Innovation and Commercialisation

This report discusses the importance of innovation and commercialisation for a company, with a focus on Essence Drinks and their new product, a healthy chocolate mint lassi. It explains the 4P's of innovation, the innovation funnel, frugal innovation, and the tools used to protect intellectual property. The report also covers the company's culture, vision, teamwork, and leadership that shape innovation and commercialisation.

Innovation and
Commercialisation
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Explaining the innovation and identifying its importance for a company in comparison with
the concept of invention.........................................................................................................3
Explaining the company's culture, vision, teamwork and leadership that can shape the
innovation & commercialisation............................................................................................5
TASK 2............................................................................................................................................6
Explaining the 4P's of innovation and explaining the usage of innovation funnel to determine
as well as shaping the ideas for innovation............................................................................6
Explaining the developments in frugal innovation & providing example of how this is used in
the organisational context.......................................................................................................8
TASK 3............................................................................................................................................9
Explaining the importance of commercial funnel & the application of New product
development (NPD) processing for commercialisation of innovation...................................9
Building an Innovation business case for a company, comprising the ways of accessing the
fund.......................................................................................................................................10
TASK 4..........................................................................................................................................13
Evaluating the various tools which a firm uses to create, retain as well as protect knowledge &
intellectual property..............................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
The term innovation is denoted as an important role within the organisation for its growth
and success across the globe. In order to be a market leader or to stay in tough competition it is
important for the firms to initiate innovation within their offerings. The commercialisation is
denoted as the method of introducing a new organisational products or services in the eyes of
customers by implementing various marketing tools that can be effective (ALBANITO, 2020).
The present report comprises of an innovation in the company Essence Drinks where a business
is offering innovation in its drinks having “A healthy chocolate mint lassi” as their new
innovative product. The concept of innovation as well as the invention is being differentiated
along with an importance of innovation. The 4P's of innovation as well as the usage of
innovation funnel and development of frugal innovation is also considered into the discussion. In
continuation to this, a process of NPD is being discussed and a case for healthy chocolate mint
lassi is developed along with different financial options. Lastly, the report covers various tools
that assists in retaining & protecting the various intellectual properties of Essence Drinks.
TASK 1
Explaining the innovation and identifying its importance for a company in comparison with the
concept of invention
The concept of innovation is categorized as the adoption or presentation of some new
product or service that is not available in the market. This also includes some new features that
can gives innovative look to the product or service. This is considered in order to offer high
quality or better products to the customers so to satisfy their needs and retain them for longer
time. The companies brings innovation generally in their existing items that attracts more
customer's and enhances their sales in market. The company Essence Drinks is brining an
innovation within its drinks through launching a healthy chocolate mint lassi for its customers.
The importance of Innovation which respect to Essence Drinks is mentioned below: Attaining competitive advantage: In the tough competitive world, the innovation is the
key to sustainability as well as a strong way of retaining customers for long term. On the
other hand, this assists companies in having a first mover advantage and become a
market leader. The creativity which the businesses brings in their products or services
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helps organisation in attracting huge market share within the industry. With the initiation
of innovation by Essence Drinks, the company offers A healthy chocolate mint lassi
drink to its customers that is not offered by similar firms and through this they can be
able to attain a higher competitive advantage.(Chen, 2021). High satisfaction among consumers: The company can increase its consumer's base
through offering high quality of product via innovation. Through offering an innovative
product Essence Drink can attract large customer's as when the customer's are satisfied
they will be attracted more towards the product. Through this Essence Drinks can have
large share of loyal customer's who in future will prefer services of company in against
of other similar firms. Enhanced market share: The success of innovative product within the market will
enhance the existing market share of Essence Drinks. Company through this has a
potential of attracting large customer's ratio via their new healthy lassi drink. High
market share can also be attained by the company through offering such drinks which are
highly preferred by the customers, this preferences can be analysed through a proper
conduct of market research (Fartash, Mohseni Kiasari and Sadabadi, 2021).Invention
The notion for invention referred to as a development of a new concept or an idea which
does not have any existence before this in market or is not identified by others. The main aim of
having invention is to make the things more easier and comfortable (Kumari and Mor, 2021). In
relation to Essence Drinks the importance of Invention is that it is very much helpful in the
period of globalisation. This heads towards having high competitive advantage in comparison to
competitors. Essence Drinks through this can bring some new concept within its drinks and can
help the society from offering a healthy drink.Comparison of innovation and invention
Basis of comparison
Invention
Innovation
Meaning This denotes to the creation of
new concept or phenomenon
for the first time which can be
This denotes to some
modifications within the
existing item or offering with
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presented for the customer's or
for serves some purpose.
the addition of a new feature
which can be represented as an
innovative product.
Skills needed In order to have an invention
the most essential skill that is
needed to be present is
technical skill.
In the case of innovation, the
most required skills are
marketing, strategy as well as
technical.
Essentials The concept of invention
includes the presence of
specific procedure, people,
service, product, etc.
The innovation needs a
collaborative efforts of
procedure, people, product and
service.
Explaining the company's culture, vision, teamwork and leadership that can shape the innovation
& commercialisation
The innovation as well as commercialisation acts as an important element in the
organisational growth especially for international market. Constant research and development
activities are needed by the company to have successful innovation in Essence Drinks. On the
other hand, commercialisation with respect to company's products or services can be done with
the execution of sound marketing strategies. There are various notions that helps companies in
having healthy competition as well as meeting tough challenges within the industry (Lima,
2021). The major contribution of company's culture, vision, teamwork and leadership in shaping
the innovation & commercialisation with respect to Essence Drinks are mentioned below:Vision
The company is expert in serving soft & health drinks to the UK market. The company
aims at developing healthy drinks for its customers who are health conscious as well as prefers
fresh drink. This directs Essence Drinks in having constant innovation and bring great success to
the company.Culture
The culture at Essence Drinks includes certain assumptions, beliefs, preferences or
several other aspects that justifies the organisational behaviour as well as directs in the
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achievement of their goal. The innovation culture within the Essence Drinks guides the
organisation in having a culture of bringing innovation on regular basis through considering
effective communication, leadership, ownership, etc.Leadership
The democratic style of leadership is being applied in Essence Drinks that allows its
employees to share their views or opinions so can have numerous ideas that gives rise to
innovation. Essence Drinks asks for the suggestions from their staff and aims at providing best
quality drinks to its customers.Teamwork
The company operates with high skilled and effective workforce that assists business in
having better ideas for bringing the innovation as well as provides clear communication related
to the necessary information. The team at Essence Drinks is focused towards having successful
and quality results in its drinks that allows to satisfy their customer's need and achieve efficient
outcomes for their offerings.
TASK 2
Explaining the 4P's of innovation and explaining the usage of innovation funnel to determine as
well as shaping the ideas for innovation
In relation to have innovation within the business, the 4P's of innovation is necessarily
needed to be considered which is mentioned below: Product: This is considered as an item which is provided for the sale and is manufactured
by a specific process with an aim of generating revenues form it. In relation to Essence
Drinks, the procedures in innovation assist the company in having a good quality drink
with the latest innovation in their existing soft drinks within the target market (Lindgren,
2021). Position: This is concerned with the perception of company itself. This is characterized
with a psychological thinking which has an affect upon the innovation aspect. The
position entails the target market or customer's to whom the company is going to cater. In
relation to Essence Drinks, the company position's its product in general market where
people form all age group can easily buy the healthy chocolate mint drink.
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 Process: This is related with some manner which is being adopted by the firm with an
aim of offering high quality drinks to market. This aspect is extremely helpful for the
business in enhancing the manufacturing procedure. In relation to Essence Drinks the
company enhances its internal process so to attain their objectives in time which
eventually will increase their sales as well as generates greater revenues (Liu and Wang,
2021). Paradigm: This includes all those ways which are executed by the business to have easy
innovation process. Paradigm is directly related with some specific thing in the category
of innovation which brings some change within which the actions for innovation could be
taken. For Essence Drinks, the paradigm is concerned with the catering, way of selling
drinks or could be anything that makes the manufacturing or selling process more
innovative.Innovation Funnel:
The innovation funnel is a composition of such method or steps which are considered by
the businesses to initiate their new offerings or procedure in a better and sequential way. The
funnel is being adopted by companies to retain advantage for longer period for such innovative
item along with an implementation of properly structured plan into the operations. The main
component which is needed to be present in innovation funnel is research & development. In the
process of innovation funnel there is an involvement of market analysis in order to determine the
product's feasibility. The stages which are included in the procedure of innovation funnel is
mentioned below: Idea Generation: This includes to the generation of an idea through proper research that
needs to be considered in the process of innovation for the new product. This is done with
an objective of advancing the company's service through a best idea which is best
suitable for the business according to its potential. At this stage, the Essence Drinks aims
at determining the particular problem that is associated with the product (Nwaka, 2021). Investigation of Concept: This is a step where the different aspects of product and the
innovation is investigated that needs to be considered in future while working upon the
item. At this stage, the phenomenon is tested through identifying the availability of
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resources as well as scope of target audience that needs to accomplish objectives in a
particular period of time.

Studying the feasibility: This stage comprises of identifying the product's feasibility
based upon economical, rational & technological elements which would be present in the
product or in its process. The motive behind this study is to determine the idea which is
highly accepted by the market and brings success to Essence Drinks. Also, there is a need
of determining different issues which can take place during the manufacturing or process
of such innovative product (Pintonello, 2020).
 Developing stage: At this stage, the company develops the overall structure of its product
within a considerable manner so to have efficient results and higher sales in market.

Post release phase: This involves the last stage within the process of innovation funnel
where Essence Drinks collects feedbacks from its customer's which can help them in
offering best quality product depending upon the preferences of such customer's. This can
be used by Essence Drinks through conducting survey, filling of feedback forms or via
other method of collecting feedbacks.
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Innovation Funnel

Explaining the developments in frugal innovation & providing example of how this is used in the
organisational context
The concept of frugal innovation is considered as the process which is executed in order
to minimise the manufacturing complexities within company's offerings. The main objective
behind this is to initiate such products which are cost-effective and assists in reducing the
manufacturing wastes. Frugal innovation is very much helpful in ignoring such wastes that are
not providing any value to the business. The process of frugal innovation is being mentioned
below: Identifying the opportunity: This process carries an objective of determining the various
opportunities within the issues that are presently existing in the business. In relation to
Essence Drinks which is offering a healthy chocolate mint lassi to the market is having a
new taste and composition in it. This will result in the development of overall business
performance which will enhance the scope of long term sustainability in market (Russell,
2020). Using less and performing more: This step identifies utilisation of such resources which
involves less quantity or are highly efficient that helps in producing more units. This
assists Essence Drinks in determining the various needs of customers with greater
efficiency. The company generally utilises this feature with an aim of enhancing their
productivity as well as overall performance. Thinking & acting flexibility: The step lists those strategies that are not flexible or are
strict in order to initiate the product modification. This also includes a look up on the
business resources that satisfies the needs & demand of customer's. Adopting simple methods: The stage in innovation talks for the organisational operations
which should not be complex or hard to adopt and is required to be effective. This is so to
enhance the understanding from customers as well as the company's perspective. With
the adoption of regular development, the Essence Drinks is able to attain a competitive
advantage in the market (Saksupapchon and Willoughby, 2021). Including the margin: This talks about the overall profit margin that is associated in the
product which acts as a profit for the firm. Higher cost will leads to low profit margin for
organisation and vice versa.
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
Following the heart: This last stage is considered for the management of company which
demands for the passion & emotions related to the all actions of a company. This is
highly helpful for Essence Drinks in respect to modify their present item or enhancing
their target market along with satisfying the needs of customer's.
TASK 3
Explaining the importance of commercial funnel & the application of New product development
(NPD) processing for commercialisation of innovation
The concept of commercial funnel is denoted as the most essential tool for Essence
Drinks that assists in having more clear decision for innovation. This assists in spreading
awareness for the consumers through that they could have high interest in buying chocolate mint
lassi or other soft drinks from Essence Drink. This is a significant process that supports targeting
consumers for company's products so that the buyers would purchase the drinks more frequently
and enhance their sales.Process of New Product Development:
This is the main component upon which the company focuses more because this process
leads to the development of a new product in order to face tough market competition. In relation
to Essence Drinks the main steps of new product development are as under: Generation of Idea: This is the initial stage in the development of a product in which
huge number of ideas form the staff members are gathered so to come up with the best
innovation. In relation to Essence Drinks the innovative idea is generated with the proper
analysis and having suggestions from all the major stakeholders (Sareen and Pandey,
2021). The idea which the company has generated is of manufacturing a healthy lassi for
its customer's as Mr. Kumar does not wants to move away from lassi. Evaluation of Idea: Here, the lot of ideas which are identified above are now evaluated
and is filtered so to determine the best out of all. The best idea which is evaluated by
them is of manufacturing a healthy chocolate mint lassi. Definition of Concept: The various factors are determined with the innovation such as
market & technical feasibility, product design, etc. The healthy chocolate lassi from
Essence Drinks would be served similarly like of chocolate mint lassi.
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 Strategic Analysis: After analysing and defining the concept of new innovative idea, now
the same is being evaluated with the company's strategies whether it is suitable or not. In
context of Essence Drinks, the company would evaluate the market demand of Healthy
chocolate mint lassi and its considerations such as its cost, the profit margin and others.
This would lead to determine the innovation's truthfulness. Product Development & testing: Here, at this stage the prototype is being created & the
testing for the same in being tested within the business context. Essence Drinks in this
develops the healthy chocolate mint lassi and tests the same from the perspective of their
customer's (Schovsbo and et al., 2020). Market Testing: Here, the company Essence Drinks tests the product which is a healthy
chocolate mint lassi into market and gathers customer's feedbacks so that can modify
before the launch. Commercialisation: After all the above process, the company determines the price of
Healthy chocolate mint lassi and develops marketing plan for the same.

Launching the product: Finally, Essence Drinks at this position launches its healthy
chocolate mint lassi in market for its sales and attracts large customer's.
Building an Innovation business case for a company, comprising the ways of accessing the fundExecutive Summary
Innovation, as well as commercialisation, refers to the two major elements which help the
business to be in market competition. Such form of marketing tactics are adopted by essence
Drinks to promote their new innovative item that is healthy chocolate mint lassi. Simultaneously,
the target market and customers are also identified in order to accomplish the targets in a limited
period. Along with this, investor analysis is also conducted who will fund the innovation project
to Essence Drinks.Background of the Business
The Essence Drinks is a soft drink company within the market of UK which is being run
by Mr, Akshay Kumar. The business is experiencing a set back in its sales from last 2 financial
years which is not providing any growth to the company. So Mr, Kumar planned to have the
innovation which will solve the problem of less sales & revenues.Vision
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The vision of company is to provide healthy drinks into UK market to attain a dramatic
increase in its sales as compared to the competitors.Mission
The mission of Essence Drinks is to provide a healthy chocolate mint lassi to every age
group that can be easily accessible in market by the consumer's at pocket friendly price.Market opportunities
The company is offering a healthy soft drink which is manufactured by keeping
customer's health in mind. This provides an opportunity of high sales in market by purchasing
from each age group for the healthy chocolate mint lassi.Competitive advantage:
The new innovative product by Essence Drink that is a healthy chocolate mint drink has
an potential to attain high competitive advantage because such type of healthy chocolate mint
drink is not available in the market in this variety by any of the competitor firm. Offering such
type of healthy drink to the customer's will allow Essence Drink to attract more customers as
well as more market share which will eventually leads to have an competitive advantage.Size & growth possibilities
The size and growth of healthy chocolate mint lassi is analysed to be huge in UK market
as this is concerned with a sound health and from last few years people are more concerned for
their healths. This provides a huge growth opportunity to Essence Drinks and has a lot of scope
for its sales as well as high market share (Tafotie, 2020).Target Market:
The target market for Essence Drinks is to cater general public that could be easily
accessible by market whenever they makes its purchase. Customer's form every age group is
being targetted by the company for their healthy chocolate mint lassi.Strategy:
Essence Drinks follows a strategy of pricing penetration where at initial level the
company is offering its chocolate mint lassi at nominal or low price and then will increase in
future time. The main aim of this is to enhance the company's sales and attract more customer's
(Tomei, 2020).Promotional Strategy:
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Essence Drinks promotes its chocolate mint lassi via digital marketing where the
customer's who uses smart phones or computers will be targeted more. On the other hand road
side hoardings are also being applied by Essence Drinks.Funding:
This includes various sources of funds from which the company can have investments for
their innovative projects or can raise money for their business. The common funding options that
are available for Essence Drinks are mentioned below:
Angel Investors: These are those financing companies which provides large amount of
funds to the start-ups or to those who brings innovation in their firm. These are generally private
organisations.
Advantage
Disadvantage
 Essence Drinks would be able to
acquire the desired amount of money
with an constant support and guidance
through expertise from investors.
 The main disadvantage for Essence
Drinks from this is that the company is
required to share its board ratio as well
as the decision making power with the
investors.Bank loan: This involves raising of funds from a banking institution in against of some
collateral security equal to the amount of loan taken for a specific time period. Banks are the
financial institutions who deals in lending & borrowing of money from customer's and lending to
the businesses (Tseng, 2021).
Advantage
Disadvantage
 Essence Drinks can get funds from
bank with a full security for a longer
period. This also involves less
processing charges.
 The major disadvantage of bank loan is
that the interest rate which is charged is
very high. Also, this demands for huge
paper work.
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TASK 4
Evaluating the various tools which a firm uses to create, retain as well as protect knowledge &
intellectual property
The notion for intellectual property denotes to the security for company's intangible
assets which creates for the business as well as safeguards the company's product & services.
There is an existence of numerous tools which could be applied by Essence Drinks in order to
safeguard the rights of their property, which are mentioned below: Trademarks: This denotes to the company's logo or any unique identification through
which customer's can be able to identify the product or service or no other similar firm
can offer fully identical services to the market. Essence Drinks through this can safeguard
the identity of healthy chocolate mint lassi drink from its competitors (Urnau and
Canciglieri Junior, 2021). Patent rights: This right is being provided to the companies or organisations who invents
new thing or any phenomenon which is an entirely new to the society. The general
duration for having a patent for a particular item is for 20 years and after which the
experiment is open for the public. The main objective of this is to safeguard the owner's
interest as well as honouring the original work and keeping away the same from any
fraud or theft .

Copyright: This provides those rights to the owners who creates something new or
invents some original work like symbols, inventions, artistic work, designs, and others.
This provides a legal safety to the original owner for their creation or inventions (Yang
and Liu, 2021).
The company Essence Drinks can have safeguard its healthy chocolate mint lassi drink
through having a trademark for the same so that cannot be sold by rival firm under its name.
CONCLUSION
From the above report, it can be said that the innovation is the need of the hour and play a
very important role in organisational growth. In order to bring effective or successful innovation
is it essential to follow 4P's of innovation so that can have smooth workings. Also, the presence
of innovation funnel is denoted as the set procedure of developing the product through adoption
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of various steps in sequential manner. It can also be said that the frugal innovation acts as a
major contributor to the execution of innovative idea in a well structured way. The process of
new product development lists all the necessary steps which are used while developing the
innovative product by the company. The innovation demands for the money in order to meet its
necessary expenses which can be funded by various investors such as angel investors, bank loans
or via others. Since innovation is an advantageous concpet and brings huge growth to the
business so it is very necessary to safeguard such work and keep it safe from different theft or
fraud. This can be done by having various intellectual property rights such as copyright,
trademark or patents.
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