Innovation and Commercialisation: Importance, 4Ps of Innovation, Frugal Innovation, and Business Case for Essence Drinks

This report discusses the importance of innovation and commercialisation, 4Ps of innovation, frugal innovation, and a business case for Essence Drinks. It explains the difference between innovation and invention, and the role of organisational vision, culture, leadership, and teamwork in innovation and commercialisation.

Innovation &
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P1. What is innovation and how it is differ from invention?......................................................1
P2. Organisational vision, culture, leadership and teamwork plays an essential role in the
innovation and commercialization..............................................................................................3
P3. Define 4Ps of innovation and what is the use of innovation funnel to analyse and shape
innovative ideas...........................................................................................................................4
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context :...............................................................................................................5
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................6
P6 Build an innovation business case for Essence Drinks including ways to access funding:...8
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property:\.........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is the term which is utilised in the company to make the production more
effective and creative. The company uses this to attract more consumers, as rapidly changing
technology plays a vital role in company to make them competitive and sustainable in the
market place. Innovation makes the working smart and easy for employees and organisation. It
includes various kind of activities like marketing the goods, distribution, taking consumer
feedbacks (Santos, Abreu and Anes, 2019). In this report considering the essence drink which
is healthy drinks The chosen company for the following report is Essence drink, which is a
healthy drinks providing brand started by a well known Bollywood actor and globally approval
famous person, Akshaya Kumar. He first of all launching mango lassi as a creation of its brand.
It achieved a outstanding assets of sales in his first year but now facing a striking change in gross
sales due to high rivalry provided by new entrants. The following report is based on the
elaborate variant of the above topics in circumstance of the institution to find modern ideas that it
can instrumentation to attain growth of it. It foremost differentiate in two terms that are sensed
related at some extent – invention and excogitation. It ten supply with the assorted form of
invention though analyse the marketing principle of innovation with the explanation of the
related funnel and the developments in frugal type. However , promote it explains about the
value of commercialized conchoid and NPD (new product development). A business case is
build for clear account with the different ship way of getting financing to start an entity. At end
of the report, the various types of instrument that can be exploited by a governance to acquire,
retain and defend cognition and its rational property.
TASK
P1. What is innovation and how it is differ from invention?
Innovation can be defined as a process of creating and generating something new in the
existing product, service, process, idea or field. The main intention to put innovation in the
business is to gain competitive advantage over its competitors in the market. This emphasis on
gaining and attracting a lot of customers (Tirto, Ossik and Omelyanenko, 2019) towards the
brand. Organisations seeking new methods in order to execute the new ideas into realities. In
case of Essence Drinks, it is a small scale business that is specialised for offering mango lassi to
its customers in the market of UK. In the first year, the company generated a dramatic sales in its
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business due its innovative ideas and distribution capabilities. But later, when the company
enters in the third year, the sales has been diminished as the customers gets bored of regular
mango lassi. Hence, the founder Akshay Kumar wants to bring something new that impacts
positively on its sales and revenue. He has been suggested to innovate their regular product into
something new and innovative. So, he decided to innovate mango lassi with blueberry lassi as it
is tasty and healthy, also customers will definitely like the product as it boosts their immune
system as well. It is quite obvious to understand the importance of innovation in the business of
Essence Drinks:
 Innovation helps to boost the company's sales and profit as new and innovative idea helps
to attract more and more customers towards brand. New idea of product development will
also be based on the customer satisfaction level that helps to build loyalty as well.
 It also supports in building goodwill in the market. As the innovative idea makes
customers curious to try something new and creative will help to attaining business
objectives in particular time period.
 It enables company to provide something new and innovative in the market so that
customers' demand will be satisfied.
 It helps in generating more sales and revenue for the business.
Along with all such aspects, innovation act as a growth and development method for
entire company and workers who involved in the process. Akshay Kumar innovates mango lassi
with bluebeery lassi to attract the customes with new flavour and taste. This will also help to
boost the sales. Akshay Kumar wants to bring innovation rather than invention as launching
something new involves risks but innovating something in the existing product will be smart
decision. Additionally, it is also important to understand the difference between innovation and
invention:
Differences between innovation and invention are explained underneath:
Basis Innovation Invention
Meaning It defined as the process of
putting something new in the
current offerings.
It means to create something
new that are not existed yet.
Required skills Marketing, creative, technical Scientific skills are much
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and strategic skills essential.
Concepts New and creative ideas are
practically implemented.
Original ideas are put into
theoretical basis.
Activities This activity spread into the
entire company.
It is bounded up to R&D
department.
P2. Organisational vision, culture, leadership and teamwork plays an essential role in the
innovation and commercialization.
When an organisation puts innovation in its existing product and services, there are range
of factors that must be considered such as organisational vision, culture, leadership and
teamwork. It is general to know that the concept of innovation and commercialization is broad in
nature, consequently, it is essential that goals and objectives of company are not neglected.
Additionally, the innovation is necessitate a good amount of resources, hence, the innovators of
Essence Drinks detect their innovation activities with set targets. In the process of innovation,
there are range of operational work are directed and is being checked for the achievement as per
the quality of results and desired standards with maximum use of resources. In case of Essence
Drinks, the organisational culture, teamwork, vision and leadership have a significant influence
on the innovation and commercialization (Ponce, Polasko and Molina, 2019).
Vision of Essence Drinks:
The vision of the chosen firm is to serve the best flavoured lassi which has healthy and
nutritional benefits throughout the UK. Hence, the vision plays a role to influence the actions and
activities of innovation in the company.
Leadership in Essence Drinks:
Essence Drinks adopts the “democratic style of leadership” in its business. It enables
employees to contribute their ideas and efforts so the company can make best out of it. It also
helps to create a positive culture. It also have a direct affect on the innovation and
commercialization. It allows employees to work with flexibility in the process of innovation and
helpful to overcome threats and risks associated with it (Min, Kim and Sawng, 2020).
Culture of Essence Drinks:
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When the company is having dynamic and flexible culture and appreciate change is more
likely to grow and develop and where individuals also love to work. In case of Essence Drinks,
the founder offers several growth opportunities in regards with innovation and
commercialization in the operational target market.
Team-work in Essence Drinks:
The spirit of working together towards the common goal plays a very important role in
the company. It is assumed that when the team members works together to achieve a shared
goals will help to create opportunities to exploit resources effectively (Lobo and Samaranayake,
2020).
P3. Define 4Ps of innovation and what is the use of innovation funnel to analyse and shape
innovative ideas.
Innovation mix is consisting 4Ps which must be understood by the company before
innovating something new in the current offerings. In case of Essence Drinks, the discussion of
4Ps is as follows:
 Products: The founder of the Essence Drinks is paying attention to innovate new
products in the business as the main thing lassi is served to delight the customers. It is
fundamental for the business to try and put some incremental variations so that current
offerings looks attractive to target audience (Liyanage and et.al., 2019). Process: It is the way through which a product or service is served to the target audience.
This not only involves the preparation procedure of any good or service but also involve
other phases such as workflow, recruiting candidates, trained them, supplying and many
more. This could be meant by anything that helps to improve the process within the
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company so that they become more cheaper, efficient and quicker. The founder of chosen
firm also focuses on the best process that will help to produce goods and services with
minimal costs. Position: It defines the place where company serves their offerings that can position in
the consumer's mind. The founder of the company is understood that without having a
good idea about the offerings, it cannot gain the customers.
 Paradigm: It is the phase in which business finds the reasons why they do their activities
in the company. In Essence Drinks context, the managers finds the suitable solutions and
methods of conducting business so that the radical modification become fit to all the
members.
Using innovation funnel helps organisation to implement their ideas practically. It is an
execution of creating new and innovative ideas by justifying the process through which an idea
can be best to use to offer the products and services to the customers. It is involved with four
steps through which Essence Drinks can implement the idea into actions: Ideas and conceptualization: The firm can generate a pool of new ideas so that they can
opt for the best ones by critically analyse each and every option. For this, Essence Drinks
must involve and engage their employees to get pool of ideas. Brainstorming is the best
option to get the ideas from workers (Liu and Lyu, 2020). Feasibility analysis: In this stage, ideas are analysed and eliminated which has no use in
the innovation. Akshay Kumar must check the feasibility of each idea to that it fits with
organisation objectives as well. Development of new raw materials: It is fundamental to develop raw materials that
matches the idea chosen. It is sensed with the selection of idea after critically examine in
which the selected firm identifies the pros and cons of the idea.
 Customer approval and trade: It is last phase in the innovation funnel in which
corporation is required to get the approval from the consumers so that they can be able to
sell the lassi and other beverages in the usual form. This approval is simple means that
the idea of innovation is satisfactory or not in the target market. If it is satisfactory, then
the trade can be started, but if it is not approved then the company is required to put
additionally efforts in the innovation process (Link and Oliver, 2020).
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P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context :
Frugal innovation would promote industry specific commodities and enhance their business
activities to offer big production at a lower price. It would offer more benefits to the firm as
more number of sales would be generated owing to the affordability regarding to the products.
The contribution would enhance the sales and revenue of the firm. The enterprise could optimise
their market success with the assistance of their productivity. The organisation could use possible
utilisation of the emerging technologies in order to deliver cost effective product. This could be
done with appropriate execution of the frugal innovations that aids expansion of the firm by
effect potential base of the consumers. This would facilitate the result of the organisation and
income to generate more opportunities for the competitive benefit. The organisation has deliver
more concentration towards the fulfilment of frugal innovation in appropriate arrangement of
nutritional drink which is suitable for usage. The department of organisation uses polls and
customer feedback that gathers information in terms of products and services to eliminate the
operational costs. The data would be fully utilise in effort to decline the price of the
commodities.
Economical invention is the procedure of creating the actions of creativity as efficient
without decreasing its effectiveness much though searching the methods that can assist in
reducing the value, difficulty of the goods much though findings the methods and growing
in the quantity of production. Through this methods the unimportant actions ans elements
are removed from that of the original and ideal strategy in two methods. Certain principles
are described in below (Kirby and El Hadidi, 2019).
 Engage and literate - Some new styles are improved by the researcher and
development department in place of the old and rigid actions. Essence drinks can
utilised online platform that includes social media and its networking sites to run
the market study with less price duration and typical operations.
 shape consumers solutions - The behaviour of customer towards the company and its
offerings must be positive to hold them. Essence drinks can work making its strong and
loyal relationship with the customer through raising awareness from various campaigns
and its usage of healthy incidents.
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 Make innovative friends - for this section the enterprise can design its relationship
with everyone linked with the community that includes like governing bodies and
supplier.
 Flex your assets - The possession utilized in the transaction such as instrument and
machine are acclivity or exchanged with the supersede that can tend to low price
utilization or more business like manufacture (Holroyd, 2020).
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
The commercial funnel is a technique that provides with the great thoughts that
can assist in the development of a institution. It also explains about the
requirements and needs of the users through determining their buying activity.
The essence drinks company can consider the various four steps of commercial
funnel which are discussed in the below parts (Hillemane, Satyanarayana and
Chandrashekar, 2019).
 Awareness - It points states about maximising the awareness of a institute in
the marketplace. The essence drinks can utilise certain various kinds of
online platforms to connect with the users and grows its brand value. Before
establishing the new commodity, it can share the detail on the social media
or an its networking sites. IT can also take preference of the consumers
direct it.
 Interest - the essence drink can include this components by determining the
interest of person in its services. For this the company can view the visits on
its networking sites and digital platform. This can assist it in carrying out to
bigger amount of people.
 Decision - the determination towards the involvement ones is taken in this.
The company utilise this by targeting them through communication, informing,
giving news and furnishing various exclusive discounts (Giannopoulou, Barlatier
and Pénin, 2019).
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 Action - In this, the data is being made of the actual buyers. Essence
drinks should assures that It fulfil the requirements and provides users with
information and updates related the modification in the inventory.
New product development process :
As mentioned by the trade name this procedure is used in structure or
development the already made goods that can be sell in the market segment.
Essence drinks Is innovating a new flavoured drink such as blueberry lassi the
planning follows some steps which is listed in below.
1. Idea making- the procedure of creating a new goods starts with the
thought. Essence drinks can consider the thinking practices different
researches through its R&D areas.
2. idea screening - this thought actions the practical procedure of the
thinking found and selects the best idea out the list of thoughts.
3. concept development - the thought selects for executing is given full
concentration and the content to make it practices in the company is
analysed (Gianiodis and Meek, 2020).
4. marketing strategy - through this factor essence drink can determine the
needs and ability of the users to spend on the new established commodity
and the cost margins consumed in sales are determined.
5. product development - this stage explained about the execution commodity
and the cost and margins utilised in sale are examined.
6. Market test - this level involve essence drinks to completely test the
introduction goods in the components included and listed above.
7. commercialisation - with this the goods is established in the marketplace
and ready to be deal.
P6 Build an innovation business case for Essence Drinks including ways to access
funding:
The innovation thoughts determines for essence drinks as per to the needs of
the corresponding UK market. Is the creating and selling of blueberry flavoured
lassi. It is a creative thought due to drink dealers in great britian not supply this
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taste and flavour. It will provides a new taste to the person that is attractive in other
nations like Asian country (Fotopoulos, 2021).
Steps Description
Summary This enterprise case is presented the determined and provided of
new creative goods by the industry goods in various sources as
per to have a good understanding.
Objectives To gather the most share of the linked market through satisfying
the consumers with the tasty and fruity drink that makes them cool
and refreshed.
Mission Aim of essence drinks is to related market through appreciated the
users with ambrosial and flourishing drink.
Vision The vision is to give the consumers with new, nectarous and rosy
kinds of drinks that they have not idea.
Innovation in goods The creativity is the making and selling of new type of drinks that
the UK population are not known of offer.
Funds It can be use loans from financial institutes for taking funds in its
new offer. The institute includes various interest rates and angle
investor their monetary in a institution for gathering the
administration and capitals.
Advantages It is clearly combined with health and taste.
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property:
Intellectual inventory considers any original thoughts, designs, discoveries,
inventions and creative work produce by person or unit. It was not a big deal to
save IP earlier (Chen and Yin, 2019). Whereas with detail more accessible and easier.
In regards of essence drinks the surrounding is very tricky to retain, improve and
save the knowledge that utilise in the process of creativity, IP of essence drinks is
that innovative thought that Intellectual property of Essence Drinks is that creative idea
which has been function by their worker and to give activity from any misconduct, the
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authorities disconnected respective instrument such as apparent, hallmark document
and many more to defend their power in creativity. These implement and method are
obstinate below with the help of advantages and disadvantages:
 patents - This is the instrument that has been utilised to save the invention
and enhancement that have been taken consideration in the products of the
industry. Patents registration is the legal copy right to the director or original
thought and if any individuals requires to practice that thought is to take
permission first. However essence drink can save their creativity goods.
Advantages -
1. save the involvement of founder and encourage new innovation.
2. It gives judicial correct to the inventor that cipher can have the thought of
the innovation which is apparent.
Disadvantages -
1. it requires huge cost.
2. Regenerate date must be kept in sight differently the accurate of evident
can be lost (Bantigue, 2019).
Copyright -
It defines the new ideas or education in relation of writing or literature which
offers a legal to protect articles, books, scripts, music and more on. This kind of
writing is also a part of IP and can included in rights.
Advantages -
1. the ideas in written or verbal of a writer can be secured from stealing.
2. It helps the orignal writer to enhance their interest in writing more documents,
books and music.
Disadvantage -
1. legal right is not capable to save an signorial idea finished but secure only
language and expresser.
Trademark -
it can be understood as a signature that has been showed on the goods of any
brand to signifies it from the goods of rivals. It ease a juristic precise to the logo
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design, and any other documents related to the enterprise to be different and if it is
varied from others trade name then it is registered in the rational rights.
Advantage -
1. it assist in protecting from misconduct and coping of goods and sale them with
other trade name.
2. It supplies as a recognisance in the eyes of consumers with the help of
logo and sign of company.
Disadvantage -
'1. it grows a issues for the brand if it is removed because of the non payment of
charges (Anderson, Eshima and Hornsby, 2019).
CONCLUSION
It is concluded from above report that innovation is very important for any business as it
not only gives a healthy competition but also attract lots of consumers towards the
company. Essence drink concentrate on creativity mix to apply and create creativity
procedure in the company. Commercial funnel encourages in offering methods to establish
the innovative goods. It is very important that creativity should be secured by the brand as
it supply a security.
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