Innovation & Commercialisation in Organisations: Detailed Report

This report provides a comprehensive analysis of innovation and commercialisation within organisations, using Essence drinks as a case study. It begins by differentiating innovation from invention, highlighting the importance of vision, leadership, culture, and teamwork in shaping innovation and commercialisation efforts. The report explores various sources of innovation and how organisations can foster an environment conducive to innovative thinking. It also examines the 4Ps of innovation (Product, Process, Position, Paradigm) and the application of the innovation funnel in shaping innovative ideas. A detailed discussion on frugal innovation and its role in an organisational context is presented. Furthermore, the report delves into the importance of the commercial funnel and its application in new product development for commercialising innovation, along with an explanation of the innovation business case, including its measurement and effectiveness. Finally, the report discusses the tools organisations use to retain and protect knowledge and intellectual property, evaluating these tools in the context of the business environment and addressing the challenges of developing successful innovations. The study concludes by underscoring the need for continuous innovation and adaptation to maintain a competitive edge.

Innovation &
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1.Discuss innovation and its importance in organisation comparing with invention ..........4
P2.Discuss how vision, leadership, culture and teamwork helps in shaping innovation and
commercialisation...................................................................................................................6
M1.Explain different sources of innovation and discuss how organisations foster and develop
environment and culture of innovation...................................................................................7
D1.How innovation is developed, embedded and measured in context with the company.. .7
TASK 2............................................................................................................................................8
P3.Discuss 4P's of innovation and the use of innovation funnel for shaping innovative ideas.. 8
P4. Analyse developments in frugal innovation and explain how it is used in organisations.9
M2.Explain and apply innovation funnel in organisation....................................................10
M3.Role of frugal innovation in an organisational context..................................................11
TASK 3..........................................................................................................................................11
P5.Discuss importance of commercial funnel and its application in new product development
for commercialisation of innovatrion...................................................................................11
P6. Explain innovation business case for an organisation....................................................13
M4.Explain in detail innovation buisness case including its measurement and overall
effectiveness with appropriate techniques............................................................................15
TASK 4..........................................................................................................................................15
P7.Discuss different tools which organisation uses to retain and protect knowledge and
intellectual property..............................................................................................................15
M5.Evidence based evaluation of different tools in context with business environment....16
D2.Discuss the nature of innovation in which it is developed, providing evidence based
judgement on how organisation can overcome challenges for developing successful
innovations...........................................................................................................................16
..............................................................................................................................................16
CONCLUSION..............................................................................................................................16

REFERENCES..............................................................................................................................18

INTRODUCTION
Innovation means to make something new or to replace old item and serve better thing. It
can result in producing new products or services, introducing new technology etc. Innovation
helps business to grow and improve their productivity which further helps them to compete in
market(Davies, Roderick and Huxtable-Thomas,2019). On the other hand, commercialisation
means the process where companies launches new products and services in the market.
Commercialisation main strategy is to provide benefits of new products and services to
consumers. Essence drinks was started two years ago by launching healthy mango lassi in UK
market and the company achieved rise in sales as the product was unique and innovative. This
report covers innovation and the difference between innovation and invention. It covers different
types of innovation and also discusses the process required to commercialise innovation. Further,
this report covers range of methods for protecting ideas and to understand their advantages and
disadvantages.
TASK 1
P1.Discuss innovation and its importance in organisation comparing with invention
Innovation- Innovation is a process where companies bring out new concepts and ideas for
producing new products in new ways. Companies have to bring unique products using updated
technology to remain competitive in the market. Innovation is important for improving and
changing business processes to bring productivity and efficiency or to increase the range of
existing products or services.
Importance of innovation- Every company wants to achieve success which is possible only
when they bring new products and services in the market which attracts customers and provide
them new products (Donegan, 2019). When companies launches new products in the market it
helps them to increase their creativity because they will find new opportunities and will open all
the potential market. Innovation will help them to compete in market because companies not
only see the current needs but also identify the future trends. Responding to such competition
will make them produce those products which can meet the future demands.
Invention- Invention means to bring unique and different things in the market which has not
been made or created before. Invention requires those individuals who are creative with their
thoughts, ideas and have unique combination of thought. When companies bring new inventions

in their product line and services, it helps them to build their market goodwill and increases
market position.
Importance of invention- Inventions are done to solve difficult problems which exists in
societies. Companies desires to make new inventions in their product range because they want
customers to spend their life in easy way(Milan and et. al., 2020). Every organisation tries to
produce those products which are essential for consumers and because they want to offer
something different for the world. It is essential for them to invent new things as it will lead to
further advancement.
Difference between innovation and invention
Innovation Invention
Competitive strategy Innovations have chances
which can enter the market
easily and creates indirect
competitors.
Invention are unique ideas
which creates their own market
and does not have any
competitors unless company
allows them to enter in the
market.
Research and development Innovation requires research
for developing something new.
Testing the products regularly
and doing market research
provides innovation to
consumers(Longi, Niemelä
and Leppänen, 2020).
Invention requires lot of
research and creative idea to
make it successful. But, it does
not provide full
surety ,whether it will be
accepted by consumers or not.
Time and cost Time and cost required for
innovation is less because
companies wanted to come up
with additional feature or with
some modifications.
Time and cost is usually high
as invention needs time to
come up with those ideas
which have never came before.
For conducting invention huge
cost is required.
Sustainable development Innovation can be made with Invention is all new which can

the usage of local resources
which are available easily.
require resources that are
scarce in nature that will
ultimately harm the
environment.
P2.Discuss how vision, leadership, culture and teamwork helps in shaping innovation and
commercialisation
 Vision- Essence drink vision is to become global leader and achieve sustainability in the
market(Gudelytė, 2021). To make expansion in national and international market by
launching new product line of detox drink with innovation, adding values and
improvement in the range. Main motive of the company is to increase its goodwill by
making new innovations in their product line and to attain competitive advantage in
accordance with market trends.
 Leadership- Leadership is the quality which can influence and guide the individuals in
achieving goals. It directs, advices and influence subordinates so that they work with
effectiveness and confidence. When the leader participates in all activities of the
companies it automatically develops the participative nature of employees because they
creates good influence among them. Leader have full responsibility in creating innovation
culture in the company as this feature will lead to bring fruitful results for the company.
When leaders bring innovation and encourages employees to be more creative it will help
in developing commercialisation for the company. Leadership in essence drinks
motivates employees to be more innovative as they offer rewards to their employees.
 Culture- Culture can be defined as goals, attitudes, beliefs and practices which are
developed inside the organisation(Shamsir and Abd Jamil, 2019). Essence drink company
culture is diversified which promotes innovation, retention, which helps to develop
multiple talent. Company promotes new innovative ideas which motivates employees to
come up with new ideas thus, helping them to launch new products. Company provides
them necessary space , resources to create innovation. The environment of company is
flexible where individuals can communicate with their top executives, discuss with them
about their ideas. With such culture, company will be able to develop new product in the
market according to the requirements of consumers.

 Teamwork- Teamwork means grouping of individuals according to their knowledge,
skills and talent(Alba Betancourt, Bonadio and McDonagh, 2020). Teamwork can lead to
innovation and commercialisation both when they work together with consistency and
trust. Essence drinks always focusses on developing harmony and mutual understanding
between employees and the team. In case of innovation, marketing team of the company
works mutually and influences the productivity, growth of the company. Both the
production and marketing team works on making innovations and works on improving
the implementation of complex projects. Production team always tries to bring innovation
in their products and before its launch they always test the product to see whether the
product is matching consumer expectations. On the other hand, marketing team brings all
the new products with efficiency and according to market needs.
M1.Explain different sources of innovation and discuss how organisations foster and develop
environment and culture of innovation
There are many sources of innovation which can change the market structure and can
provide new knowledge(Chrysaki, 2020). Innovation is always unexpected which can come in
any ways helping the company to achieve great success. Allowing the employees to come up
with innovative ideas which can trigger in any time will help the company to develop their
culture. Innovation also comes from changed perception with the change in demand of
consumers. Company adopted new product which was different for the users which is the sign of
making innovation in the company. This feature helped to change the environment as the
business line was changed from mango lassi to detox drink.
D1.How innovation is developed, embedded and measured in context with the company.
Innovation is measured not in accordance with the longer time but in achievement of
specific goals. Innovation basically means creation of new idea with addition of some features.
Innovation can be developed with some unique ideas or launching some new product with
modifications which essence drink provided to its users(Habiyaremye, 2020). Organisation
usually measures innovation by checking whether the innovation have helped in achieving
organisation objectives. Innovation is embedded within the minds of every employee which
helps to bring new and unique output for the company. Embedded innovation helps in bringing
new results into the business and when these are added in the activities of business it will add
value to the company.

TASK 2
P3.Discuss 4P's of innovation and the use of innovation funnel for shaping innovative ideas.
4Ps of innovation are structure that are used to inspect the innovation and to explain the
direction of innovation. In context with essence drinks 4Ps of innovation are explained below-
 Product- The company is offering detox drink to the consumers because people are now
becoming health conscious(Mina and et. al., 2021). The drink includes all the benefits
which helps to get rid of toxins and will improve digestion. This innovative product will
be effective for every consumer as it is providing multiple benefits.
 Process- Procedure of developing detox drink is quite simple which does not involves
multiple steps. Company bring all the raw materials, then processing of all the materials,
next is the filtration of the drink and last is its packaging. When the company produces
the drink they check the quality and its labelling. Lastly, company distributes the drink to
supermarkets, retail shops and in other areas.
 Position- The company targets its product to those consumers who are more focussed on
their health. Essence drink targets its drink to adults of age group of 21-30 years and the
elderly persons above the age of 40 years.
 Paradigm- The company is bringing different product compared with that of old product
(Oluleye and et. al., 2021). Essence drink is coming up with this new product as they
have identified the importance of such drinks in the market. The demand of such detox
drinks are increasing by all the age group people.
Innovation funnel- Innovation funnel is the process which helps in developing new
products and services in the market. The basic objective of innovation funnel is to develop those
products which are required in the market and which will meet consumer needs and wants.
Innovation funnel allows unique ideas which are assessed through the procedure of gates, filters
and rules. At every stage the ideas that come either passes in the filtration process or they are
failed because those ideas are not able to meet the demands (du Preez, de Beer and Booysen,
2020). Innovation funnel is useful for the company as essence drink have shaped innovative
ideas with the help of it. In the first step the company focussed on the mouth of the funnel where
they collects knowledge and information from the market. When the company will collect more
information it will help them to collect more ideas. The company observed that demand for detox
drinks are increasing because people are now focussing on their physical health. Essence drink

got clear ideas and motive to produce this drink. The second step of funnel is the narrow segment
which helps to identify whether their product will match their desired objectives or not. Essence
drinks always concentrated in bringing new but innovative products by not harming the health of
consumers. Company knew that detox drink will bring new heights to the company as this
product will be used by every age group. The third is the narrow segment which states that
information which is collected is correct and will help in meeting company's objective. Essence
drink knew that detox drink will prove effective for the company and will earn good name in the
market.
P4. Analyse developments in frugal innovation and explain how it is used in organisations.
Frugal innovation is the process where companies tries to reduce the cost of their
products while also focussing in achieving societal value and bringing more business
(Mention,Barlatier and Josserand, 2019). It is a new approach which helps to design products
with low cost technology, using less resources and minimising them in various ways.
Principles of frugal innovation-
 Find opportunity in adversity- This principle means to find out best opportunity in
difficult situation. The demand for sustainability is increasing because of which the
company have tried to make the drink with limited raw materials.
 Do more with less- Essence drink have chosen detox drink because the raw materials
required are less for detox drink. Company is producing detox drink but they are not
compromising on the product quality.

 Keep it simple- This principle means to not make any thing in complex way. Essence
drink have tried to produce the detox drink in a simple way and not in complex manner.
 Think and act flexibly- When the company decided to produce detox drink they knew
that some problems may arise. But, company have always acted flexibly in its production
as well as in the quality. Follow heart- This principle means to go in that direction where individuals feel will be
beneficial for them. Essence drink always wanted to bring new line of product but to not
compromise the health of individuals. This thought forced them to launch this drink
which will be accepted by them.
Frugal innovation is helpful to businesses because this model provides direction to produce
products with less cost but not compromising on quality(Wimschneider, Agarwal and Brem,
2020). This model helps companies to reduce cost in the production of products. Frugal
innovation is used by essence drink which helped them to reduce the cost of production and
utilizing the scarce resources fully. Frugal innovation have helped the company in increasing
societal and business value on the other side reduced economic and environment footprint.
Company wants to bring many new products but using less resources and with less cost.
Company's goal is to provide varieties of product in less cost to every individuals. They want to
expand their product line even in backward areas in low cost.
M2.Explain and apply innovation funnel in organisation
Innovation funnel is the procedure which helps in developing products to meet market needs.
Essence drink have always tried to bring those products which will be beneficial for the users
and will create any impact on their health(Sun, Liu and Ding, 2020). They have developed detox
drink which will help consumers to protect and save their health from harmful toxins. Detox
drink includes all those ingredients which will provide benefits to consumers. Company have
tried to produce that product which will satisfy the needs of the consumers.
M3.Role of frugal innovation in an organisational context.
Frugal innovation means to reduce cost while also providing quality product to the users.
Companies always try to produce the products in less cost but they forgot to provide quality in
those products(Vercillo and Hird-Younger, 2019). Essence drink have opted for detox drink
which does not require many materials as the company have thought for producing that product
which does not require many items. Essence drink produces detox drink in low cost so that the

product can be used by every consumer. Frugal innovation is important for developing markets
because it helps firm to develop high quality products in low cost.
TASK 3
P5.Discuss importance of commercial funnel and its application in new product development for
commercialisation of innovatrion
Commercial funnel is the process which depicts the stages of purchasing a product by the
customer. Every stage of funnel bring customers more closer to the product. Customers have to
go through with the same process of funnel which is from awareness stage to post purchase
evaluation.
Importance of commercial funnel- Commercial funnel helps businesses to identify that what
are the needs of customers and what customers think in purchasing a product. This feature helps
business to set their marketing strategies and allowing them to make correct investments. When
the businesses identify the needs of their customers they can relate them easily with the products
by producing those products which satisfies the needs of the customers. Essence drink used
commercial funnel which helped them in identifying the requirements of public by producing a
detox drink. Commercial funnel helped the company to generate more sales while also acquired
competitive advantage in the market.
Application of new product development processing for commercialisation and innovation
New product development means the stages where new product goes, starting from idea
generation to product launch. But, in this process some issues are always faced by
companies(Arenal and et. al.,2020). Therefore, it is important to assess the consumers, market
etc. to develop products of higher value. New product development include following steps
which are discussed below-
 Idea generation- Idea generation means when individuals are coming up with new and
innovative product ideas. Essence drinks got the idea by identifying customer
requirements from the market and with the help of marketing and R & D team for
producing detox drink.
 Idea screening- Idea screening means filtering of ideas and identifying the best ones.
Company received many ideas from their production team, marketing, R&D team but
they chose to produce detox drink as this will be considered different for the users.

 Concept development and testing- This process means that idea have been chosen and
now the idea must be developed into a concept(Kanda and et. al., 2019). Developing a
concept will mean dividing the drink into various categories. Testing means to test the
product to see whether it will meet the target consumers.
 Marketing strategy development- When the concept and product design is developed,
companies focusses on developing the market strategy. Essence drink developed the
marketing strategy targetting the consumers to gain long term profit and sales.
 Business analysis- When new product is developed, the next stage for the company is to
analyse whether the product will meet company's objectives. Essence drink have
conducted market surveys to check the product sale and profit that companies were
earning.
 Product development- When the product passes in all the test, company decides it to
develop the idea into a physical form. The product is developed so that it can reach to
consumers at right time and in right place.
 Test marketing- Companies always tests the marketing programme of the product before
launching the product in market (Morrish, Whyte and Miles, 2019). This step helps them
to identify the results as companies launch it in realistic market. Essence drink have come
up with the product which was different in taste compared to its competitors. They have
conducted questionnaires to get the results from consumers.
 Commercialisation- Commercialisation means launching new product in the market.
This step is done easily because companies receive their answers as they have conducted
test marketing before launching the product.
AIDA model is also used to see the process of purchasing a product by the consumers
which includes following steps-
 Attention- It means how the company is creating attention from the customers towards
the product. Essence drink have advertised the product by providing visual content and
telling the importance of the product to the customers. They have focussed on making
creative content so that more consumers gets awareness with the product.
 Interest- The main motive of every company is to develop interest in the minds of
consumers(Diercks, Larsen and Steward, 2019). The company have made many

advertisements and always tried to connect with the consumers by mailing them about the
product or launching some offers which made customers interest automatically.
 Desire- Essence drink developed desire by telling the importance about the drink.
Company knew that people are becoming health conscious and this drink will be helpful
in removing all the toxins from the body which will improve body digestion and make
body healthy.
 Action- Action means to encourage the public to purchase the product. Company's
product is of detox drink which is beneficial for the body. Therefore, consumers gets
motivated to purchase the product as it will prove best for their body.
P6. Explain innovation business case for an organisation. Company overview- Essence drinks company assure its existence in the UK market with
mango lassi product after than company has extend its market operations in the UK and
successfully operating its business with a remarkable 3 year journey. Mission and vision- The company has vision to be truly tasteful and purest in the flavour
with a long term vision to become global leader and achieve sustainability in the market. Problem statement- The company has introduced a single segment of the product in the
UK market which is loved by the people and after that company has not innovated any
other product in their product portfolio.

 Innovative idea- Essence drink laid down its strong foundation in UK market because of
its innovating idea and now company is doing same thing by offering a detox drink that
helps in removing and reducing body toxins and help people in their fat loose journey. Risk and challenges- One of the major risk associated with this product is acceptance by
the sophisticated buyer(Gudelytė, 2021). Also company has scare resources for
manufacturing detox drinks because major of its technology are lassi production based so
it would be tough call for the company to meet large demand and supply order.
 Cash flow statement

 Source of funding- The main source of funding for this innovative idea-
Internal source of funding- Internal source of funds are that type of funds which have
came from within the business some type of internal source of funds are- Plough back profits- This consist the reserved funds which firms do not distribute with
its shareholder but reserved for the future projects.
 Owners funds- it contain owners own funds which are handy available without any
worry and sign of liability.
External source of funds
 Bank loans- As the detox drinks is innovative idea so they can acquire bank loan by
submitting a full statement of their project and its success in the market, company can
acquire bank loan for bulk production(Donegan, 2019).
 Business angels- These are the brokers which render for the business development and
projects, company can appoint a business angels who in charge of commission can
provide adequate funds.
 Crowdfunding- Crowdfunding is favourite source of funding for the company in which
they raise small amount of money for large group with promised return on their
investment.
M4.Explain in detail innovation buisness case including its measurement and overall
effectiveness with appropriate techniques.
The various technique available to test innovative product are-
 Key performance indicator(KPI)- Key performance indicator is a process which helps to
identify how effectively and efficiently company is achieving its goals.
 Benchmarking- Benchmarking is the process which test the products, services of the
company in comparison with that of other businesses who are the best players in the
market.
 Earned sales revenue from innovative products- It means to evaluate the profitability and
the benefit that company earns on every innovative products.

TASK 4
P7.Discuss different tools which organisation uses to retain and protect knowledge and
intellectual property
Intellectual property are intangible assets which companies uses to make their ideas
different from others. These are generally creation of minds that can be shared which can be
shared to others. To protect such creative ideas companies uses intellectual property-
 Patents- Patents refers to protection given to inventors for their inventions for a limited
period but they have to disclose detailed information about their invention. Essence drink
have produced unique drink with different taste which they want to protect with patent.
 Trademark- Trademark means symbols, logos, name which help to make companies
distinguish from other brands. Essence drink wants to obtain trademark for creating brand
recognition and to make easier for customers to differentiate it from other brands. It
helped the company to communicate it with users for conveying emotional attributes and
information about the company.
 Copyright- Copyright is provided to protect original works which are given to authors,
painters etc. This measure helps in saving the data from getting copied to other
individuals. When the copyright is given to any individuals, it saves their original work
unless it is work-for-hire.
M5.Evidence based evaluation of different tools in context with business environment
Intellectual property tells the organisation that in what products they can make their ownership
and in which product they can transfer their ownership. Patent right allows the producers to give
protection to inventors as other person cannot use their product without getting patent right from
the inventor. Trademark gives unique symbol to the company which provides them different
identity in the market. Essence drink have its own trademark which distinguishes it from other
brands. Copyright provides protection to individuals as no one can copy their thing or product.
D2.Discuss the nature of innovation in which it is developed, providing evidence based
judgement on how organisation can overcome challenges for developing successful
innovations
When companies make innovation in their products and provide new and unique thing to the
customers(Oluleye and et. al., 2021). This feature of companies helps them to attain competitive

advantage in the market. But, sometimes innovation in the products and services are not accepted
by consumers which creates difficulty to the company. Companies can overcome the challenges
only when intellectual property and legal issues are solved. Also, when companies make those
products and do innovations in those which are acceptable by the general public. Essence drink
developed that product which is useful to every age group people.
CONCLUSION
Therefore, as per the carried out study it has been found that innovation is the core reason
for sustain business growth in this contemporary business environment. Moreover, it has been
found that innovation is business change model that brings a change in the production and
process function of the organisation and companies are focusing on more innovative approach to
earn economies of scale s and growth in its hand. Moreover, it has found that organisation can
ensure its successful innovation and commercialisation. Other than this report has demonstrated
that trademark, patent and copyright are the vital tool of intellectual property by which company
can save its innovative idea and knowledge from being theft and copying.

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