Innovation and Commercialisation in Essence Drinks: Importance, Sources, and Approaches

This report discusses the importance of innovation and commercialisation for Essence Drinks, different sources of innovation, approaches to process innovative ideas, and the importance of commercial funnel to provide a solution. It also includes a summary of a new idea for Essence Drinks, an innovative business case, and techniques for testing the effectiveness of new drinks.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART – 1.........................................................................................................................................3
Difference between Invention and Innovation............................................................................3
Importance of Innovation to Organisations.................................................................................4
Different forms of Innovation......................................................................................................5
Approaches to process Innovative Ideas......................................................................................6
Recommendation.........................................................................................................................6
Part 2................................................................................................................................................7
Background of the company and its problem..............................................................................7
Importance of commercial funnel to provide a solution..............................................................7
Summary of New Idea.................................................................................................................8
Innovative Business Case............................................................................................................8
Techniques for testing the effectiveness of new drinks...............................................................9
Evaluating Tools to Protect Intellectual Property Rights..........................................................10
Challenges that company will face in bringing innovation and ways to overcome such
challenges..................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
The term innovation is used to refer to the process of identifying what is needed and
desired by the audience of the market and matching those with the competencies of technology.
With innovation the gaps that exists between the concept, design, marketing, etc. can be filled.
Further commercialisation is that ability of a business that allows it to create development of
product and protect such development. Commercialisation is also important in protecting the
benefits of the owners in the market. The current report will explain the concept of innovation
and highlights its importance for an organization along with its comparison to invention. The
report will discuss how organizational vision, leadership, culture and teamwork shapes the
innovation and commercialization. Different sources of innovation will be analysed along with
how an environment and culture of innovation is created with an organization. Further in the
report the explains innovation’s 4Ps and use of innovation funnel. The role of frugal innovation
will be appraised in context of case study company. Importance of commercial will be included.
Furthermore, an innovation business case along with the accessing of funding will be done.
Lastly evaluation of different tools that can be used by organization to develop, retain and protect
the knowledge and intellectual property will be done.
MAIN BODY
PART – 1
Difference between Invention and Innovation
Most important thing to note is that innovation and invention are not supposed to be used
interchangeably and certainly do not mean the same thing although they are closely connected
but not synonyms. Businesses now have started using the word ‘innovative’ and dropped the
word ‘invention’ as if they are the same (Coccia, 2018). Innovation fills the gaps between the
invention of the product and its ability of attracting customers and generating commercial
success therefore, innovation spots the potential for improvement in the product and service that
is invented.
It can be very appropriately said that when something new is created it is called invention
whereas, when something saleable is created it is called innovation. Invention involves creating
something that has never been created before or such process of creating something has never
been followed before. So it is something which is wholly new and never been acknowledged by
anyone before i.e., discovering a new thing. Whereas, innovation is the use of a new idea or a

method for introduction of something new in the market and manipulation of already existing
inventions and thus, transforming them into product or service which can be utilized in the real
world.
A product or a service created by an inventor is absolutely and totally original which can
be a technical idea or a scientific process. Now, inventions are needed to be proven that they
work and to do that, innovation comes in the picture (Johnsson, 2018). The innovators here come
up with a process or method which will be pre – existing and such process or method will be
followed to make the invention work and satisfy the need of the market and potential to be sold
to the customers at large.
Importance of Innovation to Organisations
Change is the inherent and inevitable part of any business which needs to be adapted to
and overcome and this is where the innovation plays its role. It helps in fostering the growth as
being stagnant can be very detrimental to the interests of a business. To be able to compete in
today’s highly competitive markets, innovation is the key through which organisational and
economic growth can be achieved (Qin, 2021). It is important for the leadership to have a clear
vision of the goals, objectives and mission of the company to make the company successful.
These key attributions assist the company in guiding team and the vision of the company towards
innovation.
It is universally agreed that a leader can only achieve the capabilities as same as of his
team. Therefore, it is necessary to find employees and workforce who essentially have the
appropriate technical skills along with the willingness to adapt and work accordingly in a team. It
is also important that an environment is created where the innovation is inspired through hiring
and recruiting of people from various backgrounds, allowing everyone to voice their thoughts
and allow employees to experiment with their time and energy.
Development, embedment and measurement of innovation in the organisation has to be
done by agreeing on activities internally which represent the innovation in Essence Drinks and
thus will include selection of indicators of key performance (Anzola-Román and et.al., 2019).
Also, the Essence Drinks will need to ascertain the technological approaches and the initiative
types that will be meeting its explanation of ‘innovation’. The measure of innovation will also
involve knowing the areas of the business which are no more effective in the current markets and
thus will involve transformation of conduct of the business.

Different forms of Innovation
There are different forms or sources of innovation that provides the organisation with a
way for searching of opportunities and also mitigation of the risks. As per Peter F Drucker, these
sources of innovation are of seven types namely the unexpected, incongruities, process change,
industry & market structures, demographics, changes in perception and new knowledge. The
starting four sources as mentioned above relates to the aspects that has already been occurred and
therefore, can be implemented easily. They will also provide with the effective indicators to grab
on the realistic opportunities for innovation. The last three sources pose a large level of risk of
failure but also ensures earning of greater rewards.
The four directions of change an organisation can go through will involve the types of
innovation namely disruptive, incremental, sustaining and radical. Disruptive innovation will
involve utilization of new technologies and high – impact results. Incremental innovation will
involve utilization of existing technologies and for continuous improvements in the current
goods and services. Sustaining innovation involves usage of existing technologies to achieve
major improvement in the goods and services. Radical innovation involves utilization of new
technologies for creation of new markets.
The 4Ps of innovation are used by the organisation to create new ideas and resultantly,
create new goods and services. These 4Ps are:
Paradigm:
Shift in the paradigm means change in the status quo of the business through shifting of the
mental model which is underlying.
Product:
This entails changing of the product or services an organisation is offering (The 4 P’s of
Innovation Every Entrepreneur Must Know, 2021). It can be transformation of the design of the
existing product or even the whole product to be transformed.
Process:
It includes changes in the process of production of the entity which is due to enhanced customer
demand, change in technology, globalization, etc.
Position:
It involves strategy of repositioning from a specific audience to another or even expansion of
audience by covering various other types of audience.

Therefore, it is advised that Essence Drinks should engage in the Product Innovation.
Approaches to process Innovative Ideas
Innovation Funnel is one of the approach for processing of the innovative ideas.
According to this mechanism, a continuous stream of ideas is analysed and screened for their
viability and feasibility which is also referred to as Funnel Management Process. For creation of
innovative and feasible action plans, this approach of Innovation Funnel is utilized by various
companies and is very popular. In this process, number of potential customers are considered by
the organisation and then the profitability of new product or service is evaluated through various
ideas from such potential customers and lot of sessions involving rigorous brainstorming. The
concept is to involve external individuals as well like partners and customer apart from
individual from inside the organisation to come up with ideas.
Another approach of innovation includes Frugal Innovation which involves discovery of
new models of business, reconfiguration of value chains and resigning of products for catering to
the users facing extreme constraints of affordability. Therefore, it includes institutional voids and
resource limitations being overcome and tapped. It is important because it includes handling of
rapidly ageing societies through radical rethinking models of business. Cost of innovation has
been reduced significantly through new technology by creation of new opportunities for frugal
innovators. Emerging and developing economies contains markets that are growing fast which
involves high demand for frugal products and services (Dabić and et.al., 2022). For example,
Samsung manufactures different range of smart phones for customers in India and America. This
represents the approach of frugal innovation as the customers differ in both the countries based
on their choices, preferences and demands. Therefore, it can be said that Essence Drinks can take
innovation funnel approach for expanding its market and introducing new products in the market.
Recommendation
Thus, to derive a new and innovative drink for Essence Drinks, it is recommended to get
the support of top management by raising awareness for the innovation in business model and
referring to the best practices for such innovation along with being persistent. Also setting up of
a diversified team to work on the innovation as different individuals will involve different
background, different set of skills, different experiences, etc. Such innovation can also be
brought through preparing for the changes and being open to the learning from others along with
challenging the primary logic of the business and industry by referring to the varied models of

different businesses (Bouncken, Kraus and Roig-Tierno, 2021). Creation of open culture in the
organisation and utilization of iterative approach will also facilitate such innovation in Essence
Drinks. Value propositions shall be tested by limiting the risks through prototypes, storyboards
and other ways.
The process of change shall be actively managed. This can be done through being a role
model for the employees for the coming changes and setting the incentives to motivate them.
Also, understanding of innovation of business model shall be promoted. A fair and transparent
process of change shall be ensured along with developing the lacking skills in the organisation.
Ensuring an optimistic mind set for such an innovative business model will also be helpful in
managing the process of change and transformation actively (Ortiz-Villajos and Sotoca, 2018).
Finally, it can be said that the above processes need to be monitored and improved if required
which will involve knowing how specifically the ideas are working in the competitive market for
driving up the insights for the actions.
Part 2
Background of the company and its problem
The company named Essence Drinks is founded by Akshay Kumar. It deals in providing
mango lassie to its consumers. The company faces the problem of attracting its customers from
various products made available to the market by its competitors.
Importance of commercial funnel to provide a solution
Commercial Funnel is a tool campiness use as a part of their marketing for the purpose of
finding, qualifying and trading business’s merchandises to the targeted customers. This tool
basically describes the process for generation of ideas, turning those ideas in products, processes
or services that can be seen or that is tangible and can be introduced to the market. Sales funnel
is another name for commercial funnel. The journey of customers leading to purchase of goods
or services in called commercial funnel (Mehdipour-Ataei and et.al., 2018). This process or
journey is divided into 5 parts. Awareness, opinion, consideration, preference & purchase are the
names of these five bifurcates.
Commercial funnel is importance as it is responsible for the visually representing the
pathway of customer that is also same as sales process starting from awareness stage and ending
at purchase of product. Its importance lies in the awareness of consumers’ problem or issue after
which to address such problems potential solutions are find out (Cheng, Zhao and Wang, 2019).

Further the continues efforts are put in by the company with the aim to increase the interest of
the consumers continually so that the sales increase even when prospects of such customers falls.
Social media and other multimedia platforms are used to carry the processes of
promotion and distribution successfully. The access to required funding and needed resources
through commercialization eases up. The processes of new product idea generation include idea
generation, idea screening, and developing concepts and effective strategies to marketing
(Balduzzi, Rücker and Schwarzer, 2019). Before launching product among the consumers it is
made sure that employees have tested it completely.
Adopting commercialisation and NPD enables organization in innovation business case
building and lashing the product into the marketplace. Also in commercial or sales funnel market
launch gets successful is ensured by thorough signifying of market testing and route iteration.
Summary of New Idea
The new idea for the Essence Drinks is to introduce a range of different flavours in
Lassis. Company will start producing its products (Lassie) in mongo, strawberry and rose
flavours. Further the new products of the company will be sugar free. Company will be sugar
substitutes like honey and sweetness of fruits instead of sugar to capture the health conscious
people’s market.
Innovative Business Case
Making of business case is the hardest part of innovation. Clear discussion regarding the
concepts that relates to innovation is done in a good business case. The concepts are tried to be
quantified and qualified at the best. Some requirements of the organization can be enlisted to
easily make innovation business case. The performance of the company can be measured and the
tasks to be performed in future are delivered (Mignone and et.al., 2018). The process undergone
for developing the product, strategy for price, programs initiated to create awareness among
consumers and product introduction into market are included in such innovative business case.
 At first the product that is to be offered is developed. Such product can further be
modified by introducing features or characteristics that are more effective.
 Price strategy is made the most effective one for the purpose of earning huge revenues.
 Another major aspect is the promotional activities. Either a new brand image is created
or the existing generation may lead the old image of the organization.
Projected Expenses

Particulars Amount
Administration Expenses 5000
Salaries and Wages 10000
Marketing Expenses 2500
Supervision Expenses 1000
Miscellaneous 3000
Sources of Funds
 The requirements of funds for product innovation can be fulfilled with taking a business
loan from the form the bank (Hasibuan, Siregar and Sugianto, 2022). Bank loans are one
of the common ways which can help companies in arrange funds for meeting its
requirements.
 Angel investors is another method by which the required funds can be arranged. These
are the wealthy individuals that invest money into businesses having high potentiality to
generate good returns.
 Venture Capital is also an alternate available for the company (Carfora and Scandurra,
2019). Investors investing money into new businesses or small companies having long –
term potential of growth is called venture capital. Essence Drinks can arrange funds
through this alternate.
Techniques for testing the effectiveness of new drinks
A unique approach to handle the problems in the business world is produced by making
innovation business case. The effective to the project being worked upon is brought by having
knowledge of the associated issues and eliminating the elements that distracts or act as noise in
the project.
A step by step systematic model is followed that is well –structured and formed on the
basis of facts that are flourished and propagated, challenges are laid out so that such steps
become visible to all.
Consistency in approach is obtained from the evaluation of business (Ahmad and et.al.,
2021). All the stakeholders are provided with the required information by such consistent
approach that is used in all the cases. Process with transparency makes it possible.

 The process is started with varied tools, the information related to process is structured by
comparing. The definitions to success are clarified, guidelines that are suggested for case
are given to the makers.
 Analysis of cost & benefits is carried, the for the opportunity is clarified, related factors
are analysed, assessment of interests of shareholders and uncertainties are then
elucidated.
 Next competition that exists is assessed, tactics to be used for creation of attractiveness in
the market are outlined, tactics for being able to execute, the appropriate business model
is identified.
 The inputs available, USP and future requirement of the resources are tran- scripted into
commercial projections with timeline and milestones along with the forecasted value in
finance and commerce aspects that is entailed (Sopa and et.al., 2020). Creating idea is
that aspect which is toughest to accomplish. Making of business innovation is not
something that comes from luck, there exists a systematic approach for building it. well-
structuring of innovation provides high opportunities for its identification & realization.
 STP
Segmentation: The segment for the product are demographics and psychographic. Demographics
is selected on the basis of age and psychographic on the basis of the fact that company’s products
are consumed on the certain human attitudes.
Targeting: In the demographics segment the targeted audience is the people of all ages. and
psychographic segment targets at people who are heath conscious (Li and et.al., 2020).
Positioning: the firm positions its products as the health, energy and refreshing products.
Evaluating Tools to Protect Intellectual Property Rights
The purpose that lays behind bringing innovation is to present the market with a new
product or service. Today’s business world is highly competitive making it essential for business
entities to innovate. Customers remain loyal with the company when its innovations are
competent enough. Being a competent innovator and having loyal customer base are essential
component for remain operating in the competitive business (Gürkaynak and et.al., 2018).
Satisfying customers is the key element to achieve success in the market. There are some tools
that are used for developing, retaining and protecting knowledge and IP. Developing of
knowledge means improvements in the existing knowledge in the organization.

Development of knowledge is prerequisite for smooth & stable functioning of the
business. Such knowledge can be developed with trainings. Intellectual property & retaining
knowledge is essential because in business knowledge is inconsequential or insignificant if it
cannot be protected, preserved or applied when required. Knowledge is a tool to survive in ever-
changing and evolving business environment.
There are a number of tools that can used by varied entities for developing knowledge
and protecting of business and its products.
Patents
These are used for the protection of inventions and improvements that a business makes
in its products. For instance, Essence Drinks can safe its business’s products.
Trademarks
The rights over names, images and symbols that business owners use in order to make
products their business offers unique and helps their customer in easy identification of such
products (Holland, Stjepandić and Nigischer, 2018). Essence Drinks brand logo is used to protect
the business by owners.
Copyright
To protect expression of the ideas copyrights are used. Works in the fields of literature,
arts and music are protected with copyright. The advertisement that Essence Drinks made can be
protected from being copied.
There exit some legal requirements that are essential to be followed along with some
formalities before using above mentioned tools.
Challenges that company will face in bringing innovation and ways to overcome such
challenges.
Innovation is becoming highly important nowadays for the purpose of sustaining the
success and growth of the company. there exists number of internal challenges that can hinder
the introduction of innovation in the Essence Drinks.
To being with the first challenge can be that there is not enough power in the employees
that the organizational level to innovate the process or product of the company (Sjödin and et.al.,
2018). innovation in the internal matters of the company can be supported by good leadership
practices.

Furthermore, it may happen that there is lack of motivation in the employees to innovate.
management can use motivating initiatives to counter this challenge.
It may happen that the organization lacks the strategy for innovation to mitigate this
challenge it is essential to have a concise strategy to innovate. lack of collaboration is another
such challenge both internal and external collaboration must be given importance for
organizational success (Mazzucato, 2018). lack of diversity is one challenge to innovation,
building of diverse teams increases innovation prospects. lastly the incorrect method to measure
innovation is also a challenge. appropriate KPIs, sales volume, revenue, etc. should be set to
counter this.
CONCLUSION
On the basis of the above report it has been clear that innovation refers to something new
and commercialization is the process by new products are introduced to the market. The report
has explained the concept of innovation and its significance. How innovation and
commercialisation are shaped by organizational, vision, leadership, teamwork and culture has
been discussed. The 4ps of innovation has been covered with application of NPD. The context of
organization innovation funnel has been analysed and applied. The role of frugal innovation has
been appraised. Further the report has included the importance of commercial funnel. The
innovation business case has been built. Different tools Essence Drinks can use to develop, retain
and protect the knowledge and IP have been evaluated. Lastly the report has critically evaluated
the nature of innovation and challenges that are required to overcome by the organization.

REFERENCES
Books and Journals
Ahmad, M. and et.al., 2021. Can innovation shocks determine CO2 emissions (CO2e) in the
OECD economies? A new perspective. Economics of Innovation and New
Technology. 30(1). pp.89-109.
Anzola-Román, P. and et.al., 2019. Technological proximity and the intensity of collaboration
along the innovation funnel: direct and joint effects on innovative performance. Journal
of knowledge management. 23(5). pp.931-952.
Balduzzi, S., Rücker, G. and Schwarzer, G., 2019. How to perform a meta-analysis with R: a
practical tutorial. Evidence-based mental health. 22(4). pp.153-160.
Bouncken, R. B., Kraus, S. and Roig-Tierno, N., 2021. Knowledge-and innovation-based
business models for future growth: Digitalized business models and portfolio
considerations. Review of Managerial Science. 15(1). pp.1-14.
Carfora, A. and Scandurra, G., 2019. The impact of climate funds on economic growth and their
role in substituting fossil energy sources. Energy Policy. 129. pp.182-192.
Cheng, H., Zhao, J. and Wang, J., 2019. Experimental investigation on the characteristics of melt
jet breakup in water: The importance of surface tension and Rayleigh-Plateau
instability. International Journal of Heat and Mass Transfer. 132. pp.388-393.
Coccia, M., 2018. The origins of the economics of innovation. Journal of Economic and Social
Thought-J. Econ. Soc. Thoug.–JEST. 5(1). pp.9-28.
Dabić, M. and et.al., 2022. Frugal innovations: A multidisciplinary review & agenda for future
research. Journal of Business Research. 142. pp.914-929.
Gürkaynak, G. and et.al., 2018. Intellectual property law and practice in the blockchain
realm. Computer law & security review. 34(4). pp.847-862.
Hasibuan, M. Z., Siregar, S. and Sugianto, S., 2022. ANALYSIS OF SOURCES OF FUNDS
FOR INDONESIAN ISLAMIC BANKS. International Journal of Economic, Business,
Accounting, Agriculture Management and Sharia Administration (IJEBAS). 2(1). pp.9-
12.
Holland, M., Stjepandić, J. and Nigischer, C., 2018, June. Intellectual property protection of 3D
print supply chain with blockchain technology. In 2018 IEEE International conference on
engineering, technology and innovation (ICE/ITMC) (pp. 1-8). IEEE.
Johnsson, M., 2018. The innovation facilitator: characteristics and importance for innovation
teams. Journal of Innovation Management. 6(2). pp.12-44.
Li, H. and et.al., 2020. Three-dimensional large-pore covalent organic framework with stp
topology. Journal of the American Chemical Society. 142(31). pp.13334-13338.
Mazzucato, M., 2018. Mission-oriented innovation policies: challenges and
opportunities. Industrial and Corporate Change. 27(5). pp.803-815.
Mehdipour-Ataei, S. and et.al., 2018. Soluble, thermally stable, flame retardant quinoline-based
poly (ester amide) s. Soft Materials. 16(4). pp.265-274.
Mignone, K. and et.al., 2018, April. Innovative Business Case Evaluation Guides Portland,
Maine Through Tough Choices Among CSO Alternatives. In Collection Systems
Conference 2018 (pp. 311-325). Water Environment Federation.
Ortiz-Villajos, J. M. and Sotoca, S., 2018. Innovation and business survival: A long-term
approach. Research policy. 47(8). pp.1418-1436.
1

Qin, Z., 2021, December. The Analysis of the Innovation Factor Can Affect the Success of the
Startup Company. In 2021 3rd International Conference on Economic Management and
Cultural Industry (ICEMCI 2021) (pp. 1002-1006). Atlantis Press.
Sjödin, D. R. and et.al., 2018. Smart Factory Implementation and Process Innovation: A
Preliminary Maturity Model for Leveraging Digitalization in Manufacturing Moving to
smart factories presents specific challenges that can be addressed through a structured
approach focused on people, processes, and technologies. Research-Technology
Management. 61(5). pp.22-31.
Sopa, A. and et.al., 2020. Hard skills versus soft skills: which are more important for Indonesian
employees innovation capability. International Journal of Control and
Automation. 13(2). pp.156-175.
Online
The 4 P’s of Innovation Every Entrepreneur Must Know. 2021. [Online]. Available through: <
https://dutchuncles.in/aspire/the-4-ps-of-innovation-every-entrepreneur-must-know/ >
2