Innovation and Commercialisation Report for Business Growth

This report delves into the core concepts of innovation and commercialization, differentiating between invention and innovation, and exploring the significance of innovation within a company, particularly its integration with organizational culture. The report uses Essence Drinks as a case study and examines various aspects of innovation, including the 4 P's of innovation, frugal innovation, and the commercial funnel. It also covers new product development, innovation business cases, and methods for accessing funding, while also addressing the importance of intellectual property. The report concludes with a detailed overview of the key findings and insights regarding innovation and commercialization strategies for business development and growth.

Innovation and
commercialisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Difference between invention and innovation.............................................................................3
Importance of innovation to company and how it gets embedded with organizational culture.. 4
4 P's of innovation and innovation funnel...................................................................................6
Frugal innovation.........................................................................................................................8
Commercial funnel and application of new product development..............................................9
Innovation business case and ways to access funding...............................................................10
Intellectual property...................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
Books and Journals....................................................................................................................14
Online.........................................................................................................................................14

INTRODUCTION
Innovation is the process to make something new and following new approaches to the
pre-existing problems and issues. Innovation deals with the concept of having more
improvement. Innovation related to the business does not limit at being innovative in business
but also to do something differently in order to make it better than before. Developing a new
product needs creation, innovation, improvement and enhancement. Creativity is the process of
turning new and imaginary ideas into an actual working reality (Dincer, 2017). Creativity is
defined as the capability to find new ways and look into hidden patterns. It helps in building the
connection between some unrelated situations which will generate new solutions. The process of
creative requires the use of imagination into the already created ideas. Commercialisation is the
process which includes managing with the aim of having financial gain. It helps in launching
new products and services into the market.
The actions included in commercialisation are to produce, market, distribute and sale
along with customer support which are important in achieving the commercial success of the
business. Commercialisation is usually related to the growth and development of small business
which runs on high levels to attain success and find the ways to operate in large markets. Essence
drinks is a newly started company which operated in the market of UK. The company has gained
a lot of profit and growth in its early stages. Essence drinks launched a new product which was a
healthy mango lassi in the operating market. This was a innovative approach which run with a
good distribution formulae (Do, and et.al., 2018). After few years of good profits, the company is
now facing a decrease in sales and the solution to this problem lies in having more innovation in
its product. This report deals with the basic meaning of innovation and its difference from
invention. There are many types of innovation, following which will help the company grow.
MAIN BODY
Difference between invention and innovation
Invention is the process under which new idea for the product or services generated and
that idea has never seen before by anyone. Innovation refers to implementing the idea for
launching innovative products or services for the first time. Under invention new products are
created whereas in innovation new product is not made but value is added in the existing product
so that its value can get increases in the market (Jefferson and et.al., 2018). When a company or

an individual comes with fresh new idea then that is invention and also invention is related to
theory only. While innovation means applying practical idea into reality like to launch new
product or services. Invention cannot perform easily because it requires special skill. As any
person who is not having certain knowledge or have the skill cannot invent anything.
But in innovation no extra scientific skills are required as it only requires skills like marketing,
strategic, sales, technical etc. invention takes place when any new idea comes in the mind of
scientists whereas innovation is opposite to it because it takes place when company realized that
in order to increase their market share new product have to launch in the market. Company also
do innovation or improves its existing products when they realize their customer preferences has
shifted. Invention revolves around particular or single product whereas innovation concentrate on
multiple products and services at one time. Invention is not the cup of tea for everyone so that is
why it focuses on one thing at a time while innovation is easy to do as compare to invention and
also does not require high knowledge like invention. Invention is done by the company's research
and development department and innovation is spread in all the departments.
As research and development department have the expertise to perform innovation. Invention
consumes more time as compared to innovation (Crilly and Firth, 2019). Invention is also costly
when compared with innovation. Invention is the theory while innovation is implementing those
theories into practical life. Invention introduces something new to the world while innovation
makes those products and services which can be sold. Invention is something original while this
is not with innovation. Innovation considers changes in existing products whereas invention is all
about making something new. While doing invention an individual or team must have sort of
expert knowledge of the area where they want to do invention. In contrast innovation does not
require any expert knowledge because under this no new product is created but modifications are
made in the existing product only.
Importance of innovation to company and how it gets embedded with organizational culture.
Value of innovation to organisation:
There are many benefits which innovation can bring to the company. It can be helpful in
taking competitive advantages (What is the Importance of Innovation to an Organization., 2019).
As nowadays the market is quite competitive so if company want to survive in the market then
they must launch innovative products which can attract new customers and also helps in
retaining existing one. If business want to survive for long period in the market then they have to

launch new products and services in the market. One of the challenges which is faced by the
company to bring loyal customers which can retain for longer time. So by giving new items to
old customers company can retain them.
As per the market research it is found that brands are getting successful as they have unique
selling propositions. They get this because of intellectual property against their rivalry in the
market. On the basis of innovation companies gets unique selling propositions. If company has
made strong USP in the market and is successful in targeting its audience with that then no one
can stop company to generate higher profits. Innovation also helps in improvising brand value to
the company. Through innovation company is also achieving constant improvements in their
existing products and services.
Organisational leadership, vision and culture can shape innovation:
If Essence drinks wants to become successful then owner of the company should have
clear goals and vision and mission. As company can only attain objectives if their vision is clear.
This will only help the company to give direction that where to move so that objectives can be
achieved. Effective Leadership plays vital role in company. Organisation should have such
leaders which can promote sense of innovation in their team members. Human resource of the
company should have find such employees which have technical skills and who can easily adapt
changes which is necessary to adopt for the success of the company. Leaders should have create
such organisational environment which enhances innovation by hiring candidates who belongs
from different backgrounds. Leaders should allow their team members to share their views and
also give permission to the team members to bring experiment (Freddi and Salmon, 2019).
When employees will leave free by their leaders then only they will bring innovative ideas in the
organisation and there are chances that company can achieve success by implementing it.
Diversity plays important role in bringing innovation in the company. As diverse people have
different viewpoints so they can contribute in company's growth. Along with diversity Essence
drinks should have also brought open culture so that employees can express their ideas and
opinions in order to bring innovation in the company. Teamwork can help in converting ideas
into items or services and clear vision will be helpful in separating useful things from the crap.
Essence drinks should bring culture of innovation which is the important part of business.
If company want tos survive for long time in this digital era or want to increase their market
share then adopting innovation is compulsory for them. As above also discussed that leadership

plays important role. So innovation is dependent on the mindset of leaders, as leaders have to
search for those opportunities which do not exist or people have not seen it. For this leaders have
to engage with their team members, listen to them regarding what issues they are having and also
provide solutions to their problems (Chan and Srivastava, 2019). Leaders should have motivate
their team members to appreciate them for their good performance so that there productivity can
be increased.
4 P's of innovation and innovation funnel
The innovation mix is the process of which helps in narrowing down the investigation
and putting the focus on a specific area. The innovation mix of Essence drinks includes:
Product: It deals with the innovation in the already existing products of the company.
Essence drinks are specialised in lassi drinks and thus can try getting new flavour with new
ingredients in the lassi drink product. when this new product will sell while generating profits,
the company is then successful in launching a real innovative product. Along with adding a new
drink in the menu, essence drinks also must provide options for different packaging systems with
different size of drinks available. These new ideas and changes applied in the products and
services of the company will help in making customers happy and will mark the line for
qualifying a new innovation. It is important for the company to make every one be ok with the
idea as being a part of the company (Dezi, and et.al., 2018). This is called innovative culture.
Bringing innovation in a product is very important for the companies these days in order to
sustain in the market and gain the competitive advantage. Innovative product helps in making the
customers happy which is the key to generate more profits.
Process: This innovation mix deals with the processes involved in the operations of
essence drinks. These processes includes preparing milk for lassi, cutting the fruits grinding all
the material together and so on. Along with the working process there are many other process
such as supplying, selling the product in market, on boarding new staff members along the
management of accounts and financing. The problems happening in the innovation of product are
also a part of the innovation process. The process in innovation is the idea from essence drinks to
do something better and improve the processes of the company. These process are more quicker,
efficient and way cheaper than before. It helps in cutting expenses and achieving more customer
satisfaction. It is the new idea working in the already existing process. It results in more profits

and replacing the already existing ones. Essence drinks will run efficiently with the help of
external and internal processes.
Position: Position is not same as that of a promotion. Position of the company is
dependent on personal perception. It is a category under which the company lies. Positioning is
another process in an organisation which affects the aspect of innovation. The customers of
essence drinks have great perceptions about the drinks from the company and even the staff of
the company is happy in working for the benefits of the company. The company is ahead in
paying their bills on time and all these factors determine the position and perception regarding
the company. Position is very important in today's market world and helps essence drinks to
generate more profits when compared to its competitors. Happy and satisfied customers as well
as the staff helps in boosting points for achieving better position in the market.
Paradigm: It is related to the category of innovation which deals with changes done
within the organisation. In the case of essence drinks it is the way by which the products are sold
and served. In the essence drinks, customers have the option taking the ordered item from the
counter as well as have a seating areas where it will be served as a catered system. The company
even offered proper packaging system and the service of take out to its customers. These new
ideas makes the business profitable. Bringing in these rapid changes in the company are not
necessarily related to do good for the business. Making the drinks vegan can result in losing the
customers which are found of dairy products.
Innovation funnel is the process of having a continuous flow of ides which are
innovative. It is also referred to as funnel management process and is helpful in having many
companies to decide the reality of ideas. It is used to generate business strategies and action
plans which are to be finalised (Edwards-Schachter, 2018). The innovative projects present in
large size are when in their initial stages can be studied and redefined with the help of innovation
funnel. The uses of innovation funnel is similar to that of an actual funnel where all the
innovation ideas are transferred and present on top but only few make to the lower bottom. It
provides a great way to prioritise the goals and objectives of the business. Innovation funnel
leads to heavy brainstorming which will help in creating more ideas which are right for the
benefit of the company. It is used to determine the steps which comes in the way of developing a
process and a product. It works as a refinery system and the idea which make to the bottom of
the funnel are the ones which the company has to implement.

Frugal innovation
Frugal innovation is the process of identifying new products and business models which
includes redesigning of products to the offer the customers best and serve them who has extreme
affordable constraints. It is done in way it becomes more scalable as well as more sustainable.
Frugal innovation is used to overcome the institutional gaps where resources are constraints to
create more. It helps in providing solution for the functions while using few resources. This
concept of innovations urges essence drinks to have a proper respond regarding the limitation to
the resources. The development in frugal innovation is used to turn these constraints into
innovative ideas which can be used as a practical solutions. Frugal innovation leads to having
more focus on generating good quality solutions which are accessible and easily affordable by
the customers (Liu, Feng, and Wang, 2019). It helps in changing the thinking behind design on
the products and service level, the thinking of system at macro level. It helps in finding new
ways for designing the product and developing them. The company will leverage the use of
modern technologies in order to offer low costs solutions. These innovative solutions will make
the solutions of the business more accessible to customers as well as the company. Companies
like Essence drinks need the use of frugal innovation when operating its business in UK.
The examples of frugal innovations are the growth of lacklustre and the cutting of funds
which are used to reduce the debt amount. In developing countries like UK there is an increase in
demand for frugal products and services by essence drinks. The constraints in the environment
such as climate and energy are relying on the frugal model of innovation to product as well as
consume the products. The advancements in the technology is used to reduce the costs while
creating many opportunities for essence drinks such as giving the orders digitally and option for
online payment. Companies are using the edge technology development which will offer many
expensive solutions (Hossain, 2020). Frugal innovation inspired products helps in driving
altruistic motivations. For example using the open models for innovation and finding
technologies which helps in relevant platforms to design the frugal solutions. the challenges
coming in the of way of success of business are more visible for example in the case where the
market trends points in increasing the demands for more frugal solutions, the same time
customers become more hesitant to opt for frugal solutions when the image is more negative.
Companies like essence drinks are the initial triggers for the frugal projects which aim more

attaining low prices and the offer the quality which is not limited to the environmental footprints.
Lastly, frugal innovations creates a new frame of mind which is done by considering all the
resource limitations in the form of an opportunity and not a liability. It offers more favours to the
agility over being more efficient. The organisations which follow the frugal innovations are not
looking to wow the customers by launching sophisticated products but focus more on creating
high quality products which form a great value to the customers in their affordable price range.
Commercial funnel and application of new product development
Commercial funnel is refereed to as sales funnel which is used in the business for leading
the generation and sales closure (Tang,and et.al., 2018). It is called as funnel as the potential
customers are visualised in an upside down triangle form where the more number of customers
are present at the top part of the funnel and then are narrowed down to the customers who are
interested in signing up for the offers. The commercial funnel is divided into four main sections
which starts with the awareness section which includes the people who are aware of the products
and services, them comes the interest section where people are interested in knowing more. The
last second section is the decision making section where the potential decides whether to invest
in the product or not. and last section is the final action making section. There are may points
where the commercial funnel is important as it will help in gaining more insight to apply the
principle in the marketing strategies. It helps in deciding on the marketing strategy. Commercial
funnel helps in understanding the marketing tools and the different types of business models
which will help the company like essence drinks to be more successful. It helps the marketers to
focus more on the clients which are already at the decision making stage of the funnel which
makes it easy to make drive these potential customers towards the action making section. This is
of great importance for the retail companies such as essence drinks.
Commercial funnel helps in relating more to the customers as the product is described in
and talked about to the customers in a way which is more effective and help in driving them
more towards the down side of the sales funnel. When the company successfully identifies the
sales funnel section of the their potential customers, they can put some positive efforts to change
their section and produce a well directed content by giving offers which will help in better
fulfilment of their needs. Commercial funnel also helps in generating more sales as the company
can apply a better marketing strategy to relate to the customers and drive the potential customers

to the final section of the funnel. Using the funnel in best possible way will make the sales
increase for long amount of time. The aim of the commercial funnel helps in learning in a
systematic way to attain the desired outcome. Commercial funnels is important in giving more
edge against the newly working organisations. Some organisation have a great set of ideas but
lacks to follow the direction as there is no application which is tried and tested for the sales
department. Commercial funnels helps in providing more competitive advantage. Lastly, it helps
in improving the different ways which can help in business growth. Using the commercial funnel
helps in increasing the feedbacks regarding the business model and notice the customers which
are in decision making section to purchase the product because of the competitive pricing
strategy. The new acquired business model helps in identifying the obstacles and modifying the
ways accordingly to lead the customers towards getting the desired results in a successful manner
(Kuo, and Smith, 2018). Commercial funnel is the concept related to business growth. Is is very
important as when the company is successful in identifying the level of each customer in the
funnel, essence drinks will lead the way of generating more customers and increasing the sales.
New product development is a set of multidisciplinary processes which helps in grabbing
the market opportunities into buying new products which will satisfy the demands and
requirements of the customers. This process is important for the organic growth of companies on
a worldwide level with respect to competition and handling the changing behaviours of
customers New product development is important because of changing demands of customers,
increasing the competition, managing the new normal of technological advancements, gaining
the new opportunities, diversifying the risks, making use of the complete capacity and to increase
the company and brand reputation. New product development is applicable to fill the gap in the
market with the innovative new product, learning the new trends of the market related to the
business and lastly gaining an advantage over the competitors.
Innovation business case and ways to access funding
Essence drinks is founded by Akshay Kumar and is a recent new business in the market.
The company was established before two years and have witnessed many rapid changes in the
beginning phase of the business which resulted in positive growth of the company. The business
of essence drinks was launched with a single drink called mango lassi and won the heart of many
people because of the innovative approach and heavy capability of distribution. However, the

third year of working, this business has lost his charm as there is drop in number of sales. The
main reason behind this is the rise of competition in the market. In order to survive the market
essence drinks has to come up with different innovative ideas in the products and service of the
company to become better than the competitor companies. The innovation idea for the essence
drinks is to add a new flavour and do not leave the side of the product lassi (Leliveld, and
Knorringa, 2018). Along with this, the company is also introducing the services of having
different quantities of the products as in getting a small, large and even the medium size.
In order to achieve these goals of bringing more innovation, essence drinks will need
some sources to get the funds required. There is always a way to ask for personal loans which
involves borrowing the money from friends and family. To maintain the personal feelings, these
borrowing of money is done in writing with the proper interest rate which has to be repaid at the
time of paying the principle amount. With a proper research can help the company find some
government grants as a source for funding. Government of UK has many federal grant programs
especially for a small business like essence drinks to face the barriers. Another source of funding
is the crowdfunding which involves a larger group of people to dedicate their funds at the
particular crowdfunding websites. These group of people usually receive some type of gift in
return to what they invested. Essence drinks can have the funds with the help of venture capital
which comes from investors. This type of fund is usually offered in return of ownership of the
share an being an active member of the company. It is not a type of loan but an equity for the
invested capital amount. Venture capitals have the longer horizon for investment when compared
to the traditional funding sources.
Intellectual property
Intellectual property is a unique identity of the organisation which is created physically.
Protecting intellectual property is very important to people from stealing and copying the assets
of the essence drinks. intellectual property includes the name of products and the company, the
inventions as well as the innovations in the product, design of the product and also the
ingredients and method of producing (Hossain, 2020). There are many options which can help in
protecting the intellectual properties. Intellectual property is owned by an individual or an
organisation which created it with the proper requirements. Bought the intellectual property with
proper rights from the creator of it. own a brand which has its own trademark. An intellectual

property can have more than one owner. It belongs to business or some individuals. They can be
sold or transferred to some other business and person.
Copyright: The owner does not have to pay a fee and there is no registration for the
work related to copyright in UK. The property is automatically under copyright protection when
an original and non literary work is written for example a software, web content and the
databases. when the work is literary such as a drama, musical and some artistic work. Even the
sound and music are automatically have a copyright protection. To be protected by copyright, the
work should be more than just an idea and must be written and recorded. Ity protects the
expression of the idea.
Patent: It is used to protect the invention and has the right to take legal action against the
person uses the property or sells it without having any permission and authority. To qualify for
the patent the inventions is something which is made, it must be new or modified to something
which already exists. Getting a patent can be expensive and difficult to get. Patents helps in
excluding the competition and monopolising the market by keeping high rates.
Trade mark: The company can register the trade mark to protect the brand and its name
which is written on the products and services offered by it (Albert, 2019). When the company is
registered to trade mark is can take legal actions against someone who use the trade mark with
the authority. This includes the counterfeiters. There is a symbol next to the brand which defines
the product of its owner while warning someone against using it. Trade mark helps in selling and
attain the license of the brand.
CONCLUSION
Through this report it can be concluded that innovation is important for each and every
organisation and when it comes to Essence drinks then they can launch new flavours of lassies in
UK market so that they can beat their competition. Invention is bringing new product and
innovation is changing something in the existing products. Innovation have great value for the
company because it helps company to improve and retain customers. Essence have to build such
organisational culture which can promote innovation. As innovation is not of one time but it is
the ongoing process so employees which have technical skills can help company to bring
innovation. Report has also explained 4 P's of innovation and approaches which Essence drinks
can take to bring innovative ideas.