Innovation and Commercialisation: Importance, Impact, and Frugal Innovation

This report discusses the importance and impact of innovation and commercialisation for businesses, including the use of frugal innovation. It also covers the process of new product development and methods for protecting ideas.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................4
PART 1............................................................................................................................................4
P1. Explanation of innovation and determination of its importance to organisation in compare
to invention..................................................................................................................................4
P2. Explanation of impact of vision, leadership, culture and teamwork which shape innovation
and commercialisation ...............................................................................................................5
M1. Analysation of different source of innovation and and ways in which organisation can
foster and develop an environment and culture innovation .......................................................6
P3. Explanation of 4P's of innovation and use of innovation funnel to examine and shape
innovative ideas...........................................................................................................................7
P4. Explanation of development of frugal innovation and example of how it is used in context
of organisation.............................................................................................................................8
M2. Analysation and application of innovation funnel in context of organisation ....................9
M3. Appraising role of frugal innovation in context of organisation ........................................9
Conclusion.......................................................................................................................................9
PART 2..........................................................................................................................................10
P5. Explanation of importance of commercial funnel and application of new product
development processing for commercialisation of innovation.................................................10
P6. Building an innovation case for organisation and ways of accessing funds.......................12
M4. Building a detailed business case including ways in which it measure overall
effectiveness of appropriate techniques available to test, iterate and improve ........................15
P7. Evaluation of different tool used by organisation to develop, retain and protection of
knowledge and intellectual property ........................................................................................15
M5. Presenting support based evaluation of different tool in context of wider business
environment ..............................................................................................................................16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Innovation is a process of introducing new ideas, technology, service and process in
market which provide competitive advantage to market (Akinwale, 2020). It helps to satisfy
changing requirement of business and also helps to reinforce brand of company. This report
includes evaluation of Essence Drinks which is providing Strawberry lassi to their customers in
order to differentiate their products from competitors. It provide competitive advantage to their
organisation and allow them to capture more market share. This report includes explanation of
innovation and invention and also determination of difference between invention and innovation.
It contain explanation of different types of innovation and process required for
commercialisation. Moreover, it evaluate different range of method to protect ideas.
PART 1
P1. Explanation of innovation and determination of its importance to organisation in compare to
invention
Innovation: Innovation refers to a process of implementation of new ideas which results in
introduction of new products and service or improvement in existing products and service
(Bouvier, 2020). It can take place through process, products, art, work, technologies. Innovation
provide various benefits to business as it improve their performance and productivity and also
reduce cost of company.
Invention: Invention refers to develop something which is completely new in market and never
been made before. This innovation cab be in form of device, experiment, process and
contrivance. With invention, business can develop and introduce something completely new in
market which helps to provide solution to problems faced by business and customers.
Importance of innovation:
Creative development: Innovation are essential for business as it helps them to learn
things which helps them to be creative in market (Chrysaki, 2020). It helps business to develop
and learn new skills which provide them opportunities and potential in new market.
Reinforce brand: Developing brand is one of important things in an organisation as it
helps them to build positive image of company in minds of their customers. Innovation helps
company to introduce new ideas in market on basis of changing requirement of customers. This

helps them to increase satisfaction of customers which is driver of success. It provide
sustainability to organisation in maintaining their brand.
Respond towards competition and trends: Innovation helps business to bring new
ideas, product and service or improvement in existing products or service (Chrysaki, 2020)
(Ding, Zhang and Wang, 2020). It helps business to introduce new ides which provide
competitive advantage to firm. It helps them to compete with other marketing players in market
and also helps to make modification in products as per requirement of customers.
Difference between innovation and invention:
Innovation Invention
Innovation is implementation of new ideas,
product and process in market for first time.
Invention is occurrence of ideas for products
and service which has not been made before.
Innovation adds values to existing products
and service
Invention is process of developing new
product.
It is based on practical implementation of new
ideas.
It is based on an original idea or a working
theory.
It require sett of technical marketing as well as
strategic skills.
It require scientific skills for development of
new product.
It spread across organisation as all members
can participate in developing new ideas for
innovation.
It is limited to research and development
department for developing new idea or product.
P2. Explanation of impact of vision, leadership, culture and teamwork which shape innovation
and commercialisation
Commercialisation is a process of introduction of new products, process in market. This
process contains distribution, production, customer support, marketing, sales which helps to
attain success in market (Faff, 2021). It is different from innovation as innovation is concerned
with improvement of products of company and commercialisation is linked with launching of
new products for purpose of increasing revenue of business.

Vision: Vision of Essence Drinks is to be customer centric organisation which is
concerned with changing needs of customer. This organisation aims at understanding needs and
requirement of customers which satisfy them with products and service. They are also focusing
of innovation which helps them to enhance taste and experience of their customers with their
drinks.
Leadership: Leadership is a process of influencing others in order to attain business
goals and objectives. There are different styles of leadership which can be adopted by leaders for
attainment of their goals and objectives (Fartash, Jahangirnia and Sadabadi, 2021). Managers of
Essence Drinks is adopting democratic leadership which is suited to their requirement and allow
employees in decision making process.
Culture: Culture refers to behaviour and belief which determine ways in which
management and employees interact with each other and also handle transaction of business. It is
an essential part of organisation as it improve productivity and performance of business. Essence
Drinks is an organisation which is promoting positive working culture in business which
encouraging innovation and commercialisation. It helps to enhance improve productivity and
engagement of employees.
Teamwork: Team work refers to collaborative efforts of group which helps to complete
task in efficient and effective manner. Essence Drinks has various team which are working for
growth and success of company. These ream has mutual understanding which allow them to
communicate efficiently which reduce probability of conflict in their organisation.
M1. Analysation of different source of innovation and and ways in which organisation can foster
and develop an environment and culture innovation
Innovation is essential for a business in aspect of their survival which helps them to get various
opportunity in market. This analysation consist opportunity as well as risk in marketplace which
helps them to get competitive advantage in market. There are various source of innovation which
are mentioned below:
Unexpected success and failure: Innovation can be occur from anywhere like from unexpected
success and failure (Gama, Florén and Sjödin, 2021). It provide scope to an organisation to
develop opportunity of innovation in their business which helps them to expand their market
share.

Process improvement: Innovation is be occur from needs of improvement in process as
sometimes there are some aspect is missing or weak which create opportunity of innovation.
P3. Explanation of 4P's of innovation and use of innovation funnel to examine and shape
innovative ideas
4P's of Innovation:
Product: Product innovation refers to development of creation as well as subsequent
introduction of products and service which can be new or improvement in existing products and
service (Habiyaremye, 2020). It consist introduction of new product, improve performance as
well as enhance quality of products. Essence Drinks is adopting innovation by introducing new
flavours of lassi in market. Change in products should be made by company as per requirement
of customers.
Process: Process innovation is type of innovation which includes changes in technology
and equipment used by company. This helps company to improve performance of their products
and also reduce cots. Essence Drinks can adopt this innovation as it provide them opportunity to
adopt new technology which improve productivity of their organisation.
Position: Position innovation refers to change related to products and service introduced.
Some business are lying to their target market and told story about it. Essence Drinks is making
strong position in market as it is providing what they are claiming to their products. It helps to
build mutual trust between employees and organisation.
Paradigm: Paradigm innovation refers to changes which are underlying in mental culture
as well as model. It frame doings of organisation as it helps to handle expression of
understanding which is appreciated by customers.
Innovation Funnel: Innovation Funnel refers to mechanism which allow constant stream of
ideas in business which can be screened for viability of business. This tool helps business as well
as individual to develop innovation successfully (Harris and Wonglimpiyarat, 2020). It helps in
narrowing down ideas for process of innovation and to check viability of their action plan. It
consist large numbers of ideas which helps to shape ideas in business and also helps to prioritise
ideas to develop advance projects.
Use of innovation funnel
Developing best ideas as per requirement of business: Innovation funnel helps in business of
Essence Drinks in develop best ideas which suits to requirement of business and provide them

opportunity to earn profit in market. This process helps to increase probability of success of
business ideas in market and also provide opportunity to increase their marketing share.
Efficient use of resources: Innovation funnel helps in efficient utilisation of resources which
helps in develop best ideas which has higher probability of success in market. It helps in
ensuring there is minimum wastage of resources in company.
P4. Explanation of development of frugal innovation and example of how it is used in context of
organisation
Frugal Innovation: Frugal innovation refers to a process of reducing complexity as well as cost
of products and its production. In this process, focus of an organisation is on removing non
required features, characteristics and attributes in products and service (Hilal and Gunapalan,
2020). These products are sold by organisation in developing countries. In this, focus of
company is to dealing products in a manner which helps to increase durability of their products
and rely on unconventional distribution of channel.
Use of Frugal innovation:
Frugal innovation is an important process for an organisation which helps business to
reduce cost of their products and service by eliminating their features and attributes. It can be
achieved by company with reducing complexity of their products. It helps business to develop
provide products at cheaper rate which provide them competitive advantage to business. It is
used in emerging marketing which provide various benefits to company by increasing their sales
and marketing share.
Essence Drinks can adopt frugal innovation in their business as it provide them
opportunity to earn profit and also helps them to improve their performance. With this frugal
innovation, thy can target to middle income group by reducing cost of their products. It can be
done by making changes in ingredients, production process and packaging.
Examples of Frugal Innovation:
 Essence Drinks use raw material and other resources of local market for operation of their
products. It helps company to reduce total cost which allow them to reduce prices of their
products.
 Essence Drinks is also reduce cost of their products by changing their packaging. This
company is presently selling their products at lower rate which can be changed with

plastic bottle. These plastic bottles can be recycles easily which allow company to put a
step towards protection of environment.
M2. Analysation and application of innovation funnel in context of organisation
Innovation funnel is an essential process which is adopted by an organisation in process of
innovation. For adopting innovation, Essence needs to develop new ideas from different source
like competitors, customer, supplier, employees and many more. In order to select best ideas
among them, business needs to adopt innovation funnel. This helps to check feasibility of ideas
which increase changes of success of innovative idea. Managers of Essence Drinks are getting
various ideas, among them they are choosing to provide Strawberry to their customers.
M3. Appraising role of frugal innovation in context of organisation
Frugal innovation refers to process which is used by an organisation for eliminating non essential
features in company in order to make their products for affordable. With this, company can sell
their products at less amount which is beneficial for them. Frugal innovation is useful for
Essence Drinks for various reason which are as follows:
 Decrease cost: Frugal innovation provide opportunity for company to reduce cost of their
products by removing non essential features. This allow company to produce low cost
variants of their products.
 Convert limitation into opportunity: Frugal innovation allow company to product
products in less resources which allow company to turn limitation into opportunities.
Conclusion
From above mentioned project report, it can be concluded that innovation is important for
any business as it ensure long term survival of business and also provide opportunity to expand
their marketing share. Innovation has 4Ps which includes paradigm, place, products and process.
Innovation funnel is another aspect which is used in innovation process which helps to analyse
all ideas on basis of their feasibility and select on which suits to requirement of company.

PART 2
Introduction
Innovation and commercialisation both are important fro a business as innovation helps to
develop new product based on new technology, idea, process whereas commercialisation helps
business to introduce new product in market (Hu, Tang and Motohashi, 2021). This project
includes analysation of Essence Drink which is selling mango lass in market of UK. This project
report includes discussion of commercialisation and innovation and also includes process of new
product development. It also includes evaluation of range of method for protecting ideas and
understanding their advantage and disadvantage.
P5. Explanation of importance of commercial funnel and application of new product
development processing for commercialisation of innovation
Commercial funnel: Commercial Funnel refers to marketing tool with which an organisation
can find, quality as well as trade merchandises to customers (Larios-Hernández and Reyes-
Mercado, 2020). This funnel break journey of customers into different stages from awareness to
purchase.
Importance of Commercial Funnel:
Helps to pick a marketing strategy: Commercial Funnel is important for business as it helps
business to understand about different marketing tools along with business model which is
required by a entrepreneur to be successful in market (Nyemba, Mbohwa and Carter, 2021).
There are some marketer which are preferred to concentrate on clients which are in decision
section of sales funnel as it is easier for them to turn action of those customers in actual sales.
Helps in relating with customers: There are different ways of describing a products, content of
products and conversation to client which create impact on process of actual sales of company in
sales funnel. It is important for a business to be able to identify and understand would be
customer in sales funnel as it helps them to make changes in tone of company, allow them to
develop well content which helps them to relate products of company with needs of customers in
effective manner.
Increase sales: With adoption of effective marketing strategy for business and understanding of
how to relate products with customers in effective ways, business can drive more customers and
increase their sales Understanding sales funnel allow an organisation to be able to get more sales

in long run. Sales funnel principle helps to an enterprise to learn how to pull different factros
systematically in order to get desired outcome.
Application of new product development:
New product development refers to a process of launching new products in marketplace.
Business needs to adopt this process due to changes in preference of customer, technological
advancement, increasing competition and to capitalise new opportunity (Olivari, Jolly and
Undseth, 2021). Essence Drinks can adopt new products development by following steps which
are mentioned below:
Idea generation: It is first step in new products development in which company develop unique
and different ideas from internal and external source. Internal source are those research and
development team of company whereas external source includes innovation of competitors,
preference of customers, suppler and many more.
Idea screening: This stages in one which screen large numbers of ideas and goals of this stage is
identify ideas which are feasible and line with values of customers.
Concept development and testing: In this stages of product development, ideas of products is
development into details in order to test that orientation of it as per customers.
Development of marketing strategy: This stage focused with development of strategies in
order to launch products into market. There are various strategies adopted by company related to
price, revenue, distribution and advertising.
Business Analysis: This strategies concerned with an analysis in order to analyse sales , revenue,
risk and feasibility of product. If all these factors are satisfied, then this process move to next
stage.
Product Development: Product development is another stage in which company align goals and
objectives of company with products.
Test Marketing: In this stage, business is involved in testing of products and develop marketing
products in realistic marketing setting (Paluch and Deetlefs, 2020). This stage provide includes
decision of how a products is to be introduced in market, decision related to packing, advertising
and many more.
Commercialisation: Commercialisation is a process in which decision is made related to launch
of products or put it on back burner on basis of information gathers on test marketing process.

P6. Building an innovation case for organisation and ways of accessing funds
Business Case:
Executive Summery Essence Drinks is an organisation which is planning to introduce
new products in market which is a lassi with new flavours of fruits
like Strawberry and other variants in order to attract prospective
customers (Ren, 2020).
Objectives  To increase sales of company in upcoming months with
10%
 To improve image of by providing unique and new
flavours in lassi product.
 To increase profit of company with 15% in next 6 months.
Solution For attainment of objectives of business, Essence Drink is
planning to launching new flavours of lassi in business which
helps them to differentiate their products from competitors and
allow customers to enjoy summer with Strawberry.
Innovation in service For innovation in products and service of Essence Drinks,
managers of company is using fresh fruits like Strawberry and
others which helps them to enhance taste of customers. It also
helps business to fulfil requirement of customers and satisfy their
demands.
Research In order to introduce innovation, Managers of Essence Drinks
needs to conduct market research which helps them to gather
various information in market and also enhance knowledge of
company (Wimschneider, Agarwal and Brem, 2020). There are
internal as well as external source of innovation in organisation
which provide them various ides to adopt innovation.
Funding There are different source of funds which can be used by company
in order to raise finance for carry out their operation. Thee sources
of finance used by Essence Drinks includes bank loan, angel

investor, crowd funding.
Benefits Innovation provide helps business of Essence Drinks for various
reason as it provide them competitive advantage in market and
helps to differentiate their products from those of competitors.
New flavours of Lass helps them to provide something new in
market and helps them to provide variety to customers.
STP analysis:
Segmentation Essence Drinks are segmenting their customers on basis of Geographic
segmentation.
Targeting Managers of Essence Drinks are targeting segment which is profitable,
reachable and large in size.
Positioning This organisation is positioning their products ass healthy drinks which
enhance health of their customers.
4P's of Innovation:
Product Essence Drinks is an organisation which is selling Strawberry lassi to their
customers in order to satisfy them in market.
Price Essence Drinks is selling their products like Mango lassi, Strawberry lassi in
affordable prices which can be easily purchase by all income class
customers (Yassine, Souhila and Amel, 2020).
Place Managers of company can sales their product in place where it can be easily
purchase by customers like grocery stores, dairy and other places.
Promotion Managers of Essence Drinks are using social medial marketing in order to
increase sales of Strawberry Lassi which helps them to increase awareness
of their product.
Situation analysis:

Strength Weakness
 Essence Drinks are providing different
variants of their products in market like
Mango lassi, Strawberry lassi and many
other flavours.
 This organisation is providing
innovation in flavours as they are
working on providing more new
flavours of lassi to their customers like
grapes, papaya lassi.
 Sales of Essence Drink is decreasing
rapidly which also results in decreasing
profit of company.
 Essence Drink is offering product
mango lassi which can be copied by
competitors easily.
Opportunity Threat
 Company is adopting innovation which
provide them opportunity to introduce
new flavours of lassi.
 They can expand their product range
and also expand geographically in order
to increase profit of company.

 There is increasing competition in
market of UK which create threat for
business of Essence Drinks.
Different ways of accessing funds
Companies are seeking from different source which helps them to grow their business.
This funding represent an act which contribute resources to finance program, project and needs.
These funds can be initiated by company for long term as well as short term. Different source of
funds for business of Essence Drinks are mentioned below:
Angel Investor: Angel Investors refers to those individual who are promising to provide
funds to startup business for exchange of share in form of equity and royalties. These investor
are usually involve family, friends and relative of an entrepreneur (Zhao and Cui, 2021). This
investor also provide valuable advice to business by taking participation in management of
company. It provide various benefits to business as it contain less risk and contribute in
generating number of jobs in business.

Bank Loan: Bank loan refers to finance which is received by a person from bank with an
assurance of returning it in future period of time with principle and interest. Bank is charging
interest on amount which they are providing to business and provide them freedom to spend this
money as per their requirement. It provide benefit of tax to business as tax is deducted after
interest is payable to banks.
Crowd Funding: Crowd Funding refers to a process of use of small amounts of capital from
large individual in order to finance business venture. It includes use of easy accessibility of wide
network of people with use of social media platform. These platform helps to bring investor as
well as entrepreneur together and provide opportunity to entrepreneur to expand their pool of
investor.
From above mentioned discussion, it can be interpreted that Essence Drinks can access
funding from Angel investor and Bank loan. These funds can be easily accessible without any
terms and condition.
M4. Building a detailed business case including ways in which it measure overall effectiveness
of appropriate techniques available to test, iterate and improve
Essence Drink needs to focus on innovation in order to increase their sales in market.
These sales are decreasing rapidly which create threat for their organisation. Focus of company
on innovation helps them to attain business goals and objectives. Goals of this innovation in their
business is mentioned below:
 Objectives of company is to increase their sales in upcoming years with 30%.
 To adopt effective and efficient marketing strategy in market in order to increase
awareness of their product with 10%
 To invest more on innovation in order to increase their product range to capture more
market share.
It is important for company to measure effectiveness of business plan of company with
management tool. For this, they can conduct marketing research in order to understand needs of
customers. They can also take feedback from employees of their strategy which helps them to
implement strategy in their organisation effectively.

P7. Evaluation of different tool used by organisation to develop, retain and protection of
knowledge and intellectual property
Intellectual Property refers to a category of property which intangible creation of human
intellect. There are different types of intellectual property which includes trademark, patent,
copyright and many more. Intellectual property law introduce in order to protect these
intellectual property. Main goal behind this law is to encourage creation of wide variety of
intellectual good. Different laws which protect these intellectual property which helps business
of Essence Drinks are mentioned below:
Trademark: Trademark is one of intellectual property which consist sign, design,
expression which identify products and service from a specific source from those of others. With
existence of this law, any company cannot copy similar expression. It is an exclusive right which
is provide to business and helps to build mutual trust and goodwill. It helps to differentiate
products of company from others and also recognise quality of product.
Patent: Patent refers to granting of property right through sovereign authority to an
inventor. It provide exclusive right to an investor which helps to protect patented process,
invention or design for a special period of time. Patent prevent other to use or copy specific
selling, manufacturing and importing of invention with out permission of inventor.
Copyright: Copyright refers to an intellectual right which provide exclusive right to
owner and allow them to copy their creative work in limited period of time. This creative work is
in form of literary, educational, artistic and musical form. Main aim of this rights to to protect
original expression of idea in terms of creative work.
M5. Presenting support based evaluation of different tool in context of wider business
environment
Different tools are used by business for protecting intellectual property of an organisation. These
tools of intellectual property which helps them to prevent other for using creative work, symbol,
invention, design. These tools of intellectual property is mentioned below:
 Copyright: Copyright refers to a right which is used by an organisation in order protect
expression of idea in form of creative work like musical, artistic or literary.
 Trademark: Trademark is another tool which is consider by business for protecting
name, image and symbol which helps to differentiate their product from others.
 Patent: Patent is also used by an organisation for protecting from use of others.

CONCLUSION
From above mentioned project report, it can be concluded that commercial funnel is one of
marketing term which is used to reflect journey of customers to buy a products. It helps business
to develop an effective marketing strategy, increase sales and also helps to relate products of
company with customers. New product development is an important process in innovation which
requirement different stages from generation of idea to commercialisation of product,. There are
different sources of funds from where business can raise finance in order to carry out htrier
operation which includes bank loan, venture capital, angel investor, crowd funding. Business use
different tool for protecting their intellectual property which includes trademark, patent and
copyright.

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