch
new product in market Because through this it produces more products with low cost. So for
purchase technology and adopt innovation that it has to need of funds. Its main objective is
attracted more customers. Essence drink make strong distribution channel for improve sales of
products and make new customers for increase sales and increase profitability. That helps in
provide products to all customers of different markets. That also incurs more and more funds.
Need of innovation :- in this process essence drink adopt new innovations for improve
and promote sales of products in markets and increase sales. That helps in acquire more shares
and face competitions.
Target markets :- members of essence drink research of markets that helps in
understand about customers and target areas and focus on youth and children for increase their
sales. So through this organization target all group of peoples.
Investment required :-
Particulars Amount (£)
Equipment and direct cost 5000
Research of market expenses 1000
Advertisement expenses 2000
Store and warehouse expenses 3000
TOTAL 11000

Benefits expected :- to increase revenue from sales of mix fruit lassi 30 % in December
2019 and overall sales revenue of this product is 60 %. So organization has targeted to increase
sales and profit through new products.
Major source of income and funds that essence drink access:-
Capital :- capital is a most important needs of organization for do every work and
without capital it can not do work properly so organization has capital for launch new product in
market and increase sales and profit. So it has also profited of previous year that is 5000 pounds.
Banks :- it also a main source of fund so essence drink easily get funds and capital from
banks and financial institutions. It helps in increase capital of organization so it takes loans from
banks and other financial institution hat is 4000 ponds. So through these funds and capital
increase and organization improve their quality and quantity of products.
Others :- organization get funds and capital from issue of shares and debenture that helps
in increase capital of essence drink so it collects funds and capital through sales of shares approx
2500 pounds.
M.4 Effectiveness using of test, iterate and improve.
Essence drink use many tools and techniques for test and evaluate that their new product
effective or not and customer purchase top their mix fruit lassi. So for that it take feedback from
customers and knows about choice and satisfaction of them.
Questionnaire is also very best way of know about customers choice that new product is
good or not so organization evaluate their reactions and expression about new launched product.
So it easily knows and improve and develop their products according to customers choice and
demand (Lestari, 2015).
Feedback is also the best way for test and know about new launched product that helps in
gather information and organization easily improve and develop according to choice and wants
of them. So these things helps in iterate to products and improve it for increase sales and profit.
Improve of products is possible only through review design and find and search ideas for
improve and develop that helps in beat to competition and increase sales.
P.7 Different tools of develop and protect knowledge.
Different types of tools use by essence drink for develop of products, protect knowledge and
intellectual property. Intellectual property rights means that individual and organization get right

for create and develop own ideas for specific periods of time. So many types of tools helps in
develop like :-
Patent :- it is a tool that helps in develop and protect to right of organization to produce
products and launch new products. So patent provide protection and stop to other organization
for produce same product. So essence drink has tool that it easily protect to rights and use for
create new ideas for innovate new products.
Advantages
It helps the company in stopping their competitors from using their way of working,
manufacturing, selling and new inventions done by the company.
Disadvantage
Securing the company's asset is very costly and expensive for the company.
Trademark :- it is an intellectual right and it helps in protect to organization and develop
their products and services. Trademark is a symbol, phrase and word so it helps in create image
in mind of customers. Identifier identify products through symbol and words of organization that
peoples use particular product not use duplicate. It also provides protection to organization and it
easily innovates new products (Shelton IV, 2016).
Advantages
It gives the company the rights to use the symbol of the registered trademarks
Disadvantages
The owner of the business needs to show the proofs at regular intervals.
M.5 Tools use in wider context.
Above tools use by essence drinks and all these helps in provide protection Because it
adopts legal rights that helps in increase sales through make good image in mind of customers.
So it easily expands their business and launch new products in market according to demand of
customers.
D. 2 challenges in develop successful innovations.
Many types of challenges has to face by essence drink for innovation of mix fruit lassi.
Challenges like lack of resources and it includes workforce, technological and funds that create
barriers in innovation. If Intellectual rights have not available with organization that it has to face
challenges and it creates confusion in mind of customers and reduce goodwill of it. These things
create barriers in innovate new product (Bettig, 2018).

Conclusion
From this report it can be concluded that innovation allows organization to compete in
market and sustain for long term. Innovation refers to improving an existing product or service
by adding new features in it whereas invention refers to creation of new product. It is necessary
to work in team with help of leader to bring change in organization. The four P’s of innovation
are product, process, position and paradigm. For developing new product funnel innovation
concept is implemented. There are different tools available through which information can be
protected that are patents, copyrights, trademarks, etc.

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