Innovation and Commercialisation in Ella's Kitchen

This report discusses the importance of innovation and commercialisation in Ella's Kitchen. It explains the concept of innovation and its significance compared to invention. It also explores how organisational vision, leadership, culture, and teamwork shape innovation and commercialisation. The report examines the 4Ps of innovation and the use of the innovation funnel to shape innovative ideas. Additionally, it discusses frugal innovation and provides examples of its application in an organisational context.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................3
Task 2...............................................................................................................................................5
P3. Examine the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas .........................................................................................................5
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................6
Task 3...............................................................................................................................................7
P5. Examine the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................7
P6 Build an Innovation Business Case for an organisation, including ways to access funding. 9
Company overview:....................................................................................................................9
Task 4.............................................................................................................................................11
P7. Examine the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
As per the present market scenario innovation is need for very organisation for there
market survival and future growth, this is because every organisation wants to upgrade as per
the modern market and customer trends. Thus, innovation is a practice of adding value to the
organisation product and service by crafting new idea. On the other hand commercialization is
the process to deliver the innovation in the market to earn recognition and sales revenue (Mina
and et.al, 2021). Hence, the following report outline innovation and commercialization in
accordance to Ella's Kitchen. Moreover this report throw light on innovation and invention and
their importance, Furthermore the report discuss the role of various aspects within the firm that
help in shaping innovation and commercialization ideas. The report outlines the use of
innovation funnel, commercial funnel and NPD for drafting the new product in the market. At
the end report discussed the intellectual property rights used to develop, retain and protect the
knowledge and intellectual property of the Ella's Kitchen.
Task 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
 Innovation
An innovation is a process of carrying out new aggregation in order to coordinate with the
modern trends. A innovation is application of new idea that are novel and useful for Ella's
Kitchen to support their business in the pandemic crises. In context to Ella's Kitchen, innovation
is both a process and outcomes of the innovation approach in which R&D department add some
new feature within the existing business portfolio to add some value in existing product and
service and renewed their process with the up to date requirement. In this sense, Ella's Kitchen
have introduced drone delivery in the rising pandemic crises for non-contact delivery of the
product in the remote area so that safety and precaution can be taken for initiating the CSR with
sustainable development (Wonglimpiyarat, 2018).
 Invention
Invention is something that has not been introduced or exist yet, it is the fresh and novel
outcomes from the scientific knowledge and numerous research work. In context to the Ella's
Kitchen, invention is a process of the R&D department in which they have changed the
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engineering and product development either by improvement in the machinery and introduction a
new state of art that is not yet patent by others.
In this sense, it has been identified that Ella's Kitchen can make use of their invented
drone helicopter to make a new way of delivery so that contact less delivery is made in the
remote area. However in the context to Ella's Kitchen, innovation leverages more importance in
comparison to the invention. This is because invention process is take a lot of time whereas
innovation is the introduction of the new idea to meet the present market trends. Moreover, for a
company, it is much easier to innovate something rather than inventing. Following are the
importance of the innovation in comparison with the invention.
Importance Innovation Invention
Cost Innovation is cost friendly for
Ella's Kitchen, in the novel
pandemic to overcome the
financial crises by introduction
of new means of delivery
through helicopter drone to
meet the demands in the
remote areas.
In invention process, there is
need to burn some money in
the research work, but in the
pandemic crises, Ella's kitchen
is not in the position to
capitalise any penny due to
unstable business because of
the pandemic.
Research & development In innovation process, R&D
department of Ella's Kitchen
are accountable to perform
identification of new idea and
turning those new ideas into a
tangible product. The new
innovation service is
developed with an aim to
commercialise it within the
target market segment.
Innovation in R&D department
implicate for the continuous
In innovation R&D department
have to appoint an individual
with a scientific knowledge
and skill to perform the
research work. However, in
invention R&D department
made something new that is
not present in the existing
market (de Faria,Junior and
Borini, 2019).
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improvement of the product
and service.
Game changer in the market As per the present market
scenario, the company that
thrives innovation practices in
their business are game
changer. This is because
technology is growing with
fast phase, in order to be
within the competition,
innovation is necessary for
Ella's Kitchen.
Invention is quite good but not
be called as the game changer
in the market. This is because
there is no guarantee that
people would accept the new
things at the first instance.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Innovation is a process of crafting new ideas by adding some value and feature within the
active portfolio. Whereas, commercialisation is a process of introducing innovative product and
service in the market. In order to successfully shape Ella's Kitchen innovation and
commercialisation, there are different aspect which are as follows:
 Organisational vision
Innovation is systematic process that thrives with a lot of deep understanding and ideas to meet
market need in exciting manner. Organisational vision is being concerned with the future
prospectus that organisation wish to thrive. Moreover, organisation vision is the accumulation of
the action and value. Organisational vision is derived to subdue the future elements by a means
of innovation. Therefore, when Ella's Kitchen vision is clear then so will be the courses of action
and therefore it will be easier for the management to introduce change and focus on innovation.
Moreover, with a vision to be sustainable in business, the initiative step of delivery by drone they
are shaping commercialisation of their service by providing products in the remote in the novel
pandemic crises (Bakke and et.al, 2020).
 Organisational culture
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Organisation culture that reward the creativity tends to implement innovation in their business
agenda easily. Furthermore, an organisation culture that support innovation is product of two
things i.e. the people working in the organisation, their leadership style and the shared values and
attitude. In context to Ella's kitchen, organisational culture is an working environment that agility
respond the changes fulfilling the psychological safety norms and provide resource and tools to
work with the accordance innovation. Moreover, Ella's kitchen could develop a culture of
innovation by creating a shared understanding of the innovation and by developing an
environment that supports creativity and innovation. On the other hand, success of the
commercialisation of product depends on the organisation culture because your targeted
customer is being noticing the organisation culture. Hence, when Ella's kitchen develops a
culture of innovation with undertaking sustainability development, they are adding a one more
step in the commercialisation process.
 Leadership
People working in an organisation are the major obstacle when a firm adopts transformation or
innovation, this is because employees are afraid of the new changes. They assume the new
change of delivery by the drone could take away their job. On this account leaders have strong
coordination with the people working within the Ella's kitchen. In that sense, leader can guide the
employees regarding the change that will not only boost the business operations, but also ensure
total growth the employees to obtain sustainable performance. Moreover, leader could adopt the
new business portfolio in their formal business agenda to introduce innovation. Only an
innovative leadership style can help to foster innovation in practices (Dhiman, 2020).
Furthermore, leader also assist the commercialisation process by developing the desired skills
and motivating the employees to take the product in the market.
 Team work
Team work quality is a crucial elements when a business accomplishing their innovation
approach. This is because the innovation and commercialisation of innovation is not possible
with an individual efforts. A team working at the Ella's Kitchen are accountable to perform a
specific duty, while working in a team, they have numerous ideas that will help Ella's Kitchen in
deriving innovation and commercialisation of the drone services for delivery in the remote areas.
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Task 2
P3. Examine the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
Innovation is the practice of generating new ideas to improve the productivity and
efficiency of the organisation in highly competitive world. There are 4P's of innovation utilized
by the Ella's Kitchen. The 4P's of innovation are described by the Tidd and Bessant that are
product, process, position and paradigm. Product innovation: change or creation of new product or service is the product
innovation. Due to COVID-19 crisis the Ella's Kitchen has come up with drone as new
product to assure the safety of food of baby. The product is developed by the R&D team
of the Ella's Kitchen. Process innovation: Change in delivery or creation of product or service is the process
innovation. Ella's Kitchen has adopted COVID-19 measure of contact-less delivery with
the help of drone to make sure the organic baby food is reaching to there homes with
hygiene and safety, thus giving the firm a competitive advantage. Position innovation: Repositioning or change of market with new slants or new target
base is the position innovation. Ella's Kitchen is innovating its position in market with its
concept of COVID-19 measures and policies by government and building concept of safe
and secure home delivery because this enables the new market opportunities and strong
market position (Sanders and et.al, 2020). paradigm innovation:change in the standard underlying mental model that the
organisation works on is the paradigm innovation. Ella's Kitchen's innovation of delivery
with drone is changing its earlier delivery process by vehicles. The customer is benefited
by no contact delivery as per safety from virus and also Ella's Kitchen is small scale
company with low staff with drone company's need for staff is reduced.
The use of the innovation funnel to shape innovative ideas
Innovation funnel is the strong innovation tools to equip the continuous outpouring of the
innovative ideas that will be screened for the potentiality. The method of innovation tools is to
generate large number of never ending ideas and large number of which will be filtered and
converted into the solid and profitable development plan. This approach is adopted by Ella's
Kitchen to bring the best idea of drone into execution for higher productivity and profitability of
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the firm. In regard to this approach Ella's Kitchen innovation of new idea of drone reach to the
market needs and company's economic profitability. First is the mouth of the funnel where
maximum idea's related to drone and there processing are generated by collecting the
information to yield and synchronize the idea's to reach the best innovative idea (Rotstein,
2019) . Then the funnel is narrowed where the filtration is made with the risk matrix, cost benefit
analysis and other factor which will make the product to the testing phase in the customers.
After this phase the ideas are tested to ensure that it will turn the company's objective for
becoming safe and contact less delivery. Hence, the innovation funnel allows the free thinking of
ideas at broader level and then shapes the idea in effective manner to develop the new product
for the innovation and commercialization.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
In the era of limited resources and empowered consumers, Ella's kitchen is thriving more
on the frugal innovation for the commercialisation of the innovation by using the available scare
resources. i.e. drone helicopter. Frugal innovation is a practice within the innovation process to
produce something smart, simple and affordable within the limited resources. The critics of the
frugal innovation is mainly the sophisticated buyer who are not happy with the drone delivery by
the Ella's Kitchen in the remote areas because they are not in position to abreast with the
technological abreast. The ultimate purpose behind leveraging of frugal innovation is to reduce
unnecessary use of limited resources i.e. delivery drone with GPS tracking sensor (Gabriel,
2019).
Frugal innovation at Ella's Kitchen
Ella's kitchen was founded in 2006 they are dealing in the organic baby product. Ella's
kitchen thinking day initiative brought up the innovation in the firm. This is because they allow
their employees to take a day work off and do whatever they wants to do, in these sense they are
developing a numerous funnel information which will be used in the frugal innovation. In case of
Ella's Kitchen, within the limited resources and infrastructure facility frugal innovation is
becoming inevitable for them. This is because Ella's Kitchen is in developing phase competing
with large brand like Tesco and H&M is not possible for them with their available resources
because Tesco and H&M already are ahead to them to deliver product via drone. Hence, frugal
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innovation is useful for them in the pandemic crisis by delivering through the drone in the remote
area under the shadow of the novel pandemic to meet market needs.
Task 3
P5. Examine the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
Commercial funnel is the marketing equipment to learn, retain, filter and trade the new
developed product to the customer. Commercial funnel is segmented in three sectors: sales,
marketing and customer (Özilgen, 2019). The marketing funnel and sales funnel focuses on the
target market to convert them into leads and also observe the buying activity of customers to
convince them to buy the product and in end customer funnel enable to retain the customers. In
shaping the innovation of new ideas of the Ella's Kitchen the importance of commercial funnel
are:
 Commercial funnel is essential for the Ella's Kitchen to identify the journey of the
customer so that firm can target the suitable customer base for the new product
development.
 Commercial funnel is important for the Ella's kitchen to decide its marketing strategies
and market locations for the commercialization of the product.
 Commercial funnel helps in business analysis of the Ella' Kitchen new product drone and
also give ideas for improvement so that the product can meet the customer demand and
expectations.
 The sales and marketing segment of commercial funnel will embrace the Ella's Kitchen
in converting the target market and customers into leads with proper sales and marketing
solutions.
The new product development is the process of add or expand the product with the
market and customer conceptions. To stay successful and to grow in this competitive market
every firm needs to innovate new product timely as the conditions of market changes (Marshall,
2018). (Mazzarol and Reboud, 2020). For launching new innovation of drone Ella's Kitchen
should consider the approach of NDP for successful commercialization of the new product. The
eight stages of new product development are:
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Illustration 1: THE NEW PRODUCT DEVELOPMENT
PROCESS (NPD) – OBTAIN NEW PRODUCTS, 2020
(Source: THE NEW PRODUCT DEVELOPMENT PROCESS (NPD) – OBTAIN
NEWPRODUCTS, 2020) Idea Generation:This is initial stage where ideas are generated by collecting information
from the latest market and customer trends, R&D team, competitors and other internal
and external factors. Ella's Kitchen has generated the idea of drone by analysing the
current market nature of COVID-19. Idea Screening:funnel concept is used in idea screening stage as this concept filters the
ideas which are successful in meeting the firm's goals. Ella's Kitchen has filtered the
various ideas related to drone and there safety measure to deliver the product. Concept Development and Testing:This stage is all about the designing and creating the
idea screened out in screening process. Ella's Kitchen has developed the drone with the
R&D team with GPS and sensors to assist in no contact delivery and then product is
tested with small group of target customers. Marketing Strategy Development:The next stage is to develop a promising marketing
strategy with innovation concept to introduce the product in target market. Ella's Kitchen
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marketing strategy would be with quote of contact- less delivery with drone service in
COVID-19 conditions for the safety of baby food (Majchrzak and Malhotra, 2020). Business Analysis:This stage is about the analysis on basis of cost and risk. Ella's
Kitchen will analysis the business in market whether the product will meet the financial
expectations and bring competitive advantage to the firm. Product Development: This stage is about the actual physical development of the
product to enter the market for sale. The R&D team of Ella's Kitchen will develop the
large number of product to start its delivery service with drone will all COVID measures. Test Marketing:The physical final product developed in above stage is now tested in
realistic market to analyse the market acceptance and survival. Ella's Kitchen at this stage
will test the new product development process and will know whether to launch the
product or not.
 Commercialisation/Launching of Products:Commercialization is the bringing the
product in public eye means launching the product in whole market. This is the last stage
for Ella's kitchen to commercialize its innovation and earn profit from it.
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Company overview:
Ella's Kitchen is the manufacturer and marketer of the organic baby product in the UK.
The company come into existence by 2006 and they are selling their product through retail
partner and on their official website. The firm holds 20% of the baby product shares in the UK
(Lim and Fujimoto, 2019).
Vision and Mission:
Ella's Kitchen was incorporated in the 2006 with mission to improves the kids live via
developing healthy relationship with the organic food. They are in this business for creating of
healthy eating habit that will be last. Moreover, they have a vision to provide an organic product
in handy pack to the parents with assurance of healthy quality and spreading the smile.
Objectives:
The primary objective of Ella's Kitchen is to develop a healthy food relationship to
improves the child live.
Problem Statement:
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In the novel pandemic COVID-19, it has became complex for many parents to have a
adequate availability of the organic baby product in the remote areas and the highly sensitive
area. People are not allowed to go outside because of the lock-down and quarantine restriction.
Innovation approach:
The rising novel pandemic have affected the business of the many firms because of the
lock-down restriction and business in the remote areas. Thus, on this account Ella's Kitchen
comes with an innovative approach i.e. using drone helicopter for contact less delivery in the
highly sensitive and remote areas so that parents are ensure abut the safety of their little one.
Financial overview:
Financial overview convey the business activity and financial position of the Ell's
Kitchen. With holding 20% of baby product market share in the UK, Ella's kitchen have financial
turnover of approx $120 millions.
Sources of funding:
finance are the lifeblood cell of the every organisation this is because every organisation
whether small or large need funds for their smooth operations. A new idea cannot be merely
executed in the business agenda until a company have adequate funds to meet the innovation
process. Following are the reason for the need of funding-
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 New product development
Ella's Kitchen needs funds for their NPD process to develop delivery drone in the remote areas
 Marketing
Ella's Kitchen comes with an innovative approach for delivering baby products in the remote
areas under the shadow of the pandemic, in order to aware its potential users about their agenda,
Ella's Kitchen need funds for their marketing campaign.
Source of funds
 Crowd funding
Ella's Kitchen can go for crowd funding for their innovation project by taking small amounts
from the public. Ella's Kitchen can adopt security based crowd funding in which they will offer a
margin of share in their stocks (Li and et.al, 2019).
 Venture capitalism
A venture capitalism is a form of of private equity financing to a companies whit high future
growth. Ella's Kitchen drone delivery in the pandemic time will boost their sales, thus, venture
capitalism is an ideal choice for them also. How venture capital is either a trustee or a bank.
 Angel investors
An angel investor is an individual who will provide funds to Ella's Kitchen in exchange of
convertible debt or equity position within the Ella's Kitchen.
Task 4
P7. Examine the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
In the point of view of the different protection tools are utilized by the Ella's Kitchen to
protect the firm's new product and product idea from been stolen by the competitor's. There are
the laws and legislation in the name of intellectual property right to protect the invention of
ideas, brand name and symbol of organisations, new product from stealing and copying by any
other group or firm. This helps the person to gain recognition and financial benefit of intellectual
property and knowledge they have created and invented. The various tools adapted by Ella's
Kitchen to protect them firm against theft and forgery are mentioned below: Trademark:Trademark is the sign which differentiate the one firms product from another.
This sign can be in form of symbol, text, design or combination of them. Advantage of
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trademark right to Ella's Kitchen is trademark registration give power to sue in case of
infringement or unauthorized use by competitor's. Disadvantage of trademark is it protect
marketing concept rather than the product or service (Grol and Wensing, 2020). Patent:Patent is the right to protect invention of utility or design. The advantage of this
right to Ella's Kitchen is it gives the firm the legal authority of using, selling, sharing of
the idea with other person. Disadvantage of patent is, technical details are disclosed
publicly to file the patent.
 Copyrights:Copyright is the law that protect your work or creation from been copied and
misused. In context of Ella's Kitchen copyright law give advantage of objection if firm
finds any competitor copying there drone. Disadvantage of copyright law is it does not
protect the idea to be used by others because it only protects statement of idea
CONCLUSION
As per the carried out study, it has been concluded that innovation is need in the present
of present market scenario to meet the modern market needs as customer of this generation are
more empowered. Moreover, it has been concluded that innovation frugal is quite a good method
to put best use of scare resource of innovation. Furthermore, it has been proposed that for
drafting innovation there is need a source of funds for innovation and commercialisation of
product.
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REFERENCES
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