Innovation and Commercialization in Essence Drinks

This report explains innovation and commercialization in Essence Drinks. It defines innovation and its importance in comparison with invention. It also explains how organizational vision, leadership, culture, and teamwork can shape innovation and commercialization. The report justifies the 4ps of innovation and the use of innovation funnel to examine and shape innovative ideas. It examines the developments in frugal innovation and provides examples of how it is utilized in Essence Drinks. The report clarifies the importance of commercial funnel and the application of new product development processing for commercialization of innovation. It also provides appropriate financial reports that apply and interpret data suitably for various business activities.

Unit 8 – Innovation and
Commercialization

Table of Contents
INTRODUCTION................................................................................................................................3
LO 1......................................................................................................................................................3
P1 Explaining innovation and its importance to organizations in comparison with invention...3
P2 Explaining how organizational vision, leadership, culture and teamwork can shape innovation
& commercialization...................................................................................................................4
M1 Sources of innovation-..........................................................................................................5
LO 2......................................................................................................................................................6
P3 Explaining 4ps of innovation and utilize of innovation funnel to examine & shape innovative
ideas............................................................................................................................................6
P4 Examining developments in frugal innovation and providing examples of how it is utilized in
Essence Drinks............................................................................................................................7
M2 Provide an analysis and application of innovation funnel in the organisational context.....8
M3 Explain the role of frugal innovation in context of the organization....................................9
D2 Provide appropriate financial reports that apply and interpret data suitably for various
business activities........................................................................................................................9
LO 3......................................................................................................................................................9
P5 Explaining importance of commercial funnel and application of new product development
processing for commercialization of innovation.........................................................................9
M4 Detailed innovation business case......................................................................................12
LO 4....................................................................................................................................................12
P7 Evaluation different tools that companies can utilize to develop, retain and protect IP and
knowledge.................................................................................................................................12
D2 Critically evaluate the nature of innovation along with the context that facilitates
development with evidence-based judgements.........................................................................14
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................16

INTRODUCTION
Innovation and commercialization are the key forces that contribute to enhance productivity,
sales, and profits margin of any company. Innovation is defined as creative idea that has
transformed into practical reality, while commercialization describe as process of converting ideas
and inventions into greater wealth for companies, etc. The current study is based on Essence Drinks,
which known for its mango lassi The assignment will explain innovation and its importance in
context of company in comparison with invention. It will define how organizational vision, culture,
leadership & team work shape commercialization and innovation. Furthermore, the report will
justify 4ps of innovation and use of innovation funnel to examine & shape creative ideas. It will
describe the development in frugal innovation and example relate to how it is used in company
context.
The assignment will clarify importance of commercial funnel and application of NPD for
commercialization of innovation. Moreover, the study will explain innovation business case and
varied tools that companies can utilize to retain, develop and protect knowledge as well as
intellectual property.
LO 1
P1 Explaining innovation and its importance to organizations in comparison with invention
Innovation can be understood as actions required to create new ideas, procedures and
products implemented which leads on positive effective change with high scale ideas imperatively
on longer scale operations. It also implies value system which derives positive outcome from
competitive efficiency, on which innovation plays crucial role to evolve towards new revenue
targets actively.
Invention is unique or novel experience where procedures and overall well-being product
development process, for improving products and services creatively. This factor explains invention
achieves completely unique function to create the best radical breakthrough, for improved
developed connectivity towards new productive domains.
Comparison between innovation and invention
 Invention refers to occurrence of idea for products or procedures that have not been used till
now, also there is vast level of extended functional parameters to improve productive usage.
For invention scientific skills are required, where new idea strikes enables to build smart
progressive efficacy among working scenarios. Invention is often linked with single product

and process which is also one step procedure, where scientific application brings on varied
growth towards varied productive efficacy operational scenarios. Invention may be success
or failure, on longer scale usage where there needs to be analysis developed towards
functional horizons actively.
 Innovation on other hand is bringing advancement in already invented methods, products
and services where set of creative marketing, technical and strategic efficacy diversity is
demanded. The procedures of innovation is occurred when need is felt for improving
functional capabilities in already invented products. Innovation occurs to whole company
operations for bringing on varied range of diversity among competencies, rise on new
advanced scale domains and expand towards the best revenue targets. Innovation adds brand
value to product, for raising informative functional work reach actively, enhance keen
domains actively towards new directive domains for varied scale growth. It can be
understood innovation has shaped business productive diversity effectively and generate
larger scale technical growth, to yield on specific rise on performance parameters
competitively.
P2 Explaining how organizational vision, leadership, culture and teamwork can shape innovation &
commercialization
Essence Drinks may shape its innovative idea and commercialization by using key resources
that are mention below-
Organizational culture-
Positive culture at the workplace always enhance the productivity of workers and drive them
towards creating an innovative idea, which management after evaluating may implement into
practical manner (Wang, Phillips and Yang, 2021). In term of work collaboration and coordination,
the culture of Essence Drinks motivate and encourage applicants to bring creativeness in their
performance. Furthermore, by changing the way they direct a team, a leader in firm drive attention
of employees towards doing creative and innovative practices.
Teamwork-
Just like above component, team work also shape innovation & commercialization in term
of conducting collaborative practices and sharing new ideas that help to promote new flavoured
lassi in market. Team work enhance innovation in two manners, first it changes cognition, effective
experience and competence of individual worker, which in return boost their creativity and attitudes
to solve issues effectively (Hadjielias and et.al., 2021). Furthermore, group work also contribute to

innovation etc. as it is associated with structural modifications to firm such that flow of knowledge
and creative ideas is enhanced & company become more flexible.
Vision-
Essence Drinks vision statement contribute to shape commercialization and innovation in
term of guiding and directing workers to be a creative person that supports business to achieve set
aims and promote new flavored lassi in market (Ardiansari and et.al., 2020). Organizational vision
is the main source that guide workers how to work and what need to do, for making venture and its
products more popular at international level.
Leadership-
By using current source along with above three, Essence Drinks may shape innovation,
which is essential as well as commercialization in term of advertising new lassi in UK, which in
return increase profitability of company (Scott, and et.al., 2020). Leadership styles allow leader to
motivate and inspire workers through their behaviors, actions and words, which influence the mind
of each applicant the most.
M1 Sources of innovation-
Unexpected- innovation occur unexpectedly or by chance, for example a group discussion is
the key source of creation as it allow workers to share normal information with each and drive their
attendion towards creating new things in term of products (Philipson, 2020).
Market structure- An current market format may also provide a company chance to
innovate some new item or services.
Incongrity- When requirement is incongruity with supply, innovation may be brought on.
For example, in order to satisfy the needs of customers, company may innovate new flavored lassi
that may carry new items and transfer it from one place to another.
Necessity- it is one of the most useful source that help Essence Drinks to innovate new lassi,
which no one may produce in overall sector.
Changing perception- A change in context of buyers perception regarding products/service
also give birth to innovation.
New Knowledge- After obtaining knowledge about using advance technologies in context
of producing new lassi, Essence Drinks drive its attention towards innovation concept.
Demographic changes- the lifestyle of people may also consider as source of innovation, as
it drive the work and practices of individual person towards creativeness.

Activities that may foster and develop an environment of innovation in organization-
Each company may foster and develop a culture or environment of innovation at workplace
where number of applicants are working. It may create by using appropriate form of leadership,
which help to boost the performance and morale of staff members and drive their thinking towards
conducting creative things to achieve common aim.
LO 2
P3 Explaining 4ps of innovation and utilize of innovation funnel to examine & shape innovative
ideas
Paradigm-
It concerns modification in the way something is done in Essence Drinks such as product
manufacture operation, as it help to new flavored lassi (Kim, 2020).
Product-
It exhibited that how Essence Drinks make its lassi better than rivals by using creative
ingredients. Incremental in items successfully added value in term of productivity of firm in
innovative goods.
Process-
After dealing with above two P’s of innovation, here company may deal with current one
where hiring, selection, supplying, training etc. activities are included.
Position-
To influence customers and gain their attention towards purchase, Essence Drinks firstly set
its brand image in mind of each buyer, which is possible when it may use social media and other
positioning approaches.
Innovation funnel-
It considered as mechanism which means a continuous stream of creative thoughts and
prototypes may be screened for viability. Innovation funnel concept encompasses five phases that
help Essence Drinks to shape innovation after examining it in effective manner (Franken and et.al.,
2020).
Stage 1-Idea generation
Essence Drinks may examine innovative idea by driving the attention of workers towards
conducting work activity and then shape it in effective manner. It enables firm to obtain a hundred
of ideas.

Stage 2- Rough concept
After above step, by selecting one idea among many in context of new lassi, now firm shape
it in productive manner.
Stage 3-Detailed concept
The innovation idea in term of new drone production has been selected in above stages,
which now may continue in practical manner. Now its time when workers focus on preparing new
lassi that has new ingredients in order to make it delicious.
Stage 4-Market launch
After product production, Essence Drinks may focus on marketing strategies which help to
commercialize new lassi in market and increase sales level of firm (Mamasioulas, Mourtzis and
Chryssolouris, 2020).
P4 Examining developments in frugal innovation and providing examples of how it is utilized in
Essence Drinks
Frugal innovation is developed when small companies with their limited assets attempt to
produce new services or products that help to satisfy customers needs and fulfill their expectations
Illustration 1: Innovation Funnel
(Source: Stages of Innovation Funnel, 2021)

(Hossain, 2020). Essence Drinks company may use this concept in term of using all the available
assets, including ingredients, which enable firm to produce a lassi in order to give delicious
experience to customers.
In recent time, frugal innovation is used by many companies in term of Jugaad, which is
quite beneficial as it saves money and requirements relate to human resource. It emphasizes utilize
of less material and financial assets to product a new drone that add value for consumers and
contribute to achieve aim. It helps company to reduce unnecessary cost and production of essential
items in order to gain higher profits (Lu and et.al., 2020). Frugal innovation successfully used in
Essence Drinks with the support of leaders, as they contribute to innovate new item by using
accessible resources in term of guiding workers and directing a team at workplace. The approach
works on bottom to top method in contrary to top to bottom of standard innovation. It is so because
frugal innovation gives more reliability to firm in context of its new lassi and to attain attention of
customers. It is quite beneficial and useful process that help in varied terms such as help to generate
revenue, increase profits margin etc. It has named because of specific reason, for example it is not
confined with particular consumers, but pick up wide range of buyers from the lowest resources.
The aim of this concept is to offer valuable goods or service which may produce by using necessary
and available things.
Role of frugal innovation in company-
It plays vital role in Essence Drinks in term of saving efforts and most importantly money. It
helps firm by reducing complexities of innovation and offering maximum profits from few
resources to attain sustainability. It contributes to save money by reducing the unnecessary
requirements of non-essential elements or features in lassi. Frugal innovation enable organization to
compete in market by producing and launching new item which is quite different from other brands
products.
M2 Provide an analysis and application of innovation funnel in the organisational context.
Innovation funnel is a concept that is referred as a process of streaming creative ideas in a
continuous manner that can be further screened for viability. The concept of innovation funnel has
been segregated in three parts basically. The concept of innovation funnel is applied by Essence
Drinks by generating ideas in order to manage the drinks that can be used to widen the market. The
ideas can be generated with the help of various actions such as identification of various ideas and
their scope in management of goods. The last step in application of innovation funnel involves
integration of various actions such as creation of goods, development of management case and the
launch of product in the market after testing it (MIRGHAFOORI, MOROVATI and ZAHEDI,
2018).

M3 Explain the role of frugal innovation in context of the organization.
Frugal innovation plays a significant role in an organization that further facilitates the
executives of the organization to enhance the profits. The Frugal innovation helped Essence Drinks
to improvise or increase the profits of the organization with the help of Mango Lassi. The
management of the organisation is facilitated by all the necessary information that is required in
terms of products and services of the organisation. The feedback of the customer helps the
management to improve the quality of products while decreasing the manufacturing cost.
D2 Provide appropriate financial reports that apply and interpret data suitably for various business
activities.
Requirements Cost
Costs of materials 4000
Machinery and equipments 2000
Labour 1000
Production costs 2000
Advertising costs 1500
LO 3
P5 Explaining importance of commercial funnel and application of new product development
processing for commercialization of innovation
Commercial funnel is defined as marketing tool through which many organizations in the
business world find, qualify and trade their products to target customers (Teixeira, Benedet and
Velasco, 2020). It is quite essential and beneficial for Essence Drinks in term of generating
awareness among buyers and determining issues which enable firm to solve it by producing quality
items. Commercial funnel is used in term of sales funnel, which takes organization target customers
on journey of purchasing procedure, which in return increase the profit's margin of firm.
New product production-
Idea generation-

NPD process begin with idea generation phase, where all the workers in Essence Drinks
may collaborate and coordinate to generate many ideas among which they may select the
appropriate one.
Idea screening-
Before commercializing innovation, organization may choose the specific idea and that is
new lassi, which bring several benefits for its business.
Concept testing-
According to this stage, management may test the reliability and sustainability of chosen
idea before continuing it in term of producing a new lassi.
Business analysis-
After passing above phases, organization may concentrate on analyzing selected idea in term
of determining its match with strategic aim and objective of firm. Overall analysis covered cost of
production, expect sale, profits and market demand.
Product development-
When the chosen idea is fit into strategic plan of company, management may think to
convert it into new item such as lassi.
Test marketing-
After producing new drone, firm may take the most important action and conduct practice in
term of testing it before launch, which allow management to identify where improvement is needed.
Commercialization-
Above stage assure Essence Drinks that its new drone is ready to promote in market where
many customers seeks to consume it.
P6 Building an innovation business case for Essence Drinks, including ways to access funding
Executive summary-
Due to competitive environment, each company has taken attempts and one steps ahead in
context of gaining benefits and increasing sales, which is quite essential. Essence Drinks also do so
in term of producing a new lassi, which is much delicious than earlier mango lassi as it carry single
flavour. By using venture capitalist option, company has get success in term of launching the new
lassi in the market.
Mission-

The mission of Essence Drinks is to leave a mark of its company in market, where
customers get attracted towards their new products.
Vision-
The vision of firm is to gain competitive edge by providing top category lassi to customers.
Satisfaction of innovation-
The key elements that provide full satisfaction of innovation in term of new lassi.
Opportunities in market for new item-
Essence Drinks have great opportunity in market in context of its new product because the
number of rivals are accessible who are unable to produce this kind of lassi.
Competitive edge-
Firm have chance to grow its venture and get success in term of increasing profitability and
sales level after selling new lassi in market.
Target market-
By using STP model, company may target those people who are more inclined towards the
healthy drinks. It may use demographic and behavioural segmentation strategies to target these
people as target customers. For positioning purpose, company may use digital marketing channels
and tools, which help management in terms of influencing mind of buyers.
Marketing strategies-
Social media marketing is the best because it help to spread any information with second at
global level, which is quite beneficial in term of saving time and money.
Ways of findings-
Equity financing-
It considered as procedure of raising capital via selling shares in market (Fu and et.al.,
2021). Most of the companies in recent time raise money because they may have a short term need
to innovate something new etc.
Venture capitalist-
It is one of the most commonly utilize and easiest form of funding. Venture capitalist is
define as private equity investors that provides money to those firms that exhibiting high progress
potential in exchange for an equity stake.
Bank financing-
It is the most common and traditional financing approach, where a company may take loan

after applying it and getting their approval.
From above discussion, it can be said that bank financing is the best option for Essence
Drinks, through which it may receive money to produce the best lassi everyday.
Budget-
Resources Amount (£)
Employees’ salaries 2000
Collecting new tools and equipment's 2500
Conduct Market research 1200
Marketing tactics and usage of channels 1800
Selling 3000
Total 8700
M4 Detailed innovation business case
There are several factors which examine innovation business case of Essence company.
A thought: It is significant for company to develop innovative approach in existing products
and services portfolio. This will expand opportunities of Essence business to develop sales ratio.
Thought related with products and services will bring innovative approach to fulfill desire of
respective customers.
Idea development: Development of idea in current portfolio is needed to expand business
opportunities. Company need to check feasibility of business idea because it increase customer base
and sales ratio of company.
Strategies and implementation plans: The business plan must be designed in order to
promote products and services to the target customers. Company can utilize online platform of
social media to advertise existing products and services (Wiesböck, 2020). The proper
implementation plan facilitates proper supply of products availability by the help of supply chain
management.
Analyzing market: Organization require to execute regular feedback with the help of marketing
analysis. It analyses feasibility check of products and services to ensure long term sustainability of
business.

LO 4
P7 Evaluation different tools that companies can utilize to develop, retain and protect IP and
knowledge
Patent-
It is an exclusive right provided for an invention, which is a service, process or product that
caters (Grzegorczyk, 2020). In general a new way of producing somethings of offer a unique item
that satisfy needs of customers and fulfill the expectations of business as well. This IP tool gives
companies legal right to exclude their rivals from making and selling an invention, which may
innovated by them.
Copyright-
Just like above, copyright is also included in list of IP tools that protect work and important
information of companies from their competitors (Chatterjee, 2020). Works covered by this tool
range from paintings, books, and sculpture to computer systems, advertisements, database, technical
drawings and maps. It helps to provide rights to exclusive publication, usage and distribution of
things. It usually originates with creator for a work, but may sold, or inherited by others.
Trademark-
It is a kind of intellectual property that consist a recognizable sign, expression or design
which determines goods/ services of specific source. Over duration, it becomes synonymous with a
firm name, so that customers do not even need to consider the name to recognize a specific firm.
Evaluating different tools in regard to wider business environment-
Basis Strengths Weaknesses
Patent The key strength of patent as IP tool is
that it protect for a pre-identified
period, permitting user to keep rivals
away from its valuable and precious
resources.
The negative thing about patent is that
it consumes a lot of time and might be
lengthy while a person conducts it
into practical manner.
Trademark This tool help companies in term of
protecting them against infringement.
The most negative fact about
trademark is that its registration fee
and renewal fee is quite expensive,
which is not affordable for some

ventures.
Copyright The best thing about copyright is that
it protect a organization broachers,
important documents and annual
reports for longer period of time.
The main drawback for this tool is
that it protects aspect of idea, not idea
itself.
D2 Critically evaluate the nature of innovation along with the context that facilitates development
with evidence-based judgements.
Innovation is considered as an important factors in every organisation. In aspect of Essence
Drinks, innovation is significant but it may also hinder the progress of the organization. The nature
of innovation is aspect of Essence Drinks is discussed below-
 Customer connection- It is very important for Essence Drinks to have knowledge of the
fluctuations in the customer demand in order to cope with the trends in the market. The
trends are basically the roadmaps that need to be traced in order to solve critical problems.
 Innovation strategy- The organisation must develop an innovation strategy. Essence
Drinks needs to develop an Innovation strategy so that the organization has a direction
towards which the employees can work upon.
 Empowerment- It can be considered that the management of Essence Drinks is under
threat that the innovation can be distracting for the employees. The organization might fear
to adapt new ideas under the threat of hindrance in the progress (Tianyi, 2021).
Occurrence Invention takes place when a new idea
strikes in the mind of scientist.
Innovation occurs when the
organization feels a need of developing
or improving a new product.
Skills The skills that are mandatory for
invention are scientific skills.
The mandatory skills for innovation are
strategic, marketing and technical
skills.
Activities
involves
The activities of invention is limited to
the extent of Research and
Development department of the
organisation.
The activities involved in innovation is
basically spread across the whole
organization.
Concern The concept of invention is concerned
with a specific product, process or
service.
The concept of innovation is concerned
with a blend of various products,
services and processes.

CONCLUSION
By summing up above analysis, it has been inferred that innovation contribute to boost the
growth of company and increase its sale level even better than rivals. By supporting and motivating
workers, leaders has built effective workforce that contribute to increase the productivity and
performance level of venture. Furthermore, from above discussion, it has been concluded that by
using innovation funnel and frugal innovation, company has gained competitive edge and leading at
top position in market. By taking loan from bank and using the most appropriate IP tool,
organization has successfully protecting their knowledge and retaining workers for longer period of
time.

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