Innovation and Commercialization

This assignment explores the concept of innovation and commercialization in organizations. It explains the difference between innovation and invention, the importance and values of innovation, and the different types of innovation. It also discusses the 4P's of innovation and how they support capability and management. Additionally, it covers the concept of frugal innovation and how organizations are using it, as well as the innovation funnel and NPD process to drive new ideas and products.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
Explanation of the innovation and difference between innovation and invention.................1
Importance and values of innovation to organisation.............................................................2
Several kind of innovation with a concentration on disruptive and incremental innovation. 3
4P's of innovation and how they supports capability and management of innovation...........4
Innovation funnel and NPD process to drive new innovative ideas ans products..................5
Analysis of frugal innovation and how organisations are using it.........................................6
P6. Overview of the business case in innovation...................................................................7
P7. Different tools used to protect intellectual property rights..........10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation indicates to the process of converting and translating the new thoughts and
ideas in to goods and services which have some value and customer are also ready to pay for
that. In context of a business organization, innovation refers to those ideas and thoughts which
are used by the management of the company to make something new and innovative which help
in fulfilling and providing satisfaction to the needs and demands of the customers (Bashmakov
and et. al., 2015). Innovation mention to new concepts or products which drives from an
individual to make improvement in the business of a firm. This assignment based on BULMERS
drink which is a food and drink company which operated its business in UK and offer Mango
Lassi product in the market of UK. This firm generates revenue in three year at time of
establishing not after fourth year, the sales of the company started to decrease cause of it
competitors. In context of overcome this problem, the management of BULMERS drink decide
to make innovation in its products which are currently provided by it in the market. This report
will explain about the various aspects of innovation and 4P's of innovation. Further, will discuss
frugal innovation and importance of commercial funnel. Different tools and techniques of
intellectual property rights will also defined in context of provide protection ton the innovative
products of BULMERS drinks.
Explanation of the innovation and difference between innovation and invention
Innovation can be defined as a process that can involve multiple activities to uncover new
ways to do things. Innovations create bigger opportunities and are critical for the survival,
economic growth and success of a company. It helps in developing new concepts. Whereas
invention refers to the process of creating or making up something new which have some value
and help in fulfilling or satisfying the needs and demands of the customers. In order to realize
innovation, leaders should be open-minded and collaborative. Innovations are able to set the
organization in a different paradigm in order to identify new opportunities and best method to
solve current problems (Bernstein, 2015). Innovation in BULMERS Drinks will help in
increasing the likelihood of company succeeding and can create more efficient processes that can
result in better productivity and performance.
Comparison of innovation and invention
Basis Invention Innovation
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Meaning Invention refers to the occurrence of
an idea for a product that has never
been made before (Chun and et. al.,
2015).
Innovation refers to implication of new
idea for product for the very first time.
Skills required Invention is set of scientific skills as it
needs experimental knowledge.
Innovation is set of marketing,
technical and strategic skills.
Occurrence Invention occurs when new idea
strikes in the mind of scientist.
Innovation occurs when a need is felt
for the improvement of product.
Activities Invention is limited to R & D
department because it needs research.
Innovation is spread in each and every
department or across the organization.
Importance and values of innovation to organisation
Innovation is referred to the process of manufacturing innovative products which are
affiliated with the process and effective thoughts. In BULMERS drink, innovation mention to
new and innovative thoughts which are help in producing dynamic goods and better services.
Innovation is beneficial because it helps in increasing antagonistically benefits from the market.
In BULMERS drink, the management of the company can use innovation to create various
values and importance, the determination of it is as mentioned below:
Solve Problems Easily- The company need to come up with creative answers to solve
problems in their business. Many times they will face problems that don't seem to go away. They
need to think out of the box to find an answer which they have never come up with. By this way
BULMERS Drinks find a creative solution to make their business better.
Creative Development- Qualities of innovative nature are essential for new businesses
today. A company can achieve growth by learning how to be creative. They need to learn this
business skill to make things of value from their creativeness. When they have this business skill
they will find that it opens up all kinds of opportunities and gives them the potential for a new
market and helps them to keep with the current trend (Datta, Mukherjee and Jessup, 2015).
Increase productivity- In BULMERS drink, if the management of this company adopt
and utilize innovation by launching its existing products in different flavors like banana,
strawberry, chocolate, rose and Kesar lassi etc. then will be helpful for the organization. Because
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with the help of it, there are number of people and customers will purchase it and the
productivity and sales of the form will be increased. In order to work smarter, think creatively.
Company should focus on the programs and workflows to increase their productivity and what
things they need to cut out. For example, A company can use a homegrown project tracker
system to assign, monitor and prioritize tasks (Ding, Eliashberg and Stremersch, 2016). They
may use other methods to do this, but building one to meet their specific demand is
recommended.
Beat competitors-Innovation is beneficial to reduce the competition in term of gaining
competitive advantages. With the help of it, the firm can make increment in its sales and enhance
productivity and profitability. In BULMERS drinks, the management of the company can make
innovation by manufacturing its existing product Mango lassi in different flavours like rose,
Kesar, Strawberry and various others. This way the management of the company can overcome
the high competition from the market. When an organization think innovatively, it becomes very
easy to beat out their competitors. They just need to put in a little creativity, and they can easily
come up with better ways to design products and connect with customers. Along with this,
creativity will help them to figure out the right marketing techniques that will help them to grow
their business.
Several kind of innovation with a concentration on disruptive and incremental innovation
There are four types of innovation such as incremental, radical, architectural and disruptive. With
the help of this kind of innovation the firm can make innovation in its current products and
services (Elert, Henrekson and Stenkula, 2017). Explanation of some of this kind of innovation
are as following:
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Architectural innovation- This kind of innovation basically refers to taking lessons,
skills and overall technology and implement them within a different market (Gaddy and et. al.,
2017). With the help of this kind of innovation, the management of BULMERS drink can make
improvement in its technology by which make production of their products in sells them in
different markets. It is also effective for making increment in the productivity and profitability of
the firm.
Incremental innovation- It is another kind of innovation which is beneficial to make
improvement in the existing technology which is used to enhance value for the clients and target
audience with current market. This kind of innovation is useful for the firm because it helps in
maximizing the sales of the company by minimizing ineffective features form current goods and
services.
4P's of innovation and how they supports capability and management of innovation
4P's of innovation is also known as innovation mix and also framed and formulated by
John Besent and Joe Tidd. This innovation mix can be used and implemented by the organization
during the time of making plan and thinking about to do innovation in existing products of the
company to get attention of number customers. Determination of these 4P's of innovation is as
following:
Product- When an organization uses new ideas and thoughts in its existing business to
make innovation (Ge and et. al., 2017). So that they can attract large number of target audience
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towards the products to make increment in the sales of the firm. In BULMERS drink, the
administration of the company can make innovation in its present product Mango lassi by
launching it in different flavors like rose, Strawberry, chocolate, Banana and others. It is
beneficial for the company to maximize the sales of the firm by providing satisfaction to the
needs of its target audiences.
Process- It is another component of innovation mix in which the company use and
implement effective process and procedure to make innovation in its products (Greenstein,
2015). In BULMERS drink, the management of the company can use suitable production and
manufacturing process which help in production of flavored lassi without facing any issues and
problems.
Position- It refers to the method and techniques by which a firm can positioned its
products in the market so that the people can get awareness about them and purchase them. It
will be helpful for the company to make profit and making improvement in its productivity. In
BULMERS drinks, the management of the company can do market research so that they can find
out the needs and requirement of its target audiences and offer products according their needs. It
will be beneficial for this firm because it will provide a position to the new launched flavored
products in the market.
Paradigm- It is the last component of innovation mix and it is related to modification
perspective of business. Within it, the management can make innovation after understanding the
effectiveness of products and services. In BULMERS drinks, it will be useful and effective to
determine things and offer them to the customer according their need and requirements.
Innovation funnel and NPD process to drive new innovative ideas ans products
Innovation funnel indicates to the execution of a tool that can be utilized by the
administration of the company in context of generating proper position at the market place by
offering and following the process of new product development in context of innovative goods
and services to its customers. In order to introduce flavored lassi, the administration of
BULMERS drinks and adopt NPD for funnel innovation which is as following:
Assessment of opportunity- It is the first phase of new product development within
which, BULMERS drink can do market analysis to identify the requirements of consumer so that
management of this firm can make innovation according to their needs (Hossain and Kauranen,
2016).
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Sensibility supported ideation- It is another phase of new product development within
which the firm can identified that which strategy and idea can be more essential to the company
though which it can make improvement in its target audience (Hossain, 2015). In BULMERS
drink, the organization can conduct different kind of analysis with the help of which they can
collect data about consumer's requirement. For this they can use different methods and
technologies like survey, focus group, internet etc.
Conceptualization- With in this phase, the management of BULMERS drinks hire
consultant so that the individual can provide suggestion in context of formulated appropriate
strategy which is beneficial for generating awareness about different flavours of Lassi.
Evaluation and measurement- It is the next phase, under it, company can offer its new
and innovative product to its target audiences so that they can measure the success of its product.
For this, BULMERS drink can organize exhibition and other activities which will be helpful to
provide appropriate information about its flavoured lassi.
Go/No Go- Within this phase, the administration of BULMERS drink can get feedbacks
and reviews for its clients regarding innovative product. This phase is beneficial because within
it, they can collect information that why customers like their products and if they do not like then
what is the reason behind it. To gather information regarding it they can also know about the
different requirements of different customers.
Launch- It is the final stage in which, the management of BULMERS drinks produce
products as per the needs and demands of their customers and launch it at market place.
Analysis of frugal innovation and how organisations are using it
Frugal innovation indicates to an action which can be adopted by a firm to identify new
business model, organize redesign of product, know value chain and various others by which the
organization can attain its aims and objective in effective manner. Apart from it, this process can
be adopted by various firms to make improvement in its extra components to offer them in the
market. The process of frugal innovation in context of creating awareness about its new product
lassi, which is as following:
New market opportunities- It is important from a company to conduct market innovation
so that by which they can make development in the products and services effectively (Ke and et.
al., 2016). In BULMERS drinks, this firm has to need of making expansion in it customer base
and maximizing the number of target audiences.
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Resources- It refers to the need and requirement of important resources which are needed
to make innovation in the products and services of a company (Kuratko and Hoskinson, 2016).
In BULMERS drinks, the management of this company required several resources like
production equipment’s, different kind of flavours and others.
Frugal innovation- Within this phase, the administration of the company provide information
about new product in the market with the purpose of gaining competitive benefits. In BULMERS
drinks, the company utilize different strategies of frugal innovation because it is effective to
create awareness about its new products. Within frugal innovation the comparison can be make
on the basis of two segments, they are as following:
Problem- Accordant to it, during the time of providing information about the product and
services of the company, there are several kinds of issues and conflicts which can be suffered by
a company bat market place. In BULMERS drink, the organization also face some issues related
to fund time, resources, target audiences and others.
Affiliated to products- It refers to those conflicts which are related to marketing and
awareness of the products. It is essential for BULMERS drink that they should make appropriate
interaction with their target audiences so that the customers have proper knowledge about
flavoured products and determinative to purchase it (Leyden and Link, 2015).
P6. Overview of the business case in innovation
Product
Mango Lassi
Describe product
BULMERS thinks that this will be a very appreciated drink for the customers because
Lassi is one product which people love and adding Mango which is the most consumed fruit will
make a good combination in the market. The product will make a place for itself in the market
very quickly if the company comes out with this idea.
Marketing Strategy
The company will use the marketing technique the most to make this product be accepted
by the customers very quickly. Though the product will be able to make a place for itself because
it is most consumed but still the company will promote it by advertising this product with models
and film stars. Banners will be taken out for the promotion of this product because the company
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wants to make the most and this will make the company have a competitive advantage oin the
market.
Customers
The company will be targetting the children because it will get the market for the children
very quickly and the company needs to promote it also which would attract the children.
Competitors
Amul and mother diary are one of the biggest competition for BULMERS and this
strategy and getting this new product will make the company get a market for itself and will
make a stronger portfolio for themselves.
SWOT
Strengths
 No other company has thought of coming out with this kind of product which will
becomes a great strength for the company if they take this idea forward.
 The company will be able to make profits in the market and there will be free cash flow.
Weaknesses
 The company does not have skilled employees to handle this process forward.
 The research and development department is not so well-developed therefore it took so
long to come out with such an idea. The company will have to work on its R&D.
Opportunities
 The company will get a lot of professionalism in the company will help the company to
grow in the future.
 The taxation policies are in favour of the company and the company should make the
most of them because the taxation policies can change with the change in government.
Threat
 The raw material of mango can cause a huge problem for the company.
 Paying wages to the employees can also become a huge threat to the company and if the
company expands in different countries then the wages will make a problem for the
country.
Overview of the problem
BULMERS drink is UK based small sized company which operated its business with the help of
its product Mango Lassi in UK market. This firm is set by Mr. Bond before 3 years ago and it
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belongs from food and drink sector. When the firm was set up, it has been fast growth in three
years as well as achieve high success in term of sales. But now during the time of fourth year,
this organization face high level of decrements in its sales. Due to numerous competitors in the
market who create competition and issues for the firm.
Use of commercial funnel to provide solution to the problem
In BULMERS drink, to make increment in the sales of the exciting products, the administration
of this organization decided to launch flavoured lassi product with the purpose of making
increment in the sales of the company. The management of the company decided to provide it
products at reasonable prices so that products can be easily purchased by the consumers of all
income groups. This commercial funnel useful for the company because with the help of it, a
business firm can set and decide the prices of the product by determining the customers needs
and taste or their buying behaviour.
Improving mode of flourishing business-With this procedure, commercial funnel have
captious concept for growth of the company. It is the initial phase, under which it has been
identified that this commercial funnel will include particular firm to satisfy the needs and
demands of it customers in effective manner. If the new different flavoured products of
BULMERS drinks are liked by the customers then it can be helpful for the company for
maximizing the sales of it.
Beginning of advance technology- Under this stage, the management of BULMERS
drink can use funnel with the purpose of providing information about its different flavoured
products within competitive market.
Utilize research program-In this last stage of commercial funnel, the administration of the
company can conduct research process to identify the needs, demands and requirements of its
target audiences. Within this phase, commercial funnel play an effective a crucial role to produce
preservative flavour lassi within the market with the purpose of increasing the sales.
Marketing opportunities of the innovative new drinks product
There are several marketing opportunities for BULMERS drink to launch its flavoured lassi
products in the market. The major opportunity is that this organization can make collaboration
with a well reputed firm which can be beneficial to make maximization with in the sales of it. It
will be also beneficial to gain competitive benefits from market place. Apart from it another
opportunity can be offered its product on different pricing strategies like discount band offers
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etc. By setting prices of its new flavoured products which can be easily payable for all income
group. It will help in attracting number of customer which will make increment in the sales and
customer base of this firm.
Overview of industry and competition
Food and drink sector should be an important compactness of domestic action and help in
improving its trade proportion etc. There are high competition in this industry because there are
various kinds of changes occurred in the needs and demands of customer and there are number of
orgnsiatio0n which are always read to provide satisfaction to them by manufacturing and
offering products according to them. IN UK, there are also various competitors who also create
competition for BULMERS drink by manufacturer products according to this company. This
creates unfavourable effect the sales of the firm in negative term.
Financial projection
BULMERS drink decided to make innovation in its existing product by launching its current
product mango lassi in different flavours To do this kind do innovation, the management of the
firm needed £40,000 so that they can do market analysis regarding customer demands and
purchase raw material, equipment and required resources which are helpful for manufacturing
rose, chocolate, strawberry and others flavour of lassi. The firm required this fund to make
promotion of its innovation so that they can create awareness about them.
Sources of funding
Funding form personal savings- It the most common source of funding for the business. The
owner of BULMERS drink can take money from personal savings to make innovation in its
business. It is important for the individual because at this kind of funding the person not required
to pay interest and other kind of extra charges.
Loans from banking and financial institutions- It is another important source of funding
from where BULMERS drink can easily borrow money from bank and financial institutions. For
this kind of activities, these firms charge interest which is charged at a specific rate of interest
and a specific time period is also decided in context of repay.
Friends and family- It is a big source of funding for small organizations. Friends and
family members can provide funds in the form of debt which must pay back and for this they can
charge low interest. It is important source because there are trust and the borrower can easily
convince them more than strangers.
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As per the defined information it can be gusseted to this firm that it can borrow fund from
bank and financial institution be case there are some schemes are also offered by UK
government to small enterprises.
Capital funds that are required to be raised
To run the business of the company, BULMERS drink need to different kind of funds. The
administration of the company can borrow fund for different kind of activities like marketing,
production, technology and others. These are beneficial for the firm because it will be beneficial
for the company to make a place in competitive atmosphere.
Techniques for testing the effectiveness
There are number of techniques which can be used by the management of the company to create
awareness about the products and getting feedback from the consumers. In BULMERS drink, the
administration can create awareness with the help of different promotional channels like internet,
social media etc. They can organize exhibition where they can offer their new products for taste
and get feedback from target audiences. They can conduct survey and get reviews of clients on
their company websites to get information about innovative product.
P7. Different tools used to protect intellectual property rights
Patent- Within it, the owner of the firm product right to another person to sell their products and
services during the time when they are not operating this kind of actions. In BULMERS drink,
this right can be used by Mr, Bond to protect its new products from a competitive environment in
the market.
Copyright- It is another kind of protection right which can be utilized by the company
regarding its original product and others. This property can be helpful for BULMERS drink
because it helps in providing protection to the new launched product of it.
Trade secret- This tool and technique of intellectual property right is defined as any
information, direction, method, and others which is readily known by the public and turned an
economical benefit to its holder.
As per the defined information it can be analysed that BULMERS drinks can utilize
patent tool to provide protection to its new launches flavoured lassi products.
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CONCLUSION
On the basis of the given information it can be concluded that there is need of innovation
for the effective working and operation of the business to have an effect of the company for long
time. There is necessity of gaining competitive advantage from the market and increasing sales
and productivity. BULMERS drinks should make innovations in its product mango lassi.
Additional flavours like strawberry, banana, chocolate, etc. can be added to grasp the interest of
the customers. Also, it will lead to rise in sales, satisfaction of the selected population and
profitability of the company. Innovative products of the company can be prevented from copying
by the competitors by the intellectual property rights to avoid any loss.
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