Analysis of Innovation and Entrepreneurship

This assignment provides an in-depth analysis of innovation and entrepreneurship concepts, including business models, product innovation, and technology transfer. It covers a range of topics, from commercialization of technological innovation to business model innovation and open innovation. The assignment includes references to various research papers and case studies, providing students with a comprehensive understanding of the subject matter.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P 1- Explaining innovation and determining its importance to the organisation and its
comparison with invention. ........................................................................................................1
M 1-.............................................................................................................................................2
P 2- Explaining how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation. ............................................................................................3
LO 2.................................................................................................................................................4
P 3- Explaining the 4 p's of innovation and the use of innovation funnel to examine and shape
innovative ideas in the organisation. ..........................................................................................4
M 2- ............................................................................................................................................5
P 4- Explaining ways to develop frugal innovation....................................................................5
M 3- ............................................................................................................................................6
D 1- .............................................................................................................................................6
LO 3.................................................................................................................................................6
P 5- Explaining the importance of commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation........................................6
P 6- Building an innovation business case for the organisation, including the ways of funding.
.....................................................................................................................................................7
M 4- ............................................................................................................................................8
LO 4 ................................................................................................................................................8
P 7- Evaluating the different tools that Essence Drinks can use to develop, retain and protect
knowledge and intellectual property. .........................................................................................8
M 5- ............................................................................................................................................9
D 2- .............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is the life blood for an organisation. This leads the company towards success
gains some competitive advantages for it. Essence Drinks is the company which provides healthy
drink of mango lassi to its customers. It has gained success in the first year after its launch but
after that sales decreased. This report includes about the innovation and its different nature from
the invention. It is very important for the success of company in the market. It is explained that
how organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation. 4 p's of innovation are explained and the use of innovation funnel to examine
and shape innovative ideas in the cited company (Datta, Mukherjee and Jessup, 2015).
Developments in frugal development are explained. There are many importances of the
commercial funnel and the application of new product development processing for
commercialisation of innovation. Business case is build which needs innovation which includes
ways for funding. Different tools that the cited organisation can use to develop, retain and protect
knowledge and intellectual property are evaluated.
LO 1
P 1- Explaining innovation and determining its importance to the organisation and its
comparison with invention.
Innovation is the process which brings positive changes in the working styles of the
organisation helps it to grow further. This is very helpful in gaining some competitive
advantages which makes them more developed between all the competitors. It is beneficial for
increasing the market share of the company. Through the innovation the quality of products and
services get enhanced. Invention is totally different from innovation. It means making new
services or products. These are totally new in the market. On the other hand innovation is making
quality changes in the existing products and services. There are many importances of innovation.
Some of them are as follows:
 Satisfying consumers- Needs of consumer always changes with time. They want that
products and services which are creative and will satisfy them fully. Innovation is the
process of making that changes in the products which are required by the customers.
Essence Drinks work in the direction of making their customers satisfied (Hallstedt,
Thompson, and Lindahl, 2013). It will eventually lead them to increase their sales. On the

contrary invention is the process of launching new products which may or may not be
required by the customers. Customers satisfaction is the most important part of an
organisation which can be gained through the process of innovation.
 Enhancing productivity- Innovation will make the company to use that technologies
which will be the best for increase in productivity. It will bring that changes which will
be the best for working of all the functions in the organisation. This will eventually
increase the productivity of cited company. Innovation is based on the creativity which
makes the stakeholders sure about the further development of the company. On the
contrary invention can bring increase in the productivity or may be not. They are not sure
that invention will bring some development or not.
 Advantages from competition- Innovation will lead the Essence Drinks to gain many
competitive advantages in the market. By this many customers will get attracted towards
them which will increase their revenue and eventually their market share. Innovation
brings that change which is required by the customers. On the contrary it is not sure that
invention will also bring that changes only (Kaur, Sharma and Sharma, 2014). It will take
time for the customer to understand the value of product. That's why innovation will
definitely gain some advantages regarding the competition in the market.
 Engaging stakeholders- Bringing innovation will need approval of all the stakeholders
within the Essence Drinks. These are the person who are directly related with the
workings of organisation. So innovation process will involve all of them in the business
functions. Stakeholders will not object innovation because it will bring positive changes.
On the contrary stakeholders can object the process of innovation because they are not
sure that it will bring positive changes or not.
These factors state that innovation is very important for the company to grow further and
get success in the market. It also states that innovation and invention are different from each
other. Innovation is better than invention because of level of risk involved with them.
M 1-
There are many sources from which innovation can be brought within the cited
organisation.
 The Essence Drinks can use the new technologies which comes in the market (Seybold,
2014). This will bring innovation in the organisation.

 For fulfilling the different needs and demands of customers company can have the need
of bringing the innovation.
P 2- Explaining how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.
There are many ways in the which the organisational vision, leadership, culture and
teamwork can shape the innovation and commercialisation in the Essence Drinks.
 Organisational vision- These are the goals which are set by the company to be achieved
in the near future. It can shape the innovation and commercialisation in the company
because they will set the direction towards which the business have to work (Mahr,
Lievens and Blazevic, 2014). Currently the cited organisation have the vision of making
new range of drinks. This can be achieved by bringing innovation.
 Leadership- Leadership is the skill which are in leaders to effectively lead the team. This
skill will help the cited organisation to manage all the process which will be required for
bringing the innovation. This can shape the innovation and commercialisation process in
the firm.
 Culture- It is the set of systems or knowledge which is followed by all who are working
in the company. Better culture makes brings better innovation. The cited company can
use the professional culture in their premises for shaping the innovation and
commercialisation process.
 Teamwork- It is the method which makes the team effective. This can happen when
skilled employees get together in team to make the innovation process better. This will
also shape the innovation and commercialisation process.
These are some points if they achieved properly work hand in hand then they can
effectively shape the innovation and commercialisation (Wellner, 2015). Setting vision will
make way to work, leadership will lead the employees towards innovation, culture will make that
environment which is the best suitable for bringing innovation and commercialisation and
teamwork will give effective performance at this time.

LO 2
P 3- Explaining the 4 p's of innovation and the use of innovation funnel to examine and shape
innovative ideas in the organisation.
Innovation is the most important part of the any organisation. It makes the company to
grow further in the market and gain some competitive advantages among the competitors.
Innovation includes 4p's of business which help it to be implemented in the organisation in a
very effective way (Breznitz and Etzkowitz, eds., 2017). Process of innovation will become very
efficient in Essence Drinks when it will use all the 4 steps. Those 4p's are explained below:
 Product- Every organisation wants that their product should be the best which will attract
many more customers towards them. It will help them to increase their revenue and
market share. This can be easily achieved if the company will use innovation. Innovation
will make the product of cited organisation different from the others of competitors. This
will lead the company to satisfy all their customers. Currently the company produces
mango lassi. They can bring diversified innovative product range.
 Process- It is the system which will be followed to bring innovation in the company. This
will include all the steps that can bring the innovation in products in the efficient way.
This process can be innovation in the production function of the organisation and it will
definitely give or have some innovation in the product of the business. It is part which is
described in the plan and strategies. Innovating this will be beneficial for the Essence
Drinks as a whole.
 Position- In this p the organisation can launch their new product in the already stable and
good position of business in the market (Swann, 2014). Company can bring small
innovation like in the packaging if it has very stable and sustained position in some area
of the market. The cited company has very good position in the market. So it can bring
very minor innovative things in the product.
 Paradigm- It is based on the judgements of the internal as well as the external business
environment of the company. This innovation can be only brought if the organisation
maintains healthy relationships with all the persons. It can bring very high level of
change which will attract more and more customers towards them. The cited company
needs to put it's all strength to make this innovation work and give profits to them.
Innovation funnel

It is the process which includes all the steps which are going to be used in bringing the
innovation in the product or service. There are three steps which are to be followed to efficiently
bring the innovation.
 At the first step the Essence Drinks will gather all the information and ideas. It means
noting down all the areas in which innovation can be brought and the process to be used
in that innovation (Melissen, ed., 2016). It will help the cited company to understand all
the things about the process.
 On the second step the company compare all the ideas which are generated from the first
step. It makes the cited organisation to understand that ideas and objectives are related or
not. Now the company should analyse the whole situations and determine all the risks
which will be involved in the process of innovation.
 At the last step Essence Drinks will see that ideas which are generated are in total relation
with the objectives of company (Innovation funnel, 2017). Now the firm can launch its
new and innovative products in the market.
Following these ideas help the organisation to shape the whole innovation process and
ideas in better way. This will ensure the success of the company.
M 2-
Applying innovation funnel in the context of the organisation will bring many benefits. It
will help the Essence Drinks to bring innovation in existing product and launch new products in
the market.
P 4- Explaining ways to develop frugal innovation.
It is the process which is very effective to reduce the cost of the company. Frugal
innovation is also very helpful in enhancing the productivity of the company. It helps the
Essence Drinks to reach all the ranges of their customer in the effective manner. For developing
the frugal innovation in the company they need to understand all the factors and situations by
doing the proper research (Jamil and et.al., 2016). The main motive of this innovation is to
achieve all the goals and objectives of the company which are targeted or desired by them.
Making the frugal innovation develop in the company they need to follow the proper procedure
which is stated in the strategy or plan. Essence Drinks who needs to launch some new products
in the market should work on developing the frugal innovation in the business.

M 3-
It is discussed in the above paragraph that frugal innovation is need to be developed for
the further success of the company in the market. It will make the Essence Drinks to achieve all
its objectives and goals which are set or targeted by them. The company will effectively launch
the new products into the market. Many more customers will be attracted towards the cited
organisation. This will increase the revenue of the firm and will increase its market share. These
are some role of the frugal innovation in the cited business.
D 1-
Innovation can be developed by using many methods within the organisation (Do and
et.al., 2014). Essence Drinks can all the three steps of innovation funnel to make the process of
bringing innovation in the effective and efficient manner.
LO 3
P 5- Explaining the importance of commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.
Commercial funnel is the group which contains the information about all the functions
and operations which are performed in the organisation. These all functions are handled to be
very carefully to get the benefits of all the importances of commercial funnel. It will help the
company to analyse all the departments of Essence Drinks in very effective and efficient manner.
Innovation funnel of the commercial will be used in processing for commercialisation of
innovation. It will make the company to analyse all the ideas which can be used for making or
bringing the innovation. First the business have to think all the ideas which can bring the
innovation in the products. Those ideas should be related to the objectives and goals of the
organisation. Then the organisation can implement the process of launching the existing product
or new product with some innovation.
New product development (NPD) is the process which is used for the developing the
product which is new and yet to be launched in the market. It includes the whole process which
is to be followed during the making and launch of the product (Souto 2015). NPD will bring that
innovation in the product which is required by the organisation and which will attract more and
more customers towards them. It needs the eight steps to be followed in the development
process. Those steps are creating the ideas, representing, thinking of the research, business

calculus, marketability, technicalities, procedure of making product and commercialisation. The
Essence Drinks will achieve many benefits by this. They will effectively meet all their objectives
and goals which are set or desired by them while implementing process of bringing innovation.
New product developments is important for commercialisation of innovation.
P 6- Building an innovation business case for the organisation, including the ways of funding.
Business case is the situation which arises in the company and which requires some
changes that are to be made for handling the case in better way. In the current situation Essence
Drinks is facing the business case of reduction in its sales. The company had enjoyed many
profits and benefits in the first year after its launch (McKelvey, 2014). But it reduced in the
upcoming years. Now the organisation is facing the condition of very law revenue.
For handling this complex business case the company needs to make some innovation in
its working style. It will help the company to increase range of customers because innovation in
the product will gain the attention many people. It will increase the revenue of the company.
Now the firm will eventually lead towards the increase in their market share. For bringing the
innovation in the company they have to follow many processes and procedures which are
described in the method which is to be used. First the company have to analyse all the ideas and
select the best suitable option for the innovation. Now the business has to select the target market
in which they will sell their innovative product. Target customers for the firm are people who
enjoy drinking healthy drinks. Many new customers will get attracted to them by this and it will
help them to increase their sales.
Process of bringing this innovation in the organisation can be very costly for them.
Essence Drinks needs to analyse their financial condition before implementing the process of
innovation. For not having the efficient funds in the business then they can take the help of
various sources which can provide the required funds to the company. The sources which can
help are banks who can provide loans, savings at the personal level, sharing capital etc. efficient
funds will be needed for the effective innovation process (Spieth, Schneckenberg and Ricart,
2014). The company wanting the high amount of funds can take the help the banks which will
provide them with required loans. It will be the best option for the organisation to take the loans
from banks.

M 4-
It is discussed that Essence Drinks is currently facing the problem of reduction in the
sales. This case can be effectively implemented in the company by using various tactics.
Innovation is the best process which can help the company to increase the sales and effectively
solve the problem of business case. For implementing the business case in proper way the
company needs to have efficient funds. Non availability of the funds will stop or hamper the
process of innovation. The company wants to bring the innovation in the existing product and in
launching the new range of products. The company can effectively achieve its objective and goal
of change by adopting the commercial funnel which incudes the whole analysis of the innovation
funnel. The cited organisation can also apply the technique of new product development (NPD)
processing for commercialisation of innovation (Vanhaverbeke and Chesbrough, 2014). It will
help the company to increase their sales by attracting more and more customers towards them.
This will eventually increase the market share of the company.
LO 4
P 7- Evaluating the different tools that Essence Drinks can use to develop, retain and protect
knowledge and intellectual property.
Many tools are there which can be used by the company to develop, retain and protect
knowledge and intellectual property. These tools will help the organisation to gain many
competitive advantages for them among the competitors. Those tools are as follows:
 Trade secrets- It is the process or tool which will help the company to keep all their
important information regarding the product or their innovation strategy as the secret. By
using this no one will be able to hamper the image or workings of the company by
knowing its secret. Essence Drinks can use new and advanced technologies to maintain
the trade secrets. By this company can develop, retain and protect knowledge as well as
intellectual property.
 Copyrights- It is tool which is made save the intellectual property. In this process
government give the special right of protecting the unique range of products of the cited
company. But this is only for the limited time. The business have to renew these rights
for continue getting benefits of this (Boons and Lüdeke-Freund, 2013). It will also protect
the special products and intellectual property which is with the cited firm. No one else

can make the product or services if the company has taken the copyright for it by the
government.
 Trade dress- It is the process which makes the customer understand the product by seeing
the outer covering of it. Every product needs to be different from other by its appearance
so that the customers can easily find them. Trade dress needs to be very innovative and
attractive which will gain the attention of many consumers towards them. Essence Drinks
has very attractive outer covering of its product which makes it different from others. It
very efficiently protect, develop and retain the knowledge and intellectual property.
 Trade mark- In this tool the company make that products with the sign and design which
makes them different from others in the market. This makes the customers easily find the
product. It definitely protects and retain the intellectual property rights of the Essence
Drinks.
 Patent- This right given to the company protect the copying any invention made by them.
Essence Drinks inventing that product which is not made by the any other company in the
market. Then they take patent right for that product. This will ensure that nobody else can
make this product apart from the cited organisation.
 Branding- It states about the different process of making the logo for brand which will
make brand name of the business more strong in the market. Brand logo cannot be same
for the other companies.
M 5-
These are very important in accordance with the wider organisation. These tools help the
company keep all their rights and information to themselves only.
D 2-
Innovation can be successfully achieved by the company if they follow all the steps
which are required for it.
CONCLUSION
This report concludes that innovation and invention both are the two different things.
Innovation is better because there is very low level of risk. Innovation contains many
importances for the company's success in the market. 4P's are described. Developments done in
the frugal innovation are explained. Importances of commercial funnel and NPD are given.

Innovation business case is build for the Essence Drinks with the various sources of funding.
Different tools to protect, develop and retain knowledge and intellectual property are evaluated.

REFERENCES
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Online
Innovation funnel. 2017 [Online]. Available through:
<https://www.cleverism.com/lexicon/innovation-funnel-definition/>.