Innovation and Commercialisation: Importance, 4Ps, Frugal Innovation, and Tools for Knowledge and IP Protection

This report discusses the importance of innovation and commercialisation for organisations, the impact of organisational vision, leadership, culture, and teamwork on shaping innovation and commercialisation, the 4Ps of innovation, the use of innovation funnel, frugal innovation, and tools for knowledge and intellectual property protection. The report includes a case study of Essence Drinks, a company that offers high-quality and innovative drink products to customers.

Innovation and commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................3
TASK 2............................................................................................................................................4
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................4
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................6
TASK 3............................................................................................................................................7
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................7
P6 Build an Innovation Business Case for an organisation, including ways to access funding..9
TASK 4..........................................................................................................................................10
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation can be described as the practice of considering new and creative ideas for
performing business practices in an effective manner. Commercialisation is referred to the
process of managing or running product and service principally with the motive of enhancing
financial gains (Liu and et.al., 2020). It is important for organisation to consider innovation and
commercialisation while conducting business practices as it will lead to have positive impact on
attaining desired goals of business. This report is based on Essence drinks. This organisation was
founded by Akshay Kumar with the motive of providing high quality and innovative drink
products to customers. This company was developed 2 years ago and its offers only one drink
products that is a healthy mango lassi in UK Market area. This organisation has accomplished
dramatic growth and development in sales but in recent year this organisation has issues of
decrease in sales. This is due to the high competition in market area. This report includes
information regarding innovation along with its importance for business. It consists of impact of
vision, leadership, culture as well as team work for shaping innovation and commercialisation.
This includes 4 P’s of innovation and innovation funnel. It includes developments in frugal
innovation within organisation. This report consists of significance of commercial funnel as well
as application of new product development. Apart from this, different tools for retaining,
developing as well as protecting knowledge and intellectual property are determined.
MAIN BODY
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation can be define as process of creating new and creative idea, product and so on.
Innovation intends to improve or replace something that includes any process, products and
services. Innovation is critical to the progression of society as it tackles different sorts of social
problems and improves society's ability to act (Astiti, Sakapurnama and Huseini, 2020). This is
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significant in order to deal with different problems in a sustainable and efficient manner by
considering new or innovative technology. These new advances, products and services at the
same time meet a social need and lead to further developed capacities and better utilization of
resources and assets. There are different benefits and advantages of considering innovation in
business practice as it will lead to have significant impact over business performance and
capabilities.
Importance of innovation
There are different importance and significance of innovation which will lead to have
major impact over growth and development of business. Different benefits that could be gained
by Essence drinks company through innovation practice are mention below in detail –
Constant Improvement – Innovation is significant in order to provide organisation
sustainability when business needs to improve its performance as well as re- think about
organisational practices. Any good supervisor will perceive the need to enhance and develop the
business abilities to expand their creativity. Through consideration of innovation in business
activities, it will provide different opportunities of growth and development in order to increase
overall business performance.
Reacting to Competition and Trends – There are different types of trends in market area
as well as practice of rival companies which will lead to have affect over business. Innovation
can assist business with determining what exists now in promising circumstances as well as
upcoming market trends (Akhundjanov and et.al., 2020). Businesses which do not react to the
current necessities of their clients or customers but anticipate the future trends and think of a
thought, services or products that can fulfil the future need rapidly and effectively.
Comparison between innovation and invention
Innovation Invention
This can be described as the act or activity of
making changes in the current offerings with
the introduction of completely new or creative
idea.
This is refer as the developing or creating a
completely new products or services.
In innovation process, there are some more
value added in the current or existing products.
Whereas, in invention new product is created
with the motive of full filling needs and wants
of customer.
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This includes practical implementation of
advance or new idea.
This consist of an original idea and process in
the business practices.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
It has been determined that organisational vision, leadership, culture as well as team work
will lead to have major impact on shaping innovation as well as commercialisation. It is essential
for respective company to consider different elements in order to improve innovation and
commercialisation activities. Impact of these elements or influence of organisational vision,
leadership, culture as well as teamwork on shape the innovation or commercialisation is mention
below –
 Vision – The vision of Essence drinks company is to increase sales of organisation
products by provide high quality drink products to customers. It is essential for respective
organisation to consider its vision while performing and conducting business practices
successfully. Through innovation and commercialisation, Essence drinks company will
be able to create different formula for its drink products that is helpful for attracting more
and more customers towards business. This will lead to increase sales of products as well
as meeting requirements of customers.
 Leadership – Leadership can be described as the capability or potential of an individual
for successfully influencing others to carry out business practices in required manner. It is
essential for the respective company to have effective and efficient leadership with in
company that will lead to increase its performance and capability to attain desired goals.
Through accurate leadership within Essence drinks company, leaders will be able to
provide right and correct direction it its employees for successfully implementing
innovation and attaining desired goals. Leadership is important for motivating staff
member to increase their potential of shaping innovation and commercialisation within
business. Leaders have capability to encourage employees to correctly adapt new and
innovative activities as well as perform task in the required manner. Essence drinks
employees will be able to accurately shape innovation and commercialisation. This will
lead to have positive impact over business and help in improving sales.
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 Culture – Culture is referred as the belief and behaviour that is significant for determining
how organisation employees as well as management will interact (Zhang and et.al.,
2021). It is essential for organisation to have effective and positive working culture in
order to successfully and effectively conduct business practices. Culture is significant for
describing business policies, regulation, rules and so on that is appropriate for creating
working environment. The culture of Essence drinks company is very positive and
friendly that will lead to have major affect over innovation and commercialisation. It is
crucial for respective company to create working culture which is effective for adopting
innovative practices as well as commercialisation by developing training culture with in
business with the motive of enhancing business performance as well as attaining desired
goals.
 Team work – Team work is considered to be very important in order to enhance or
improve innovation and commercialisation. This is effective in order to encourage team
member to successfully and effectively work by considering innovation (Nissen and
Knudsen, 2020). Team work will lead to have major impact over growth and
development of Essence drinks company as it play crucial role in enhancing innovation
and commercialisation. Respective company needs to create a team of capable employees
which is effective for adopting innovation and performing commercialisation practice.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
There are 4 P’s of innovation that is significant for enhancing business practices as well as
attaining desired goals. It is crucial that Essence Drinks Company is consider different P’s of
innovation with the motive of improve or increase business practices (Liu and et.al., 2020). This
will lead to have major impact on organisation practices and assist in attaining growth and
development. The 4 P’s of innovation are Product, process, Paradigm and position. These are
mentioned below in detail -
 Product- This is refer as any good or service that is offered by the organization to the
potential customers. It is the crucial element for an organization as it will procured their
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incomes by selling these products. With the adjustment of market necessities, an
organization ought to innovate and refresh its product to support itself on the lookout.
Essence Drinks company products includes high quality and healthy drink products
 Process - It is a way by which an organization works or conducts its practices.
Additionally, it includes the strategy by which the product is offered to the customers. It
crucial to the planning process of Essence Drinks company product and services as well
as includes the steps like preparing and recruiting individuals, workflow, supply and
some more. Any imaginative thought that aides in working on the process of organization
ought to be embraced by the organization to build the benefit and proficiency of the
process. Either changes can be made to a current process or it tends to be supplanted by
an inventive new process (Wang, Phillips and Yang, 2021).
 Paradigm - It is an approach to innovate or commercialize in an organization by
arranging the process. An arrangement is set down how the inventive ideas or thinking
will be embraced by the organization. The change could be little or immense yet this
process doesn't ensure positive outcomes. Essence Drinks is creating healthy drinks with
different natural ingredients.
 Position - It is identified with the psychological aspect and mindset regarding business. It
is the customers view of where the organization remains on the lookout. Essence Drinks
company is positioning products as the high quality and healthy drinks which will
provide different health benefits to consumer. It can changed by advancing the product all
the process of promotion of a product to the clients.
Innovation funnel is very effective and efficient tool that is used by organisation in order to
determine innovative ideas as well as prototype which can be screened for viability. This assist
company to increase business performance as well as improve innovation within company to
attain desired goals. The innovation funnel is a technique that permits screening of ideas as
indicated by the attainability. The innovation funnel is extremely valuable to shape creative ideas
of Essence drinks company. This is significant tool in order to prioritise ideas and ensure that
most effective or best idea is determine for developing projects, products as well as other
innovative practices (Scott and et.al., 2020). This funnel is a system which allude as the ceaseless
stream of creative ideas also as process that can be evaluated for reasonability. This is consider
as critical method of the board which is consider by different organization for the best and huge
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ideas for business. This help in taking better and compelling choice for upgrading business
rehearses. Through the support of innovation funnel overall sales of Essence drinks company
will be increased.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is also known as frugal engineering which is developed with the
motive of reducing the issues form development of products. This is very effective and efficient
tool that is useful for business in order to increase its practices as well as attain desired goal.
Frugal innovation can be refer as the process which is consider for organisation to diminish
complexity as well as cost of products. This is significant for business in order to deliver more
valuable products at lower cost to large number of customers (Lin, Xiao and Wang, 2021). It is
fundamental for Essence drinks organization to think about frugal innovation with the rationale
of limiting cost of making new and creative products. Through frugal innovation Essence drinks
will actually want to variety its product offering just as beaten various issues that could influence
creation of products. Essence drinks needs to collaborate with innovative partners with the
motive of reducing cost of production. This advancement or improvement in frugal innovation
will help various organization to convey more important products and services to customer in
lower cost.
Essence drinks company need to adopt a mindset of simplicity as well as extremely low
cost without scarifying the quality of products and services offered to customers. This is critical
for keeping up with high quality of products in order to effectively address different issues and
needs of clients. The tradition innovation practices begins structure the top to down approach
where as in the frugal innovation its starts to work with the bottom to up. Frugal innovation can
be described as the capability of business to generate considerably business along with this social
values by reducing the usage of scarce resources. The reduction cost of making products as well
as providing excellent or healthy drink products of various flavour to customers will assist
Essence drinks company to attract more and more customers. This organisation needs to make or
foster various kinds of drinks products to full fill needs of wellbeing cognizant clients. Essence
drinks needs to consider frugal innovation with the motive of creating and developing business
strategy of development as well as creating more health drink products at lower cost. Frugal
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innovation will help with bringing down the cost of assembling various kinds of drinks just as
drawing in enormous number of clients. This aide in further developing deals of Essence drinks
just as making more effective and healthy drinks which is huge for keeping up with wellbeing of
clients (Siegel and Guerrero, 2021). Adjustment in the assembling system with the help of frugal
innovation will help in fulfilling needs and needs of clients. This will lead to have positive
impact over Essence drinks business as well as assist in enhancing overall sales and profitability
of organisation. It is crucial that Essence drinks organisation is consider frugal innovation funnel
with the motive of increasing and improving business activities of providing high quality and
health drink products in order to increase its profitability and revenues. Respective company will
be able to reduce the cost of developing and creating products. This will lead to influence large
number of customers to purchase Essence drinks products.
TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel can be described as the marketing tool that is significant and effective for
organisation to determine the quality as well as trade its merchandises to potential customers.
This is very effective tool for increasing sales of business by offering high quality products and
services to customers (Li and Mupondwa, 2021). This is the main reason it is also called sales
funnel and it is useful for classifying different needs and wants of customers with the attention to
products to real buying of products. Commercial funnel is significant of Essence drinks to draw
in huge number of clients to buy contributions of organization. Significance of commercial
funnel is context of Essence drinks company is mention below –
 Determine customer needs – This is important to identify and analyse the needs of
customers as well as take effective decision for organisation. Commercial funnel is
significant to increase understanding about customer needs so Essence drinks company
can make and foster products which is as indicated by the necessities of client.
 Analyse customer journey – This is critical for analyse the customer journey for the
underlying different phase of attention for buying of products (Lin, Xiao and Wang,
2021). Essence drinks needs to identify and analyse the customer journey in order to
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improve provide products and services which is according to the needs of customers. This
is essential for better performance and improving sales of Essence drinks products.
 Improvement in business – Commercial funnel is critical for breaking down various
components of Essence drinks organization just as deciding or distinguishing various
regions for development. This is significant for business as it will help company to
analyse the area which needs to be improve for attaining desired goals and objective of
business.
New product development
New product development can be described as the cycle that is effective for creating and
developing high quality products and services in order to significantly meet with the
requirements of business (Kunicina and et.al., 2020). This can be describe as the method
involved with making and growing new products and services which is critical for addressing
needs of customers. This is significant process of business which is useful for planning products
by thinking about advancement. This is huge for fulfilling business sector and client’s necessities
just as surpassing the assumptions for clients. There are various phases of new products
development cycle in respect to creating different flavoured lassi is explain below in detail –
 Identification of ideas – The primary phase of new item development is distinguishing
thoughts for making new products or services. Essence drinks is wanting to foster new
beverages which is more health for clients. This company is focusing on creating or
introducing different flavours of drink which is significant for meeting customers needs.
 Development and testing of product – Once the idea of developing or creating product
has been determined by business it is essential to actual develop a product. For creating
new products Essence drinks company will require different kinds of ingredients which is
helpful for creating new product. It is essential to test the flavoured lassi product in order
to check its taste and effectiveness.
 Creating marketing strategies – If the flavour of lassi product is appropriate as well as
meet with the expectations then it is essential for company to develop effective marketing
strategies. Essence drinks organisation needs to consider social media and news paper as
the marketing strategy for providing information to customer about its products.
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 Commercialisation and launching of products – once the marketing strategies are created
it is crucial to successfully commercialise and launch the products in market area.
Essence drinks company will position its products as high quality and health drink which
is beneficial for overall health of individuals (Dunn, 2020).
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Funding can be describe as the cash or money that is needed by organisation to do its
exercises just as maintained a business effectively. It is essential for an organisation to have
proper funding in order to carry out its practices in effective manner. Funding is crucial for
Essence drinks organisation to effectively and viably directing business activities. It is
fundamental for business to determine various sources or methods of getting to fund with the
goal that all activities of making, creating, manufacturing, selling, commercialisation of products
and services can be acted in proper way. Funding is refer as the practice of giving financial
resources or money which is critical for addressing needs of business and effectively directing its
practices. Essence drinks company needs to have potential for getting to funding to acknowledge
innovation in its business and upgrading by and large execution (Li and et.al., 2021). This will
assist in properly developing new lassi products as well as increasing profits of business. There
are a few different ways and approaches of funding, for example, angle investors, bank loans,
small business administration loans, venture capital, etc. There are both pros and cons of various
funding sources. So it is essential that respective organisation is considering source that is correct
and appropriate for business needs. Essence drinks organisation have to analyse economic
condition, strategies of competitors along with the policies and rules of government for
successfully developing new and innovative product of Essence drinks. Different ways of
accessing funds are mention below in detail –
 Angel investing – This is refer as the way of accessing funds by the influencers who want
to invest in a business. angel investors are investing in the business which they feel have
potential to have a profitable future.
 Working capital loan – There are different kinds of loan that could be availed by small
business for meeting short term needs of liquid cash. It has been analysed that working
capital loan is hugely resourceful for business as it is granted for half to on year.
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 Cloud funding and crowd funding – This can be describe as the way of financing through
the support of internet by a number of investor groups that allows business to pitch ideas
(Ardiansari and et.al., 2020). Crowd funding is refer as the group of small business
financing individual that help organisation ideas to reach out various prospective
investors through different platforms.
TASK 4
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
Intellectual property can be refer as the production of the mind which comprise of creation,
imaginative work, images, design, plan as well as other kinds of innovative work form others. It
is fundamental for Essence drinks company that is business to effectively create, retain or protect
new and inventive result of business structure other rival organizations. Intellectual property play
significant role in enhancing or improving business practices as well as keeping innovative
practices or knowledge protected from other. Through creative and innovative idea or products
Essence drinks company is able to attract more and more customers towards business as well as
increase the sales of new lassi products. There are high possibilities that other individual can
miss utilize the information or data of creative result of particular company. rival organizations
can duplicate imaginative thought and execute in their business practices to draw in huge number
of customers. Intellectual property is refer as the category of the property which includes
intangible creations of the human intellect. There are different kinds of approaches for protecting
and retaining intellectual property such as copyright, patents, trademarks and so on.
 Copyrights – This can be describe as the collection of rights which is automatically given
to the individual who has created original work. Copyright is significant in order to
provide authorship to work such as literary, video, software and so on (Li and et.al.,
2021). This right is significant in order to protect the work form other people so that no
one can misuse it. Copyrights are consider as the legal rights that is given to the person or
organisation for creating an artistic or innovative work. Through copyright, new lassi
product can be protected from the copying or imitation by other companies.
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 Patents – It can be describe as the practice of providing exclusive right which is given for
an innovative or creative work. Patents consist of protection to innovative product,
process and practices with the motive of retaining and protecting intellectual property and
knowledge form other as well as enhancing business practices. Patents are significant for
securing important and creative knowledge of Essence drinks company.
CONCLUSION
As per the above report, it has been concluded that innovation and commercialisation play a
significant role in enhancing overall practices as well as leads to improve business performance.
Through innovation and commercialisation, organisation will be able to gain competitive edge
over other rival companies. It has been analysed that organisational vision culture, leadership and
team work will lead to have major affect over shaping innovation. It has been identified 4 P’s of
innovation and innovation funnel which is very useful for improving business activities. It has
been analysed that through commercial funnel company will be able to reduce its cost. Company
will be able to attract and influence large number of customers towards business by successfully
reducing the cost of creating and developing products. Apart from this, it has been analysed that
there are different tools which could be consider by organisation for developing, retaining as
well as protecting intellectual property and knowledge of business.
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