Innovation and Commercialization: Concept, Benefits, and Factors

This study delves into the concept of innovation and its benefits to a company in comparison to invention. It also explores how vision, leadership, teamwork, and culture can shape innovation and commercialization. The study uses Essence Drinks as a case study to illustrate the concepts discussed. The study also covers frugal innovation, the significance of commercial funnel, ways of funding for innovation, and ways to protect knowledge and intellectual property.

Innovation and
commercialisation

Table of Contents
Introduction.................................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1) Discuss innovation concept and its benefit to company in comparison of invention.........................3
P2) Discuss the way in which vision, leadership, teamwork and culture can shape innovation and
commercialization...................................................................................................................................5

Introduction
Innovation signifies development of new product or service in order to gain attention of
individuals in an efficient manner. Main aim of present study is to examine the effectiveness of
innovation and commercialization in current environment. Innovation is about developing a new
idea so that existing issue can be addressed in proper way. The present study is based on Essence
Drinks which is a leading drink provider of London. It was founded by Akshay Kuman and
offers elegant drinks to customers. Here, difference between innovation and invention, 4 P’s of
innovation, types of innovation are going to discuss in the following study. It will also cover in
frugal innovation with examples along with the significance of commercial funnel. Ways of
funding for innovation and ways to protect knowledge and intellectual property will also include
in the given study.
TASK 1
P1) Discuss innovation concept and its benefit to company in comparison of invention
Innovation: It is related with implementing the new ideas to introduce new products and
services in market. Here, modifications are made in existing goods or services in order to
improve overall experience of customers. It will help in facilitating uniqueness and creativity in
products. Innovation helps in improving the brand image of company by developing new
products or modifying existing ones. In context of Essence drinks, they can add new flavors in
their existing portfolio of drinks. With this, organization can easily gain the attention of buyers in
an efficient manner.
Invention: It is a process of developing something new which has not been developed till
now. Here, the idea is completely unique & creative. It helps in developing attractive, creative as
well as unique products which will improve overall experience of customers. In context of
Essence drinks, they also need to invent new drinks in order to grab the attention of more number
of people in an efficient manner.
Innovation and invention:
Innovation Invention

 It is based on practical
implementation. Innovation is about
making changes in existing products
or process of identifying new ways.
 Innovation is the combination of
several products & processes.
 On the contrast, invention is related
with creating such products that are
entirely new.
 Invention is related with single
product or process.
Benefits of innovation:
Improve productivity: It is identified that innovation helps in increasing the overall
efficiency of organization. In this, company implements effective ways to enhance productivity
which further improve the quality of production in an efficient manner. In reference of essence
drinks, they can enhance the productivity by implementing innovative ways of production.
Reduce Costs: Innovative techniques are helpful in reduce down the production
expenses. On other side, invention is related with development of new products or services.
There is requirement to invest huge amount in order to develop a new product. By implementing
innovation, company can easily minimize the cost.
Increase competitiveness: In current time, it is important to maintain competitiveness so
that company can stay in market for longer period of time. Innovative tools and techniques are
helpful in developing unique and creative features which further lead company towards
competitive edge. In context of Essence drinks, they can improve competitiveness by
implementing innovative techniques in business.
With above discussion, it is identified that invention and innovation are two different
aspects. Innovation is concern with enhancing existing practices while invention is related with
designing new products. Innovation helps in facilitating enhancement within limited expenses
and resources while there is requirement of huge resources as well as time in process of
invention.

P2) Discuss the way in which vision, leadership, teamwork and culture can shape innovation and
commercialization
Innovation is process of facilitating creativity ideas in organization. On other side,
commercialization signifies the process to implement the idea in marker in order to get better
results. Innovation and commercialization plays a crucial role in growth and success of company.
However, it is imperative to assess the idea on different fundamentals before implementing it in
real context. The process of innovation and commercialization is affected with ample of factors
which are outlined below:
Organization Vision: It depicts the purpose of business entity. Vision clearly shows
what company wants to attain in future. Clear Vision helps in preparing suitable strategies so that
company can accomplish its goals. It provides direction with an aim to make efficient use of
available resources. In context of essence drinks, Vision of company is to become a global leader
within the industry by providing quality drinks to customers. Here, vision provides guidance to
managers as well as other employees so that they can perform their duties in an appropriate way.
Additionally, Vision will assist them towards attainment of pre-define level of success by
implementing innovative strategies.
Leadership style: The way adopted by leaders for guiding staff members plays a crucial
role in success of organization. Here, different leaders have their own way to lead team towards
attainment of a particular goal. In the given case study, leaders of Essence drinks follow
democratic leadership style where they motivate employees to give creative suggestions. Here,
suggestions of employees are helpful in development of innovative products which will help
company in accomplishing their goals and objectives in an efficient manner.
Organizational Culture: It is made with the beliefs, values of individuals who are
working with organization. Culture prevailing within organization has a profound impact over
productivity of work force. Positive Culture motivates employees to work effectively for success
of company. In current scenario, they follow adhocracy culture. Here, company respects those
employees who are flexible in their process and respond the change circumstances in an effective
manner. This type of culture motivates staff members to come up with their valuable suggestions
for facilitating innovation and commercialization within organization.

Team work: Team work is important to achieve those objectives that cannot be attained
with individual efforts. It develops the synergy by combining the skills, abilities of different
individuals. In team work all the individuals work collaboratively so that they can attain pre-
defined goals in an efficient manner. In addition to this, team work is really important for
strengthening the personal bond of employees with each-other. In context of Essence drinks, they
focus on team work where they divide work in order to make best utilization of skills and
capabilities of each and every team member. The team of company is full with highly skilled and
trained employees who are efficient enough in developing creative and innovative ideas. Apart
from this, they are also competent in commercializing the idea in real context.