Innovation and CommercIALIZATION Introduction 3 TaSK 13 Q1 Explain the Innovation Funnel and the New Product

INNOVATION AND COMMERCIALIZATION SUMMARY 3 TASK 13 Q1 Explain innovation and the Difference between the Innovation and Invention3 Q2 Explain the importance of the Innovation and the way organization can change into innovative organization 4 Q3 Explain different type of innovation approaches 6 Q4 Explain 4 P' s of the innovation in the organization context 7 Q5 Explain the Innovation Funnel and the New development product in context of the new product 8 Q6 Explain the Frugal Innovation and its importance for the organization 10

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Q1 Explain innovation and the Difference between the Innovation and Invention....................3
Q2 Explain the importance of the Innovation and the way organization can change into
innovative organization...............................................................................................................4
Q3 Explain different type of innovation approaches..................................................................6
Q4 Explain 4 P' s of the innovation in the organization context.................................................7
Q5 Explain the Innovation Funnel and the New development product in context of the new
product.........................................................................................................................................8
Q6 Explain the Frugal Innovation and its importance for the organization..............................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation refers to process of inventing a new idea into a product or element that is completely
different and unique from others and is placed in a market with a view of earning profit. This
report highlights the definition of the Innovation and the difference between the innovation and
Invention. Further this report highlights the importance of the innovation and what will be the
benefit will be brought by the innovation to the Yo Yo drink. Further this report explains the
different types of the innovation approach and the 4 p's of the innovation for the organization.
Further this report explains the Funnel innovation and the New product development strategy
and In the end report explains the Frugal innovation and its importance.
TASK 1
Q1 Explain innovation and the Difference between the Innovation and Invention
Innovation is the process of trying different activity or the multiple of the activity at once to find
out the new and unique way to do something or to bring something new into the market. In the
today's scenario which is favouring more toward the globalization it has helped the economy of
the country but at the same time also has increased the competition in the market and which has
eventually resulted in the increase in the demand in the customer that's the big reason for the Yo
Yo drink also seeing the down fall because of demand of the change. Innovation product will
help the organization in giving something new into the market which eventually result in the
positive aspect toward the sales and the revenue for the organization (Naranjo and et.al., 2016).
There is always a misunderstanding about the Innovation and Invention but in real there is a huge
difference in between them. Difference is as follows:
Basis Innovation Invention
Meaning It is the process based program
which looks at combining the
thought, idea and the new
imagination together with the
motive of coming to mutual
understanding of bringing
something new into the market
Invention is not that processed
based but in it individual
simply used the different
resources to develop the new
product in the market.

(Ortiz and et.al., 2018).
Purpose Innovation is the continuous
thinking process and the main
purpose of it to satisfy the
need or the trend in the market.
The main purpose of the
invention is to bring new
product in the market for the
first time in the market.
Product Innovation helps the business
in bringing the change in the
already launched product in
the market by the way of
introducing new lines of the
product in already launched
product.
Invention helps the business in
bringing the new product in
the market for the first time for
the customer.
Example Domino's has brought the new
flavour in their offering of the
deep to the customer (Prajogo,
2016).
Tata has invented the first bike
which can be run on the diesel.
Q2 Explain the importance of the Innovation and the way organization can change into
innovative organization
Importance of the Innovation
Innovation is the very important part in the today's scenario as it helps the business in many ways
as this is the basis for all the activity in the organization in the current scenario. Some of the most
important benefit which will be brought by the innovation to the Yo Yo drink is as follows:
 Innovation always work as a big problem solver for the organization as the innovation
helps the organization in attracting the customer by bring the service or the product which
is needed in the market. Innovation will work as a big problem solver for the Yo Yo drink
as the firm is facing the problem of decrease in the sale and the revenue of the
organization which due to the unavailability of the variety of the product, Innovation will
help them in bringing the new product in the market which will increase their product

offering to the customer which will eventually help the Yo Yo drink in solving the
problem for the organization (Shiu, 2017).
 Innovation will help the Yo Yo drink in combining the new and creativity thought and
implement that to introduce the new product in the market.
 Innovation plays a very important part in getting the competitive advantage for the
organization as the product which was brought was new in the market. Yo Yo drink will
also get the same benefit in the market.
 Innovation always help the business in improving the goodwill of the firm in the market
by getting the first mover advantage company always build a good name in the market
which helps the company in their promotion and also in earning the good name in the eye
of the customer in the market (Importance of the Innovation, 2016) .
It has been always a tough task for any organization to introduce the innovative product in the
market as it always require a good set of the knowledge and the market understanding
implementing the innovation in the organization. Some impact which are brought by the
innovation and which need to be understood by the Mr. Bond in changing the organization in the
innovative organization is as follows (Visnjic and et.al., 2016):
Vision and Objectives: It is the first think which need to be understood by the Yo Yo drink in
the process of being the innovative organization that they have to set a clear goal of the
organization which need to be achieved by the Yo Yo drink, as the clear vision and the objective
will motivate or guide the Yo Yo drink to go on the path which can help the business to
introduce the innovative product in the market very comfortably. Clear vision and objective will
also help the Yo Yo drink employee in understanding the need of the innovation in the
organization which will reduce the situation of the uncertainty among the employee.
Leadership: It is the second aspect which is affected by the innovation in the organization as the
leadership is the style used by the leader to influence the work of the individual toward achieving
the organizational goal. Leadership style need to be changed by the Yo Yo drink as at the time of
the innovation the leader need to use the style which can help the Yo Yo drink in influencing the
work of the employee toward the goal and also need to motivate the employee at the changing
time (Zhou, 2015).
Organizational culture: Culture of the organizations refers to the shared values, behaviour and
assumptions that combines and create psychological environment of the organization. Culture

will help Yo Yo drink in shaping the innovation process in the organization as good culture
motivate the employee to work as they feel comfortable which eventually result in increasing the
efficiency level of the work in the organization.
Team work: This is the aspect which need to be seen by Yo Yo drink as team work will help the
Yo Yo drink in defending he challenges very effectively as in the Team work more than one
people work on the same issue which increase the chance of getting the solution very easily.
Q3 Explain different type of innovation approaches
There are many types of the innovative approaches in the real. The main four type of the
innovation approach which can are used by the organization in today scenario is as follows:
Incremental Innovation: It is the innovation approach in which small changes are made in the
existing product of the organization. This is the innovation which is done more on the basis of
the customer suggestion and the feedback as compare to the trend in the market. Generally this
type of the innovation is used by the entrepreneur to maintain and improve the market position
with the current product.
Advantages
 Helps the organization in maintaining the current customer base of the organization.
 Helps the organization in maintaining the market position of the current product.
Disadvantages
 Does not work in the long run of the business as this innovation does not able to attract
the larger scale of the customer (Clauss, 2017).
Disruptive Innovation: It is the innovation approach in which change in the product is brought
by the entrepreneur on the basis of the change in the technology in the market. This is generally
performed by the organization to be competitive in the competitive market.
Advantages
 Helps the organization in increasing the efficiency of the work in the organization.
 Helps the organization in improving the quality of the product in the market.
Disadvantages
 It is the tough approach to implement in the organization as it requires the variety of the
technical knowledge to implement the same approach in the organization.
Architectural Innovation: It is the innovation approach which looks at changing the structure
of the product but keeping the usefulness of the product the same as it was in the past. This

approach is generally used by the entrepreneur whose product was not that adjustable and
compatible in all the condition and the situation.
Advantages
 Helps the company in touching the new range of the people who was not attracted before
toward the product.
 Helps the company in reducing the cost of the company as new technique to design the
product is cost saving technique as compare to the past technique.
Disadvantages
 Generally this technique takes the time to deliver the innovative product and also it has
very minimum chance of attracting the good range of the customer toward the product
(Donate and de Pablo, 2015).
Radical innovation: It is the innovative approach which looks at destroying the previous market
and the product and bringing the new product in the market with the motive of covering the
better market area this time. This is generally done by the business who is not doing well with
the previous product in the market.
Advantages
 Helps the business in starting their business from the starting itself by introducing new to
get the competitive advantage in the market.
Disadvantages
 It generally cost very high to the organization as starting the business with totally new
product generally requires the huge amount of the investment for the organization.
Q4 Explain 4 P' s of the innovation in the organization context
4 P' s of the innovation is also known as an Innovative mix. This is the mix which is generally
used by the organization in process of implementing the innovation in the organization. These
mixes are explained below (Fraj, Matute and Melero, 2015):
Product: It is the outcomes of the innovation process which is implement by the Yo Yo drink to
find out the item which can be served to the market for the consumption for the customer in the
market. Company should have a proper knowledge about the product which is offered by the
company to the market. Yo Yo drink need to have a roper knowledge about what to serve, how
to serve and where to serve the innovative product so that the organization is able to earn the

maximum profit out of it. So from the above it can summarize that the prime objective of the
business is to bring the innovative product and implement the same in the market.
Process: Process is the function of the organization which looks at the production part and the
distribution part of the Yo Yo drink. Production includes the equipments, machinery and the
technology to produce the strawberry Lassi which is innovated by the Yo Yo drink and the
distribution part will include seeing the best distribution channel which can be used by Yo Yo
drink to attend the larger number of the customer in the market.
People: It is the third mix and one of the most important mix in which Yo Yo drink has to select
the customer and target the same which need to be attended by the company with the purpose of
selling the product in the market so that the organization is able to earn the maximum profit out
of the product which is Yo Yo drink is trying to sell in the market. This mix also looks at the
people in the organization. Yo Yo drink has to make sure that the good communication has been
passed to the employee, and they are motivated at the regular basis as the change situation
always creates the uncertainty in the employee (Gassmann and et.al., 2016).
Press: Press is the last mix of the innovative mix which looks at the making the relationship
between the human resource and the environment in which Yo Yo drink is dealing. This mix
looks at the positive aspect or the thing which can be taken by the organization from the external
environment. The new product strawberry Lassi which will be introduced by the Yo Yo drink
will also contain the different health benefits and sensation taste for the customer (4 P' s of
Innovation, 2016).
Q5 Explain the Innovation Funnel and the New development product in context of the new
product
Innovation Funnel: Innovation funnel is the process of structuring the innovative idea for the
motive of accomplishing and completing the innovation process. Dome of the steps which can be
taken by the Yo Yo drink for the purpose of accomplishment and succeeding the innovative
process is as follows:
 The first and the most important step which need to be taken by the Yo Yo drink is to do
a market research and implementing the result of the market in such a way that the
organization is able to understand the scope and prospect of the new product in the
market. Market research should include the trend of the market, customer behaviour and
the wider scope of the market and then Yo Yo drink need to implement the new product

Strawberry Lassi into that to find is the new product is viable in the market or not
(Mahmoud and et.al., 2016).
 Next step which need to be performed by Yo Yo drink is to find out the best way to live
in the market as in the first step company will find out the multiple way to implement the
product and in this step company need to evaluate each and every option which was
found in the first step and need to implement the best step available in the market.
 Last step in this process is that the company need to implement the selected option in the
market in such a way that the larger number of the customer are attracted toward the
company and the Yo Yo drink is able to retain the place in the market which the
organization was retaining from the past 3 years in the market.
This is the process in which the Innovation funnel work in the reality and the Yo Yo drink also
need to implement this in the same manner so that the organization is able touch all the aspect in
the product success.
New Product Development
 Idea generation: stage new idea is found Yo Yo drink is looking to introduce the new
product in the Lassi chain.
 Idea Evaluation: Yo Yo drink is looking to introduce the Strawberry Lassi in the
market.
 Concept Definition: Includes the activity regarding the product design of the Strawberry
Lassi which will help at the time of the product launch.
 Strategic Analysis: Here the cost of production, indirect expenses and determining of
profit margin behind one unit will be done in relation to Rose Lassi product (Mahmoud
and et.al., 2016).
 Product Development: It is the stage where the product will take the shape as the new
product strawberry Lassi will be developed in this stage by implementing the different
process in the Yo Yo drink.
 Market Testing: In this stage the company will look at the people which need to be
targeted by the company for the product.
 Product Launch: It is the stage in the process which looks at launching the new product
in the market with the new policy and follow-ups for the Yo Yo drink.

Q6 Explain the Frugal Innovation and its importance for the organization
Frugal innovation is the process which looks at reducing the cost of the production in the
organization. Frugal innovation plays a very crucial role in supporting the innovation process in
the organization. Following are some principle of the Frugal innovations:
 Frugal innovation involves the changing of the problematic scenario by finding out the
different opportunity by implementing the new generated idea (Naranjo and et.al., 2016).
 Frugal innovation says that the company should always find the way to increase the
efficiency by uncertainness the way to produce better with the available resources.
 The company should always try to be simple never try to complicate the functioning of
the business.
 The company should feel the problem of the customer personally by putting themselves
in the customer place.
 The company should always try to find out the new way and always be confident to
introduce the same in the market.
Use of the Frugal Innovation in the Yo Yo drink
Yo Yo drink will be using the new technology to lower down the cost of the product in the
market as it will low down the labour cost of the company which will eventually result in
Lowering the price of the Strawberry lassi which will eventually means that the company can
invest more in the marketing and promotion activity to place the product on the right side in the
market. Yo Yo drink can also increase the extendability in the market by adopting the new
distribution channel to attend the larger number of the customer (Saebi and Foss, 2015).
Example: CoCo Cola uses the frugal innovation to introduce the solar cooler which can keep the
ice packet cool at the time of the power cut also. Another example is about TATA motor who
have invented the low budget car of around $2000 USD that shoe the good respond which is due
to the frugal innovation (Zhou, 2015).
CONCLUSION
After going through above report it has been summarized that the innovation and the invention
are the two different thing and having many difference in between them. Further this report
summarized that the Innovation and the different approaches of the innovation brings the many
benefits for the Yo Yo drinks. It has been also summarized that the 4 P' s of the innovation plays

a crucial role in the innovation process and the Funnel and Frugal innovation both are very
necessary for the organization to adopt in launching the product in to the market.

REFERENCES
Books and Journal
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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
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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).
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Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational
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Gassmann, O and et.al., 2016. Innovation Strategy: From new Products to Business Model
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Online

4 P' s of Innovation, 2016 [ONLINE] Available through
<https://pla55106group4.wordpress.com/im-innovation-space-4ps/innovation-space-4ps/>
Importance of the Innovation, 2016 [ONLINE] Available through <https://www.inc.com/gordon-
tredgold/4-reasons-why-you-need-to-focus-on-innovation.html>