Innovation and Commercialization: Importance, Sources, and Frugal Innovation

Innovation and
commercialization

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Explain difference between invention and innovation. Also mention importance of
innovation.................................................................................................................................3
P2 Explain how leadership, teamwork, culture and organizational vision can shape
Commercialization and innovation...........................................................................................5
M1 Analyse different sources of innovation, and how organization can foster and develop an
environment and culture of innovation.....................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas........................................................................................................7
P4 Explain developments in frugal innovation and provide how it is used in an
organizational context...............................................................................................................8
M2 Analyse and apply the innovation funnel in an organisational context..............................8
M3 Appraise the role of frugal innovation in an organisational context..................................9
P5 New Product Development (NPD) processing for commercialization of innovation.........9
P6 Develop an innovation business case for the company including funding options...........11
M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness............................................................................................................................12
P7 Assess the different tools that company can use to develop, retain, and protect knowledge
and intellectual property.........................................................................................................13
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment....................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation and commercialization is a set of activities that help the company in improving their
products and services and will also help in providing better satisfaction to the customers. The
improvement in the products and services of the company is made according to the preferences
of the customers so that the product and services can fulfil the requirements of the customers. In
case of essence drinks, it is the brand established by Mr. Akshay kumar and was established in
UK. The company was established two years before mango lassi which is a healthy drink. The
aim of the company is to provide nutritious drinks to the customers. In the given report, the
difference between innovation and invention is given. It also described the importance of
innovation. The report also includes processes that are required to commercialization of the
innovation that the company has adopted. The given report will also describe amount innovation
funnel and innovation frugal which is essential for the management of the company. It also
includes innovation business case which includes ways of funding and different tools that the
organization can use in order to protect their intellectual property is also given.
MAIN BODY
P1 Explain difference between invention and innovation. Also mention importance of innovation
Invention refers to creation or development of a completely new product that has not been made
before. On the other hand innovation refers to modifications in existing products in order to
make them somewhat different from the existing product (Bolli and et. al., 2018.)
.
Difference between innovation and invention
Basis for comparison Invention Innovation
End product New product Changes in existing product
Skills required scientific skills Technical, marketing and
strategic skills
Occurs when New idea invented by scientist Their is need for improvement
in current products.
concept Original idea with a working
theory
Practical implementation of
idea
Activities done by Research and development Anyone across the

department organization
Inventions refers to generation of a new idea, concept, design, discovery, method, creation that
has not been generated before. It refers to a conversion of a mere idea into actual and useful
products that has not been used by anyone before. The inventions made by the inventors can be
patented and protected under intellectual property law.
Innovation refers to change of an idea for improvement into actual improved product. Innovation
adds value to the product and services in term of efficiency as well as monetary value (Cao and
et. al., 2018.). It will help the company in providing products and services to the customers
according to their demands and will also help the company in providing satisfaction to the
consumers.
Importance of innovation.
Innovation helps company grow as innovation is a idea that is generated in order to increase the
efficiency and effectiveness of any product or services and modify them according to the needs
and demands of the consumer. It will help the company to provide better satisfaction to its
consumers and help company in retaining their customers.
Innovation helps the company to differentiate themselves from their competitors as innovation
process involves the whole organizations ideas and it will also help in creating some changes that
can benefit the company in the market and help them in gaining competitors advantage
(Daneshjoovash and et. al., 2021.).
In context to Essence drinks, the company was doing great in the first year of its business but in
the second year the business of the company started declining because of high level of
competition. At this level the company needs to understand that their is a need of innovation as
the customers are expecting something new apart from their competitors which can make the
drinks of the company unique. The company should detect the need for innovation and make
changes according to the consumer preferences and increase their sales and profits and can also
gain competitors advantage in the market.
P2 Explain how leadership, teamwork, culture and organizational vision can shape
Commercialization and innovation
Innovation helps the company in staying ahead of the competition in the market as the innovative
company always has better solutions for the management of the company as well as for the
processes of the product and services of the company. It is important for the company to