The Importance of Innovation and Invention Process

The observational study highlights the significance of innovation and invention process in achieving organizational success. The report explores how this process helps businesses grow and gain a competitive advantage in the market. It also discusses various tools used by companies to protect their rights and knowledge from other parties.

Innovation
and
Commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 The concept of Innovation and its importance to the organization in comparison with
invention......................................................................................................................................4
P2 The impact of organizational vision, leadership, culture and teamwork in shaping
Innovation and commercialization. ............................................................................................6
TASK 2............................................................................................................................................7
P3 The 4Ps of innovation and the use of innovation funnel to examine and shape innovative
ideas............................................................................................................................................7
P4 Frugal Innovation Principles and its examples in organizational context. ...........................9
TASK 3..........................................................................................................................................10
P5 The importance of commercial funnel and application of New Product Development
processing for Commercialization of Innovation. ....................................................................10
P6 Innovation business case for Essence Drinks Company along sources to access of funds 12
TASK 4..........................................................................................................................................13
P7 Tools used by the organization in order to protect its intellectual property and Knowledge.
...................................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is a process of discovering new ideas and strategies in order to make the new
product that could lead the success and growth of the organization and its business. Invention is
the process of generating new ideas as well as implementing those ideas and carrying out the
different activities in order to make a new product it is the completion of innovation process. The
report will highlight on the difference between innovation and invention process. Further it will
focus on types of innovation and process of commercialising innovation. The report will also
mention the different ideas and techniques used to protect the rights of innovating a new product.
TASK 1
P1 The concept of Innovation and its importance to the organization in comparison with
invention.
Innovation- Innovation is a process of finding out new ideas about the products which will
further have positive impact on the growth and success of the organization. There are different
activities that supports innovation process, such as market research, identification of customer
needs and creative thinking of the company.
Invention- Invention can be defined as a whole process of generating ideas and techniques
for the developing any new product or process in such a way as it has never been developed
before.
Comparison between Innovation and Invention :-

Basis Innovation Invention
Required skills Innovation requires professional
managerial and technical skills.
On the other hand, the
invention requires scientific
skills.
Limitation of
activities
Innovation is not limited. It can be spread
in all over the business organisation.
Invention in is limited upto the
research and development
activities of business.
Concern Innovation is concerned with combining
products, services and various process of
business.
Invention just requires a one
product.
Importance of innovation and invention in case of “Essence Drink” company -
Innovation means to discover new ideas and inventing means the process of generating the idea
and developing a new product. Essence Drink has innovated its product in past as “mango Lassi'
and accordingly increased its sales revenue to greater extent. The company now prefers to stick
with the same type of product manufacture but has initiated the launch of “Mix Fruit Lassi”as its
new product and acquire more sales revenue in market. As there is in rise in concerns of healthy
consumption of food and beverages by the people, Innovating a new product “Mix Fruit Lassi”
will result as successful launch in market and can help Essence Drinks company to grow its
business as well earn more revenues. Ultimately this will be served as an important factor for the
company in these ways-
 Innovating a product will provide a competitive advantage to the company.
 The company will be able to meet out its prime objective of increasing the sales volume.
 The company will be able to build a strong customer base when more of “Mix Fruit
Lassi” products will be sold in market.
Innovation is a never ending process and it keeps on predicting future growth of the
organization because people always try to get distinctive and new products than others and needs
change rapidly in short span of time. Thus these factors help in the success of innovation process
for the organization. Hence Innovation and Invention both will provide competitive advantage as
well as lead to growth and expansion of Essence Drinks company(Clauss, 2017).

P2 The impact of organisational vision, leadership, culture and teamwork in shaping Innovation
and commercialisation.
Discovering the new idea is the main purpose of innovation and actualizing this
innovation and simplify these new thinking comes under process of invention. And the main
objective of these both components is to commercialize these new products in market.
Commercialization is a process after innovation and invention that includes activities of
marketing and communication with the customers so as to make the product launch successfully
available in market.
For making the product available in market, there are different factors that affect the
process of innovation and commercialization. The current vision of Essence Drinks company is
to increase its sales revenue. Hence, the company will collect different resources and frame
strategies to achieve its objective, this will further help in the process of innovation as the
company's main purpose will turn out to be the backbone and sole purpose for the innovation
process and accordingly lead to its success. Thus, the Vision of Essence Drinks company clear
out the hurdles and provides necessary components and resources to initiate the process and
hence plays an important role in shaping the process of innovation and commercialization of its
products(Gassmann and et.al., 2016).
Leadership is the process of organizing and directing the company according to the
organizational goals and objectives and achieving success through initiating the company's
growth and development. It contains different styles such as Autocratic, democratic and
participative leadership. It depends on the company in choosing any of this type to promote its
innovation process. As according to the current situation participative leadership style will be
best suitable for the Essence Drink company. This type of leadership includes employees
participation in company's decision-making. Innovation is a process of generating ideas and
hence there is a possibility that employees may generate these ideas and could help and
contribute in the innovation process of the company. This type of leadership will also create the
use of different marketing techniques and strategies to bring out “Mix Fruit Lassi” in market and
also implement the activities that leads to the successful launch of the product. Thus different
ideas being initiated by the Leadership style adoption can help to shape innovation and
commercialization.

Organizational culture is the collection of values, norms and attitudes of employees
working in it. There will be always a difference in the culture and attitudes of all the employees.
For example; an optimistic attitude of the Innovation team of employees can generate new ideas
and bring out various product modifications for Essence Drinks and also the optimistic attitude
of marketing team of the company can turn up the sales volume of the “Mix Fruit Lassi” leading
to the success of the process. Hence, the type of culture, the organization include, has the great
impact on Innovation and Commercialization process of the company(Shiu, 2017).
Team is an effective concept in performing a specific tasks according to the plan and
solve different problems of the organization in crisis situation and so on. For performing every
activity of this product launch activity, Essence Drinks company has different teams assigned for
the completion of various tasks such as marketing of “Mix Fruit Lassi', its promotion, advertising
and all other tasks related to the commercialization of product. The efforts of the all the team
members with coordination among them in completion of these tasks brings out success to the
innovation and commercialization process of the company and hence justifies Teamwork as an
effective tool in shaping the Innovation process.
TASK 2
P3 The 4Ps of innovation and the use of innovation funnel to examine and shape innovative
ideas.
The 4Ps of innovation refers to innovation mix and are mostly used by the organization to
initiate the innovation process. The 4Ps are-
Press- It refers to the relationship between the human beings and their environment. It
involves the providing the unique product for the customers which benefits them more. “Mix
Fruit Lassi” is a health oriented drink and unique in its category and thus fulfil the requirements
of its customers.
Product- It is the main component which is offered to the customer after the
modification and invention. In case of Essence Drink, the company must be aware of what
product it is innovating and launching in market and whether the product adds value to the
organization or not. Thus the innovation and commercialisation entire process is dependent on
the type of product the company invents.

Process- Process comprises of manufacturing as well as distribution process of the
product. Manufacturing process includes what technology to be used in and how the product will
be manufactured. Distribution process comprises of how the “Mix Fruit Lassi” will be available
in market and in what stores and shops the product will be available.
People- It is the most important component of the innovation process as it is the one that
includes people that turns out to be customers and to whom the product will be sold. Essence
Drinks must target the group of people to whom the new product will be sold and what are the
needs and requirements of these people. (Zhou, 2015).
Innovation funnel- It is a systematic process of describing the innovative ideas through different
steps. These steps of funnel act as a road towards the success of entire innovation and
commercialisation process of the company. First step of the company is to collect information
and gather resources so as to understand the needs of the customers and their demand and decide
whether this idea would accomplish these needs or not. Second is the screening process which
involves screening of one idea among different ideas and select the best idea for implementation.
Further and last step involves the actual implementation of idea into the process so as to invent
the product and bring it action. The entire scenario relates with Essence Drinks, in which the
company identifies the needs and demands of the customers, accordingly discover the idea of
what product to be invented and what modifications are made and lastly inventing “Mix Fruit
Lassi” and implementing the idea into action through completion of innovation process (Saebi
and Foss, 2015).

P4 Frugal Innovation Principles and its examples in organizational context.
Frugal innovation is a process that reduces the complexity and cost of the goods being
produced through the innovative ideas. Generally this process is used to meet out the success of
innovation process.
The following are the Principles of Frugal Innovation-
1. Find opportunity in adversity- It refers to re-framing the problem that is considering
threats and converting that into opportunities.
2. Do more with less- It means the companies must not stick to expecting more but
concentrate on its actual resources and think of creating it better through different ideas.
3. Think and act flexibly- It means companies should be more flexible and inprovisational
rather than rigid.
4. Keep it simple- Complex things can cause complications and problems hence the
company should keep the things simple.
5. Include the margin- It refers to knowing what problems customer is facing and
considering yourself in their shoes so the company may understand what customer
actually needs.
6. Follow your heart- It means the companies must be more passionate and use that to
move ideas forward.
Examples- Renault and Dacia used the concept of frugal innovation and resume their company's
orientation towards low-cost cars and allowed the other markets to be reached and accordingly
acquired success of Dacia cars in Europe.
Tata motors have been successful in manufacturing the lowest cost car “Tata Nano”
worth of $2000 USD and set an big example of frugal innovation. Thus these examples state the
success and benefits of the Frugal innovation and accordingly turn out to be inspiration for
Essence Drinks to include Frugal innovation process in the organization.
The company can use Frugal Innovations in various ways -
 Essential Drinks can reduce the cost of production of “Mix Fruit Lassi” by using new
techniques of production or setting up new machines that will save the time and cost for
the product manufacturing. This will also reduce the complexity in making the product
and it will be available very easily as compared to the previous traditional methods.

 With the reduction in cost of “Mix Fruit Lassi” the company can reduce its price so the
product could be purchased by all classes of customers irrespective of their income. This
will not only increase the sales volume of the product but also make the company gain
competitive advantage of acquiring maximum market share with strong customer base
and profitability.
 Essential Drinks can develop their distribution channels and make the product available
in every form of market such as rural and urban so as the customer cant divert their
attention from “Mix Fruit Lassi” and accordingly but the product. This will again lead to
increase in sales volume of the product and fulfil the primary objective of the company
with successful innovation and commercialisation process.
Thus the Essential Drinks company can use the concept of Frugal Innovation in its
functioning in various ways and get benefited by different factors as mentioned in the above
examples.
TASK 3
P5 The importance of commercial funnel and application of New Product Development
processing for Commercialisation of Innovation.
Commercial Funnel also known as sales funnel is the visual representation of the process
in which the company make the product available to the consumers to the consumer buying
decision and actions. Commercial funnel is important to business for following reasons-
 Sort and Rank sales leads- Having a commercial funnel will help Essence Drinks
company to create a consistent and organized process for evaluating, ranking, sorting and
prioritizing the sales leads and activities of the company.
 Focus on the right sales Leads- Creating a sales funnel will help Essence Drinks to
purely focus on the correct sales leads and targets and accordingly allocate the dedicated
time for the right consumers. This will include communication and interaction with the
customers to follow up their commitments regarding their purchase and other
requirements in product and also their response regarding the new product.
 Helps to project reasonable goals and obtain them from internal and external sales
team- As the commercial funnel initiates a systematic process of conducting sales
activities, this process will help Essence Drinks to fix and create the short term sales

targets and goals that can be met by the team and accordingly add up to the increase in
sales revenue of the firm.
 Systematic monitoring and accountability- As the sole purpose of commercial funnel
is to carry out all the sales activities in proper system so as to maintain uniformity. Hence
this will provide the complete sales data of new product in market and help the Essence
Drink to study and monitor the changes for its improvement(Ortiz-Villajos and Sotoca,
2018).
New product development process for Essence Drinks Company-
New Product development is a process of taking product from conception to market. This
process includes different stages from start till the end. The NPD stage for Essential Drinks
company is as follows-
1. Idea generation- The company has come up with the idea of inventing a new flavoured
Lassi containing all type of fruit flavours in one Lassi product.
2. Idea Evaluation- The idea of inventing a flavoured Lassi product will be initiated in the
form of “Mix Fruit Lassi” which contains flavours of all the fruits in it as according to the
idea.
3. Concept Definition- This stage will consists all the specifications and product design in
which the “Mix Fruit Lassi” will be launched.
4. Strategic Analysis- Here the total cost of the product including the indirect costs and
setting up of profit margin behind one unit of “Mix Fruit Lassi” will be determined.
5. Product Development- Here the complete analysis of what contents to be included on
the package of product so as to seek the customer's attention, as well as comparison of
price and quality with other products may take place in order to deal with the
competition. It will also include noting down of certain modifications required in the taste
and quality of “Mix Fruit Lassi”.
6. Market Testing- It includes the research of the market and identification of target groups
of customers to whom the product will be sold.
7. Commercialisation- It is the main step which will include finalising the pricing strategy
of Essence Drinks so that the product could be sold more and more in market.

8. Product Launch- This is the final stage which includes making the product available in
market after applying different strategies and plans of the above stages(Visnjic and et.al.,
2016).
P6 Innovation business case for Essence Drinks Company along sources to access of funds
Innovation business case for Essence Drinks-
 Executive summary- Essence Drinks is a UK based food and beverages company
known for its “Mango Lassi” product. The company has declined its sales revenue of
“Mango Lassi” and hence it comes up with new innovative product launch.
 Requirement- The company requires advance technology machines for increasing Lassi
production so it can produce more of its new product in market.
 Solution- The “Mix Fruit Lassi” is a new product being launched in the market by
Essence Drinks as implementation of its idea of innovation and to establish a strong
distribution channel so the new product is available in all forms of market.
 Need of Innovation- The main objective behind this product launch is to turn up the
sales revenue of the company which has declined and acquire more market share and beat
the competitors.
 Market Research- The company is targeting all segments of group of people in UK for
its new product especially youth and working population of UK.
Investment Required-
Particulars Amount (£)
Machinery and Direct Cost 10000
Market Research Expenses 2000
Promotional and advertisements expenses 5000
Warehouse and other Indirect costs 3000
Total 20000
 Benefits expected- 1. To increase 20% of sales revenue of “Mix Fruit Lassi” till first
quarter of 2020.

 2. To increase 50% of overall sales revenue of the company including “Mix Fruit Lassi”.
The following are the sources of funds which Essential Drinks can access-
 Own Capital- The company can invest its own profits or funds in order to initiate the
innovation.
 Family and Friends- The owners of the company can avail financial support from their
families and the known friends either through providing them equity or interest for the
amount.
 Banks- The common most availment for conducting any business activity is applying for
bank loan. Company can initiate and obtain finance through banks and other financial
services over some security.
 Others- This may include venture capital (the persons who invest in business for a
specific purpose), share issue ( initiating equity to the new shareholders by issuing shares
over the exchange of money).
TASK 4
P7 Tools used by the organisation in order to protect its intellectual property and Knowledge.
Essence Drinks can use the following tools to protect their innovation and intellectual
rights-
 Patent the product making- This tool gives the right to the company to exclude others
from making the same product and selling in the market. This will protect the company's
intellectual right to invent product by itself only Essence Drinks company shall use this
tool as it has developed a new idea and innovation process and hence protect this concept.
But on the other hand applying for patent is a time-consuming process around 3-5 years,
by that time the technology can be overtaken by the competitors and can result in market
loss for Essential Drinks company. Next thing is the cost of the patent to be paid annually
which is again an increase to the company's expenses.
 Initiate the Trade Secret component in the organization- It is a process where the
information regarding the company's functioning and other critical information is kept
confidential by all the employees so as to prevent the competitors accessing the
information of the company. Essence Drink shall use this tool in order to maintain the
confidentiality of information regarding “Mix Fruit Lassi” (Prajogo, 2016). But on the
other hand trade secrets receive no formal protection as that of Patent and can be

accessed and used by any competitors for designing a similar product and then getting its
patent which in turn will be threat to the Essential drinks company.
CONCLUSION
From the above observational study it is observed the importance of innovation and
invention process for success of organization. The report also explained how the process of
innovation and commercialization helps the company to grow its business and have competitive
advantage in the market. Along with it what all factors contribute to the success of business
innovations and commercialization process are being discussed and the report concluded through
the different tools a company can use to protect its rights and knowledge and the innovation
concept from other parties.

REFERENCES
Books and Journals
Clauss, T., 2017. Measuring business model innovation: conceptualization, scale development,
and proof of performance. R&D Management.47(3). pp.385-403.
Gassmann, O and et.al., 2016. Innovation Strategy: From new Products to Business Model
Innovation. In Business Innovation: Das St. Galler Modell (pp. 81-104). Springer
Gabler, Wiesbaden.
Herrera, M.E.B., 2016. Innovation for impact: Business innovation for inclusive growth. Journal
of Business Research.69(5). pp.1725-1730.
Mahmoud, M.A and et.al., 2016. Market orientation, learning orientation and business
performance: The mediating role of innovation. International Journal of Bank
Marketing.34(5). pp.623-648.
Ortiz-Villajos, J.M. and Sotoca, S., 2018. Innovation and business survival: A long-term
approach. Research Policy.47(8). pp.1418-1436.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Saebi, T. and Foss, N.J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal. 33(3). pp.201-213.
Shiu, E., 2017. Good Practice of Creativity and Innovation Management in Business. In
Handbook Of The Management Of Creativity And Innovation: Theory And Practice (pp.
175-189).
Visnjic, I and et.al., 2016. Only the brave: Product innovation, service business model
innovation, and their impact on performance. Journal of Product Innovation
Management.33(1). pp.36-52.
Zhou, J., 2015. The Oxford handbook of creativity, innovation, and entrepreneurship. Oxford
University Press.
Online-
The Closed Innovation Funnel Model. [ONLINE] Available through:
<https://www.researchgate.net/figure/The-Closed-Innovation-Funnel-Model-Source-
https-learnopen2studycom_fig2_316917224>