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Innovation and Commercialisation in Essence Drinks

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Added on  2023/06/07

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This report discusses the importance of innovation and commercialisation in Essence Drinks. It explains the difference between innovation and invention, types of innovation, and ways to embed innovation in organizational vision, leadership, culture, and teamwork. It also covers sources of innovation, 4Ps of innovation, and the use of the innovation funnel. The report offers recommendations for deriving a new and innovative drink and discusses the significance of the commercial funnel and New Product Development for commercialisation of innovation.

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Innovation and
commercialisation

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CONTENTS
INTRODUCTION......................................................................................................................1
PART – 1....................................................................................................................................1
Explanation of innovation and identifying its significance to the firm in comparison with
invention.................................................................................................................................1
Ways in which innovation and commercialisation can be embedded in organisational
vision, leadership, culture and teamwork...............................................................................2
Varied sources of innovation..................................................................................................3
4Ps of innovation and use of the innovation funnel for investigating as well as shaping
innovative ideas......................................................................................................................3
Developments in frugal innovation and offering examples of its uses in other organisations
................................................................................................................................................5
Recommendations of the next steps Essence Drinks should go through for deriving a new
and innovative drink...............................................................................................................5
PART – 2....................................................................................................................................6
Background to the company and the issue.............................................................................6
Explaining the importance of the commercial funnel and New Product Development (NPD)
processing for commercialisation of innovation....................................................................6
Building an innovation business case for an organization involving ways of accessing
funds.......................................................................................................................................8
Measuring the overall effectiveness utilizing suitable techniques available to test, iterate
and improve............................................................................................................................9
Overcoming the challenges for developing successful innovations.....................................10
Tools for developing, retaining and protecting the knowledge and intellectual property....10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
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TABLE OF FIGURES
Figure 1: Innovation funnel........................................................................................................4
Figure 2: Commercial Funnel....................................................................................................7
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INTRODUCTION
Both commercialisation as well as innovation is being regarded as the major
component in every business. It encompasses development of ideas and also includes
development of new products in the market. Innovation is defined as the process of
determination of novel concepts plus thoughts which can be in varied forms, methods or
devices. While commercialisation comprises launching of novel products and services
manufactured in the market and making them available to the target market (Jiao and et.al.,
2018). Considering this, the current research report aims to explain the context of innovation
and process of commercialise innovation. The case study of Essence Drinks has been takes
into account for the current research purpose. The first section of the report will throw light
on difference amid innovation and invention, significance and types of innovation and ways
in which organizational leadership, culture and vision can shape innovation and invention.
The use of innovation funnel along with evolutions in frugal innovation will also be
discussed. The second section of the report will focus on significance of commercial funnel
and the application of New Product Development and will offer a business case along with
the tools for protecting intellectual property.
PART – 1
Explanation of innovation and identifying its significance to the firm in comparison with
invention
Speaking in volume in relation with innovation, it is being referred as the process of
interpreting any notion into a product or facilities which is emphasized on development of
value. Further, any notion for the purpose of becoming innovative should be replicable at
financial cost and must be emphasized towards contentment of the client explicit
requirements. In other words, it is quite complex process which comprises deliberate
application of accumulated data, thoughts as well as inventiveness concentrated on driving
high degree of value from the clients. As in the current case, Essence Drinks is offering
healthy mango lassi in the markets of UK from past two years and now, because of several
factors like alteration in the demands of the markets and preferences of the customers, they
are required to better facilitate the market and allure the interest of target audience (Biemans,
2018). For this, they are required to launch varied variants in lassi drink like mint, caramel
espresso and cardamon. It is also important for them to learn the differences between
invention and innovation and the explanation is as follows:
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Invention Innovation
It is being referred the occurrence of the
notion or concept for a product or a process
which has not been made before
It involves execution of the idea or thought
for the already existing product for the first
time
It is development of the new product It is adding value to something which is
already present
It is limited to research and development
department (Bessant and Tidd, 2015)
It spans across the firm
Only single scientific skill is needed Range of skills needed such as technical,
strategic and marketing
Innovation is quite significant for the Essence Drinks for number of ways and some of
them are being elaborated below:
Attracting of large audience – When a company sale a single product for a longer
period of time, it is obvious that customers tend to lose some focus. Innovation can
support in gaining their interest back.
Augmentation of sales – Seeking help through innovation in the processes or products,
the business can have large pool of customers which in turn augments the sales of the
company.
Supports in competing in the market – Since, there are many different firms which are
operating in the market offering assortment of products, innovation will help the
business by achieving an edge over these competitors (Jiménez-Jiménez and Valle,
2021).
Ways in which innovation and commercialisation can be embedded in organisational vision,
leadership, culture and teamwork
The main vision of the firm is to offer a beneficial product and becoming a leader in
the market. This reflects that the firm can achieve this by providing an innovative good that
supports in augmenting the overall level of productivity. The goal of the company is to
comprehend the requirement of the clients and also to make improvement in the process of
launching of novel good so that better results can be developed. Further, the leadership is the
process that supports the firm in meeting the goals of the firm. The leadership style being
selected by the leader of the firm is democratic style which is helping the company in gaining
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higher success and growth. Besides, improving the product will also assist the business in
generating better results. Talking about the culture of the company, it also supports in shaping
innovation and commercialisation as the it is the culture that helps the firm in determining the
values to be added. Essence Drinks’ working culture is very effective and supportive (Lee
and et.al., 2019). Teamwork within the firm is responsible for solving issues since, the firm
prefers to work in team, specific deadlines are being met effectively and successfully.
Varied sources of innovation
There are varied sources of innovation and these:
Unexpected – Innovation is originated to be best in situation when it is regarded as
unexpected from the eyes of everyone. The ideas which are developed unexpectedly
are more creative and often reaps out better profits for the firm.
Structure of the market – The structure of the market defines the process of
commercialisation. Further, the structure of the market explains the manners in which
the innovated goods get launched in the international market. A change in this
structure calls for innovation.
Necessity – Necessity is being referred as the requirement of innovation in the
product. Sometimes, due to competition, low sales, product failures and many other
factors compels the firm to innovate their products and services (Ubaid and et.al.,
2019).
Changing perception – Varied people have varied perceptions and preferences. With
the passage of time, there needs, preference and perception also change and all this
demands innovation in the existing products and services.
4Ps of innovation and use of the innovation funnel for investigating as well as shaping
innovative ideas
Talking about the company Essence Drinks, they wanted to augment the sales volume
of their product and thus, it is important that the company should consider varied types of
innovations and these are being explained underneath:
Disruptive innovation – This is defined as the innovation which is being applied in the
new process and technology to the firm.
Radical innovation It involves development of revolutionary technology and
establishing new industry.
Incremental innovation – It helps in augmenting the value of the clients and makes
use of existing technology (Chen, Yin and Mei, 2018).
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Architectural innovation – Overall skills, technology and lessons are being applied in
varied markets of the product.
Furthermore, for the purpose of increasing the sales as well as profit of the business,
Essence Drinks can execute some operative strategies and techniques that is the 4Ps and are
being explained below:
Process innovation – Focusing on the process innovation, it is being referred as the
changes in the methods in which the products are being delivered or produced.
Paradigm innovation – It involves making enhancement in the ways of techniques
and strategies of business. Further, it is also related with changes in the present goods
and facilities.
Product Innovation – This simple involves making modifications in the existing
products for offering enhanced value to the customers. It is also been known as
incremental innovation (Wang, Phillips and Yang, 2021).
Position innovation – The last one is position innovation which involves alteration in
the setting of the introduction of the product.
Use of innovation funnel and its application in the organizational context
Innovation funnel is being referred as the powerful and effective tool for developing
new ideas right from the concept to the reality whereas screening it for the authenticity at
each step of the way. Further, the innovation funnel is quite crucial for the growing business-
like Essence Drinks.
Figure 1: Innovation funnel
(Using the Innovation Funnel, 2020).
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Innovation funnel is a mechanism that enables a steady stream of ideas and thoughts
that can be screened for authenticity. It is also commonly called as Funnel Management
Process. Essence Drink can make use of this technique for creating an innovative as well as
accurate action plans. The main idea of the innovation funnel is to take lot of probable clients
for qualifying for developing a deal as a firm and it involves numerous ideas and
brainstorming sessions for analysing whether the novel merchandise or facility will prove
profitable or not. Considering this innovation funnel, it is important on the part of the Essence
Drinks to first develop the idea by looking at the competitors in the market and this can be
done market research. Secondly, after evaluating the condition of the market and
development of the idea, the idea is harvested that is producing the product for meeting the
demand (Reyes and et.al., 2021). Afterwards, the products are being developed and tested,
the final idea is being developed. It further includes shipping of the products that idea
implementation.
Developments in frugal innovation and offering examples of its uses in other organisations
Frugal innovation is being referred as the process of reduction of the cost along with
the complexities of the product. The main target of the frugal innovation is nothing but
removing of unwanted characteristic from the product. Further, the main elements of this
innovation are reshaping the product for serving better products to the end customers,
reconfiguration of the value chains and finally, determining novel business models. In
addition to this, this innovation encompasses either tapping or overcoming the resource
constraints of the firm by creating more inclusive market. Further, it is an extensive case of
innovation. Moreover, for the environment of extreme cost as well as resources constraint,
novel applications are being innovated for this innovation (Whitney, 2018). The information
in regards with the fact that is the way a firm organized frugal on the purpose of the firm will
be tiny if the phenomenon of frugal innovation is being elucidated from the viewpoint of
product. There are different reasons which states the important of frugal innovation in
Essence Drinks such as rising demands of the market and level of competition, new
technology, caring, environmental constraints and lacklustre. Some of the examples of frugal
innovation includes Mini magical child washing machine by Haier, TATA Nano car, Toyota
charcoal stove etc.
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Recommendations of the next steps Essence Drinks should go through for deriving a new and
innovative drink
In the Asian restaurant markets of UK, Lassi is considered as the most popular drink.
The owner of the Essence Drinks has introduced mango lassi which is loved and liked by the
customers in the UK. From the past two years, they are offering same product and due to
which the customers tend to lose their interests in this drink. Now, the owner is planning to
introduce more flavours into their existing product for the purpose of obtaining good amount
of share in the market and for increasing their sales volume as well. For this, there are certain
steps which needs to be adopted by Essence Drinks for deriving a new and innovative drink.
First of all, it is crucial that the company should carry out extensive study of the markets of
UK for the purpose of gaining comprehension of the likings, demands, taste and preferences
of the people. this can be performed by the firm by performing surveys as well as market
tests. In addition to this, soon after gathering of relevant data, Essence Drinks needs to
understand their own capabilities and assets which are currently available for accomplishing
the demands of the customers (Bessant and Tidd, 2015).
Other than this, it is also important that the leader of the firm should help the firm in
developing a supportive and innovative work culture. There is a requirement on the part of
the company to introduce new flavours like mint, caramel espresso and cardamon and the
samples of the same should be offered to check whether the consumers are enjoying these
flavours or not. All these new and innovative flavours will cater not just the young generation
however will also accommodate the kids and adults. On the basis of the results of the surveys
and test, flavours can be launched in the market with inclusion of successful promotional
strategies such as using social media websites, advertisements billboards and many others.
PART – 2
Background to the company and the issue
Akshaya Kumar has established the company called Essence Drink in the markets of
UK. The owner of the Essence Drinks has introduced mango lassi which is loved and liked
by the customers in the UK. With this product in place, the company has attained huge profits
and even the sales of the product were also very high from the past two years. With the
initiation of the third years, they are still offering the same product and due to which the
customers tend to lose their interests in this drink. The sales of the company decreased and so
were the profit margins (Valikangas and Gibbert, 2015). Now, the owner is planning to
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introduce more flavours into their existing product for the purpose of obtaining good amount
of share in the market and for increasing their sales volume as well.
Explaining the importance of the commercial funnel and New Product Development (NPD)
processing for commercialisation of innovation
Commercialisation funnel and its significance
For working in relation with the unwanted evolution on the performance, it is crucial
that the company should work on the commercial funnel for developing the alteration and
working efficiently in the market. commercial funnel is also being called as the sales or the
marketing funnel that supports the firms in obtaining enhanced outcomes in the market in
which they work. This is quite essential for the business because it results in evolution in the
market through augmentation of indispensable modifications and development in services
from the firm.
Figure 2: Commercial Funnel
(Sukhyani, 2022).
There are five imperative steps of the commercial funnel such as awareness, interest,
decision and finally, action. Other than this, it helps in visually representing the journey of
the customers. the funnel also helps in offering a new strategy for working in to enhance the
performance and search out novel methods of augmenting the unique innovation for the
performance of the business. Further, commercial funnel is useful and important for the
essence Drinks in many other ways as well such as offering essential process of planning in
the workplace, augmenting the sales ration of the firm and working on the need
accomplishment of the customers (Priya, 2020).
Application of the new product development
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Articulating about the utilization of new product development (NPD) handling of
commercialisation of advancement it envelops age of the thoughts, screening of the thoughts,
market assessment, improvement of item and commercialisation. The items are completely
tried by the laborers earlier sending off it on the market. Looking for help from the new item
improvement and commercialisation pipe, Essence Drinks will be in a situation to drive items
into the market and in this manner, fabricating the development business case. Likewise, the
market testing and the cycle heading to advertise are given more importance in the process
which further leads in fruitful sending off of item on the market.
Building an innovation business case for an organization involving ways of accessing funds
It is important on the part of the organization to work on the essential factors of the
innovation as well as development of invention into the innovation. It is crucial for the
business to do necessary alteration and generate opportunities for the workplace. This is very
essential for the change in the workplace and development of liability of evolved
performance. further, funding is the main element which needs a handsome amount of
attention and relation to have the correct sources of funds within the firm (Zeschky,
Gassmann and Winterhalter, 2014). This helps in enhancing the day to day working and
development. In context with the current case of Essence Drinks, they firm can chosen any
innovative idea for raising the sale of the firm. They can add new innovative flavours such as
mint, caramel espresso and cardamon lassi. The firm can customize the healthy drink and
ship the drink to the door of the client. In addition to this, the firm can also utilize digital
marketing for advertising and promoting their new innovative products. Through this, target
audience will be more attracted as they can order their desired products from home and can
receive the same as well. further, the UK based company will provide the client healthy
drinks at the door step.
Other than this, if the firm is planning to launch a new product, the company can
launch in different flavours as the taste and preferences of the people are diversified.
Furthermore, one of the best promotional tools that the company can make use for their new
products is advertising. Advertisement is referred as any paid promotion of the product. The
five decision that the firm has to take in advertisement are related to media, measurement,
message, mission and money. With this, more and more people will have awareness about the
products. Essence Drinks can make use of direct marketing, broadcast media, print media
such as newspaper and leaflets and social media marketing (Ries and Ries, 2014). In addition
to this, the company can also apply environment testing in order to test the efficiency of the
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new product. For the development of innovative business case, it is also important that
estimation in regards with the budget for the whole business should also be done.
Ways of accessing funding
There are varied sources of funds in the market which the firm is required to give
attention for obtaining adequate amount of working capital to run effective business. Each
and every business needs finance for growth and investment and it will also support the
business to achieve greater heights in the markets. The investment is very important and the
funding is necessary for growing the products and services offerings to the target audience.
Some of the important sources of funds that can be accessed by Essence Drinks are as
follows:
Investors – There are varied firms as well as investors working in the market for
helping the firm with the availability of the finance in the workplace so that they can
achieve growth and sustain in the competitive market. this is vital for the firm for
increasing the chances of getting the resources in the workplace (Dierks, 2017).
Loan – Essence Drinks can also avail loan from banks and other financial institutions
as it is one of the best manners. It is very secure and trustworthy working procedures
for augmenting the results in the market.
Saving – Saving can also be utilized for funding the development of the new products
of the company. It is very essential for the business and the firm to keep growing for
longer period of time.
Measuring the overall effectiveness utilizing suitable techniques available to test, iterate and
improve
First of all, the overall effectiveness of the new product can be measured by
conducting effective research and evaluation. It is crucial that the Essence Drinks should
conduct study and evaluation on the efficacy for the likelihood of cost-effectiveness for the
new manufactured products should be performed by the research and development team of
the company. Secondly, it can be measured through accumulating data from the existing
clients. it is essential that the firm should collect data related to buying behaviour of the
people of UK from the customer sources. Thirdly, it is important that the firm should analyse
the possibility of the limit of the production. In other words, all the resources along with the
capacity of production of Essence Drinks needs to be analysed with the needed unit
forwarded by the sales as well as marketing team (Joueid and Coenders, 2018).
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Furthermore, the next technique for measuring the overall effectiveness of the new
product would be to analyse marketing and sales team resources. In this context, it is crucial
that the marketing along with sales should be reshaped for fitting the new product
manufactured. Finally, arrangement in relation with the funding should be made for
completing the launching of the product and the related processes. Adequate funds are quite
essential for successful functioning of the operations. Moreover, there are different types of
resources being needed in order to proceed with the innovation such as monetary,
operational, human resource, informational, technology and material resources.
Overcoming the challenges for developing successful innovations
The main or key objective of the innovation is nothing but to make improvement in
the existing methods as well as products. In this given context, the innovation is being
performed through introduction of different new and innovative flavour of lassi by Essence
Drinks. Initially, the company might come across with the issues related to the new flavours,
nevertheless few clients might be contended with the taste and flavours of lassi. In the longer
period of time, this new idea will help in pushing the sales of the new products along with the
old favourite mango lassi. Thus, it can be said that initially, the sales of the company will not
be too high, but it will generate the field for the future income (Davoudi and et.al., 2018).
Tools for developing, retaining and protecting the knowledge and intellectual property
Intellectual property includes varied names, pictures, work, technology, ideas and
symbols which can provide some economic advantages to the company. In addition to this,
the intellectual property protection laws help in protecting the prejudicial use of knowledge
as well as characteristics. In the context of the current case, Essence Drinks can protect plus
develop knowledge and intellectual property through utilizing different tools and these are
being elaborated below:
Patent – It is being defined as the intellectual property that gives the legal right to the
owners to excludes others from making the same thing or product. In addition to this,
it also stops people and other investor for producing, selling and making use of the
same innovation or invention.
Trademark – A trademark is being referred as the expression, design as well as sign
that determines the product or the services of a specified source. It is generally
defined as a logo or a brand. the Essence Drinks can also get trademark for their
tagline, business name and captions. It could be utilized by the company for
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protecting the brand logo of the healthy business of the Essence Drinks (Campi and
Dueñas, 2019).
Copyright – It supports the firm in defending the original work from getting copied.
In the case of some creative words such as films, artistic works, computer programs
and sound recording, copyright is a bunch of rights.
Other than this, the company also protect the knowledge of the firm through utilizing
data protection policy. It can protect the information by considering different steps and these
are:
It is crucial that the firm should make sure that the data will be utilized and
accumulated fairly as well as lawfully.
Suitable preservation timeframe for personal information needs to be developed.
The personal information of the firm should be utilized for meeting the legal
fulfilment of the firm as well as operational activities.
All the workers of the firm should be offered suitable training for protecting the
personal information (Horvat and et.al., 2019).
Finally, it is important that the firm must review the direction and procedures of data
protection on a regular basis.
Essence Drinks can protect the intellectual property rights through protecting its IP in
the UK from where the firm sources product and conduct business. Further, it is also
important that the firm should determine which things are eligible for trademark and
copyright. Legal steps for their workers to protect the intellectual property right can also be
taken by the firm so that they cannot share their personal technology of the firm to outside.
Through this process, the personal information of the firm can be protected.
CONCLUSION
Thus, from the above evaluation it can be stated that innovation and
commercialisation of the products and services is considered as an essential element for each
and every business organization. it has been found from the study that innovation is quite
important for the Essence Drinks in varied ways like employee satisfaction, enhanced sales
and performance, growth and staying relevant in the market. Further, it is crucial that the
company should have understanding in regards with the types of innovation along with its
process for introducing better products in the markets. Innovative ideas such as frugal
innovation and innovation funnel needs to be utilized for processing innovation. A business
case was also being presented including financial information. The final part has successfully
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determined and assessed varied tools for protecting intellectual property such as copyright,
patent etc.
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REFERENCES
Books and journals
Bessant, J. and Tidd, J., 2015. Innovation and Entrepreneurship. 3rded. Oxford: Wiley.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Campi, M. and Dueñas, M., 2019. Intellectual property rights, trade agreements, and
international trade. Research Policy. 48(3). pp.531-545.
Chen, J., Yin, X. and Mei, L., 2018. Holistic innovation: An emerging innovation
paradigm. International Journal of Innovation Studies. 2(1). pp.1-13.
Davoudi and et.al., 2018. Testing the Mediating Role of Open Innovation on the Relationship
between Intellectual Property Rights and Organizational Performance: A Case of
Science and Technology Park. Eurasia Journal of Mathematics, Science and
Technology Education. 14(4). pp.1359-1369.
Dierks, A., 2017. Re-modelling the brand purchase funnel. Wiesbaden: Springer Gabler.
Horvat, A. and et.al., 2019. Understanding consumer data use in new product development
and the product life cycle in European food firms–An empirical study. Food Quality
and Preference. 76. pp.20-32.
Jiao, L.U. and et.al., 2018. Structure innovation and commercialization progress of bio-based
lube base oil. Acta Petrolei Sinica (Petroleum Processing Section). 34(2). p.203.
Jiménez-Jiménez, D. and Valle, R.S., 2021. Innovation, organizational learning, and
performance. Journal of Business Research. 64(4). pp. 408-417.
Joueid, A. and Coenders, G., 2018. Marketing innovation and new product portfolios. A
compositional approach. Journal of Open Innovation: Technology, Market, and
Complexity. 4(2). p.19.
Lee, S., Park, G., Yoon, B. and Park, J., 2019. Open innovation in SMEs—An intermediated
network model. Research Policy. 39(2). pp. 290-300.
Priya, K., 2020. The Customer's Path Impact in Customer Satisfaction. Business management
dynamics. 9(8). p.27.
Reyes, D.R. and et.al., 2021. Accelerating innovation and commercialization through
standardization of microfluidic-based medical devices. Lab on a Chip. 21(1). pp.9-21.
Ries, A. and Ries, L., 2014. The origin of brands. New York, NY: Harper Business.
Ubaid and et.al., 2019. Advancing knowledge in technological innovation: innovation
mapping model. In 2019 Advances in Science and Engineering Technology
International Conferences (ASET) (pp. 1-7). IEEE.
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Valikangas, L. and Gibbert, M., 2015. Strategic Innovation: The Definitive Guide to Outlier
Strategies. London: Pearson FT Press.
Wang, Y.C., Phillips, F. and Yang, C., 2021. Bridging innovation and commercialization to
create value: An open innovation study. Journal of Business Research. 123. pp.255-
266.
Zeschky, M.B., Gassmann, O. and Winterhalter, S., 2014. From Cost to Frugal and Reverse
Innovation: Mapping the Field and Implications for Global Competitiveness.
Research-Technology Management. 57(4). pp. 20-27.
Online references
Sukhyani, M., 2022. What is a Sales Funnel and Why Do You Need One? [Online].
Available through: <https://www.business2community.com/sales-management/what-
is-a-sales-funnel-and-why-do-you-need-one-02282057>. [Accessed on 6thAugust
2022].
Using the Innovation Funnel. 2020. [Online]. Available through:
<https://charlesworthbgs.com/blog/post/innovationfunnel> . [Accessed on 5thAugust
2022].
Whitney, D., 2018. Frugal Innovation. [Online]. Available through: < https://www.frugal-
innovation.com/research-summary/>. [Accessed on 5thAugust 2022].
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