Innovation and Commercialization

This document discusses the difference between invention and innovation, the value and importance of innovation in the dairy industry, the 4 P's of innovation, the use of the innovation funnel to shape innovative ideas, the development of frugal innovation, and recommendations for Delamere Dairy drinks to derive an innovative drink and access funding.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
1. Explanation of the difference between invention and innovation...........................................1
2. value and importance of innovation which is focussing vision, leadership, culture and team
work along with embedded leadership and culture at various Dairy products............................2
3. 4 P’s of innovation along with use of innovation funnel to shape innovative ideas...............3
4. Development in frugal innovation along with approaches which Delamere drinks can take to
process innovative ideas..............................................................................................................5
5. Recommendations about the nest step which Delamere should go through to derive a
innovative drink and ways to access funding..............................................................................6
PART B...........................................................................................................................................7
Background of company and its problem....................................................................................7
Importance of commercial funnel................................................................................................7
Matching goal to resource and capability....................................................................................8
Risk assessment...........................................................................................................................8
Frugal innovation to analyses value............................................................................................9
New innovation to meet stakeholder needs.................................................................................9
Technique to test effectiveness of innovation...........................................................................10
Resource requirements...............................................................................................................10
Tools to protect intellectual property rights of new drink.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the recent time companies are continuously focusing on growth and development of
business hence they are making changes in its existing products or developing new ideas.
Innovation works as growth strategy for firm and aid business in gaining competitive advantage.
Present study is based on Delamere Dairy drinks that is the firm that serves dairy products to
consumers. Enterprise is facing issue of declining sales thence it is planning to come up with
some new ideas. Study will explain innovation and its importance to business. It will evaluate the
4P’s of innovation. Funding requirement for innovation will be explained. Rport will explain
various IT rights and tools to protect innovation.
PART A
1. Explanation of the difference between invention and innovation.
Innovation has become as buss word in the business world which complement the
company to be called as innovative. Even through innovation and invention have the same sound
but have the more level of difference. Innovation have related to the novelty and modernization
whereas the invention to related their creation which something new. In addition to that
innovation have led to more level of creativity which can be applied to various aspects of life
with right form industries for personal managements. On the other hand, in case of invention
companies have patenting their respective inventions for one reason which prevent the misuse of
idea.
In more level of purest sense, inventions can be defined as the creation of products or its
introduction in the first-time process as on other hands innovation in improvement which makes
the significant level of contributions to the existing product, process and respective service. To
have the deep level of understanding, it can be understood as invention is when new idea has the
strikes in the mind of business entrepreneur and they significant have the filing of patents. In the
contradict position innovation is when felts to be for products or the existing product is been
redesigned to have improvement in order develop the new one. In addition to that’s novelty is
about the basic premise of inventions which is considered as the central idea behind respective
innovation. Inventions is having its existence without any level of precedent while the innovation
have the changes in adding value to existing product and service.
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As per the few authors, it has been stated that’s innovation I considered to be more
important as comparative to inventions or the investor who may have inventing something little
or no level of uses. As invention have transformed to the novel innovation into more level of
substantial idea. Invention is something’s which is fresh ad practical assessed by the customer in
the satisfaction aspects. On the other hand, innovations are considered to be modern idea which
is been applied to the present situation.
As per the school of thoughts, innovation is inventions plus exploitation. Hence it is about
the taking more tangible things by having the applying in new and pioneering way. Hence, in
innovation, invention is the primary level of attempts to have the bring idea into more practice.
Innovative creativity is key to the success of a business and has to underlie any viable
commercial concept but there is need to forget invention as it is the primary aspects to make
everything possible at the first place. On the other hand, it have been contradicted that’s
invention have concern in the singular product of the process where as the innovation have
involvements of amalgamation which use of various products and process. This have resulted
that’s the company have more level of focus on the innovative ideas as it has the clear level of
relation to novelty and modernization whereas the creation is reacted to invention which is
something new.
2. value and importance of innovation which is focussing vision, leadership, culture and team
work along with embedded leadership and culture at various Dairy products.
Innovation is the important level of organization in more way to have the fostering of the
new level of ideas in descriptive product and services by giving more level of staff for the sense
of more level of job satisfaction by encouraging team work. This allows to have the finding of
more competitive advantages in the marketplace.
This is another key value with more longevity of business which have seizing more level of
opportunity to have innovates to make the life more comfortable. Hence the penetrating more
market places which provides better connection to have developing the market which lead to
bigger opportunities in more rich countries for the development of the dairy products.
Innovation value is the process which is delivering the company introduction with more level of
new technologies which upgrades which are designed to achieve the more level of product
differentiation and low cost. Value innovation is the key principles by making business approach
with creating the new level of market places of fighting competitors existing market share.
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The innovation is business have the clear level of resemblance of vision along with strategy to
achieve it. The innovation visions help to move the firm into the future state for present state.
On the other hand, the firm do not have the innovative vision with statement to end up to have
obsolete and obscured. Teams go through different developmental stages. It is important to be
aware that the needs of a new team will differ from those of a more established team.
In order to have the achieving the innovative leader have the needs to make powerful
imagination along with excellent communication skills in order to have confidence to team in
work together in order to achievement to have developing the market which lead to bigger
opportunities in more rich countries. Creative genius is considered to be important task to have
ability.
Leaders make the help in fostering more level of commitment to embrace an innovation mindset
where each employee learns to apply the differences that exist in one another for their own
success and that of the organization.
Innovation have the clearer areas to have achieving the real innovation in productivity by having
the continuous level of implementation in the improvement culture for the more competence in
organization and culture. There is more developing the talents along with innovative products by
building new growth factory this is more level of collaboration. There is more level of innovative
cultures start with a philosophy and a tone one analogous to the classic parenting advice that
children need both “roots and wings.”
3. 4 P’s of innovation along with use of innovation funnel to shape innovative ideas
Innovation refers new ideas and creative thoughts which makes companies able to being
in the competition and attracting customers. It can be done in 4 types such as products
innovation, process innovation, position innovation and paradigm innovation. All these
innovation are being discussed in a detailed manner below:
Paradigm: It includes changes in ways of operating business, By making changes in the way an
organization do business or by making it effective and easier companies can take several
advantages. This includes changes in: business model. For example: Delamere dairy drinks can
who uses print published products and for innovating it, it can switch it from print to online
platform (Tainter and et.al., 2017).
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Product: It includes specific and attractive changes in products in order to make them attractive
by making changes in products’ features and others. It is one of the most used innovations which
most of the companies use and do in order to attract customers. But for making it successful
Delamere dairy drinks will offer energy drink (soya energy drink) to people with having all
nutritional values which will help them out in increasing or improving immune. But for making
it more successful they will require suggestions from professionals and staff in order to make
better decision.
Process: It includes changes and making the process innovative as how companies can create
their products offering in a better way. For example: Delamere dairy drinks can focus on
supplying process, employment of people like if they are making use of external recruitment than
it can use internal as well with the help of internet and others. Training process is also one of the
important parts of process innovation.
Position: It covers those areas in which services and products of an organization are formed. The
way of communicating regarding products and services to people and how products are being
delivered. How do people see and review company in regards to products and its all factors (Ma
and et.al., 2019). So, overall it can be said that making changes in some factors which can
change views of people to see the company and improving image is known as position
innovation.
So, from the above it can be said that making changes in products will be the best as
along with dairy products; this company can be in a good position by selling energy drinks to
people.
Innovation funnel: It refers an idea which helps companies in improving their new product
development by telling them that how generated ideas can be implemented as an effective
innovation. There are several types of funnel innovation or steps of funnel innovation and by
evaluating company can select the best one as per their requirements and product development
such as:
Mouth of funnel: In this step, company needs to generate ideas by taking suggestions of
employees. After having a lot of ideas different solutions are being used for promoting. One of
the main aims of using all solutions is identifying the best one for new product development
(Burmeister, Lüttgens and Piller, 2016).
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Narrowing funnel: On the basis of goals and the nature of innovation, company needs to sort
the main idea in this stage. Company also needs to evaluate this stage by considering all factors
which can affect their innovation process. For example: analysis of cost of each solution, risk
analysis as well as profitability.
Narrowed: In this stage, after evaluating each solution and idea, company needs to execute
innovation. After that they also need to perform testing and controlling function.
4. Development in frugal innovation along with approaches which Delamere drinks can take to
process innovative ideas
In the context of frugal innovation, it can be said that it is an effective process in which
company can change method or modify it which can help them out in reducing overall cost. So,
the main aim of frugal innovation is all because of reducing cost and improving productivity
with sales. So, in the context of Delamere dairy it can be said that with the help of this frugal
development process it can remove deviation and develop new product (Soya energy drink) in a
successful manner (Weyrauch and Herstatt, 2017).
Delamere dairy is facing stiff competition as there are several companies or dairy who are
providing same products as like Delamere dairy like curd and others so, it is important for this
company to make its new product development successful with reducing cost and it can be
possible with frugal innovation. Therefore, frugal innovation of Soya energy drink is used by
Delamere dairy with the help of it and it will allow it to produce products at lower cost,
attracting customers, increasing sales and profitability. There are several ways by which this
company can take full advantage of frugal innovation such as:
 Design thinking at product level as it wants to offer soya energy drink which consists of
several features and values.
 System thinking at macro level.
 New ways of product development.
So, it can be said that one of the main reason of frugal development innovation is creating value
by responding to reducing in resources which may include: materials, financial, institutional and
others.
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5. Recommendations about the nest step which Delamere should go through to derive a
innovative drink and ways to access funding
On the basis of above discussed all type of innovation, it is stated that company is making
changes in its products and it now wants to offer soya energy drinks because it has several
benefits. It is the best for those who go to gym and take energy drinks to the great extent but
many energy drinks have side effects. This soya energy drink has all nutritional elements which
male and females both can have. There is no side effect of it. But rather, this I can suggest to this
company that it needs to focus on process innovation along with product innovation because
process is one of the main think by which it can decrease cost, waste materials and attract
customers want to prefer to buy products from those companies who are sustainable and use
natural resources to the limited extents as it increases image of the company. Company can make
a strong position in the maker and also can become the market leader in this industry (Anzola-
Román and et.al., 2019).
By providing training to all employees it can motivate them and make them able to give
effective suggestions to the company. By getting suggestions and ideas from employees and
making them involved in decision making process, it can take advantage of innovation.
In addition, I can also recommend to this dairy company that company should focus on
following all steps of funnel innovation for new product development in such way:
Mouth of funnel: In this stage, manager of this dairy company can collect ideas from its all
stakeholders in order to make its product development successful as well as knowing ways of
delivering them to customers. It should also need to invest in market research in order to identify
needs of customers and current market trends.
Narrow: In this stage with the help of professional it needs to make ideas narrowed as well as
screened. For making this step successful and reducing errors it should match its ideas with its
objectives. It can allow it in knowing whether it is on the right track or not or it can help it out in
accomplishing goals or not.
Narrowed: After using idea which is being selected by this company of selling soya energy
drink, company should think about ways to make customers aware about new products as well as
identifying best ways of delivering it to customers (Pisoni, Michelini and Martignoni, 2018).
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PART B
Background of company and its problem
Delamere Dairy drinks is the limited firm of United Kingdom that is working in market
since 1985. Firm offers goat and other dairy products to wide range of customers globally. Right
now it has branches in many locations such as Hong Kong, Singapore etc. High competition is
the major issue faced by Delamere Dairy drinks. As there are many companies that are offering
same kind of products and services to consumers and many buyers are moving towards these
firms frequently (Lindgren, 2020). Due to this firm is loosing its sales and profitability of
business unit is declining. There is need to implement some new ideas or introduce some new
innovative product that can gain attention of consumers so that Delamere Dairy drinks can
sustain in market for longer duration.
Importance of commercial funnel
Commercial funnel can be defined as responsible process in which company identify
needs of consumers and review their journey and accordingly make changes in its products so
that it can gain satisfaction level of its buyers. Commercial funnel is essential for gaining
commercial benefit to Delamere Dairy drinks (Rissanen And et.al., 2020). As by using this
process entity can modify its products in significant manner and can attract more customers
towards the brand. Delamere Dairy drinks should come up with juice products. People like to
have healthy juice that make their body strong. This is demand of people as they do not want any
kind of juice that affect their body badly. Hence if Delamere Dairy drinks offers them healthy
drinks then it will be better for company to raise its sales and deal with competition in effective
manner.
Delamere Dairy drinks can do social media marketing to make its consumers aware about
its new healthy drink products. Use of social media will help in enhancing engagement of
consumers and it will generate more quarries about its new products (Hilbolling And et.al.,
2020).
Delamere Dairy drinks should implement the process of new products development
carefully. It has to first generate product and then screen the idea must be done. After that testing
of particular idea needs to be done. Once idea is confirmed then firm has analyses business
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situation and have to use beta testing method at the time of launching this new healthy drink
product (Toms, Wilson and Wright, 2020).
Delamere Dairy drinks has strong workforce and is able to manage its resources well. It
has adequate funds that make the firm capable to make changes in its products and introduce new
product in market. This would be better for company to resolve the issue of high competition and
declining sales due to competition. This would generate profit to company and will help firm in
gaining success in market.
Matching goal to resource and capability
The goal of Delamere Dairy drinks is to enhance sales of its new products healthy drink
in UK market and also to develop its global brand image. For meeting this goal it is very
important for business unit to have great process and great management (Ghasemaghaei and
Calic, 2020).
Delamere Dairy drinks is having great talented workforce who is dedicated towards
business. They support firm in every critical situation. This capability of Delamere Dairy drinks
makes it able to implement this new product successfully and gaining success in market.
Delamere Dairy drinks also has adequate funds. It can use this fund in product modification
process and its marketing process so that sales can be generated and more consumers can get to
know about this new healthy drink product.
Investment strategies of Delamere Dairy drinks are great which make firm more capable
of doing these changes in its operational process (de Andrade, 2020).
Risk assessment
Delamere Dairy drinks is the medium size firm but has capability to manage changes at
workplace properly. But implementing innovation is not a easy process. Company may have to
face many risk due to which it can loos its market image and can loose its existing position as
well. One of the major risk that Delamere Dairy drinks can face by implementing healthy drink
product is financial risk. As enterprise has to invent huge capital to make this new product, it
requires supply costing, operational costing etc. If it fails to generate profit then it would not be
able to manage its financial position well (Saharuddin And et.al., 2020). Hence financial risk is
the major risk that can affect the firm badly. Likelihood and probability of occurring this fund
risk is moderate. In order to manage this risk company need to conduct proper market research,
after evaluating demand of healthy drink it has to invest in this new product.
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Delamere Dairy drinks can also face human resource risk. Employees of company are
trained to produce dairy related products only. They have no idea about drinks. Hence they may
get failed to produce high quality healthy drink. Apart from this changes in production can
enhance resistance of them as well (Lindgren, 2020). Likelihood and probability of this risk is
quite high. But to mitigate this risk Delamere Dairy drinks needs to train its staff members and
have to make them aware with important of this changes. This will be better for business to get
positive attitude of staff members. By this way firm will raise skills of person about this
innovation and they will produce new healthy drink effectively that would help in meeting needs
of stakeholders.
Frugal innovation to analyses value
Frugal innovation is the process of the tool that is used by companies to minimise cost of
production and complexities in production process. This process is helpful in creating value to
business. As firm can improve its quality by implementing frugal innovation process. Delamere
Dairy drinks can know more about customers and can improve quality to meet their requirements
(Rissanen And et.al., 2020). This is also valuable as it improves distribution chain of business
because by using this technique firm can ensure accessibility of its goods to consumers. As it is
helpful in reducing cost hence healthy drink new product can be available to end user at
affordable rates. Delamere Dairy drinks needs to take care of servicing, input cost so that it can
meet its desired target successfully and can gain success in market with innovative product.
New innovation to meet stakeholder needs
Delamere Dairy drinks is planning to offer new product healthy drink to its valuable
consumers. As demand of such kind of product is very high in UK market hence offering them
such kind of drink will meet their requirements. Customers are most important stakeholder of
business they will be satisfied because they will get desired quality material at affordable rates.
Employees are another stakeholder of company, if sales of healthy drink is increasing then
people will get more incentives and appraisals (Toms, Wilson and Wright, 2020). Hence
expectation of workers will also be met. Government is another stakeholder that want that public
health remain maintain. By offering quality and healthy drink company is taking care of health of
people hence need of government will be met. Hence this innovative idea is able to meet
expectation of stakeholders of Delamere Dairy drinks effectively.
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Technique to test effectiveness of innovation
Customer feedback is the major tool through effectiveness of healthy drink can be
measured. Test marketing must be used , as before introducing product in actual market firm
needs to test this product with few customers if they are responding in favour then firm need to
launch this healthy drink in market otherwise it has to make changes in it. This feedback will
help in knowing effectiveness of this product (Ghasemaghaei and Calic, 2020).
Resource requirements
In pored to proceed this innovation of new healthy drink Delamere Dairy drinks needs
funds or financial resources. This fund can be received by business through banks. Financial
institutes provides capital to companies to expand their business. This would be easy source of
finance through which firm will be able to get huge amount that would meet its long term
funding requirement. Delamere Dairy drinks can show its annual reports to get loan. But this can
enhance long term liability of firm but this is easy to repay in easy instalment. Delamere Dairy
drinks can also get funds from retained earning. It can keep its part of profit save and can use it
for further development (Saharuddin And et.al., 2020). This is company’s own capital hence it
will not increase liability hence this is another easy source of finance to business.
Tools to protect intellectual property rights of new drink
Intellectual property rights help business to protect their unique ideas.
 Patent: this is the right that protects design and new invention of person. No other person
can use it without having permission of patent owner.
 Trademark: this is another IT right that is taken by business to make it different from
other companies (de Andrade, 2020). Healthy drink of Delamere Dairy drinks can be
protected through trademark. Image, name can be protected through this It tool.
 Copyright: musical words, artistic work can be protected through copyright.
By using these tools Delamere Dairy drinks can protect it self from misuse of healthy
drink by other firm. By using trademark Delamere Dairy drinks can develop new logo for its
healthy drink and can develop its image with this logo.
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CONCLUSION
From the above assignment, it can be concluded that innovation played a vital role in an
organization as it makes companies able to take advantages of external opportunities. It has also
shown a difference between an innovation and an invention and how it creates changes. This
present study has discussed importance of leadership, culture and all team working in making
products and processes of companies innovative by providing suggestions, helping by
cooperating and their extra efforts. This study of innovation and commercialization has shown all
4 p’s of innovation or all those 4 P’s in which innovation can be done and which can help
companies in accomplishing their goals. Frugal innovation and development in this innovation
also played a vital role. It is one of the best ways which changes the overall strategy of
development.
It has been concluded from the above presentation is new product development played an
important role as this development in new product makes an organization able to make an
effective position in the market and become the market leader. Commercial funnel or buying
process also can make several changes because it is the main process through products of
companies are being delivered to the final customers after identifying and finding appropriate
products. Lastly, it has discussed some tools which companies use for developing as well as
retaining intellectual property.
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