Innovation & Commercialization: Importance, Shaping, and Examination of Ideas

This report discusses the importance of innovation and commercialization in organizations, and how organizational vision, leadership, culture, and teamwork can shape innovation and commercialization. It also explores the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. The report focuses on the Essence Drinks company and their new product Mango Lassi, and covers topics such as frugal innovation, NPD process, and tools for protecting intellectual property.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................4
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation:- .............................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................8
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context...............................................................................................................10
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation:- .................................11
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

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INTRODUCTION
Innovation may be defined as a suitable way or process which are used by the
organisation to create new thoughts of ideas. In the field of marketing innovation plays a very
important role, this comprises several set of new products and practices which are developed
with unique application by the organisation (Hahn and et. al., 2019.). Innovation is only effective
when different sort of new division of system enhance the role of authentication, advertisement,
technical supervision and reviewing of their goods and services in terms of consumers. Invention
is the occurrence of the new idea for new product which never exists before in the market. The
following report is based on the Essence drinks of healthy mango Lassi, which is developed by
the Akshya Kumar in the market of UK. The respective organization is going to focus on
innovation because of the decrease in the sales of the third year of its operations. The following
report is going to cover the importance of the commercial funnel which provide the solution of
this problem. In addition to this the analysis of the frugal innovation has also been covered in this
report. The importance of innovation and invention has also been discussed in this report. This
report also covers that how vision, culture, leadership and teamwork shape innovation and
commercialisation. Along with this a summary has been developed in this report which which
help in meeting the stakeholder need. This report also covers the NPD process and including
ways to access funding for the innovation in the respective business. Furthermore this report
cover the different tools which can be used by the respective company in order to protect the
intellectual property and the rights for launching new drink.
TASK
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
 Innovation: - The term innovation may be defined as the process of presenting new
ideas and thoughts in relation to the development of the new product and the services in
the market. With the help of innovation, an organisation can effectively connect with
their consumer, as innovation within the product fulfil the need of consumer consumer
in a very effective manner. (Ho, 2019.) . In context to the Essence Drinks, the company
will advertise their new product Mango Lassi, which is developed with fresh mangoes

and offer their consumer according to their requirement. When the goods and services
has been developed with different set of applications then in the field of marketing it acts
as a challenge for the other company. With the help of innovation within the management
the organisation can effectively enjoy the competitive advantages and benefits.
 Invention: - Invention may be defined as a suitable key for the organisation in order to
increase the product range. Invention may be defined as the process of making new item
or developing new ways of producing the item. (Hussain and et. al., 2018.). In order to
expand the business in the global market, invention also plays a very important role. In
the business organisation each individual presents their own ideas and thoughts in order
to developed the business strategies. The invention which is done by an individual are
basically unique because these are not demonstrate by any other in the market.
Importance of innovation and invention:-
In business organisation both the innovation and invention plays a very significant role.
With the help of this all the function and working can be done in a very effective manner. This
allow the management to maximise their productivity and help them in enjoying the
competitive advantage in relation to the stock invention which is directly connected with the
creating of the new products. The respective company is going to promote and advertise their
product name as Mango Lassi in the competitive market in a very effective manner which
ultimately help them in targeting new base of consumer. Along with this, this also help the
organisation in solving the issues and problem which is related to the advertising of the product.
As the drink which is developed by the company is made up of fresh mangoes, this impact on the
consumers in a very effective manner which ultimately increases the productivity as well as
profitability of the Essence Drinks.
Comparison between invention and innovation: -
Basis of comparison Invention Innovation
Meaning Invention may be defined as
the process of generating
new and unique ideas which
help in developing the new
Innovation may be defined as
the process modernising the
goods and services of the

goods and services. company or developing new
and innovative resources
within the firm.
What is it? This is related with the
development or creation of
the new and exclusive idea
in term of goods and
services.
This is related to the
implication of new idea on
the existing product or the
items which are in invention
process (Kanojia and et. al.,
2021.).
Concept The concept of invention is
totally related to
development of new ideas
and thoughts which are not
developed and created by
any other person.
The concept of innovation is
related to making changes in
the existing product of the
company. The idea of
innovation set the
organisation in a different
paradigm.
Skills required In this different types of
technical as well as research
and developed skill has
been required which help an
individual to developed
original view of concept
with in the business.
As innovators are also
known as forward thinker so
imagination as well as
problem solving skill has
been required within them
which foster an innovation
environment within the
company.
Implementation time
period
The time period of invention
has came when an new or
Innovation is implemented
when the company is going

unique idea has hit in the
mind of an individual.
to make changes in their
existing product according to
the need of the consumer in
the competitive market.
P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation: -
Commercialization may be defined as a process which help the organisation in bringing
the new goods and services in the competitive market. In simple term commercialization means
managing and running something properly for achieving the financial gain. The process of
commercialization comprises the implementation of the production, marketing , sales , customer
support and many more for the establishment of new product and service. This is totally
different form innovation, as in innovation changes have been made in the existing product
whereas in the process of commercialization a new product has been launched in the market. The
shaping of innovation and commercialization has been discussed below: -
 Vision:- The vision of the every company is to expand their business functions in the
different parts of the country. In context to the Essence Drinks, a managerial vision has
been created by the company by developing a healthy mango lassi in the market. With the
help of vision, the organisation is able to think of its future along with this, this allows the
firm to set their goals (Lobo and Samaranayake, 2020.). As per their vision statement the
company is ready to bring innovation in the product which is very beneficial for their
success and growth. In order to innovate they are planning to add more flavours with in
the Lassi which help them in providing varieties to their consumers.
 Leadership: - The leaders may be defined as those persons which motivates and
encourage the employees in order to achieve all the set objectives of the company. Along
with this, resolve all the problems and difficulties which are faced by them in the field of
marketing. It is very important for a company to have a good leadership. The Essence
Drinks company is going to launch new product named as Mango Lassi in the market for
their consumer. The taste of the Mango Lassi make their product completely different
form their rivals products. It is very important for an organisation to have a leader

because in innovation and commercialization process leadership is very crucial. The
leaders of the company utilize the resources at optimum level and define the role of the
employees towards the vision of the company that has been developed. An important role
has been played by the leaders of the company at the time of innovation.
 Culture: - the culture is totally related to the values and norms of the company according
to which the organisation works(Ma and et. al., 2018.). In context to the Essence Drinks,
the management of the company always maintain a positive working environment within
the surrounding of the firm which motivates their workers. The working environment of
the company is being considered as the one of the most important factor which shape the
innovation and commercialization. With the help of effective culture an organisation can
grow in the competitive market in a very effective manner.
 Teamwork: - teamwork may be defined as the cooperative efforts which are done by
employee of the company in order to accomplish all the target in a very effective manner.
In context to the Essence Drinks, the leaders of the company develop efficient culture
within the company which motivates the teamwork and develop the team spirit between
the employees. It is very important for the management of the firm to motivate the team
work, it is very advantage for them. All the employees of the company work as team
within the workplace according to the set objectives of the organisation. In order to
achieve these objective efforts has been made by them.
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.
The 4p's of marketing comprises those feature which help the firm in identifying that how
the management of the company bring innovation so that they can enjoy the competitive benefits
over their challengers and make their position better in the field of market. The 4P' s of
innovation has been discussed below: -

 Paradigm Innovation: - Paradigm is totally related with the changes in the managerial
techniques, procedure and concept in order to generate new and innovative sections. In
context to the Essence Drinks, the company change their thinking in respect to their
potential buyers. (McCoy and et. al., 2020.). The paradigm innovation is being
considered as the changes which are responsible for underlying the mental models along
with this, in this innovation organisation also frame what is doing and how it is doing.
The customers of the respective company thinks that this is a beverage company but they
innovate their product by adding healthy products which completely change the thinking
of the consumer.
 Product innovation:-. In context to the Essence Drinks, a new product has been launch
by the company with all modification and excellent quality according to the requirement
of the consumer. In the product innovation changes has been done by the organisation in
product and services. The respective company are trying to diversified their Lassi by
adding or innovating some new flavours.
 Process Innovation:- if the management of the company wants to brings new product in
the field of market then then they need an innovative procedure in order to develop
goods and services. (Min and et. al., 2019.). The Essence Drinks include and exclude
some product which change the flavour and attracts the consumer.

 Position innovation:- position innovation is also known as evaluation. The management
of the Essence Drinks will provide high quality of products to their customer's which
help in developing a good brand image and positioning in the competitive market. As
respective company is not going to chose this method innovation as they focus on whole
population.
From the above discussion of 4 ps it has been analysed that the option is totally depend on the
company. What type of innovation they want in their business organisation. It is very important
for the Essence Drinks to understand the importance of innovation funnel. This help them in
implementing their ideas into reality.
Use of Innovation funnel in shaping and examining ideas:-
The innovation funnel is used by the organisation when they want something new within
the business. In context to the Essence Drinks, this mechanism has been effectively discussed
below :-
Ideas & Conceptualisation
This is the fist stage of innovation funnel the Essence Drinks have to develop some new
idea for the purpose of innovation. In this stage organisation invite the different members of the
company in order to give new ideas. For the purpose of idea generation brainstorming is needed.
Feasibility analysis
In this stage Essence Drinks need to check the flexibility feasibility of the collected ideas. They
have to check whether the idea matches the set goals and objective of the company. The ideas
which are not matched need to be eliminated.
Development of new raw materials

Most appropriate ideas has been selected in this stage. The selection process is not easy
first they have to analyse all the collected data and the chose the best from the pool. For the
development of the new material the selected idea need to be converted into reality.
Customer approval & Trade
In this stage approval has been taken from the consumer by the organisation about their
innovative product. If approval has been received from the company then they start trade in that
particular good.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation: - Frugal innovation may be defined as that type of innovation which
help the organisation in reducing the unnecessary cost in a very effective manner. This
innovation is related to the production of the valuable goods. With the help of this process the

organisation is able to reduce the complexities in the innovative methods. Frugal innovation is a
process help the organisation in effectively reducing the cost of productions so that they can
increase the profit margin. Some important points need to be considered which have been
discussed below :-
Use of Frugal Innovation:-
With the help of this process the organisation are able to increaser their profit which
improves the sustainability of the company in the market. The frugal innovation process helps
in reducing the cost which are incurred by the organisation. The way of increasing the profit
for the organisation is to reduce the wastage and cost. Frugal innovation works from bottom to
top and this is being considered as one of the most important feature. More reliability to the
products has been given which are being innovated by applying this process . The organisation
gains more and more customers by utilizing less amount of resources.
The main motive of the Essence Drinks behind implementing the innovation is to earn
more and more profit. With the help of this the performance of the respective company has
been improved and they effective satisfied the customer with their product.
Examples of frugal innovations used in the company: -
 they purchase the raw material from local supplier. These raw material have been use
by the Essence Drinks company in order to developed new product which decreases the
cost of production.
 For example like the respective company finds sustainability in the market. They
innovate their in a very effective manner which is economically as well as
environmental friendly. This innovation is very beneficial for the nature as well as for
the company.
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation: -
The process of commercial funnel is also known as sales funnel. This is a marketing
model which focus on the journey of the potential customer for the purchasing of a product. This
process has been divided into top, middle and bottom stages. By applying this model, the
organisation effectively understands the thinking of the consumer. Following are the importance
of the sales funnel:-

 With the help of this funnel the organisation are able to develop and picking the effective
marketing strategy (Myers, 2020.).
 In order to increase the sale of the company this process is important and along with this
all objectives of the firm has been achieved.
 Company enjoy the competitive advantage over their rivals and effectively execute the
marketing strategies.
Steps mod commercial Funnel has been discussed below :-
 Attract :-this is being considered as the first step in which Essence Drinks have to finds
new ways of attracting the consumer in order to sale their innovative product Lassi with
different flavours. Consumer have no knowledge about the products of company, so
organisation need to give introduction about the product of the company. This cab be
done by the any marketing method like advertising, word of mouth or many more. The
method which have been selected must be cost effective.
 Convert :- in this stage the stranger need to be converted into visitors. Now the
customers of the Essence Drinks have some knowledge about the product. Some effective
methods like interaction and regular touch with the customer need to be adopted by the
respective company. By doing this they convert the stranger into visitors. This can be
done with the help of phone calls, emails, etc.

 Close :- lead must needed in the organisation which increases the sales of the Essence
Drinks company. In this stage they have to invite the visitors so that they purchase the
product from their stores. This can be done by providing good quality of product with
effective pricing strategy. After the arisen of this pandemic people focus on their health
and immune system so this act as a opportunity for the company which help in converting
the visitor into leads.
 Delight :-in this organisation start trading with the consumer and also start generating the
revenue. The customers of Essence Drinks feel happy with the use of their drinks.
After the discussion on commercial funnel, it has been analysed that it is very important for the
firm to understand the importance of funnel. This not only help in increasing the customer baser
by also help in increasing the revenue of the company.
New product development process:
This process helps the organisation to came in the market with excellent quality of the
product and customer orientation. This help the firm in executing their action plan in a very
effective manner. The process of NPD in context to the Essence Drinks has been discussed
below:-
 Idea generation :- this is being considered as the fist step of this model which is related
to the idea generation. The idea has been collected from the personnel of the organisation,
so that product has been innovated.
 Idea evaluation:- from the different available options or from the pool of different ideas
one option has been selected(Novikov, 2018.).
 Concept definition:- in this step focus has been paid on the technical feasibility, product
design, target market and many more.
 Marketing strategy development :- it is very important for the Essence Drinks to
develop the marketing strategy. In this stage they have to focus on important parts like
target market, price, marketing budget, planned profit goals and marketing mix strategy.
 Business analysis:- in this stage, the respective company need to evaluate business
attractiveness. Cost, sales and profits has been comprises in this. Essence Drinks need to
analyse their business functions and activities.

 Product development: new product has been developed by the company in different
varieties of Lassi, that offers to the customers. In this stage idea has been converted into
reality.
 Test marketing :- in this stage the Essence Drinks ensure that the product which have
been developed by them cannot failed in the market by testing and for this, first they have
to supply the sample of their flavoured drink to their consumers. This step help the
organisation in knowing whether the product has been like by the customer or not.
 Commercialisation :- this is the last stage of this model. In this stage respective
organisation start sailing their new varieties of drinks to the consumer due to which the
sales, image and profit margin has been increases.

P6 Build an Innovation Business Case for an organisation, including ways to access
funding.
An effective business plan has been developed by the organisation with the help of business case
as this is being considered as the blue print of the company (Sheth and et. al., 2018.). Along with
this, this also help in determining the expenditure, potential risk and perks in relation to the
development of the company. Following are the necessary factors which united in the business
case in context to the Essence Drinks has been mentioned below :
Business case
Executive Summary: A business case has been prepared for the respective company in which
different ways has been found which reduced the complexities and
competition. Innovation is being considered as key element for the
success and it is very important for all the organisation to focus on this.
A new product name as Mango Lassi has introduced by the Essence
Drink. The product is full of nutrients which energies the consumers.
This innovation help in overcome form this challenge.
Problem definition
and analysis
in this business case it has been identified that the slowdown in the
sales of the company in the third year has been faced by the Essence
Drinks. The reason behind this is heavy competition and they only deal
in one type of drink.
Solutions To over come form this problem company have to launch new varieties
of Lassi in order to attract the consumer towards the organisation.
Innovation in their drinks is being considered as the best solution
which have been find by them. Innovation funnel must be used by the
company in order to make sure the success of the innovative idea.
Project description It is vital for Essence Drinks that they should make sure about all the
resources which are required in the process of innovation. Some
important resources are buttermilk, flavours, sugar, machinery, etc.
Market Research all types of customers and market segments has been target by the
company. So that product can be consumed by all age groups

individual.
Financial analysis In business case funding is being considered as one of the most
important part. In this different types of financial institution has been
find by the company which assist them in fulfilling the requirement of
the capital(Torchia and Calabrò, 2019.). As the respective company is a
private organisation so different types of option has been present in
front of them. The types of financial institution for raising the fund has
been discussed below:-
◦ Loan from family and friends:- in order to run the
business fund can be raised fro the friends and family
members. This source is flexible in nature as repayment can
be done in small proportions.
◦ Bank Loans:- bank loan is the most common source of
raising the fund. In order to raise the fund company have to
show their revenues, profits, bank statements and many
more to the bank.
In context to the Essence Drinks, bank loan is suitable for the company in order to fulfil the
requirement of the fund. Loan has been provided by the bank at a average rate.
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
It has been identified that in the business environment the cases of infringement is
increasing which creates a problem that how the idea which have been generated by them has
been protected. In context to the Essence Drinks, the recipe of developing healthy and tasty
drinks need to be protected from the market. Some important tool in order to protect the idea has
been discussed below :-
 Patents :- this right has been granted to the owner who develop the idea has invention.
This is being considered as that type of intellectual property in which the rights are in the
hands of owner and if they see that their idea get infringe then they can file a case.

 Copyright :- this is the right in which the interest of the author, music, scripts, etc. has
been saved. If the organisation wants to protect their rights then this legal right is
beneficial for them.
 Trademark :-in this legal right firm can save their logo, sign, design, expression and
many more. This help in differentiate their product for their competitor in a very effective
manner.
CONCLUSION
From the above report it has been concluded that innovation is the process of creating
new item which yet not exist in the world. Essence drinks have planned to innovate their
working by innovating its existing product into Mango Lassi. This report also concluded the
innovation funnel process which help in developing the product. Further, the process of sales
funnel has been concluded which help in understanding the concept of final purchase. This report
also concluded the different tools of intellectual property which can be used the company in
order to protect the original work of owner.

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