Comprehensive Report on Innovation and Commercialization

This report delves into the critical aspects of innovation and commercialization, contrasting innovation with invention, and emphasizing the importance of organizational vision, leadership, and culture in shaping successful innovation strategies. It elaborates on the 4P's of innovation (Paradigm, Process, Position, Product) and explores different forms of innovation, including incremental, disruptive, architectural, and radical approaches. The report highlights the utility of the innovation funnel in idea generation and selection, specifically within the context of 'Essence Drinks,' a hypothetical company. It discusses the developments in frugal innovation and the importance of the commercial funnel in matching goals, along with outlining the resources required for new product development. Furthermore, it examines the tools organizations use to develop, retain, and protect knowledge and intellectual property, providing a comprehensive overview of the innovation and commercialization landscape.

8 – Innovation and
Commercialization
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Table of contents
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
Innovation and its importance......................................................................................................3
Organisational vision, leadership, culture in shaping innovation and commercialisation...........4
Innovation 4P's.............................................................................................................................5
Forms of innovation.....................................................................................................................6
Uses of Innovation funnel in shaping innovation ideas...............................................................7
Developments in frugal innovation by providing example of it in organizational context ........8
PART 2............................................................................................................................................9
Background information of company and the issue –.................................................................9
Importance of using the commercial funnel................................................................................9
Summary of the new idea for new drinks product and how it meets stakeholders’ needs........10
Resources required for proceeding with the innovation business case......................................12
Different tools that organizations use to develop, retain and protect knowledge and intellectual
property......................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation and commercialization is defined as how the product and services are being
innovated in the market (Wang and et.al., 2021).
The report will analyze the innovation and importance of same. This will be in comparison
to invention. Organizational leadership and culture will be evaluated and analyzed at large scale.
4P’s of innovation will be identified and elaborated. Uses of innovation funnel will be identified.
Importance of commercial funnel will be explained along with New Product Development
(NPD). Developments in frugal innovation will be analyzed along with innovation business case
which is developed at large scale. And tools of organization in retaining, developing and
protecting intellectual property will be analyzed.
PART-1
Innovation and its importance
Innovation means when organisation implement new process, products and services or
ideas with a goal of boosting the organisations bottom line (Lüdeke‐Freund, 2020). It can mean
launching new products or innovating the existing one. Whereas, invention means creating,
discovering or designing a completely new method, product or services which has not been in
existence before.
Importance of Innovation with comparison to invention
In today's dynamic environment where there is high level of competition and evolution in
the markets it is very important for business to keep innovating its products and methods
(Meissner, 2017).
 It provides competitive advantage to the companies: Nowadays market have become
quite dynamic and volatile in nature. And one of the main reason behind this is the
growing competition from the established and the new players in markets, also changes in
the taste of customers and evolving policies and norms of government. So, by innovating
new variants of lassi it will provide Essence drinks with a competitive advantage at low
cost and will make them one step ahead of their competitors. But it is not same in the
case of invention. As invention also provides competitive advantage but with high cost.
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 Brand Value enhancement: With using of innovation it will help Essence drinks in
enhancing the brand value that is with the use of modern technology it can enhance the
quality of its product also it can innovate its packaging which will help them to attract
more customers and providing its customer with better quality product will automatically
enhance its brand value and will to growth of the company. However, in case of
invention there are chances that except of enhancing the brand value of the company it
may diminish the brand value of Essence Drinks. That is with invention of new product it
is possible that the new product is not liked by the customer and may lead to a failure..
Hence resulting in losing the target audience and affecting the brand value of the
company.
 Cost reduction- One of the most important element of inculcating innovation is that it
helps in cost reduction. That is if Essence Drinks can cut down its cost of production with
the use of modern technology and also will help the company to produce its products
much faster with the new technology. And with this the company can sell its products at
higher margins and will the company in generating higher profits. On the other hand,
invention does not reduce the cost but it increases the cost that is to invent a new product
a whole new production unit will be required to be set up and will increase the cost.
 Loyal customers: Another major reason to use innovation is helps to retain the customers.
That is Essence drinks has a USP in selling Lassi, if the company start innovating its
product by innovating new variants it will be able to offer its customers with a wide range
of its products and will help the company in retaining its customers. However, in the case
invention there are chances of losing the customers as there are every possible chance
that the new product developed is a failure in the market resulting in losing of loyal
customers.
Organisational vision, leadership, culture in shaping innovation and commercialisation.
Commercialisation is the method of bringing new product or service to the market. It
requires a three tier marketing strategy which involves the ideation phase, the stakeholder stage
and the business process stage (Huang, 2018).
There are various factors which affect the shaping innovation

Vision- Every company has its own vision describing that which products of the
organisation need to be innovated and in which manner the commercialisation of innovated
product must be done. In case of Essence Drinks, the vision of the company is to provide quality
products to its customer. So by innovating its product in a way which improves the quality of the
product it will be able to achieve its mission.
Leadership- It is common in every organisation that leaders lead different teams for
achieving the specific objectives of the organisation (Al Khajeh, 2018). There are various
leadership styles that are followed by organisation. Essence Drinks should follow a democratic
style of leadership so that there can be communication of ideas between the superior and the
subordinate and also commercialisation would become easy.
Culture- Different organisation have different cultures consisting of various norms,
attitudes and values. Culture defines the base in which way the product will be going to be
innovated and how the commercialisation will be affected by it. In case of Essence Drinks it
believes in providing healthy products to its customers. So at time of innovation it should keep in
mind using less artificial flavours so that they can provide efficient healthy products.
Teamwork- Effective teamwork is very crucial for every organisation. Team work leads
the organisation towards growth and higher productivity (Tripathy, 2018). It brings new
innovation ideas and engages more people in using their creativity for generation of innovative
ideas and contributes in commercialisation of the new product. With the proper and effective
teamwork Essence Drinks has able to engage more people in creating new innovation ideas and
effective commercialisation of the innovative product.
Innovation 4P's
Innovation is the key element in the growth of the business. The 4P's of innovation model
was developed by Joe Tidd and John Bessant. The model focuses on four broad categories which
are:
Paradigm
Paradigm stand for where, why, how the product is being used and how the company is
getting things done. In other words paradigm refers to the way in which a business thinks that is
the measures that the company must take to adapt to make innovation in the products and
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services of the organisation. It means building a business model which identifies what the
company is doing and for whom the company is carrying out these activities.
Process
Process refers to the way in which the company is creating and delivering its products
and services to their customers and adding value. It can also be defined as how the changes in the
product are pushed within the organisation in terms of being more efficient and being faster and
creating products which are of better quality.
Position
Position refers to the market segment that the product of the company is targeted. With
the help of innovation it leads to entering into new markets with completely new products. It is a
way that figures out where and who may be interested in the new product which haven't been in
the market before.
Product
Product means what the company is offering to its customers. Mostly innovation are
product based that is creation and development of new product. Also products can be innovated
on the basis of improvement in the existing product that is its packaging, quality and delivery
methods. Essence Drinks can use this method to innovate its product that it can bring different
variants of lassi and increase its product range. It can also use modern technology which help in
improving the quality of its product and reducing the cost. Thus attracting more customers and
will lead to expansion of the company.
Forms of innovation
There are four forms of innovation which are as follows:
1. Incremental Innovation- it is one of the most common form of innovation which is used
by organisation. It uses existing technology in the existing market by changing the
features and design of the product and adding value to its customers.
2. Disruptive Innovation- it is also known as stealth innovation. It uses new technologies
to produce the products in the existing market (Hopp, and et.al., 2018). With the use of
this form of innovation Essence Drinks would be able to produce better quality of
products with the use of new technology and will also help in reducing the cost of
production which will results in generating more profits.

3. Architectural Innovation- in this type of innovation it uses existing technology to
produce the products in new markets. The risk involved are little less as the technology is
already proven so the chances of failure of the launch of the product in new market are
less.
4. Radical Innovation- it is an innovation which uses new technology to produce products
in new market the risk involved here is very high (Khan, 2021).
Uses of Innovation funnel in shaping innovation ideas
Innovation funnel is a tool that enables a stream of constant ideas that are screened for
viability. It is a mechanism which helps organisation innovate successfully. Innovation funnel
involves three stages that is The core of the funnel is to generate as many innovating ideas as
possible and from this a large portion will be converted into development plans (da Silva, and
et.al., 2017). Innovation funnel is very useful in shaping innovation ideas for Essence Drinks. It
helps the company in collecting number of ideas for developing and innovating new products
from various sources like from research and development or from competitors. After collecting
the ideas it helps the company in filtering the broad range of inputs that has been gathered
accordingly on the basis of evaluation of return and risk involved with the given idea. And then
helps in selecting the best ideas which is matching with the goals and objectives of the company.
The approach to develop innovative ideas –
Continuous Product Improvement – With the help of the products and services which the
Essence Drinks provides and services, the company should continuously improve the products
and lead the change in the formation of the new product. This will help the company in knowing
that on what scales the market can be expanded and the improvements that can be done within
the product and its services. This will also help in analyzing the basis through which the new
product can be developed and what are the steps which can be taken.
Recommendations – The next step Essence Drink should go through for deriving a new
innovative drink is –
 Badam Lassi which is new innovative drink that the company should develop which will
help in increasing brand name and will help in promoting the products and of the
company.
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 The product should be evaluated and analyzed in detail whether it will engage the target
market or not (Mirylenka and et.al., 2019). The key customer interactions should be
known prior before introducing the product in the market.
 The changes in the trends in the market should be known so that customers are more
attracted towards the new product which is being launched.
Importance of using the commercial funnel for matching goals to resource capability are
that the company Essence Drinks is taking over the scale through which all possible factors are
known at large scale and this helps in making and framing of how the new product is being
launched in the market by matching the goals to resource capability which are produced for
knowing the major innovations which are to be done at large scale. The collection of all the
resources in making the drink is very important and this helps in framing the scale through which
all possible aspects of innovation and commercialization of the new product which is the Badam
Lassi in the market is evaluated (Knapp and et.al., 2018). Risk assessment is being done for the
product which is to be launched and innovated in the market. This helps in reviewing the major
aspects through which all the changes which creates risk is known at large scale and this helps in
making the basis through which the competition is also analyzed in the market.
Value Analysis applying Frugal Innovation – In importance of using the commercial funnel to
provide a solution to the problem is known in which the frugal innovation is done and performed
for the sake of value analysis as this helps in reducing the cost and the complexity within the
value analysis cycle in the production of goods and products which are being produced at large
scale and this helps in making and framing the basis through which all possible factors of how
the Essence Drink will survive by managing the value of the products in the market (Albert,
2019). Frugal innovation helps in analysing the reduction in the cost which is being framed and
this helps in innovating the new product that is to be launched in the market at expanded scale.
Developments in frugal innovation by providing example of it in organizational context
Frugal innovation is the process of minimizing cost of a product and its production which
initiates the innovation and commercialization at large scale. This helps in knowing and
removing the non – essential features which Essence Drinks has imbedded within (Hossain,
2018). This is the basic technique in which the innovation of the product and the services which

are being invented at large scale within Essence Drink is known at large scale and this helps in
making the basis through which the business within the market is being performed at large scale
with engaging ample of customers within the market. There are various developments in frugal
innovation which are explained by providing examples of organization described as –
The organization which is the Essence Drink is taking concern of how to innovate the
Badam Lassi in the market for customers. This helps in knowing the major and basic forms in
which the new innovation its commercialization will be known at large scale (Hossain, 2020).
This will help in knowing the major and basic forms in which all the perspectives of how the
things are taken into concern are known and this helps in making the scale of how the frugal
innovation along with the basis of financials and costing is being done.
PART 2
Background information of company and the issue –
The Essence Drink company was started two years ago and has not seen any rapid early
stage growth. One healthy drink such as mango lassi was introduced in the market and this saw
rapid growth in the UK market and when the company enters the third year of trading, Essence
Drink faces major downfall because of the number of the competitors that have entered the
market. Therefore, a new product has to be introduced which does not moves away from the
segment which is lassi for the individuals (Edwards and et.al., 2021). The problem which
Essence Drinks is facing is that the company is trying to make the new product launch in the
market but in the same segment. This problem has been arisen which seeks the help of the
company itself and innovate a new product in the category of lassi which is the segment in which
the products are being made.
Importance of using the commercial funnel
Commercial funnel
A commercial funnel refers to the marketing tool which is used by companies to identify,
qualify and sale its products and services to the customers. This helps the companies to
understand the consumer journey which starts from product awareness to purchase stage.
Definition:
As per the author, a commercial funnel is a metaphor for the journey of a potential
customer they move ahead to become a customer.
Importance:
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The importance of a commercial funnel can be explained as following: Helps in identifying best marketing strategy: A sales funnel helps the companies to
understand which tools or the business models can be used for success. It can help the
company to identify the models through which product sales can be maximum. Helps in relating customers to company: When the company knows the journey of a
potential consumer to the permanent consumer, then it can identify the ways through
which it can make the customers relate to the company. Through this strategy the
company can change the tone of product, design content and offer the products which can
help the consumers to relate with the company. Increases sales: The better the consumer relates to the company, the more they will be
attracted towards products. The basic principle of a sales funnel is to pull the customers
in a systematic towards the company.
 Provides competitive advantage: A commercial funnel can help the given entrepreneurs
in realizing new and innovate ideas as well as provide the ways to achieve it. Proper
understanding of consumers can result in gaining a competitive edge over the other
businesses.
Summary of the new idea for new drinks product and how it meets stakeholders’ needs
It is known as how it will take concern of the new product which is being launched in the
market which is the Badam Lassi by the Essence Drinks. The new product will meet the
stakeholder’s needs as this will help in knowing the basis of the stakeholder’s perspectives and
by analyzing this perspective the main aim of the stakeholder’s will be that how the product is
reaching the customers and the market in which it has been innovated (Najafi-Tavani and et.al.,
2018). The stakeholder’s needs are fulfilled by the new product which Essence drinks has made
by analyzing the basis through which all the aspects of business and its requirements are known
and this helps in evaluating the new marketing trends and changes which are observed by the
stakeholders. The new idea for making the new product which is Badam Lassi is initiated for
providing the customers best of what the Essence Drinks can serve to the customers’ at large
scale (Schweitzer and et.al., 2019). The stakeholder’s are concerned with the new product which

is launched in the market giving tough competition to the other drinks and companies in the same
segment.
Techniques for testing the effectiveness of new drinks produced and this will fit into the
process
It is a process which is concerned with how effective and efficient the business as taken
the form in the market by initiating and innovating the new product which is Badam Lassi. For
testing the effectiveness of new drinks the product is introduced in the market where it is
consumed by the people who help in letting know that how much can the product survive in the
market and this helps in initiating the base through which all aspects are known at large scale
which creates the value of how effective and efficient the product which is innovated by Essence
Drink is known at large scale (Kumar and et.al., 2021). The major technique of the product
testing is initiating the step towards introducing the product in the market and in this manner the
main aim and the objective for which the company has introduced its product in the market is
known.
New product development – New Product Development (NPD) is defined as the product which
is being developed in the market for knowing and analyzing the scales in which the new product
is introduced and survives in the market. For the success in markets and industries, companies
need to obtain and realize new ideas and execute them for new product developments.
Idea generation - The first stage of new product development is to realize an idea. Here in case
of essence drinks new ideas is to introduce Badam lassi in various flavours (Cheng and et.al.,
2019). This will engage more number of customers and will help them know that the company is
providing such products to them.
Idea screening - In the second stage, the idea is screened to identify that if it is actually feasible
or not. The idea is screened to help the company in realising that all the aspects of the product
innovation are being identified for which they will be introduced in the market and to the
customers. This will help in deciding the feasibility of the product.
Concept development and testing – The development of the concept of the new product which is
examined in the market helps in analyzing the scale through which all aspects are known at large
scale (Johnson and et.al., 2017). The product before being placed in the market is developed and
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tested and through that the Essence Drink takes concern of how Badam Lassi will be developed
effectively.
Marketing strategy development – Marketing strategy is the main objective which should be
worked upon and this helps in developing the product. The marketing strategy helps in
identifying the major goals and objectives which Badam Lassi will fulfil in the market.
Marketing strategy will also initiate the steps towards the product growth and development.
Business analysis – Business analysis is the major step which is taken in knowing and
identifying the business needs and requirements (Florén and et.al., 2018). Through the business
analysis, the company’s processes and procedures are evaluated and the innovation of new
product is determined.
Product development test marketing – While the product is being developed, there is test
marketing of it. Badam Lassi is being driven towards the test marketing and this is initiated
through the basis of knowing the scale of how effective and in significant manner the product is
being developed within the market structure and how will it survive among the competitors.
Commercialisation – Commercialization is the exhibition of the new product in the market
which initiates the basis through which the product is being placed in the market (Marion and
et.al., 2021). Essence Drink will introduce and enhance its new product in the market which will
help in reaching to the large scale customers.
Resources required for proceeding with the innovation business case
Innovation business case is framed for Essence Drinks and this includes various aspects
such as –
Product Development/Innovation – The new product which is been developed is known as
Badam Lassi which helps in making and framing the basis through which all aspects of growing
the product and its services in the market for customers is analyzed and evaluated (Moon and
et.al., 2018). Innovation of Badam Lassi will help reaching the customer scale to great extends
and will improve the business and solve the problem which the company is facing.
Desk – market Research – With the help of the desk – market research which is analyzed and
collected through any other individual helps in evaluating the secondary information which is
related to the market and this will also help in making and framing the basis through which all
aspects are turn out to be basic for the new product developed to be innovated in the market.

Sources of Funds – The sources of funds for the new product development can be done through
the bank loans and shares taken for introducing the market structure and new services to be
provided to the customers in the market (Cuervo-Cazurra and et.al., 2018). Sources of funds are
helpful in making and framing the scale through which the funds are collectively made available
so the company can initiate the launch of the new product.
Different tools that organizations use to develop, retain and protect knowledge and intellectual
property
There are three main aspects and tools which help in retaining, develop and protect knowledge
along with the intellectual property are described as below –
Patents - Patents are the important aspects and are protected for incurring the important
information for the Essence Drink Company and this helps in keeping the information in precise
form through which all aspects are formed and evaluated in the manner of how the patents are
being protected (Fabrizi and et.al., 2018).
Trademark – Trademark are the products and services which are being undertaken for the
analysis of how the things are being initiated and trademark helps the company in making the
scale through which the products are known at large scale and are protected therein.
Copyright – Copyright is the tool which helps the company in initiating the basis through which
all information and data is known at large scale (Jing and et.al., 2021). This is the main aim of
the company for which the information and data is gathered and this helps in knowing more
about how effective and efficient the basis is of work within safeguarding the intellectual and
property rights of the company.
CONCLUSION
Thus, it is analyzed from the report that the innovation and importance of invention. This
was analyzed in comparison to invention. Organizational leadership and culture was evaluated
and analyzed at large scale. 4P’s of innovation were identified and elaborated. Uses of
innovation funnel were identified. Importances of commercial funnel were explained along with
New Product Development (NPD). Developments in frugal innovation were analyzed along with
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innovation business case which was developed at large scale. And tools of organization in
retaining, developing and protecting intellectual property were analyzed.

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