Innovation and Commercialisation: Importance, 4Ps, Frugal Innovation, Commercial Funnel and NPD Processing

Innovation
and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2: Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................5
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................5
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation: - ................................10
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................15
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Basically innovation refers to something unique or new. It can occur in any sector from
grocery stores to healthcare industries. On the other hand, commercialization is mainly process
of introducing something in market for revenue. It cane either be related to an product or
services. In this report, it is discussed briefly about the innovation and commercialisation and
their effects in context of the case study of Essence drinks(Astiti, Sakapurnama and Huseini,
2020).In this case, owner of Essence drinks, Akshay Kumar started his company with a new
product which is a healthy mango lassi. With his product. his business has grown tremendously
in first year due to his new product and his capacity to supply the product in UK market. With
the passage of time, new players entered in the market and captured market share of the akshay's
company. In the starting of third year, company noticed significant decrease in sales. Due to this
Akshay thought to introduce new range of drinks but he do not want to leave lassi.
MAIN BODY
P1: Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation means a thought or idea which is further implemented in the real world in respect to
financial gain. For business it can be a product, service or a new method or a process. It is an
outcome of creating something new, which is also useful for people in practical world.
Innovation gives a business first mover advantage which is very beneficial for a business and
gives that organisation an advantage over their competitors (Baikhozhayeva and Azhimgereeva,
2020). A perfect example of a innovation is that Michael Aldrich innovated online shopping in
1979 which is now very useful and used by almost every product or service based company. On
the other hand people mixes innovation with invention which is not correct. Invention is about
creating something new. Generally, invention is a thing whereas innovation is a process or
change. Introduction of television is an perfect example of invention. As growth in technology is
a main factor in today's life, it also gives companies many opportunities to expand or grow. In
case of Essence drink, Akshay innovated a drink with fusion of mango and lassi mixed with
health benefits. It gave company a massive growth in initial years. The fusion of lassi, a milk
based product mixed with mango and also with health benefits is considered as an innovation.

This product gives a excellent and balanced sweet taste as well as health benefits(Bong, Shin and
Park, 2020) . A one stop solution for health lovers and also for fitness freaks.
Importance of Innovation :
 Promotes growth – In today's highly competitive world, innovation is very useful for the
economic growth as well as organizational goals which ultimately helps in increasing
profits.
 Keeps business one step ahead – It is important to stay ahead of the competitors as
market is changing quickly and innovative thinking helps an individual to keep up with
customer's need and also in predicting market.
 Having a USP – USP stands for Unique Selling Point which means what differentiates a
product from other products or similar products (Distanont, Sooksmarn and Khongmalai,
2019).Generally new start ups have a USP which gives a business an identity in the
industry.
 Continuous improvement – Innovative thinking helps a business in improve and grow
continuously. Creative innovations attracts customers and also helps to retain customers.
For example dairy milk improves their packaging rapidly and also introduces new
flavours or fusions in their dairy milk segment.
 Innovation boosts creativity – Creativity is an important aspect of innovation and helps
to create something unique and useful. Creativity may results to failure but it is still
worth it as eventually it leads to success.
Invention Innovation
It refers to the creation of new products which
has never been made before.
It refers to modifying or adding value to an
existing thing.
An invention needs proper scientific skills to
invent something.
An innovation needs set of different skills
like marketing, scientific and strategic skills.
It refers to just creation of a product. It is creation of something which is
introduced in market to sell.
It concerns with a single product or process. It concerns with combination of different