Innovation and Commercialisation Strategies: A Business Report

This report delves into the critical aspects of innovation and commercialization within a business context, using Essence Drinks as a case study. It defines innovation, contrasting it with invention, and highlights its significance for organizational growth and customer relationships. The report examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. It analyzes different sources of innovation and strategies to foster an innovative environment, including the 4Ps of innovation and the innovation funnel. The report also explores frugal innovation, new product development, and the commercialization funnel, including building an innovative business case and securing funding. Finally, it addresses the importance of protecting intellectual property, outlining tools and methods for knowledge management and protection within the wider business environment. The report provides a comprehensive overview of the strategies and tools essential for businesses to thrive in a competitive market through effective innovation and commercialization.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Defining innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................1
P2.How organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................3
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation. .....................................................................................4
TASK 2............................................................................................................................................5
P3.Innovation mix and innovation funnel to examine the shape of innovate ideas....................5
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................6
M2 Analyse and apply the innovation funnel in an organisational context................................7
M3 Evaluate the role of frugal innovation in an organisational context....................................7
TASK 3............................................................................................................................................7
P5.The importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation.............................................................7
P6.Building an innovate business case for Essence Drinks and ways to access funds...............9
M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve....................10
TASK 4..........................................................................................................................................10
P7.Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property..................................................................................................................10
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment......................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Commercialisation and innovation are essential elements for each and every business
organisation. Innovation helps organisation for sustainable growth and profit maximisation in
the global business environment. Commercialisation is known as the process of pioneering new
products, services and processes into trade and commerce and making it available for targeted
customer base of the organisation (Aarikka-Stenroos, Sandberg and Lehtimäki, 2014). In
context of given case scene of Essence Drinks which was founded by Akshay Kumar two years
ago but could not achieve the growth stage. The company launched creative and innovative
drink Mango Lassi into the UK market so that growth stage could be achieved. The report
describes about meaning, importance of innovation and difference between innovation and
invention. It also includes innovation funnel and 4p's of innovation and frugal innovation. Also,
process of new product development and funding ways has been discussed. Lastly, various
methods for protecting ideas and their advantages and disadvantages are described.
TASK 1
P1.Defining innovation and determine its importance to organisations in comparison with
invention.
Innovation
The process of Innovation is referred to as the process of launching, establishing and
implementing new ideas or ways to achieve the objectives. It is related with the process of
transformation of plan into execution by adding value as per the consumers necessities, needs
and wants.
Importance of Innovation
Innovation is very important component for success and growth of every organisation.
This helps in expansion and diversification of business operations effectively at domestic as well
as international level. Devising innovation in essence drinks at UK market plays momentous role
for sustainable growth and profitability by fulfilling customers expectations (Brunswicker and
Van de Vrande, 2014). The important role of innovation played in organisation is defined
below:-
 Maintaining customer relationship- Innovation helps in fulfilling the expectations and
necessities of consumers. This element aid the company to provide innovative products
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and services in effective manner by using existing operations. For success of the
company their should be emphasis towards fulfilling consumer requirements and
expectations. As per the given case scenario Essence Drinks has launched Mango Lassi
which will help to attract and retain more customers by fulfilling customers expectations
and maintain friendly and harmonious relationships with customers (Carayannis
Cherepovitsyn, and Ilinova, 2016).
 Having unique selling proposition (USP)- Every company must have unique selling
constituent as this adds more value to products and reputation from point of view of
customers. Unique Selling Proposition also, assist consumers to differentiate between
products of competitors in the market. In the present case study, the company Essence
Drinks has unique selling proposition as it is offering Mango Lassi which helps to gain
competitive advantage at the marketplace. The USP of this product is the mango
flavoured lassi which is still not available in the market. Also, it leads to attract and
maintain brand loyalty among the consumers and planning to launch other different
flavoured lassi.
Invention
Invention is referred to any type of discovery or development of product concerned with
imagination. This is concerned with new businesses process for development of product and re-
engineering. It is incidental to creation,designing and discovery of machine or method that did
not existed before (Chesbrough, and Bogers, 2014). The important differentiation between
innovation and invention are outlined below:-
Bases of comparison Innovation Invention
Meaning It refers to implementation and
execution of idea and opinions
into reality by adding value to its
products and services.
It is known as occurrence of
any idea which is concerned
with transformation of
thoughts and concepts into
products and processes for the
very first time.
Concept It is concerned with practical
implementation of idea.
Invention is based on working
theories related to the original
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idea.
Required skills To conduct innovation proper
knowledge, capabilities and
financial help is necessary.
For invention it requires
technical & scientific
knowledge, information about
market trends, and abilities
necessary for creative
thinking to conduct the
process of invention.
Activities Innovation actions are dispersed
all across the organisation.
The activities of Invention are
restricted or confined to
Research and Development
department.
Concerned with In the innovation process
different combination of products
and services are involved in
innovation process.
It is concerned with
development of a single
product, service or process.
P2.How organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Vision: Vision statement of a soft drink company depicts its desired future position at
marketplace. Vision statement of Essence drink is to be the most trusted and creative soft drink
company across the world. Also, company wants to be the first choice for refreshment solution
by accelerating their brand image at competitive marketplace. Vision of every organisation
assist the management team of the company to innovate something new and creative.
Employees of Essence Drink are required to understand organizational vision which help them to
explore their innovativeness (Fu, and Mu, 2014). With the help of innovation company will gain
more financial benefit and lead to commercialisation.
Leadership: It is a method or process for organising a company and its employees,
according to its goals and objective. It is ability of a person to influence someone for attaining
organisational goals and objectives. There are various types of leadership styles which includes
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autocratic, participative, democratic and many more. In context of Essence Drink company,
leaders adopt democratic style of leadership. As they provide effective knowledge and guidance
to their employees which further helps in innovating new creative products. It is the obligation of
leaders to provide direction and way for innovation as well as how to implement that innovation
in organisation. In this regard leaders render right direction to employees which assist them
towards choosing the right manner for implementation of innovation within their business
organisation.
Culture: Organisational culture comprises of various norms, attitude, beliefs or
behaviour of employees. Variation in culture of an organisation, put both negative and positive
impact on the innovation and commercialisation process. While defining of organisational
culture it is considered as a facilitatory method with reference to Essence Drink company.
Impressive organizational culture helps the staff members as it furnishes psychological safety to
them (Kilelu , Klerkx and Leeuwis, 2014). Incorporation of a innovation in the company is the
very risky process and employees should be asked to be comfortable to share their opinion and
views.
Teamwork: Teamwork is a collective bearing of efforts in order to achieve a common
goal and purpose in an effective manner. Further this process provides employees with the
platform where employees are able to share their viewpoints and opinions which will help to
generate innovative ideas. Leaders and managers of Essence Drink company impart training in
their staff members in order to improve the teamwork skills. As, this will With the help of
effective team work company can innovate new flavours of lassi such as orange, grapes,
blueberry etc. which will increase their financial gains along with their brand reputation at
marketplace.
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation.
Their are around seven sources of innovation which includes incongruity, market
structure, necessity, unexpected, new knowledge, changing perception and demographics.
Innovation takes place unexpectedly because of dynamic business environment. Along with this,
the existing market structure also give rise to chances for innovation (Libaers, 2014). Also, the
changing perception of customers gives birth to innovation. With reference to Essence Drinks the
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company has launched new variants in its products such as new flavours orange, grapes and
blueberry as per the needs and requirements of consumers.
The culture of innovation can be developed and fostered in every organisation at the
global marketplace. Particularly, at the times of economic turmoil employee creativity and
innovation are very important aspects for success of any business. Their are various ways by
culture of innovation can be developed in the organisation such as lead from the front, build
effective teams, take ownership of client problems, management structure should be flat and
benchmark should be set against the best.
TASK 2
P3.Innovation mix and innovation funnel to examine the shape of innovate ideas
4Ps of innovation
This model was developed by John Bessant and Joe Tidd. The objective behind this 4Ps
innovation model is to determine how innovation process assist in improving or growing the
existing business (McKelvey, 2015). The 4Ps of innovation is an innovation mix which is
mostly utilised by almost every organisation and its 4Ps are paradigm, product, position and
process and it is described as below:
 Paradigm: With reference to Essence Drinks Company the managers has launched other
different flavoured lassi being taken by them through innovative thinking and beliefs
which will further help in sustainable growth and profit maximisation.
 Product:In context to Essence Drink, they are launching a new products with different
flavours such as orange, blueberry, grapes and also rendering excellent services to their
customers for creating a value of their products at the marketplace. Product is a very
crucial component of this model in which process of innovation and commercialisation
can be done.
 Process: In context of Essence Drink the reason behind of their success is fast and best
delivering process of their goods (Paradkar, Knight and Hansen, 2015). They follow
effective distribution system for delivery of products.
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 Position: In context of Essence Drink by providing best services to customers create
position of their organisation in the market and builds good reputation at the marketplace.
Innovation funnel
It is a process thorough which organisation can develop new product by using various
steps for it which is also helpful for maximising the goals and objectives effectively. In
innovation funnel involves three stages which are describes as below:
Wide mouth of funnel- In context of Essence drinks, they gather information from
their competitors, existing partners, travelling areas and so on which helps for new product
development.
Narrow segment of the mouth- In context of Essence Drinks, the product is developed
apart from competitors strategy and are tested by actual consumers (Pellikka, 2014).
Narrow segment of the funnel- In context of Essence Drinks, they execute their ideas
and deliver their product in the market towards attainment of goals and objectives of organisation
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation refers to the process which minimises complexities and additional cost
of particular product that develops at the time of its production. Mainly, this concept was
developed for removing non required features of particular so that its cost could be minimised.
Frugal innovation is basically used in mobile phones, cars and other products that are sold in
developing countries. It can be said that product which are manufactured by using frugal
innovation are of lower price in comparison to other products that are developed without its
usage. This concept is much appreciated and adopted by small scale companies as they are not
having any separate R & D department. Therefore, it can be said that if business organisation
adopts this concept then they are able to manufacture low cost product which contributes in
influencing interest of customers. Along with this, it also provides only that product to customers
which are being valued by customers. With reference to present business scenario, the proposed
product is Mango Lassi will be offered to customers in biodegradable plastic bottles. This will be
helpful for company in eliminating usage of glass bottles as they are recycling plastic bottles
again and again in order to serve customers effective products. It will directly reduce cost of
company which ultimately enhances their profitability in effective manner (Qian and Haynes,
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2014). This will also develop positive image of company in front of customers as they are
thinking towards environment and places their efforts for maintaining healthy environment for
all. Apart from this, it can be said that frugal innovations are not only adopted by small scale
companies but they are also used by well developed large scale companies in order to retain its
customers for longer period of time. Another example of frugal innovation towards large scale
company is related to Apple. In this, the company have eliminated unnecessary features of
mobile phones which are not being used by customers. It can be said that by eliminating these
features, manufacturing cost of Apple mobile phone has been declined. This has directly
enhanced profit earning ratio of Apple as they are able to earn more profits with less
manufacturing cost. In the same sense, it has been realised that this innovation have reduced cost
of apple mobile phone by 50-60%. Whereas, at another end it has raised quality of apple product
by 60-70% as its current features are more valued by customers (Rasmussen and Eliason, 2017).
M2 Analyse and apply the innovation funnel in an organisational context.
From the application of innovation funnel in the Essence Drinks this model provides
effective results and outcomes. This helps in gathering information from the customers, suppliers
and other associated people related with the products. This also helps to analyse about the
competitors strategy and produce the products accordingly and lastly it assist in delivering of its
drinks to customers with effective distribution system.
After the application of innovation funnel by the managers of Essence Drinks it leads to
attain the growth stage within less period of time and satisfying the consumers as per their needs
and desires. This also helped to gain competitive advantage at the global marketplace.
M3 Evaluate the role of frugal innovation in an organisational context.
Frugal innovation plays an essential role in every business organisation as it helps them
in reducing their cost by eliminating un required features. In addition to this, it also contributes in
satisfying customers at highest level by delivering better feature product with high quality.
TASK 3
P5.The importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation
Commercial funnel is refers as a manner that involves 3 phases which is utilised to transform the
existing products by implementing many strategies as well as policies. Therefore, this is that
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funnel that is crucial for the growth of Essence Drink company. Explanation about it is
mentioned below:
Pricing policy: The firm Essence Drink is facilitating their innovated products that are various
fruit flavoured lassi at appropriate price so that all the level or class of people can afford it.
Normally the customers do not agree to pay more money for offerings. With the assistance
of commercial funnel company can develop pricing policy through identifying the
behaviours of the clients in respects of different pricing.
Improving manner for the business growth: As commercial funnel is crucial aspects in the
business enterprises growth. So, with the aids of it whole levels of clients can be identified
in funnel as well as satisfy the consumers requirements. This is the process which outcomes
in maximising the profit and sales levels (Walsh, Lee and Nagaoka, 2016).
Growth of technology advancement: As technology is becoming advance day by day. The
company Essence Drink can use 5this funnel for launching their innovative products that is
different fruit flavoured lassi in the market area. This type of products can be taken by
customer mostly after having lunch or dinner during summer time.
Implement investigation programmes: For the company Essence Drink, this is essential to
conduct research in order to gather effective information about the need of the customers as
well as the market conditions. In this procedure, commercial funnel plays crucial role which
is significance for delivering innovated products into market and acquiring the success.
New product development is considered as a long methods of brining new products to the
market area. So, for launching a new product into market place few phrases or steps should be
follow that are:
 Idea generation: The first and foremost step in product development that is idea
generation which can be possible by evaluating internal and external analysis with
accessing current marketing trends. In case of various fruit flavoured lassi because it is
very much new concept and consumers can easily afford it.
 Idea screening: In that stage of product development best idea should be evaluated by
finding feasible idea out of them. In that aspect strength, weaknesses and needs of
consumers should be evaluated, trends and Return on investment are major attributes. In
case of various fruit flavoured lassi they are new and enough competitive in market
(Xiao, Li and Liu 2016).
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 Concept testing: In concept testing a detailed strategy or blue print of an idea should be
framed, in such aspect target market and their taste with preferences. Information and
feedback of consumers are very important for organisation so that it become a successful
business project. In case of various flavoured lassi they are enough competitive in market
that enhance probability to succeed.
 Business analysis: In that phrase final concept should be developed by observing
competition, costs that associated with it. In case of various flavoured lassi there
competition level is high before launching that innovative idea but that concept is new in
market.
 Product development: In product development all strategies should be keenly approved
and prototype should be developed. So that consumers reaction should be evaluated
frequently and changes frequently adopted (Yin, Shi, and Yan, 2014).
 Test marketing: In test marketing the prototype that introduced in market helps to reach
at accurate results and accordingly changes should occurred. It is one of most important
phrase for validating whole concept.
 Commercialisation: In that phrase product is ready to launch in market and consumers
are ready to purchase various flavoured lassi.
 Review of market performance: In that phrase consumers review should be keenly
observed.
P6.Building an innovate business case for Essence Drinks and ways to access funds.
Innovation business case is basically seen as the written document which represents
innovative thoughts that used by senior management. It is essential for a company to prepare
business plan in order to identify in advance risk in investment. Detailed description about
business plan for Essence Drinks are describe as follows:
Executive Summary Essence drinks is a soft drink company operates its business activities at
UK. Two years ago it was established by Akshay Kumar and currently
plan to launch mango lassi. In order to increase sales and earn more
profit company introduce new product at the marketplace.
Need Basic need behind launching the new product at marketplace is to meet
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