Innovation and Commercialisation: Concept, Benefits, and Organisational Factors

Innovation and
Commercialisation
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Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the concept of innovation and its benefit to organisations in comparison with
invention.................................................................................................................................3
P2 Describe how organisational vision, leadership, culture and teamwork will guide
innovation & commercialisation............................................................................................5
TASK 2............................................................................................................................................6
P3 Discuss 4Ps of innovation and also explain the use of innovation funnel to shape
innovative ideas......................................................................................................................6
P4 Explain the development of frugal innovation with the help of appropriate example......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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Introduction
This report is conducted for better analysing the concept of innovation and
commercialisation. It was analysis that in the growth and success of an organisation both these
factors will play an essential role. Innovation refers to an idea which is transforming into the
reality and effectively solve the problems of their customers. Innovation will help an
organisation to achieve competitive advantage in market because with the help of innovation an
organisation is able to provide something unique and creative as compare to their customers
which will assist them in better attracting more and more customers toward the company. On the
other hand commercialisation refers to a process which is used by an organisation for
successfully introducing their new products and services in the market (Cillo, and et. al. 2019). It
is a wider concept as it will include different factors such as production, distribution, customers
support, marketing and sales of products and services. This report is based on the case study of
Essence Drink Company. It was founded by Akshay Kumar. This report will include the
difference between invention & innovation in organisation. Other than this it will include 4Ps of
innovation, various types of innovation. Frugal innovation and how it will assist in achieving
higher growth and also the process of new product development id included in this report. In last
it will include the different techniques and intellectual property rights of innovation.
MAIN BODY
TASK 1
P1 Explain the concept of innovation and its benefit to organisations in comparison with
invention.
Innovation-It signifies the practical implementation of ideas & thoughts which resulted
in terms of introduction of new products or services as well as improvement iv existing ones.
It refer to the modification in any goods and services by the organisation. It will deal with the
production of creative and unique products in a company (Jia, 2018). By doing innovation in
organisation they are not launching something new but they will modified the existing products
as per the taste of customers and market trends. In Context of Essence Drink, if they will launch
a new taste in their Lassi than it is called innovation.
Invention- It is a process which is either related with improvement in machine or product
or an entirely new process for development of an object.It refers to an idea which is not develop
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before. It will provide something new and unique to their customers which will assist them in
achieving competitive advantage. In other words it refers to the development of a new idea
which is not exist in the market and developed for the first time. In context of selected company
in the case study their mango lassi is an invention as because they will provide an unique and
different combination of lassi and mango.
Difference between Invention and innovation
Innovation: The concept of innovation is based on practical implementation. It was analysis that
the activity of innovation is spread in all departments of organisation. It will require marketing
skills, technical and strategic skills etc.
Invention: The Invention concept is based on theoretical facts. Its work is only limited to the
research and development department (McKelvey and Saemundsson, 2018). It will require one
main skills and that is scientific skill.
Advantage of innovation
Provide clear direction to innovation- It was analysis that invention is the first stage of
innovation and it will provide a clear and correct direction to invention. In context of Essence
Drink Company, their invention of new mango lassi will guide them to further innovate
something new.
Assist in reinforce brand- As from the case study it was analysis that they will achieve
higher profit from their new idea but also encourage competitors, which will influence their
profitability. But with the help of innovation they will again reinforce their brand image in the
market by providing unique taste.
Creating USP- Unique selling point will help an organisation in differentiating their
products from other, which will attract more and more customers towards company products. In
relevance of Essence drink, innovation will assist them to create UPS for their products and
customers (Molnar, 2018).
From above discussion it is analysis that both the invention & innovation will look like
two similar words but there is huge difference between both of them. But both will play an
essential role in providing competitive advantage to company. Invention will require effective
skills and knowledge while innovation is play an essential role in the success of an organisation
and also assist in attracting the best talent towards the company.
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