Innovation and Commercialisation in Essence Drinks: Sources of Innovation, Frugal Innovation, and Innovation Funnel

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 In compared to invention, the value of innovation to organisations...........................................3
P2 Organizational vision, leadership, culture and teamwork may all influence innovation and
commercialization............................................................................................................................4
M1 Various sources of innovation and also how organisations may promote and build an
innovative environment and culture.......................................................................................6
D1 Analyse how innovation is developed, embedded and measured....................................6
P3 The Four P’s of innovation and how to utilise the innovation funnel to evaluate and shape
creative ideas....................................................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context......................................................................................................................8
M2 Application of innovation funnel.....................................................................................9
M3 Role of frugal innovation.................................................................................................9
D2 Produce financial reports that accurately apply and interpret data for a range of business
activities..................................................................................................................................9
P5 The significance of the commercial funnel and the use of New Product Development (NPD)
processing......................................................................................................................................10
P6 An organization's innovation business case and financing options..........................................12
M4 Business Case for Innovation that incorporates measurements of overall effectiveness
utilising suitable methodologies to test, iterate and enhance...............................................14
P7 Organizations can utilise a variety of techniques to generate, maintain and protect knowledge
and intellectual property................................................................................................................15
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment.................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCE.................................................................................................................................16

INTRODUCTION
Innovation is referred to a constant process of creating new product or services for its
customers which could satisfy their needs and wants. Commercialisation is the process of
bringing of transforming thoughts, data and creativity to more monetary for the individuals,
corporates as well as society. The monetary incentives and market comprises of other business
and it required an acceptable return on the investment, design and development of products as
well as research in the rivalry industries. Essence Drinks is taken as the base company. In the
mentioned case study, Mr. Akshay Kumar's firm, Essence Drinks was established in the United
Kingdom two years ago with the launch of mango lassi which is regarded as a nutritious
beverage. In this report, it discusses the difference among invention and innovation and also the
several forms of innovation. Along with this, the procedure of commercialising invention is
mentioned. Moreover, it includes several strategies for protecting ideas and comprehending its
merit and demerits.
P1 In compared to invention, the value of innovation to organisations
Innovation is considered as the converting of ideas into reality. In other words, it could be
described as an change that made their efforts to the good and services in order to meet with the
consumer's needs and preferences. This takes place when a fresh and innovative commodities
penetrates and increases the customer wants by providing high quality goods and services.
Innovation can be referred to the launch or developing of new commodities, methodologies,
technology as well as the personalization of present products for fulfilling the demands of
customers and market (Auby, 2019). The process which has its contribution in the developing of
ideas and thoughts as well as its converting to consumer demanded commodities are
encompasses in the innovation definition.
The functions of innovating, creating or researching a fresh goods and services, procedures
is termed as inventions. It is the fresh and ideal logical conception which is generated with
testing and evaluating the commodity. Invention is considered as the developing of new product
or service with the potential to generate revenue and innovation is the alteration of products or
services which already exists to elevate consumer fulfilment and hence gain huge benefits.
In the case study, Essence drinks had high revenue in their first year as such to the
innovative blending but the business had a significant drop in sales after the second year due to

powerful competition. The company has to focus much more on innovation (Bigliardi and et. al,
2021). To get a competitive advantage in the business, organisations must significantly increase
manufacturing process. In terms of promotion or packaging, more focus might be placed on
modernizing the beverages. The difference between invention and innovation is mentioned
below:
Invention Innovation
 Invention is stated as the generation of
new ideas for product or service that
has not been developed by anyone.
 It is the creation of new product
 This has original ideas and the work
which is to be done will be in theories
 It is concerned with the single
production
 Innovation is the execution of the ideas
or product for first times.
 This adds value that is already present.
 This is based on the practical execution
of the new idea
 It is concerned with the collaboration of
several goods and service
P2 Organizational vision, leadership, culture and teamwork may all influence
innovation and commercialization
Innovation as well as corporate abilities plays important role in the success and failure of
organisation. The selected organisation bring various innovations in products and services
category that facilitates business to develop meaningful qualities in existing products or help to
expand product line through introducing new products in market place to attract customers. The
continuous innovation helps in organisational growth and development and maintain effective
positioning. If organisation regularly provides new and innovative products and services in
market, they will be able to differentiate it form other competitors as well as provides sustainable
competitive advantages (Bracken and et. al, 2020). Organisation examines current market trends
and customers needs and demands then take decision for introducing new products that satisfies
customers and retain them with organisation for long period of time.
Company's vision: Vision statement is defined as the written commitment that contains
organisational main objectives and goals for which it come in existence and want