Innovation and Commercialisation in Essence Drinks

Unit 8 – Innovation
and Commercialisation

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Difference between Innovation and Invention........................................................................3
2. Importance of Innovation to Essence Drinks..........................................................................3
3. Innovation embedded in the Leadership and Culture of Essence Drinks...............................4
4. Different forms of Innovation.................................................................................................5
5. Recommendation....................................................................................................................6
6. 4P's of Innovation....................................................................................................................6
7. Approaches to process Innovative ideas.................................................................................7
9. Process of New Product Development (NDP)........................................................................8
CONCLUSION..............................................................................................................................10
Part 2..............................................................................................................................................11
REFERENCES..............................................................................................................................22

INTRODUCTION
Innovation is a result that sought out result, the process of organisation of the work and
mindset that bring in the change in the existing techniques and methods (Gustafsson, Snyder and
Witell, 2020). This report outlines the difference between innovation and invention, value of
innovation to organisation with the process of embedding innovation in leadership and culture of
Essence Drinks. Further, types of innovation and 4p's of innovation with innovation funnel are
described. Frugal innovation and process of new product development is explained in this report.
At the end the tools of developing and protection of the intellectual knowledge and properties are
highlighted.
MAIN BODY
1. Difference between Innovation and Invention
Innovation is a process of generating ideas that are used to develop something entirely
new that helps in the improvement of the products and services. Innovation helps Essence Drinks
to survive and create competitive advantage within the industry. Innovation defines new ways to
perform tasks and application of techniques in the Essence Drinks. It adds value to the existing
product or services. Implications of the ideas to change the process and methods. It is concerned
with the composition of different processes and products. Innovation requires broad range of
knowledge and skills of different fields.
While invention is seen as the result of the research activities. It helps in the development
of new products which is entirely new and which brings significant change in the world
(Jefferson and et.al., 2018). An invention is seen as an scientific idea to develop a product, but it
will change to innovation when the product is used for the consumption of the societies. In this
process new ideas are generated for the creation of products and services. It is concerned with
the single item. Invention requires the use of scientific skills and knowledge.
2. Importance of Innovation to Essence Drinks
Essence Drinks must perform innovation or seize to exist. The process of innovation is
the fundamental and feasible to the Essence Drinks. If Essence Drinks do not follow the path of
innovation it will certainly fail in the long run. Innovation helps in the creation and development
of new processes and techniques which support the existing process to enhance performance.
The process of innovation helps in to differentiate Essence Drinks from its competitors. The new

process helps Essence Drinks to find out innovative ways to cope up with the existing challenges
arises. Innovation will result in to achieve success and growth in contrast to other similar
organisations in the industry. Innovation helps to attract new customers for a short period but
when the Essence Drinks implements the process of innovation in its entire business process it
will amplify the product quality (Yang and Jiachun, 2018). This will generate a path to increase
brand value in the market. Essence Drinks as the part of food and beverage industry has to
continuously analyse the demand, preference and change in the taste of the consumers.
Development and dispatch of new products in the market is done to attract and retain the
consumers. The basis of innovation is focused on the development of new products. It allows
formation of creative and innovative designing of the products that helps Essence Drinks to
maintain its position in the market and persuade customers to purchase the products.
3. Innovation embedded in the Leadership and Culture of Essence Drinks
Leaders are the persons who influence and guide those who follow them. Essence Drinks
as a function of business processes have human capital that forms groups within the
organisations. Leaders have responsibilities to ensure each member of the group understand the
objective of the Essence Drinks and works for the achievement of the goals. To simplify the
processes and provide change innovation is being introduced (Gerke and et.al., 2017). Innovative
techniques and solutions helps to build cooperative and creative culture in Essence Drinks.
Culture plays an important part as it defines vision and mission of Essence Drinks. Innovation
helps in the development of the suitable culture that will direct the human capital toward the
achievement of the goals of Essence Drinks. There are 4 steps that have been identified that help
Essence Drinks to align innovation with leadership and culture.
Develop an innovation objective: creation of an innovation objectives is the initial step to
embed in the culture of Essence Drinks. To develop the objectives an IS by proven approach
have been made. Innovation is then embedded through the implementation of the strategies in the
organisational process.
Examination of present scenario: collection and analysis of data is made. Interviews of the
employees of Essence Drinks is made and information on the key factors are been gathered.
Management of the Essence Drinks will examine what innovation had previously made in the
organisation and what are the root cause of missing innovation opportunities that are arises but
not addressed.

Designing and testing: the insights that are collected is used to develop innovation method that
is aligned with the Essence Drinks goals and objectives. Testing of this innovation method is
made on a specific targeted unit of the business (Li, Liao and Albitar, 2020). The whole process
is monitored and results are analysed which helps the management of the Essence Drinks to alter
and improve the innovation method.
Implementation: in this step the innovation method so developed and tested on a specific unit is
now implemented within the entire business process of Essence Drinks. It will help in creation of
the value for the customers and for Essence Drinks.
4. Different forms of Innovation
 Incremental Innovation: it is defined as sequence of little improvements that are made
to the Essence Drinks products. These innovations are basically focused on the product's
quality and create difference that helps in to gain competitive advantage. This type of
innovation do not require large funds or resources.
 Disruptive Innovation: This is also called as stealth innovation, it involves introduction
of new technology and procedures in the target market where the company offer its
products. This innovation is slightly disruptive as new technology will not provide the
required result in one go. It is seen as inferior to the existing technology. Introduction of
new technology generally is expensive and is more complex than the existing one
(Mirfakhradini and et.al., 2018). The implementation of the new technology is made in
the overall process only after the fewer alterations as per the requirements of the Essence
Drinks. Although it provides first mover advantage if the technology is effectively
implemented in the business process.
 Architectural Innovation: In this type of innovation analysis of the existing technology
and techniques are made. On the basis of the analysis notes are prepared and assessment
of the skills and knowledge in hand are sort out. These overall knowledge and skills are
then applied to the new market. The architectural innovation helps in obtaining new
customers as long as the market is receptive to the Essence Drinks. Generally, it requires
changes in the offered process to match the requirements of the new market.
 Radical Innovation: This innovation results in to provide revolutionary change in the
technological environment and to the industries. In radical innovation often new
industries are emerged or the existing one lose its existence. The new process will

entirely replace the technology or processes that are previously used by the Essence
Drinks.
5. Recommendation
Essence Drinks should adopt incremental innovation. The organisation will perform
market surveys and collect insights about the changing preference and taste of the population of
UK. It will help Essence Drinks to create different types of innovative products that will helps to
attract customers and increase brand reputation.
6. 4P's of Innovation
Product
Developing new products is the main element of the innovation. Market research is made
and insights are gained. These insights are then used for designing and developing of new
products and improvement in the existing products are made. Innovative products are created to
provide quality and satisfaction to the customers.
Process
Innovation in the process provides changes and development of new ways to perform the
business activities. It gives direction to the employees to adapt to the new change in the
environment and functionality of Essence Drinks. Innovation in the process brings structural
changes to Essence Drinks. Implementation of innovative methods helps in reducing cost and
create value to the customers.
Position
Essence Drinks have targeted UK market to offer its new products in the market.
Positioning of the product is important as it is specially made for the targeted segment.
Innovation in the positions will provide new insights of the areas where the products of Essence
Drinks might be offered.
Paradigm
It is to bring change in the existing models, beliefs, values and principles and find out
how to implement new values and change the traditional styles of Essence Drinks. Paradigm
helps in to understand how people around the world perceive things, how markets works and
what development procedures are followed (Kumar and et.al., 2018).