Unit 8 – Innovation and Commercialisation

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain innovation and invention and difference between both to determine importance of
innovation above invention ...................................................................................................1
P2. Explain how organisational teamwork, vision, leadership and culture can shape innovation
and commercialisation............................................................................................................3
TASK 3............................................................................................................................................5
P3. discuss the model of innovation of 4P's and application of innovation funnel to shape
innovative ideas......................................................................................................................5
P4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................8
TASK 3............................................................................................................................................8
P5. Explain importance of commercial funnel and application of new product development
(NPD) processing for commercialisation of innovation.........................................................8
P6. Build an innovation business case for an organisation, including ways to access funding 10
TASK 4..........................................................................................................................................13
P7. Evaluate different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................13
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................15
Books and Journals...............................................................................................................15

INTRODUCTION
The current market environment is surplus of rivalry and neck to neck competition in every
industry due to which organisation invests in the market research to identify the opportunities to
gain the competitive advantage by defeating the competitors thereby increasing the sales.
Innovation is considered as the one of the best strategy to gain competitive advantage.
Innovation is the evolution of something new thereby implementing new methods and techniques
to meet the needs and wants of customers (Russell and Vinsel, 2018). Innovation in organisation
also refers to the improvement or enhancement of the existing products and service by adding
some attributes and features to it. With innovation there is the another term attached to it that is
commercialization a term which helps an organisation to gain profit in return of the innovation
by launching the innovation of product and service in market among consumers and investors for
financial gain. The present report is the study on the “innovation and commercialization” in
context of “Essence drinks”- an organisation that offers flavour drinks and is headquartered in
UK. The present report will discuss the difference between the key concept of innovation and
invention and the importance of innovation in organisation. Further the report will discuss the
role of leadership, culture and teamwork in driving and shaping innovation. The report will
discuss types of innovation and its importance such as frugal innovation, funnel innovation etc.
the report has also developed the NDP for the innovation of new product. At last report has
discuss the intellectual property rights and its benefits and drawbacks to organisation.
MAIN BODY
TASK 1
P1. Explain innovation and invention and difference between both to determine importance of
innovation above invention
Innovation
The innovation has become vital component for the growth and development of a business
organization in the current market scenario. For businesses it is very important to consistently
modify their existing products and services in order to increase the sales there by increasing the
profitability and productivity of an organization (Horn and Staker, 2017). Innovation helps an
organization to attract more consumers as customers are always looking for something new in
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market. Innovation requires a creative and critical thinking skills because only a creative mindset
can think out of the box too develop innovative ideas that can be implemented as an innovation
for an organization. The associative development team of an organization is responsible and
accountable for driving innovation in organisation which can meet consumer’s needs and wants.
In Essence drinks to meet the current consumer trend of health consciousness as customers are
more looking forward to the healthy and immunity rich food in the UK and the food that
increases immunity. Therefore, the company came up with the new innovation of "Lemon,
orange and ginger immunity booster drink".
Invention
Invention refers to the origination of something raw and fresh which is never been heard about.
The invention is a complex concept and is associated with high amount of risk as it requires huge
amount of financial investment to assess resources, tools, laboratories etc. if invention become
famous and successful it is highly beneficial to inventor as it can provide the person with patent
and other intellectual rights (Sorescu, 2017).
Significance of innovation for Essence Drinks
When the Essence drinks come up with the innovation of lassi with flavour of mango in UK
market it helped the company to gain large number of loyal customer base and also increased it
sales overnight thereby increasing the revenue of the organisation. This innovation of the
Essence drinks was completely with new innovative formula and also has strong distribution
capability. But from last few years the company has not entered with the new innovation in
market which is constantly decreasing the company’s sales and revenue therefore it very
important and essential for company to drive innovation and utilize the product development
strategy to gain the advantage of innovation (Zhou, 2021). The significance of innovation to
essence drinks are:
 The innovation of flavoured immunity booster drink will provide the company
competitive advantage as the product will differentiable from the rival companies and
also help in meeting the customer trend thereby increasing the sales. The innovation is important for Essence drinks as this will also encourage the employees
to always think beyond limits and also bring new techniques and increase the product
portfolio of the company.
Basis Innovation Invention
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