Innovation and Commercialisation Report: Bakkavör Smoothies Project

This report examines innovation and commercialization strategies within the context of Bakkavör, a British food manufacturing company. It begins by comparing innovation and invention, emphasizing their importance for business success, and then explores the role of organizational vision, culture, and teamwork in shaping innovation and commercialization. The report delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of innovation funnels, followed by an analysis of developments in frugal innovation. Furthermore, it discusses the commercial funnel and its significance in the context of Bakkavör, including a business case study. Finally, the report covers various tools to retain intellectual property for a longer period. The report provides a comprehensive overview of how Bakkavör can leverage innovation to develop new products, such as smoothies, and gain a competitive advantage in the food industry. This report is a student contribution to Desklib, a platform offering AI-based study tools for students.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison between innovation and invention and their importance...................................3
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation...5
TASK 2............................................................................................................................................6
P3 4Ps of innovation and use of innovation funnel.....................................................................6
P4 Developments in frugal innovation........................................................................................7
DRAWBACKS:........................................................................................................................13
TASK 3..........................................................................................................................................13
P5 Commercial funnel and its importance in context of Bakkavör..........................................13
P6 Business case.......................................................................................................................16
TASK 4..........................................................................................................................................18
P7 Various tool to retain intellectual property for longer period..............................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Innovation is defined as making suitable alterations and modifications in existing product
and services in order to perform business operation in suitable manner. Innovation is an aspect
by which improvements can be suggested to the business through which better sales and profits.
In the terms of aims of innovation, the major aim is to commercially derive full knowledge so
that to make business more competitive and adhered to dynamic environment (Ales, Cho and
Körpeoğlu, 2017). Thus innovation is describing process of improvement in which companies
are offering prominent procedure of inhaling development ideas so as to get opportunities for
testing production and market commercialisation. On the other hand commercialisation is
describing process of introducing new services and products in the market so as to earn more
sales and revenue. Invention is described as developing new things which are not existed in the
market till the date. This report is prepared to understand various concepts of Innovation in the
background of Bakkavör which is a British food manufacturing company headquartered in UK.
The company is now planning to develop smoothies in which natural ingredients are added such
as carrot, beetroot, ginger and so many others.
TASK 1
P1 Comparison between innovation and invention and their importance
Innovation: Innovation is defined as a process in which new ideas are being developed in
existing products so as to enhance succession ratio of the company. In terms of these factors
process of innovation is leading to provide motivation and uniqueness to offered product and
services. For instance in terms of Bakkavör the company is dealing in food and now they are
planning to get into manufacturing of Smoothies in which combination of fruit and vegetables
are being made so as to provide healthy beverages to their customers which contains vitamins.
Varied flavours are being launched by them by undertaking taste of customers by performing
research and development (Arthur, 2019).
Invention: This term is useful in mentioning idea over new product and new customers are
being pitched. Under invention a new ideas is being developed by an individual and this is an
emerging thought in the market and for customer as well. Meanwhile invention takes lot of time
as customer preferences are inhaled and pros and cons are being analysed with the context of
customers.

Basis Invention Innovation
Meaning This is referred as
development of new brand
along with new idea which
is new for the market.
Invention is derived in such
a manner that new and
emerging concept can be
added in new product so
that to enhance sales and
profit as well.
This is denoted as most
suitable activity in which
effective changes are being
introduced by the organisation
in their existing product and to
make effective changes in the
product. Under this new ways
are being considered and new
ideas is germinated.
Aim The objective of invention for
Bakkavör is to provide
smoothies to their customers
and to grab attention of
potential and existing
customers so that to make
effective use of the invention
in meeting goals and
objective of the organisation.
Purpose of innovation is to
inhale additional efforts and
approaches so as to to alter
existing offering in product
and services as according to
taste and needs of customers
by which sales and
profitability can be enhanced.
Occurrence It occurs when thought or
ideas is germinated in the
mind of some individual in
order to provide shape to
needs and demands of
customers by developing
product in appropriate
manner.
This is occurring when the
business is willing to enhance
their sales or market share
when sales is declining in
continuous manner. In the
dynamic business
environment innovation is
playing one of the crucial role.
Importance of Innovation: Management of every business is required to implement innovation
so that to provide higher value to the business. In the context of Bakkavör as the market for food

and industry is intense so in order to grab attention of potential customers this is imperative that
to execute innovation. Innovation is associated with prominent benefits which are explained as
under:
To gain competitive edge: One of the most significant factor of innovation is that with
the help of innovation a brand new product can be introduced in the market which may help the
business to attain competitive edge. There are so many competitors in respect of Bakkavör due to
which intense competencies are existed in the market and for the company like Bakkavör it is
mandatory that they innovate their product so as to retain customer and their interest in their
product offerings (Arora, Cohen and Walsh, 2016).
Fast recognise of customers’ expectations: Innovation is helpful in understanding needs
and demands of customer in appropriate and prompt manner. This enables the business to meet
level of expectations of their customer so as to align business objectives. In order to enhance
profitability this is required by the organisation that they develop customer centric products.
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation
Innovation is defined as a significant factor due to which various difficulties are being
solved in order to attain goals and objective of the business. In this aspect suitable elements
related to Bakkavör are elaborated as under:
Organizational vision: This concept is demonstrating objectives by which thought is being
created by the organisation. In this context this is assumed as a significant job in order to shape
the modernisation and on the other hand path to employees of Bakkavör is provided. By taking
this concept Bakkavör is making solid smoothies which includes natural products, vegetables,
and other natural vitamins and minerals.
Leadership: This is the style by which leader or coordinator guides and leads their
workforce and then selected administration style which is fitting for developing business in
appropriate manner. On the other hand with the help of leadership new thoughts and
modifications can be rendered to the business which may lead in creating better system of
development. Besides this effective leadership style is providing better opportunities to the
business to make continual way of business progression and enhancing efficacy of the business.
Culture: This involves those factors by which uniqueness can be created by the
organisation in their environmental factors (Bagno, R.B. and et. al., 2017). Culture is defining
qualities and reasoning by an association. In the context of Bakkavör they are finding out

inventive ways in which assigned task can be performed and vivacious results can be achieved.
For example Bakkavör is offering smoothies in order to get big market size.
Teamwork: This is associated with people those are working inside the organisation for
execution of operational activities. For an organisation teams are arranged in such a manner that
existence of experts are accomplished. In the context of Bakkavör for shaping organisational
development collaboration is required to be performed by people working in the organisation so
as to accomplish conspicuous aims.
Sources of innovation
Innovation is regarded as intense process under which various improvements are granted
in order to inhale changes and to draw potential impact. Sources for innovation are elaborated as
under:
The unexpected: Innovation is taking place within organisation at every doubtful
situation which is occurring by chance. Under this when an individual is coming up with an idea
which is associated with unexpected innovations. This is regarded as factor within dynamic
business environment in which Bakkavör is taking care of innovation inhaled within drinks and
smoothies. This is a highly important aspect which includes interesting growth and development
opportunities for the business (Byun, Sung and Park, 2018).
Market structure: This describes prominent market structure by which chances are
received by companies. In this regard Google is playing essential role by giving required
information which is scattered over the internet. Google has helped individual to access
prominent information to customer in which by accessing links data can be searched in optimal
manner.
Necessity: Necessity is the mother of innovation, this idiom has proven that necessity is
one of the essential factor which helps the business to understand needs of marketer and
accordingly innovate a product. Innovation is dependent on ideas which are considered by
individual and through which new product can be devised. \
TASK 2
P3 4Ps of innovation and use of innovation funnel
Product: This is a principle which is expressing offerings of the organisation in which
customers are pointed out in order to satisfy needs of marketer. In the context of Bakkavör as the

company is planning to launch smoothies in beverage sector which consists of natural ingredient
such as ginger, carrot, beetroot and many more. These drinks are providing immense health
benefits to customers as these combination of fruits and vitamins (Dutta and Folt, 2016)
Process: This is a component which is associated with methodology used in order to
deliver product and services to the clients. In the context of Bakkavör this product is delivering
health benefits which is called smoothies with hit of ginger in order to grab attention of
customers in optimal manner.
Position: This element is expressing those items which are existed between rivals those
are offering homogeneous products. Bakkavör is required to attain distinctiveness in their items
so as to attain prominent position in the market. Smoothies are the product which are able to
capture higher market size along with taping into new market size.
Paradigm: This depicts the process by which progress is being faced by organisation by
creating higher vision and amended capacities. In the context of Bakkavör they can set a
benchmark so as to sustain in the market and touch new heights by upgrading their business.
P4 Developments in frugal innovation
Frugal innovation is a process which is utilised in order to minimise complexity which is
arising in production of goods and services. The major objective of implementing frugal
innovation is to enhance process of production so that waste can be eliminated. In the last results
can be improvised due to which all the prominent features can be enhanced. The process of
frugal innovation is elaborated as under: Find opportunity in adversity: This process is associated with converting faced problem
into opportunities which is helpful in enhancing overall performance. In the context of
Bakkavör their new innovation is helpful for customer to manage their healthy habits and
to enhance overall organisational performance by accumulating various features as well.
This results the management to maintain their business performance by enhancing their
product offerings in timely manner (Eberhardt, A.W. and et. al., 2017)). Use less perform more: This examines that there are numerous resources which are used
by the managerial authority. So this is helpful for customers in recognising needs and
demands of customer in such a way that overall efficacy can be attained. In the context of
Bakkavör their new smoothies are helping the organisation to attain more customers and

make more sales as well. On the other hand by using recyclable material overall cost can
be reduced (Glennie and Bound, 2016). Think and act flexibly: This is determining various strategies and policies which are
existed in the organisation and rigid in nature. This is not an easy task to modify these
policies as according to needs and demands of customers. In order to overcome from the
same Bakkavör is required to modify their offerings and maintain changes in products as
well. Use simple methods: This is associated with operations of the organisation which are
simple and effective in nature. These are easily understandable by everyone so for this
continuous improvements are inhaled by the managerial authorities. This leads the
management of Bakkavör to examine those changes which shows higher positive
implications in their offerings. Include the margin: This examines involvement of customer in the process of
improvement which is advantageous for the management to understand daily requirement
of business (Goldthorpe and Ahmad, 2017).
 Follow your heart: This states that the management of the organisation is required to
follow inherent voice so as to alter products. In the context of Bakkavör new product
offering is highly beneficial for the organisation to satisfy needs of customers.

Innovation funnel and its importance in context of chosen organisation
Innovation funnel is used by the organisation for the major purpose of describing prominent
steps which are taking place in order to develop and create product or some process. The major
purpose of innovation funnel is to meet needs of public in such a way that economic benefits can
be provided (Hossain. and Kauranen, I., 2016). This term is also known as funnel management
and this is regarded as one of the most prominent approach by which innovations can be inhaled
by the organisation. On the other hand this method is used by organisation to make creative plans
and to provide their offerings in most effective manner. Innovation funnel is having three stages
which are explained as under:

Figure 1:Innovation Funnel, 2016
 Investigations: The major aim of innovation funnel is to germinate ideas and take
concepts by converging concept into reality. This is helpful in meeting needs and
demands of customers. The primal stage of innovation funnel is taking place before
manufacturing goods. Under this stage Bakkavör is recognising their potential and target
customers in order to recognise their needs and assessing market rivalry which is existed
in the market. This stage is helpful in attaining desired goals in distinct manner along
with attaining specific market position (Khajeheian, D. and Tadayoni, R., 2016).
 Development: Under this stage graphic structure is provided by development funnel by
which an organisation may think for screening and generating alternative options which
are combined in order to deal with product concept. For example Bakkavör is recognising
their consumers which arr prone to use healthy eatable products.
 Shipping: This is the last step of innovation funnel which is justifying shipping course
undertaken by the organisation. This stage is defining the process of transferring
production services from root points to ultimate customers. In the last stage of innovation
funnel transport services are included in which capabilities of Bakkavör to transport is
being enhanced.
Innovation funnel is regarded as one of the essential tool for Bakkavör as this enable the
company to conduct a deep research in which investigation is performed by applying ample
amount of money. This approach is helpful in developing market by examining new ideas and

analysing market opportunities as well. On the other hand with the help of innovation funnel
better results can be attained by organisation and new business idea can be propounded.
Define and explain the concept of frugal innovation
Frugal innovation is defined as the process which is associated with accumulation of new
business ideas and value change and designing of products in such a way that best quality of
product and services can be rendered through this problems can be solved in optimal manner.
Frugal innovation is providing opportunities for the businesses to redesign their business
offerings in a manner that sustainability and scalability can be attained (Li, X., Gagliardi, D. and
Miles, 2020). Frugal innovation is associated with eradicating institutional barriers and utilising
procured resources in optimal manner in order to develop position at extensive marketplace.
Besides this frugal innovation stimulates prominent solution within functional organisation in
order to develop facet degree over issues.
Frugal innovation is defined as one of the major source in which understanding regarding
target market and emerging market can be enumerated. Under this target can be enumerated for
the lowest and other segments due to which various benefits can be exerted to users. Frugal
innovation is laced with the potential of demonstrating innovation process by which situational
voice can be leveraged and prominent research opportunities can be developed (Miller and
French, 2016). Development of frugal innovation leads to attain profitability and to grab
attention of bottom line customers.
Role of frugal innovation in Bakkavör

Bakkavör is a food manufacturing organisation which is planning to develop a new range
of smoothies and juices made up of natural ingredient. They are selling their products in varied
supermarkets and stores in order to develop market prominence. Bakkavör is basically dealing in
retail industry and they are ready to sell near about 2 million smoothies to their customers.
Innovation priority for the organisation is to attain market capture over juice shops so that to
deliver fresh juices to customers. Emerging segments are analysed in which social trends of
customers being shifted due to dynamic market trends. Bakkavör is bringing new market
innovation called juices shots in which in small quantity juices are sold and this is helping them
in meeting needs of customers. In this context Bakkavör is emphasised on manufacturing varied
flavours drinks within economic range. In order to attain high market size, Bakkavör is trying to
increase their product portfolio, as they are developing smoothies, juices, and milk which is dairy
free. The company is planning to launch juice shots in three flavours which is made up of fresh
fruits and vegetables and contains high vitamins and minerals (Roper and Love, 2018).
This is regarded as frugal innovation which is output of enhancement of increasing
consumption of customer interest towards reaching to health benefits in the food which they are
consuming. Bakkavör is focused and emphasised over taking care of market trends at the time of
making innovation so as to deliver best products to their customer which are adhered to needs
and demands of consumers. In the current time market is laced with high trends of adopting
emerging market condition due to which needs of customer can be emphasised and within
budgetary measures customer base can be enhanced. In this purpose Bakkavör is using
sustainable measures in order to minimise cost and reduce production of waste.
Explain the benefits and drawbacks of frugal innovation for Bakkavör
Frugal innovation is defined as the tool by which innovative tactics can be streamlined and
supply chain management of the business can be obtained in order to attain premium quality
within product and services. Middle class people faces problem of affordability and frugal
innovation is a concept through which issues regarding economical value can be minimised. New
innovation of Bakkavör is for manufacturing of smoothies and this smoothie is filled with high
vitamins and minerals along with these are economic in costing. These juice shots are
specifically designed for economic society sector so that they can buy this and attain health
benefits as well. Importance of frugal innovation for Bakkavör is elaborated as under:
BENEFITS: