Innovation and Commercialisation

This report discusses the importance of innovation and commercialization in the business world. It covers topics such as the significance of innovation, the comparison between innovation and invention, and the role of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. It also explores the 4Ps of innovation and the utilization of the innovation funnel. The case study focuses on INNOCENT Drinks, a UK-based drink company, and their implementation of innovation to enhance sales.

INOVATION
AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Innovation and determine its significance and comparison with invention.....................1
P2. Organisational vision, leadership, culture, and teamwork can shape innovation and
commercialisation...................................................................................................................3
TASK 2............................................................................................................................................4
P3. 4Ps of innovation and utilization of innovation funnel....................................................4
P4. Frugal innovation and how it is used in an organisation..................................................8
TASK 3 and TASK 4.......................................................................................................................9
P5 Importance of commercial firm and application of new product development................9
P6 Building innovation business case and funding sources.................................................10
P7 Intellectual property........................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is considered as the process by which organisation execute their new idea and
thoughts into its existence products or services. Moreover, it is the methods which includes
various activities for uncovering new ways to perform the things. Innovation is crucial for firm
as this provides them an edge into penetrating the markets quicker manner. This also facilitates
an effective connection to developing marketplace that can drive huge opportunities, mostly into
developed countries (Angela and Maria, 2014). According to the give scenario, INNOCENT
Drink is the UK based drink company which was established in the year 1998. It offers carrot,
ginger drinks to the citizens of London. Currently, their revenue decrease because of various
competitors. So, in order to overcome from this, they decided to implement innovation into their
existent product that aids in enhancing sales. The purpose of this report is to describe innovation
and their importance along with organisational, culture, vision etc. It also covers 4P's of
innovation as well as uses of innovation funnel. This report has discussed about improvements
into frugal innovation and its application with examples. There are some significance of
commercial funnel along with uses of New product development processing for innovation
commercialisation. Apart from this, several tools which firm utilise for developing, retaining and
intellectual knowledge are also mentioned in this report.
TASK 1
P1. Innovation and determine its significance and comparison with invention.
Innovation is process by which company can bring something new into their products in
marketplace in order to sustain for the long time. INNOCENT Drink is a small scale organisation
that offers mango lassi in UK. Due to more competitors enter into market their sales minimises
so, its CEO Mr. Bond think to innovate their existence products for enhancing sales. Therefore,
it is suggested to respective firm founder to introduce Mixed fruit lassi which aids them to
maximise their sales as well as sustain for the longer period. Various significance of innovation
is mentioned below:
 Innovative products will outcomes in developing the brand image of the INNOCENT
Drinks that is crucial to grab the attention of more consumers. Moreover, it is helpful for
enhancing sales and attaining the objectives in effective way (Baldan, Hagiu and
BĂRBULESCU, 2013).
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 The respective organisation can earn maximum profits through their new innovation that
is mixed fruit lassi and helps in satisfying consumers in appropriate way.
 Moreover, through innovated products INNOCENT Drinks can able to maximise their
productivity as combination of ideas which performs together for making the productive
plans (Mukhtar, 2016).
 Innovation will help INNOCENT Drinks to beat their competitors effectively and
efficiently. It is also, useful to know about the right techniques of marketing which will
aids them to develop their business.
Beside this, innovation is crucial for respective firm in order to involving its employees
in new business procedure too as this is considered as the business growth and development.
Along with this, invention and innovation are generally different from one another. Invention is
considered to be the occurrence of new ideas for goods or services, procedures which have never
invented before (Infelise, 2014). For INNOCENT Drinks, lassi is its USP so their CEO do not
want to change that. Thus, they perform innovation into their existent products instead of
inventing new products or services. The differences among invention as well as innovation are
explained below:
Basis Invention Innovation
Definition This is refer to the development of new
products or introducing new procedures
for the first time.
This is referring as the changes which
adds value to products and
accomplish the requirements of
consumers.
What is it. Inventing new products Adding value to existent product or
procedures.
Concept Primary ideas as well as their working
into theory.
Practical execution of innovative
idea.
Skills needed For inventing something new scientific
skills needed.
For doing innovation strategic and
technical skills is needed.
Activities Invention is bounded to research and
development department.
Activities related to innovation are
spread within whole firm.
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Value and importance of innovation:
Some value and importance of innovation that is helpful for INNOCENT Drinks are
described below:
 Maximisation productivity: Innovated product or procedures are effectual for firm as this
outcome into maximising productivity. So, INNOCENT Drinks can enhance their
productivity through performing innovation into its products that is Mixed flavoured
lassi.
 Beat competitors: Innovation is also helpful to beat competitors into efficacious ways as
well as assist to gain competitive advantage. For example: as sales of INNOCENT Drinks
minimise into marketplace due to more competitors. Therefore, it come up with the
Mixed fruit lassi that aids them to beat rivals as well as enhance their sales one again.
P2. Organisational vision, leadership, culture, and teamwork can shape innovation and
commercialisation.
This is essential for company to has clear cut vision, goals related to pre-determined
objectives. For effectual performance of INNOCENT Drinks and obtain effective position into
market area, this is crucial to communicate the business goals, vision etc. to their employees in
effective manner. They have clear long term vision that is needed in order to run the business
smoothly for longer period through developing goodwill and reputation into market
(KARAÇOR, DUMAN. and KONYA, 2014). Thus, culture, leadership and many other plays
significant role in shaping innovation are mentioned below:
 Vision: The vision of the INNOCENT Drinks is to provides healthy and tasty drinks such
as lassi to consumers within UK. Also, they want to enhance the individuals living
through healthy preferences. Through offerings range of lassi, respective firm wants to
become leader of that particular market and satisfy the requirement of consumers that
outcomes into business development (Mukhtar, 2016).
 Leadership: Within innovation procedures firm's leaders plays crucial role in executing
the idea of Mixed fruit lassi as this is its accountabilities to perform for business growth.
In respective firm, the role of leaders is to maintain effective relationship with managers
and staff in order to execute innovation effectively. Leadership plays significant role as
both leaders and manager are the individuals who leads and control whole performance
efficaciously.
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 Team work: This significant to have effective team into firm for various activities in
order to manage all the things easily without having any burden upon single people
(Maier and Bîrcă,, 2015). By team work, INNOCENT Drinks can attain their pre-
determined objectives. While performing innovation respective firm has to develop
appropriate team who perform on this and obtain success (Roszko-Wójtowicz and Białek,
2016).
 Culture: Culture of the firm plays crucial role into innovation procedures as his includes
norms, values etc. that are executed through seniors for effectual performance of
INNOCENT Drinks. In case company's culture can easily then its become simple to
introduce new products that Mixed fruit lassi. Also, organisational culture should be
optimistic and healthy so that it satisfy its employees (Maier and Bîrcă, 2015).
TASK 2
P3. 4Ps of innovation and utilization of innovation funnel.
Generally, there are various kinds of innovation that are utilized through INNOCENT
Drinks for creating something new into its products. Some of them are mentioned below: Disruptive innovation: This is also considered as the stealth innovation that involves
usage of new technology into firm. INNOCENT Drinks utilized this particular
innovation as it help them to introduce innovated products Mixed fruit lassi. Also, this
aids them to enhance their sales and develop sustainability for longer duration. Its cons
are disruptive innovation has more risky aspects and long process (Baldan, Hagiu and
BĂRBULESCU, 2013).
 Incremental innovation: This is considered to be more ordinary kinds of innovation and
herein existent technology will use as well as outcomes into enhancing value for
consumers into current marketplace (Mason and Nathan, 2014). It will help INNOCENT
Drinks to do modification in its present products as well as improve their costs and
functionality. The main cons of this is to maximise their product costs.
Innovation mix is introduced through John Bessant as well as Joe Tidd. This is utilised
through firm during the plaining of adapting innovation at market place in order to grab the
attention of more consumers. This includes 4P's that aids company company to adapt innovation
effectively. All the 4p's are explained below:
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 Product: Through performing innovation into products or services a firm can capable to
grab the attention of more consumers that aids them to attain its goals effectually. In
context of INNOCENT Drinks, they are planning to launch mixed fruit lassi that assists
them to attract new consumers as well as retain the old ones. Moreover, by this,
respective company can satisfy the requirements of their customers (4P's of innovation,
2019). Process: Herein, firm innovate their process in order to improve its products or service in
efficacious way (Mukhtar, 2016). INNOCENT Drinks is a small scale firm that provides
tasty and healthy lassi, this aids them to attract various consumers as well as motivate
them to buy it. By this procedures, they can capable to utilised process that is effective
form them and assist them innovating lassi without any kinds of mistakes or errors.
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Illustration 1: 4P's of innovation
(Source: 4P's of innovation, 2019)

 Position: This is considered to be the techniques of how effectual the firm's position and
its products at marketplace in order to attract consumers as well as gain more
profitability. For instance, INNOCENT Drinks can so the evaluation of market for
understanding the rends of market which aids them to position its innovated product that
is Mixed fruit lassi into competitive market are effectively (4P's of innovation, 2019).
 Paradigm: This is considered as the last step of innovation mix that is related to
converting the enterprises perspective so that consumers as well as others who are related
with firm can able to about the products or services. Moreover, INNOCENT Drinks can
examine this things effectually but with diverse future as well as this aids them to
maintain efficiency of innovated drink (Roszko-Wójtowicz and Białek, 2016).
With the help of innovation mix, INNOCENT Drinks can launch its innovated product
that is Mixed fruit lassi effectually at target market and it will assists them to develop and sell
their product appropriately into competitive market.
Innovation funnel is considered as the mechanism which enables a constant ideas stream
which can be screened for viability (Roszko-Wójtowicz. and Białek, 2016). Moreover, this is a
tool that is adapted through company for developing effective position at market area through
providing innovative products to consumers. For introducing Mixed fruit lassi, INNOCENT
Drinks can use innovation funnel that are explained below:
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(Figure 1: How to build and manage your innovation funnel, 2019)
 Opportunities assessment: Herein, INNOCENT Drink's management perform the
market research that aids them to identify consumers requirements and demands. By this,
it can do innovation into their existing product that is lassi. Insights based ideation: Herein, INNOCENT Drinks will find what kinds of strategy or
ideas is more effective for them that leads them to grab the attention of consumers in
efficacious way. For instance, they perf0orm analysis by several methods like focus
groups, survey and others (Baldan, Hagiu and BĂRBULESCU, 2013). Conceptualisation: This is considered as the third steps in which INNOCENT Drinks
will recruit proficient consultant in order to formulate the effective strategy in relation to
new product launching that is Mixed fruit lassi. Analysis and benchmarks: Herein, INNOCENT Drinks will provide its products to
consumers for performing test. By which it can capable to understand the effectualness of
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Mixed fruit lassi that is introduced through firm for grabbing the attention of more
consumers (Mukhtar, 2016). Go or No go: After accumulating the feedbacks from consumers, this step will performed
(SALIFU, 2018). By this, respective firm can ascertain efficiency of its Mixed fruit lass
as per consumers. In this context, if consumers are in favour of new products they will
continue to sell that into large marketplace. Whereas, if consumers are not in favour of
this tey will stop selling those products and formulate the new one (Roszko-Wójtowicz
and Białek, 2016).
 Introduce or launch: After understanding the effectualness of respective product,
INNOCENT Drinks will introduced its Mixed fruit lassi into targeted competitive
marketplace.
P4. Frugal innovation and how it is used in an organisation.
Frugal innovation is considered as the procedures that is adapted through firm for
identifying the new business model, perform product redesign, understand the chain of value and
others by which firm achieve the goals efficaciously (van Reine, 2016). Moreover, this is
adapted through several organisations for developing additional components to represent offers
at market area. In context of INNOCENT Drinks, they are launching its innovated lassi into
competitive market. Frugal innovation are mentioned below: New market opportunities: For firm, this is important that they perform market
innovation fro improving its products or services effectually and efficiently. In context of
respective firm, it required to evaluate the market by which they can able top know about
the consumers requirements and demands in appropriate way (Maier and Bîrcă, 2015). Resources: This is considered to the step that is related to optimal usages of resources for
developing new products effectually. In context of INNOCENT Drinks, they can
perform utilisation of whole resources appropriately so that it can formulate product with
less wastage.
 Frugal Innovation: Herein, firm launch new products at market area in order to obtain
competitive advantage into marketplace. In context of INNOCENT Drinks, they can
adapt the strategy of frugal development as by this they can capable to launch new
product appropriately (Baldan, Hagiu and BĂRBULESCU, 2013).
Frugal innovation is usually compromises of some segment that are described below:
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 Problem: As per it, there are various problems that are faced through firm during
launching new product or services into market. In context of respective company, when it
launch their innovated product Mixed fruit lassi they face some problems n respect to
finances, taste of consumers, time and others.
 Related to products: This is considered to be the issues that are in respect of
communication as well as marketing (Wierenga, 2015). This is essential for INNOCENT
Drinks to perform effective communication in order to aware consumer regarding Mixed
fruit lassi and inspire them to buy that.
TASK 3 and TASK 4
P5 Importance of commercial firm and application of new product development
Within firm, commercial funnel is considered as the framework that has three phases
which aids in recreating existent product through executing several advantageous plans and
policies. Commercial funnel is important for INNOCENT Drinks to launch Mixed fruit lass into
competitive marketplace.
Pricing policy:
Respective firm is facilitating Mixed fruit lassi at reasonable price so that all the people
can able to afford it easily. With the aids of this, company can fixed its products price through
examining consumers buying behaviour and its tastes (Maier and Bîrcă, 2015).
Improving business growing ways:
Into this procedures, commercial funnel has critical aspects for business development
and growth. At beginning step, this have been analysed that respective funnel will aids
organisation to satisfy its consumers effectually. In case INNOCENT Drinks will satisfied its
consumers in effectual way, this will outcomes in enhancing sales as well as obtaining
competitive edge.
Emergence of advance technology:
Within this, respective firm can obtain this funnel for launching its innovative products
into marketplace.
Executing the research programmes:
For company, this is essential to perform effective market investigation to identify the
consumers tastes, requirements etc. In this procedures, commercial funnel plays significant role
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which is essential for introducing Mixed fruit lassi into competitive market as well as enhancing
their sales through this (Baldan, Hagiu and BĂRBULESCU, 2013).
New product development
New product development is considered as the longer procedures for brining new product to
the market area. INNOCENT Drinks may required to involves into this particular process
because of changing customers tastes, enhancing competition, to capitalise new opportunities etc.
Its procedures are mentioned below:
 Idea generation: The initial step to bring innovation into is to produce creative ideas
through performing effective investigation. Therefore, this is essential for gathering data
to reform existent products.
 Idea evaluation: As idea is generated through junior innovation consultant that will be
filtered to obviate the ideas that are not so much valuable (Maier and Bîrcă, 2015).
 Concept definition: After evaluating the ideas, specific concept of launching Mixed fruit
lassi will be finalised.
 Strategic analysis: Herein, INNOCENT Drink manager have to assure that ideas of
Mixed fruit lassi is effective into the strategy of business as well as ascertaining the cost,
demand etc.
 Product development and testing: Herein, Mixed fruit lassi will be formulate as well as
testing is conducted (Baldan, Hagiu and BĂRBULESCU, 2013).
 Market testing: Herein, market testing is performed related to Mixed fruit lassi as per the
consumers, producers etc. Moreover, this includes most effective tie period to introduce
innovated products into market area.
 Commercialisation: Mixed fruit lassi prices were ascertained with their marketing plan.
 Product launch: This is considered to be the last step in which INNOCENT Drink came
into marketplace along with its innovative production that is Mixed Fruit lassi.
P6 Building innovation business case and funding sources
Business case is considered as the written or verbal proposition of value which purpose to
educate decision maker as well as influence them for considering few types of action. This is
crucial for company for considering whole essential items that can be persuade in INNOCENT
Drink future activities effectively. Also, this gather overall important things which are needed for
attaining business objectives (Mukhtar, 2016).
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Background and problems of company
INNOCENT Drink is the popular brand of UK that offers coffee products, drinks etc. It
sells near about 2 million smoothies every week in the country. It was established in the year
1998. It has worked for sustainable development and has ensured to map water footprint by
working in partnership with Unilever. In the year 2016 it has introduced cold press fruit and
many other veg juices in the market (Roszko-Wójtowicz and Białek, 2016).
Innovative new drinks product proposed
INNOCENT Drink is launching Mixed fruit lassi that aids them to grab the attention of
more number of consumers. Moreover, enhance their sales as well as profitability one again into
UK market.
Marketing opportunity of innovative new drinks
As INNOCENT Drink is bringing its innovative new drinks that is Mixed fruit lassi into
marketplace so, they have various market opportunity. Such as they can collaborate with few
leading as well as well known firm that aids them to maximise its sales and obtain effective
opportunities in market. Moreover, they can also facilitates few type of offer and discounts to
customers that assists them to attract more consumers (Maier and Bîrcă, 2015).
Industry and competition overview
INNOCENT Drink provides tasty as well as healthy drinks such as mango lassi which is
related to food sector. Within United Kingdom, Food and Drink industry is considered as the
essential component of respective country ecosystem, that presents approx 15% of
manufacturing turnover as well as employment opportunities. In this industry, the competition
level is high as consumers tastes and preferences are chaining there are various firm that re
accomplishing its requirements through performing innovation into their products or services as
per its demands. So, there are many competitors of respective company that provides several
types of products related to food and drinks as well as impact INNOCENT Drink business in
respect of minimising their sales (Baldan, Hagiu and BĂRBULESCU, 2013).
Financial projection
The funds are required for introducing innovative product that is Mixed fruit lassi into
UK market place. Therefore, the needed fund will be approx £ 25,000. As through performing
innovation in their existence products, their manager conduct market analysis and research
procedures for identifying consumers requirements in order to produce products. It needs finance
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for performing innovation into existent product that is mango lassi. This aids them to introduce
their Mixed fruit lassi.
Funding is considered as the backbone of company without this they can not able to
perform their day to day operations into effectual ways (Maier and Bîrcă, 2015). There are
various sources of funds that aids INNOCENT Drink to do its operational activities in
efficacious way. Some of these funds sources are as follows:
 From friends and family: INNOCENT Drink may lend money from its family members
as well as friends. The essential advantage of this is sources of funds is there is no needs
to pay interest money only required to pay principle amount (Roszko-Wójtowicz and
Białek, 2016).
 Financial and bank institution: INNOCENT Drink can lend money from bank and
financial institutions as well. This is considered as the secure and safest methods for
generating funds through firm as there is needs of providing security into bank for taking
any type of loans. But in this interest should be paid to the bank and another financial
institution with the taken amount.
 Venture capital: This sources of funds is considered as the effective for the firm for
operating their activities appropriately. The company who required huge amount of
money to enhance as well as expand market share. Generally the capitalist of venture are
more entangled with business as well as it plays essential role to set up targets, milestone
etc. and provide suggestion upon how to obtain success into business Mukhtar, 2016).
Therefore, INNOCENT Drink can raise funds from the bank and financial institutions as
this is secure as well as safest ways of funding. Because banks facilitates security to them.
Funds that are needed to be raised
There are many funds which INNOCENT Drink has to rise like funds for marketing,
manufacturing, technology and many others. It will aids respective firm for taking effectual area
into competitive environment.
Techniques of testing the new drinks effectiveness.
In order to test the effectiveness of Mixed fruit lassi, this is essential for respective firm
that initially they test their innovative product into market place through facilitating fee samples.
As it will aid them to identify that Mixed fruit lassi is preferred through consumers or not
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P7 Intellectual property
This is crucial fro INNOCENT Drink to safeguard its innovated product that is Mixed
fruit lass by intellectual property rights. As this aids to protect product or procedures from any
kinds of risk like coping through another. There are various kinds of intellectual property rights
which can be utilised through respective firm to protect its product (Roszko-Wójtowicz and
Białek, 2016)
Some of the types of intellectual property that firm can use are mentioned below:
Trade secrets: This intellectual property rights that aids to protect secrets regrading commercial
values. Moreover there are many concepts that are not covered through trade secrets like
contract law, employment law etc. Moreover, this is not effective for INNOCENT Drink to
protect its innovative product that is Mixed fruit lassi from various kinds of risk.
Copyright: This also considered as the legal concepts that explain rights provided to developer to
protect its original product, literacy and other. Moreover this enable people to control its
consequent usages. INNOCENT Drink can take copyrights of its Mixed fruit lassi as it is their
innovative product into UK market place (Baldan, Hagiu and BĂRBULESCU, 2013).
Thus, for INNOCENT Drink copyright is effective as well as appropriate to protect its
innovative product that is Mixed fruit lassi from various kinds of risk and copying activity.
CONCLUSION
As per the above report, it has been concluded that innovation plays crucial role in
enhancing sales and producing revenue into competitive market. This is essential to execute
innovation as after few times consumers get want something new as they get bored from same
kinds of offers. Therefore, company can perform innovation in its existent products that is
Mango lassi through introducing mixed fruit lassi. These will outcomes in maximising profit,
sales etc. Moreover, innovation mix is done so that firm can target effective area and develop and
sell that in effectual as well as efficient manner. Also, innovation funnel is the techniques that
aids company to come up with few products into marketplace. Innovation into product or
services required intellectual property for protecting their goods so that no one can able to copy
that.
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REFERENCES
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