Literature Review on Commercialization of Technological Innovation

The provided assignment is a literature review that focuses on the commercialization of technological innovation. It includes a list of references to various studies and articles published between 2015 and 2019, which cover topics such as open innovation in SMEs, the role of angels and venture capitalists, market orientation, and supply chain influence. The assignment also includes online resources, including product development stages, managing the innovation funnel, nutritional values tables, and a recipe for caramel espresso lassi.

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Vision, leadership, culture and team work in shaping innovation and commercialisation.........4
LO 2.................................................................................................................................................5
Frugal innovation and examples for using in Essence Drinks....................................................8
LO 3.................................................................................................................................................9
Commercial funnel ...................................................................................................................10
The commercial funnel can be called as Sales funnel is a process of representing visually for
which make the companies' product available to potential consumers. This affects action of
consumers and their buying decision. ......................................................................................10
Commercial funnel has following importance and use for Essence Drinks in following ways:
...................................................................................................................................................10
LO 4...............................................................................................................................................14
Tools that is used by Essence Drinks to safeguard intellectual property and knowledge.........15

CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Innovation is concerned with generating and adapting new ideas or thoughts.
Commercialisation is a process to develop, launch and market new product in the market (Marx
and Hsu, 2019). The study is supported by the stated case of a company named 'Essence Drinks'.
It explains how innovation in products creates a rise in sales of the group. The study explains the
meaning of innovation and invention, the difference between the two and also focuses on the
importance of innovation in an organisation. It reflects the impact of vision, leadership, culture
and team work in shaping innovation and commercialisation. It further explains the 4Ps of
innovation and the use of the innovation funnel to examine and shape innovative ideas. It also
gives a glance on frugal innovation. It further explains the importance of commercial funnel and
the application of New Product Development. It also evaluates the different tools that
organisations used to develop, retain and protect knowledge and intellectual property.
LO 1
Innovation :
Innovation is an action or a process of generation and adoption of a new idea, method or
product. It is defined as coming out with better and redefined solutions of unexplored needs or
present market requirements (Menter, 2016). Innovation is the practical enforcement of an
invention. Innovation is the new and improved ability to impact market and society in a
significant and meaningful way. It focusses on adding value to a certain process in a totally new
and different way. For example : developing and commercializing new flavours of 'lassi' is
termed as an innovation (Liao and et.al., 2016).
Invention :
Invention is a unique process of exploring something new product or device for the very
first time. It is concerned with business process engineering and new product development
through radical designing and differentiated business models. An invention may generate a
positive or a negative change. An invention can be legally protected by acquiring patent rights on
the invention (Sotarauta and Mustikkamäki, 2015). For example : Invention of electricity in 19th
century is termed as an invention.
Difference between Innovation and Invention :
Innovation is an approach to create a positive impact whereas invention may or may not
create a positive impact but adds value to a certain area of development and growth. Innovation
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is more concerned with improving a process or method whereas invention is concerned with
creation and development of a product, process or device (Gabrielli and et.al., 2018). Innovation
succeeds or follows invention whereas invention precedes innovation. Innovation is aimed desire
to add customer value and satisfaction whereas invention is primarily driven by the curiosity or
research interest of inventor.
Importance of Innovation for Essence Drinks :
Innovation reaps long term stability in market to a business concern by building its
goodwill in minds of customers. Innovation focusses on adding value which in turn increases
customer satisfaction and customers stick to the brand or organisation i.e. conveys brand loyalty.
A happy pool satisfied customers in turn increases an organisation's revenue and opens door to
grow and expand in near future (Michaelis and Markham, 2017). Essence Drinks innovated its
Lassi product into mango Lassi which resulted in dramatic and in-ordinary rise in company sales
in the previous years. Essence Drinks can come up with 'caramel espresso' flavour of Lassi to
recapture its lost growth in the market. Innovation makes the workforce more dynamic and
prone to potential changes. Innovation differentiates the product from its competitors and
develops a competitive edge to the business and it also helps in gaining market share in the
industry.
Vision, leadership, culture and team work in shaping innovation and
commercialisation
A pool of factors are responsible in shaping innovation and commercialisation :
 Vision: A clear picture of company's vision guides the team to shape innovations, launch
and commercialise the product and ideas of the organisation. If the vision of the company
is clearly communicated to its employees, it will help in shaping their minds to generate
new ideas and thoughts more effectively. Vision of Essence drink is to raise its sales and
gain competitive advantage (Marx and Hsu, 2019). This progressive vision of Essence
Drinks will facilitate systematic functioning of organisation and will contribute in proper
commercialisation of its products.
 Leadership: An effective leadership contributes in the success of an organisation.
Leaders can shape a company's process through their behaviour. It's a leader
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responsibility to give everyone a voice to speak and an opportunity to be heard. A leader
is a person who creates a healthy environment in the workplace which develops a scope
to generate creative and innovative ideas. A positive leader motivates its team members
to think big and new (Sotarauta and Mustikkamäki, 2015). A leader of Essence Drink
Company directs its subordinates to commercialise products in a way that return of the
business concern is maximised.
 Culture: A work place culture of a company affects the mindset of workforce. A good
culture can foster employees mind of thinking new and wise whereas a negative culture
can hinder the generation of new ideas. The culture develops the abilities of employees to
commercialise a product in market (Michaelis and Markham, 2017). The performance of
company is directly dependent on the type of environment a workplace holds. An open
culture at Essence Drinks allows the freedom of expression and ideas of different
viewpoints. A pool of viewpoints shapes the scope of commercialisation.
 Team Work: Team Work facilitates and integrates innovation in the organisation. If the
innovation is well linked and transformed into strategic efforts, it can develop into the
commercializing of an outstanding product (Sotarauta and Mustikkamäki, 2015). Team
work enhances understanding and cooperation of employees of Essence drink in great
manner. A synchronised team can produce more great results due to the effect of synergy.
All team members working individually may reap lesser returns than in comparison to all
team members working as a team with unity. Team formation creates a platform to shape
innovations. This hence increases the productivity of commercialising a product (Liao
and et.al., 2016). Teamwork at essence Drinks , helps build pool of innovative ideas
and teams working at Essence Drinks are built on the notion of sharing knowledge and
new ideas.
LO 2
4 Ps of innovation
Innovation in beverages industry is very crucial as the product becomes unexciting sometimes.
This 4Ps gives idea generation and helps in innovating the product in the direction where it can
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satisfy the customer. It helps in improvement in business with the use of 4Ps of innovation and
the process becomes more efficient.
The 4Ps of innovation includes:
 Paradigm
This is the type of tool which helps in innovation to improve the business strategies. The
change could be radical but keep in mind that the changes are not always positive. It depends
upon the imagination that helps in changing possible ways that can leverage your profit. It is a
specific innovation category. For Essence Drink it may be in the way that products are sold from
off the counter, to the catering system or to selling on the internet. Essence Drink has used this
tool to change the existing product and comes with the new innovation caramel espresso.
 Product
If these new products are selling well, then real innovation got successful. But like with
its brother ‘Marketing P’, with ‘Innovation P’, there are many other aspects that can look at from
the suggestion they will make the product better and it was known as incremental changes.
Essence Drink has used this theory for the innovation of existing product and come up with the
product called “Caramel Espresso”. and can also improve on packaging, delivery methods,
freshness of the product, and so on.
 Process
There are many processes, like all the processes connected with supplying, selling, recruiting,
and even accounting. Therefore process innovation is anything that can do to improve processes
in an organization, so they are quicker, more efficient, or cheaper. Essence Drink has new ideas
that applied to the existing processes result in increased profitability.
 Position
Position is related to the perception. It is a psychological category, and promotion is just
one of the processes in the organization that affects this aspect of the innovation. What makes the
organization profitable is not how good its products or services are, but what their customers
perceive about them. Again its all about smiles on the faces of satisfied customers.
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Use of the innovation funnel to examine and shape innovative ideas.
It is the funnel which help in which proper steps are taken for the development of new
product. The main aim of innovation funnel is to fulfil the needs of customers and market by
launching the new product (Rasmussen and Eliason, 2017).
Image
Figure 1: Innovation funnel
(Source: Managing The Innovation Funnel, 2019)
The innovation funnel is process which includes investigation, development and shipping
products. This process helps in generating new ideas, helps in market analysis, helps in screening
of generated ideas and focused on the most attractive opportunities.
 Go with the flow
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Essence Drink has taken the several steps to enable the process. Innovation are the idea
generated by the employment and the ideas is being taken by every employee and then screening
of ideas goes under process, the most suitable ideas then selected.
 Weighing up
This approach ensures that the ideas are to be executed on timely basis so they can
introduce the product on time. The managers are given the responsibility to manage the division
of work and help organization to deliver the product to the customer safely and in a better way.
Use of innovation funnel at essence Drinks:
By taking assistance of innovation funnel Essence drink can implement innovative ideas
in significant manner. Caramel espresso innovative idea of Essence drink need to be define and
describe in proper manner. Innovation funnel will help in designing the way of implementing
this idea so that expected results can be come out. Company can first think critically about new
idea that may help in increasing sales of business, then it can decide the concept and can develop
suitable plan. Quality needs to be ensured by Essence drink so that it can meet the expectation of
potential buyers significantly.
Frugal innovation and examples for using in Essence Drinks
Frugal innovation is all about searching for solutions of a certain problem but it does not affect
cost of final product (Datta, Mukherjee, and Jessup, 2015). These innovations are done by
redesigning of products, reconfiguring the value chain for final consumers.
Frugal innovation can be used at Essence Drinks in different ways, some of them will be
discussed below as :
 Essence Drinks Company can increase their sales by launching various distribution
channels such as Selling through intermediaries, Online selling, Direct selling etc. So that
their Lassi drinks are available to whole UK. By this company can gain attention by
consumers of different rivalry companies in UK by their new product that is “Caramel
Espresso Lassi”.
 The company can also manage their production cost by distribute Lassi in different
quantities and packaging like Tetra Pack, recyclable bottles of 500 ml, 250 ml, etc. Also,
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this different packaging and quantities help company to sell their product in different
class of society and different work group.
 The Essence Drinks can use electronic outlets of Lassi as it helps in increasing the total
sales and revenue of the company. They may able to create strong customer base in the
market of UK. BY electronic outlets customers may able to satisfy their want as wider
distribution of new flavoured Lassi.
 Essence Drinks can use existing machines for producing “Caramel Espresso Lassi” as
this will be cost efficient and inexpensive for the company. Also, for Espresso flavour
they can take any other espresso machine for enhancing texture of Lassi. This will help
Essence Drinks to increase their production but at lower expense. The cost of final
product will be same as previous flavour “Mango Lassi” because they use same machines
which saves their operating expenses (Henttonen, and Lehtimäki, 2017.).
 The Essence Drinks Company uses different prices when dealing with different quantities
which help consumers by providing convenience in accordance with price and packaging.
This will help the company in promoting their profitability and they may also create loyal
customers which do not want to shift to any other brand than Essence Drinks.
 The flavour will offer taste of coffee and Lassi in same bottle which helps them in getting
attraction of consumers who love coffee. So, company can get a different set of consumer
by innovating their Lassi in Caramel Espresso flavour.
 Company can open their outlets in different malls, canteens of office and in supermarkets
of UK by which they can attain profitability. Also, this provides convenience to
costumers by their wider availability of Lassi. This helps them in improving their sales
and create a base of customer in UK.
According to these frugal innovation examples, Essence Drinks can attain profitability and
success. The company may also gain attraction of coffee lovers as the new flavour in texture of
Lassi. Customers who are ready to try new flavours will also get attracted towards these
innovations which leads the company towards growth.
LO 3
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Commercial funnel
The commercial funnel can be called as Sales funnel is a process of representing visually for
which make the companies' product available to potential consumers. This affects action of
consumers and their buying decision.
Commercial funnel has following importance and use for Essence Drinks in following
ways:
 Helpful in increasing sales
The commercial funnel will help the company like Essence Drinks in increasing their sales. The
Essence Drinks Company get more new strategies from undertaking various activities in sales
Funnel which help them in generating sales more than earlier.
 Helpful in selecting appropriate strategies of marketing
The company will able to select right marketing strategies by Sales funnel. By this Essence
Drinks comprehend different tools of marketing which help the company in growing and
succeed.
 Helpful in attraction of new segment of consumers
Sales funnel will help Essence Drinks to get attraction of new customers. By following these
sales funnel for the company helps in getting new plans and strategies for which it will help in
gaining customers.
 Helpful in growth of business
Commercial funnel will help Essence Drinks in growing. The activities of sales funnel will get
new strategies by which it aids them in their sales growth. Potential customers purchases their
products which are efficient in cost and also identify hazards from the company which help them
in attaining profitability and business growth.
New product development of the Essence Drinks Company
 Generation of New idea
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The company Essence Drinks comes with the idea of flavoured Lassi in which it will contain
taste of Espresso and Caramel in their Lassi (Datta, Mukherjee, and Jessup, 2015). Their idea is
to execute this flavour of Lassi in their business to enhance their profitability and success.
 Screening of idea
The Essence Drinks Company will launch their product as a form of refreshing drink. The
Espresso is useful for getting energetic. Therefore, the product of Caramel espresso flavour of
Lassi must be executed.
 Concept definition
This stage will configure all designing and packaging of the Lassi which will be launched by
Essence Drinks as a new flavoured product.
 Strategic analysis
This stage is for analysing properly indirect cost and direct cost. The company Essence Drinks
will set profit on single unit of Caramel Espresso Lassi.
 Development of product
On this stage, content to be included on packets of Caramel Espresso Lassi will be identified so
that the company will gain attraction of customers. In this a brief comparison of quality, price
and quantity will be done in accordance with rivalries. This improves quality of Caramel
Espresso Lassi which is to be sold in market of UK (Mollick, and Robb, 2016.).
 Marketing test
Test of marketing includes all the research which is related to marketing of the company Essence
Drinks in UK. This identifies the customers which are need to be targeted to build a customer
base and sell their launched flavour to them which is Caramel Espresso Lassi.
 Commercialisation
This step is very essential for company like Essence Drinks and all other organisation. The
Essence Drinks Company undertakes this step which includes strategies of pricing to finalise the
Caramel espresso Lassi. By this sales of the company increases and helps them to generate new
customers and retain the existing ones by continuous innovation.
 Introduction to the market
On this stage, the new product which is developed launched in the market of UK. The Caramel
espresso lassi will be launched as a new product for which companies aims to increase their sales
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and their profitability. The Essence Drinks will apply different strategies and plans which is
planned in earlier stages.
New product development at Essence Drinks:
Image
Flavour – caramel espresso lassi
Ingredients – it contains flavour of caramel along with espresso coffee texture in a pack of lassi
of essence drinks.
Price – the company is adopting price penetration strategy for which the company offers price
range from £1.8 to £2
Packaging – the packaging will be tetra pack and recyclable bottles.
Organic – the drink uses fully organic materials and any additional artificial flavour will not be
used in lassi of essence drinks.
Nutritional values table
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Figure : Caramel espresso lassi
(Source : Caramel espresso lassi, 2015)

Innovation business case
Executive summary
Essence drink company is a company of Beverage which is dealing in UK and known for mango
flavoured lassi. As the company fails in getting success in UK market with this Lassi (Xiao, Li,
and Liu, 2016). They innovate by launching new flavour of Lassi which is Caramel espresso.
Situational analysis
The company will analyse strengths and weakness of launch Caramel espresso lassi as a
innovation.
Strength Weakness
 Economies of scale
 Strong market segment
 wide product mix
 Create global presence
 Customer base
 Dependence on retail shops and outlets
 Business diversification is limited
Opportunities Threats
 Innovate healthy drinks  Competitive rivalry is very complex
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Figure : Nutritional values table
(Source : Nutritional values table,2019)

 Implement more flavours which are in
trend
 Increasing local house brands
STP
Segmentation
The company Essence Drinks will segment in the market on the basis of demographics. Also,
they target people of age between 10-30.
Targeting
Essence Drinks Company will target teenagers to adults to enhance their sales of Caramel
espresso Lassi.
Positioning
The strategy here used in Essence Drinks is cost-quality. In this strategy, they will improve the
quality but decrease the cost of Lassi. This will save the cost and time of consumers and will
position best in lower to higher class of income because of wider availability at low cost.
Budget
Sources Expenses in pound (£)
Rent 50
Production 100
Salary 70
Advertisements 30
Total 250
More steps of business case can be:
 Review your business’s mission statement
 Brainstorm about potential options for resolving the business case problem, issue or goal.
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 Provide detailed timelines and time frames for successful project implementation and
completion etc.
Various sources of funds which will be determined can be access by Essence Drinks
Company are:
 Own capital
The Essence Drinks Company can use their own capital as an investment. They can also use their
profits which is in excess to execute their innovation of Caramel espresso Lassi (Schmitz, and
et.al. 2017).
 Financial institutions and Banks
In businesses various financial institution and banks contribute their funds in order to give
financial support to them. The essence drinks can opt for loan from banks which help them in
execution of their business in the recent innovation of Caramel espresso Lassi.
 Family and Friends
Many businesses take help of their family, peers and friends. This is the best approach of source
of funding because with the help of friends and family, businesses like Essence Drinks get
financial support which further they can invest in innovation.
 Venture Capital
Venture capital is another source of fund which can be access by Essence Drinks. These
institutions help those businesses whose main aim is to earn a long term growth in Their
businesses. They invest their funds in the company like Essence Drinks.
 Share from public
The company can also ask public for the funds. As the company is lack in financial support,
public of UK can contribute their money in equity shares for investment.
LO 4
Tools that is used by Essence Drinks to safeguard intellectual property and
knowledge
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Different tools that Essence Drinks use to develop, retain and protect knowledge and intellectual
property are: There are various types of IPR and each have its own importance to protection
level, time period and legal formality.
Copyright
This type of right is only applicable to artistic outputs. It helps in prevention of copyright
by any other organization. Copyright is associated to the music and literary work. One don't have
to apply or pay the fee for getting the copyright. It is preserved for the 70 years after the death of
the creator.
Trademark
A trademark right protects the name of the company, logo for goods and services of the
company. Trademark is being obtain through registration and last indefinitely. Essence Drinks
also registered under the trademark act to protect the name and logo of the company. If anyone
used the trademark of Essence Drinks the company has a right to take the legal action. A
trademark is protected for 10 years.
Patent
Essence Drinks is the organisation who has created many products and innovated various
products also and have invented various products also and need to apply for patent. Patent is
valid for the 20 years from the original application date (Hohenberg and Homburg, 2019). Patent
is the legal right to the organization that gives them legal power to take charges to anyone who
tries to copy, sell or import their product without their permission.
Registered Design
It is also one of the intellectual property rights for protecting the new products. This will
be very useful for the company like Essence Drinks as they innovate products time to time. By
registered under this act can prevent for up to 25 years and it must be renew in every 5 years.
Advantage of knowledge protection and
intellectual property tools
 It enhances market value of the
businesses.
 To raise finance of businesses.
Disadvantage of knowledge protection and
intellectual property tools
 Unnecessary additional cost.
 Reduces quality of products.
Strength of knowledge protection and
intellectual property tools
 Helps to maintain originality of
product.
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 It prevents from exploitation of
owners invention.
Weakness of knowledge protection and
intellectual property tools
 1-3 years needed for approval of
patents.
 Expensive and time consuming.
Effective of tools for essence Drinks  It able to manage competitive edge
on same business entity.
 Great opportunities for export.
CONCLUSION
From the above study it has been summarized that innovation and
commercialization both are the backbone of any organization which helped Essence Drinks to
launch its new product. The report highlighted the knowledge about how to introduce an existing
product with improvement and changes to the society or market. The innovation of product
became successful with the organizational vision, leadership, organisation culture and teamwork
which helped the Essence Drinks to shape the innovation of new product called Caramel
Espresso and also with the help of innovation funnel, commercialization of product got
successful. This report also elaborates about the importance of innovation and the applications of
New Product Development (NPD) which helped Espresso Drinks to lead the product on time.
This report also describe how to protect trademark, patent and design with the help of Intellectual
Property Rights (IPR) which helped the Essence Drinks to secure their organization's product
originality.
Recommendations:
 The company Essence Drinks can also launch flavour of Chocolate lassi
along with touch of Marshmallows in it.
 The Essence drinks can introduce mint flavour Lassi.
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REFERENCES
Books and Journals
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An integrated propensity score matching and two-stage data envelopment analysis.
Sustainability.7(5).pp.5120-5138.
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&d Management.
45(3).pp.215-249.
Dutta, S. and Folta, T.B., 2016. A comparison of the effect of angels and venture capitalists on
innovation and value creation. Journal of business venturing, 31(1).pp.39-54.
Henttonen, K. and Lehtimäki, H., 2017. Open innovation in SMEs: collaboration modes and
strategies for commercialization in technology-intensive companies in forestry industry.
European Journal of Innovation Management.20(2).pp.329-347.
Hohenberg, S. and Homburg, C., 2019. Enhancing innovation commercialization through
supervisor–sales rep fit. Journal of the Academy of Marketing Science.pp.1-21.
Hossain, M. and Kauranen, I., 2016. Open innovation in SMEs: a systematic literature review.
Lim, J.S., Darley, W.K. and Marion, D., 2017. Market orientation, innovation commercialization
capability and firm performance relationships: the moderating role of supply chain
influence. Journal of Business & Industrial Marketing. 32(7). pp.913-924.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review.58(2). pp.72-87.
Rasmussen, T.E. and Eliason, J.L., 2017. Military-civilian partnership in device innovation:
Development, commercialization and application of resuscitative endovascular balloon
occlusion of the aorta. Journal of Trauma and Acute Care Surgery.83(4). pp.732-735.
Schmitz, A. and et.al., 2017. Innovation and entrepreneurship in the academic setting: a
systematic literature review. International Entrepreneurship and Management Journal,
13(2). pp.369-395
Xiao, X., Li, Y. and Liu, Z., 2016. Graphene commercialization. Nature materials. 15(7).p.697.
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Product development stages. 2018. [Online]. Available through :<https://kalyan-
city.blogspot.com/2012/02/stages-process-steps-of-new-product.html>
Managing The Innovation Funnel. 2019. [Online].Available through : <
https://killerinnovations.com/managing-the-innovation-funnel/>.
Nutritional values table. 2019. [Online].Available through :
<https://www.mamasezz.com/collections/all>.
Caramel espresso lassi. 2015. [Online].Available through :
<https://foodrecipeee.wordpress.com/2015/06/09/caramel-espresso-lassi-recipe/>.
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