Commercialization of Radical Innovations: A Single Case Study

This assignment delves into the commercialization of radical innovations, focusing on a single case study. It also covers various topics such as open innovation in SMEs, collaboration modes, and strategies for commercialization in technology-intensive companies. The document provides relevant literature and research studies on these subjects, including articles from reputable sources like Science Direct, ResearchGate, and the Journal of Business Venturing. The assignment includes illustrations and diagrams to aid understanding, making it a valuable resource for students and professionals interested in innovation management.

INNOVATION
AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Innovation and its importance to organisation in comparison with invention.................1
P2. Organisational vision, leadership, culture and teamwork shapes innovation and
commercialisation...................................................................................................................2
M1. Sources of innovation and ways for fostering and developing an environment and culture
of innovation...........................................................................................................................3
LO 2.................................................................................................................................................4
P3. 4Ps of innovation and use of innovation funnel to examine and shape innovative ideas 4
P4. Developments in frugal innovation and its uses in organisation......................................6
M2. Application of innovation funnel in organisational context...........................................6
M3. Role of frugal innovation in organisational context.......................................................8
D1. Critical analysis of how innovation is developed, embedded and measured in
organisational context.............................................................................................................8
LO 3.................................................................................................................................................9
P5. Importance of Commercial Funnel and application of New Product Development........9
P6. Innovative Business Case and ways to access funding..................................................10
M4: Detailed innovation business case................................................................................11
LO 4...............................................................................................................................................11
P7. Different tools used for developing, retaining and protecting knowledge and intellectual
property.................................................................................................................................11
M5. Evaluation of these tools in wider business environment.............................................12
D2. Critical evaluation of nature of innovation and how organisation overcome challenges to
develop successful innovation..............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business organisation aims at bringing innovation and creation in business activities and
operations in order to gain competitive advantage in intense competitive markets. In the modern
business world, invention and innovation is the primary and most important concern of every
business organisation. Akshay Kumar is the founder of the company Essence Drinks and it was
launched in the UK markets with the one drink i.e. a healthy mango lassi.
In the present report, importance of invention and innovation is explained. The report
discusses about how organisational vision, leadership, culture and teamwork helps in shaping
innovation and commercialisation (Rasmussen and Eliason, 2017). Further, the discussion is
done to identify the uses of innovation funnel and frugal innovation. Application of New Product
Development is done and innovation business case is given further in the report. Range of
methods are also discussed through which organisation can retain and protect knowledge and
intellectual property rights.
LO 1
P1. Innovation and its importance to organisation in comparison with invention
Innovation refers to the process for bringing a new and creative idea for a product
development that can lead to bring great benefits and positive impacts on the business.
Innovation takes useful and innovative ideas and converts them into products and services in
order to increase the effectiveness of business operations and activities. Change and innovation is
very important in the organisational context as it is required for development and growth of
company in the intense competitive markets (Hohenberg and Homburg, 2019). Essence Drinks
company gained dramatic rise in sales because of its innovative idea and effective distribution
capability. The founder of the company is Akshay Kumar who focuses on creating innovative
and new range of drinks within the lassi range in order to gain competitive advantage. Essence
Drinks aims at bringing innovation so that it can attract more customers and also grab bigger
market share. An innovative product idea can help Essence Drinks to:
 Make effective and efficient use of available resources,
 Enhancing competitiveness,
 Attract new and potential customers,
 achieving organisational goals and objectives,
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 Increase market share and profitability (Walsh, Lee and Nagaoka, 2016).
Invention refers to the process or action for inventing something, it may be a device,
method or process. It is actually a process for actualisation of a new idea into the action. This is
considered as secondary step for inventing a new product or services.
As compared to invention, Innovation is basically dealing with bringing of new ideas for
existing product whereas, invention is the process for bringing those innovative products or
services into markets by shaping it and delivering it to customers.
Essence Drinks offers mango flavoured lassi to its customers in the UK markets but it is
facing significant decrease in the sales due to entry of new competitors in the market. So,
innovation of new idea and implementing into the products or services will help Essence Drinks
to gain competitive advantages (Aarikka-Stenroos, 2018). Invention can be used for actualising
the competitive advantage into the action. The company is going to launch its new product which
is Protein infused strawberry drink. For example, Essence Drinks can invent new products by
adding some new features or adding distinctive facilities. Bringing distinct products into the
markets will help company to stand out from the competition and gain successful results. In
order to invent and innovate new and creative ideas, Essence Drinks can focus on recruiting
talented people into the organisation who can come up with creative and new ideas. It can also
provide training and development program for employees so that they improve current skills and
capabilities and leads to put best efforts in the organisational operations and activities.
Innovation deals with creation and crafting of new and creative ideas and invention helps in
actualization and decoding of these new creative and new ideas (Giones and Brem, 2019). Thus,
both invention and innovation are the important element for an organisation to get successful
results and gain competitive advantages. The company in order to launch its new product
“Protein infused strawberry drink” is going to make use of a variety of strategies and
developments techniques.
P2. Organisational vision, leadership, culture and teamwork shapes innovation and
commercialisation
The main objective of innovation and invention is to effectively commercializing the
products and services into target markets. Commercialisation refers to the process that helps in
aggregating all the elements of innovation, invention, communication and marketing to the end
customers (Datta, Mukherjee and Jessup, 2015). It is related to and concerned with launching of
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new products and services into market. Following are given the explanation of different
organisational elements that helps in shaping innovation and commercialisation process.
Vision: The vision statement of Essence Drinks is to be at the top of preference list of
customers for quality fruit juices and related products. Thus, to be at the preference list, company
needs to bring innovative juice and related products and then invent the new idea and effectively
commercialize it. Essence Drinks focuses on encouraging employees so that they can effectively
meet the taste and preferences of customers by innovating new and creative ideas. Thus, vision
of company can effectively shape innovation and commercialisation.
Leadership: The leaders of the organisation implements effective approaches so that
they can motivate employees for bringing innovation and creation in the activities of business.
The motivated employees tend to put best efforts in the business activities and also focuses on
bringing innovation and creation (Aarikka-Stenroos and Sandberg, 2016). Different styles and
approaches implemented by leaders of the Essence Drinks can help in encouraging employees
for brining new ideas and shape innovation and commercialisation process.
Culture: Culture refers to the process of how things are to be done in the organisation
and it is the collection of norms, values and attitudes of employees and people of the
organisation. Essence Drinks focuses on developing an effective organisational culture that helps
in motivating and encouraging employees so that they feel motivated and aims at increasing the
effectiveness of business operations and activities. Thus, it helps in shaping innovation and
commercialisation process.
Teamwork: Employees focus on working together in a team so that they can effectively
complete the given task and achieve positive results. Teamwork and co-operation leads to
effective achievement of specific task or projects (Carayannis Cherepovitsyn and Ilinova, 2016).
Essence Drinks ensures that employees effectively work in teams and also co-operates so that
they can lead to bring innovative and creative ideas. As people may share their new thinking and
ideas with the other team members, therefore, teamwork can help to shape innovation and
commercialisation process.
M1. Sources of innovation and ways for fostering and developing an environment and culture of
innovation
Essence Drinks aims at introducing a new and creative products in the target markets so
that it can achieve competitive advantage and also gain larger share of markets. The company
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needs to focus on developing working environment and organisational culture in a way that it
helps to foster innovation (Aarikka-Stenroos and Sandberg, 2016). Essence Drinks needs to
maintain open communication between employees and other levels of management so that
employees can share their views and it leads to development of innovative idea. The
organisational culture and working environment needs to be flexible as well in order to
effectively foster the innovation. Different sources of innovation includes the unexpected, the
incongruity, the need of the process, changes in industry and market structure, new knowledge,
changes in mood, meaning and perception.
LO 2
P3. 4Ps of innovation and use of innovation funnel to examine and shape innovative ideas
Innovation is very important and essential in order to effectively shape the innovative and
creative ideas within the business organisation. The 4Ps of Innovation or innovation mix are
product, process, position and paradigm.
Press: This is the main aspect or element through which organisation can achieve its
future or targeted goals and objectives. Essence Drinks aims at attracting more customers and
gaining competitive advantage thus, it needs to innovate the current products and services. The
product is the element that fulfils the need of target customers and also satisfies their demands.
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I
llustration 1: 4Ps of Innovation.
Source: (4ps of Innovation, 2019)

Essence Drinks needs to ensure that new product is unique and creative by its features, before
marketing or commercialising it into the markets.
Process: This refers to the way through which organisation provides the products and
services to the end customers. This is also an important element as because if delivery process is
slow or long then success possibilities are reduced (Henttonen and Lehtimäki, 2017). Thus,
Essence Drinks needs to focus on bringing changes in the methods in which products are being
created or delivered.
Position: This refers to goals and objectives of particular innovation and commercial
procedure through company can achieve the targeted position. The position innovation focus on
dealing with various advertisement and promotional activities which an organisation perform for
establishing its existence in the competitive markets. Essence Drinks need to focus on
implementing effective promotional strategies so that it can achieve targeted goals.
People: This refers to the particular innovation category. The paradigm innovation
considers the specific change for achieving the organisational objectives and targets. This is the
planned process through Essence Drinks faces the changes of implementing innovation in the
products and services and how organisation manages all the jobs. Thus, Essence Drinks needs to
focus on planning how to manage the business activities in changed conditions and situations.
Innovation funnel
(Source: Innovation funnel and growth, 2018)
This is the mechanism which enables constant stream of idea which can be screened for
viability. The innovation funnel is also referred as funnel management process and it is a popular
approach for innovation. Many organisation uses innovation funnel for creating an realistic and
innovative action plan (Dutta and Folta, 2016). Essence Drinks uses innovation funnel as an
another aid for shaping innovative ideas within the organisation. This can be used for describing
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Illustration 2: Innovation Funnel

various steps which takes place in the development of products or process. The first step of
innovation funnel focuses on collecting as many ideas as possible related to specific concept.
The next step of the innovation funnel involves screening process so that it can ensure that new
ideas matches with the objectives and goals of the business. The last stage of the innovation
funnel deals with the fact of chosen ideas for delivering various goals and objectives which are
set by the Essence Drinks. The model tends to provide Essence Drinks with ideas which can
fulfil its needs and most importantly helps bring those ideas into reality. This helps the
organisation shaping innovative ideas into reality.
P4. Developments in frugal innovation and its uses in organisation
Frugal innovation refers to the process or techniques which can be applied for reducing
the complexities and cost of products and its production as well. Organisation can make use of
the frugal innovation for removing the non-essential features for effectively achieving the quality
and meeting the demands of customers effectively (Xiao, Li and Liu, 2016). Redesigning the
products, reconfiguration of the value chains and also discovering new business models are the
main components of frugal innovation which can be implemented by Essence Drinks. Examples
of frugal innovations include, companies such as Apple have changed have continuously
introduced new features in the phones with the same models and skins. Only changing the
software and its functioning has allowed company to ensure frugal innovation is taking place.
Other frugal innovation is Coca Cola's diet coke. It is the Coca Cola has changed only made few
changes and brought forth a new drink.
Frugal innovation provides effective benefits to the company as it helps in reduction in
the cost of products and also in the complexity of the production process. The company can then
easily and effectively reach to the different levels of customers in the target markets. The essence
Drinks can use the frugal innovation for reducing and removing the complexity from the delivery
process and this will help company to gain effective and positive results. Thus, in case of
Essence Drinks frugal innovation is very important.
The concept of frugal innovation can reduce the issue of the company that they has been
facing from past two years that is low sales profit in the business. New invention of lassi flavour
can attract the customer attention towards the company or its product. Frugal innovation the
techniques that enable to regain the market positioning for the organisation.
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M2. Application of innovation funnel in organisational context
(Source: Innovation Funnel, 2018)
The process in which constant stream of ideas which can be screened for viability refers
to innovation funnel. The steps of funnel are explained below in context of Essence Drinks: Funnel Mouth: In this step, the ideas are generated. Essence Drinks to do this, tends to
expand its availability of the information and knowledge (Hossain and Kauranen, 2016).
In order to effectively go through this phase of the funnel of innovation, it is important
for Essence Drinks to have a clear perspective on the objectives and they need to have
been established beforehand. The ideas are going to be generated and will come in
understanding from both the external and internal environment of Essence Drinks. Funnel Narrowing part: In this step, the ideas developed in earlier step are screened.
The screening process encompasses the idea matching with the organizational goals in
order to check if they have added any sort of value.
 Its narrowed part: In this phase, Essence Drinks ensure that the ideas which are selected
are in tune with the organisation and the drawn objectives were drawn up when the
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Illustration 3: Innovation Funnel

organisation was started. According to the evaluations, the product or the service is
launched in the market.
M3. Role of frugal innovation in organisational context
In developing its new drink which is Protein infused strawberry drink, frugal innovation
can play a major role in Essence drinks. The present drinks of the innovation can be changed as
per the requirements of new drink. This can innovate a new product and would help the company
to save its costs as well.
Frugal innovation is one of the most effective ways in which Essence Drinks tends to
save its costs and develops its products with an ease of effort. Frugal innovation is one of the
most important needs of an organisation. This innovation allows the Essence Drinks to make
changes in the present products and innovate a completely new product in order to serve the
market needs and requirement (Carayannis, Cherepovitsyn and Ilinova, 2016). Along with it, this
allows the organisation to keep the innovation process going to provide the consumer with new
and innovated products and keep their attraction towards the sold products and services.
D1. Critical analysis of how innovation is developed, embedded and measured in organisational
context
The embedding of innovation is Essence Drinks is done by the leadership and
management. This step is one of the most essential step to ensure that innovated product and
service is acting as per the plan and is not causing any sort of failure to the organisation. It is
important for the organisation to reach new growth and ensure new development is taking place.
It is one of the most important step to ensure that leadership of the organisation sets the
innovated products and services in the market where it can receive good success and most
importantly gain customer attraction (Giones and Brem, 2019). This successfully helps Essence
Drinks in embedding its innovation.
In order to develop required Innovation, Essence Drinks makes use of a variety of
techniques. The first and the foremost technique is to understand the needs for innovation and
what are the market requirements of a particular product and service. This helps the Essence
Drinks to evaluate the present market needs and develop its products and service accordingly. It
provides the organisation with an ease in the process of innovation and eliminates pitfalls.
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Innovation is measured by the needs of the market. As per the market needs the products
are developed. It acts as a basic step and allows the organisation to measure its innovation
properly.
LO 3
P5. Importance of Commercial Funnel and application of New Product Development
The commercial funnel which is also known as sales funnel is important in Essence
Drinks to make its customers aware about the innovated products. The funnel in general goes
through 4 distinct process which are awareness, incentive, lead and close.
(Source: Purchase Funnel, 2016)
 The awareness helps to let customers know about the product and its capabilities.
 The incentive gives them a reason to be attracted to the business
 The lead helps Essence Drinks to connect with them and get them in the organization's
door and at last and
 The close step ensures that the product is being brought by them. These step in total
ensures that consumer of the organisation are convinced to buy the innovated products. It
helps the organisation to ensure that required success is being met and the organisation is
reaching required growth.
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Illustration 4: Purchase
Funnel

The new product development or NPD refers to a complete process in which Essence
Drinks brings the new product to the market. Its central aspect is product design. This process
plays an important role in Essence Drinks because it ensures that the product which is newly
innovated in now being sold to the customers in the market (Walsh, Lee and Nagaoka, 2016). It
helps the organisation to ensure required success and making profitability as well. Below
mentioned are the new product development process: New product strategy: The strategy is to develop the new product and sell it into the
existing markets. Idea Generation: The idea of the new product is protein infused strawberry drink. Screening: The chosen idea is selected for the further development. Concept Testing: The concept is tested by launching the product in new markets and
understanding if it's a success. Business Analysis: As per the analysis, Essence drinks have seen new market
development and profitability from selling of the products. Product Development: In this stage, the company is set to develop the product on large
scale. Market Testing: In this stage the trail run of the product is done.
 Commercialization: In this stage, product is finally introduced to the public.
P6. Innovative Business Case and ways to access funding
◦ Executive Summary: It has been seen that Essence Drink is required to innovate a
new drink. A new drink can help the company to ensure new growth and provide
people with a good product. The requirement of the product is large because there are
not much products in the country which are protein infused.
◦ Requirement: Consumers across the world today are looking for healthy organic
drink which can help them in being healthy. Essence Drinks has recently evaluated its
company's potential to launch such product to the market. After doing necessary
research and development, the organisation is set for its innovation.
◦ Solution: In order to do this, the company is going to innovate new product, this
product is the protein infused strawberry drink
◦ Need of Innovation: It is important to innovate new protein infused strawberry drink,
it is because customers are looking for a product which is healthy.
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◦ Market Researches: The organisation is going to identify the product value in the
market. The necessary questions which is going to look for is the product is required
in the market? Is going to help the company in reaching required profit? Is this going
to allow the company to reach new growth and beat its competitors etc. These
questions are going to help the company to evaluate needs and requirement to
innovate the new healthy organic drink (Ismail, Nor and Sidek, 2015). The necessary
funding will be done from showing the innovation requirement to the investors. After
identification of the questions and if everything goes well, Essence Drinks is going to
launch deadlines to innovation its product and would set a date accordingly (Xiao, Li
and Liu, 2016). This is going to help the company in setting a time limit for
innovation.
◦ Investment Required: The required investment for the company is $25,000.
◦ Benefits Expected: The benefits expected from new product includes the company is
going to see growth in profitability and would attract new customers.
THE DETAILED PLAN IS COVERED IN M4
M4: Detailed innovation business case
 Success Rate: The product success rate is going to be compared by understanding the
success of it by launching test products in the market. It is going to help the product to
reach new market and achieve new growth and success. It will also help the innovated
product to reach new growth and ensure that it is going to bring required profitability to
the market. Along with it, to measure the success rate the company is going to take
feedbacks from the customers and would check if the product is
Sources of Funding
To bring all the above steps into reality the funding is going to be generated by various
means. These means and methods include crowdfunding techniques and showing the capabilities
of innovation to the customers. In order to do this, the organisation is going to reach new
investors and set up a team to ensure better crowdfunding on online platforms. The source
include crowdfunding, attracting investors by advertising etc.
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LO 4
P7. Different tools used for developing, retaining and protecting knowledge and intellectual
property
In order to develop, protect and retain its intellectual property Essence Drinks makes use
of the below mentioned methods: Patenting: Patenting is one of the finest methods which allows Essence Drinks to
improve the existing innovations and protect inventions (Hohenberg and Homburg,
2019). It is important that the Essence Drinks takes the help of the government agencies
and the government. The patenting of the plant, utility or design can improves the overall
quality of the product and allows the company to protect its intellectual property and
knowledge. For example : Patent is the intellectual tool that prevent the company
invention that no body can other develop or make second time. For example, product
design, products etc. Trademarks: The names words, devices, symbols and images can be used as trademarks
in order to protect the intellectual property (Aarikka-Stenroos, 2018). This will help the
organization to retain them for a long period and also to ensure that they are safe and
secure.
 Copyrights: Copyright refers to the legal right of the owner of intellectual property. In
simpler terms, copyright is the right to copy (Walsh, Lee and Nagaoka, 2016). This
means that the original creators of products and anyone they give authorization to are the
only ones with the exclusive right to reproduce the work. For example : Copyright can
help to protect the organisation system, tangible assets, company logo etc.
M5. Evaluation of these tools in wider business environment
Tools such as patenting, trademark and copyrights can help the company to reach new
growth and ensure that appropriate growth and development is taking place effectively. Today, it
is important for organisations to keep their intellectual property right safe. It is because
globalisation has provided other small companies and businesses to copy the products and
services sold by the company (Xiao, Li and Liu, 2016). This can help the company to keep its
products and services safe from other organisation and business and ensure safety and security.
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Also, this can help essence drinks to secure its products and services on wider businesses
environment and ensure earning of better profits.
D2. Critical evaluation of nature of innovation and how organisation overcome challenges to
develop successful innovation
The nature of innovation refers to the nature in which it occurs or the necessary
requirements in which Essence Drinks looks to innovate its products and services. In order to
ensure that the organisation is fulfilling its role and building products and services which are as
per the needs and requirement of its consumers arrives under its personal nature of innovation
(Hossain and Kauranen, 2016).
In order to overcome the challenges occurring in the nature of innovation, it is important
for the organisation to understand what kind of challenges it can face beforehand and prepare the
required strategies accordingly (Henttonen and Lehtimäki, 2017). The other methods which
Essence Drinks can follow in order to overcome the challenges of innovation includes ensuring
effective research and development is taking place and fulfilling developing products which are
necessary for both the organisation and its customers.
CONCLUSION
Innovation and commercialisation process leads to bring many benefits and advantages
for the organisation. Innovation is actually the process for developing the current product and
services of company and its importance are discussed briefly in the report and in comparison
with the invention. Organisational vision, leadership, culture and teamwork helps in fostering
innovation process. Importance of frugal innovation and innovation funnel are described in
brief. Significance of innovation is effective enough for bringing innovation and for delivering
quality products and services. Importance of commercial funnel and also New Product
Development is discussed and innovative business case is discussed. The business case also
describes the way for accessing funding. Different tools are evaluated which helps the
organisation for developing, retaining and protecting knowledge and intellectual property rights
of company such as trademark, patent and copyrights.
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REFERENCES
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