Business Innovation and Commercialisation Report for Essence Drinks

This report analyzes innovation and commercialization strategies, using Essence Drinks as a case study. It begins by defining innovation and comparing it to invention, emphasizing its importance for organizations. The report then explores how organizational vision, culture, teamwork, and leadership shape innovation and commercialization. It delves into the 4Ps of innovation, the innovation funnel, and frugal innovation. The report also examines the commercial funnel, new product development, and developing an innovation business case, including funding. Finally, it discusses tools for knowledge and intellectual property management. The report aims to provide a comprehensive understanding of innovation and commercialization processes and their application in a business context, offering insights into strategic planning and execution.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Identify innovation and determine its importance to organisations as compared to
invention......................................................................................................................................1
P2 Determine organisational vision, culture, teamwork and leadership can shape innovation
and commercialisation................................................................................................................3
TASK 2............................................................................................................................................4
P3 Discuss 4Ps of innovation and specify the use of innovation funnel to evaluate innovative
ideas.............................................................................................................................................4
P4 Determine developments in frugal innovation and discuss how it is used within
organisations...............................................................................................................................5
TASK 3............................................................................................................................................7
P5 Importance of commercial funnel and application of new product development for
commercialisation in innovation.................................................................................................7
P6 Develop an innovation business case for a company, involve ways to access funds............8
TASK 4..........................................................................................................................................10
P7 Different tools that companies can use to formulate, retain and protect knowledge &
intellectual property..................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is defined as transformation of invention, idea or concept into a services and
goods for which customers will be eager to pay. In order to be called as innovation, an idea
needs to be replicable within economic cost and must fulfil market requirements.
Commercialisation is the procedure by which a new service or product is introduced into market.
In broader sense, commercialisation involves manufacturing, production, marketing, distribution,
sales and other function to attain commercial success (Bianchi, and et. al., 2010). This
assignment is based on Essence drinks which is a new organisation established two years back in
UK. Company offers Mango Lassi to its customers and achieve high sales due to innovative idea.
Company is going to use brand strategy innovation by introducing new flavours of Lassi so that
their customer base can increase further. This report will discuss concepts and importance of
innovation in comparison to invention. Also, organisational leadership, culture, vision and
teamwork in shaping innovation and commercialisation is discussed. 4Ps of innovation and
innovation funnel along with development in frugal innovation are discussed. Value of
commercial funnel and application of NDP, innovation business case, different tools to develop,
retain and protect intellectual properly are discussed.
TASK 1
P1 Identify innovation and determine its importance to organisations as compared to invention
Essence drink is an organisation in UK which offers Mango Lassi to its customers.
Company was started two years back and within no time gains wide popularity and high sales
due to their wide distribution capability and innovative formula. Within some time, company
faces a significant reduction in sales. This is because of highly competitive and advanced
marketplace. To overcome this situation, business owner of essence drinks has decided to adopt
some innovative approach so that a new range of innovative drinks can be created. In this regard,
company is going to innovate Strawberry Lassi, Banana Lassi, Chocolate Lassi etc. Enhanced
product line will help the firm in gaining competitive advantage over rival companies.
Innovation is described as a procedure in which multiple activities are carried out so that
a work can be accomplished by implementing new methods or ideas. It is highly associated with
creativity (Damanpour and Aravind, 2012). It is a specific instrument associated with
entrepreneurship which endows different resources with new capacity so that high wealth can be
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earned. Innovation will benefits Essence drinks in increasing their sustainability and productivity
within marketplace. Also, it will be helpful in stabilising the sales and profitability of company.
Importance of innovation for Essence drinks
As company is facing a decline in the sales and profitability due to enhanced competition
in market, company can adopt different innovative measures. In case of Essence drink,
importance of innovation is mentioned below:
 Innovation will benefits the company in creating new range of drinks. These drinks will
have different flavours according to the season. This will grab the attention of customers
in a widely manner due to which competitive advantage over rival companies can be
acquired in a desired means (Easter, 2019).
 Essence drink can implement innovative ideas and concepts so that transparency can be
maintained in supply chain management. Block chain technology will benefits the
company in eliminating errors that can hinder their distribution & delivery process.
 Another benefit of innovation to the concerned company is promotion of products.
Company can use innovative measures such as social media to conduct survey for people
which are foodie. This will helps in acknowledging specific section and flavours that
company can initiate to enhance their revenues.
Differences in innovation and invention
Innovation Invention
 It is implied as formulating and
implementing idea or concept for a
specific process and product for first
time.
 It is defined as occurrence of a
concept and idea for a particular
process or product which has never
been made or used before.
 It is associated with adding value to a
product or service which already exists
practically.
 It is associated with creating a new
product or service
 In order to innovate set of strategic,
marketing and technical skills are needed
 In order to invent something new,
scientific skills are required
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(George, McGahan, and Prabhu, 2012).
 It is a combination of different processes
and products.
 Invention is related with a single
process or product
 Activities which are related with
innovation are not limited to a single
department but spread across entire
organisation.
 Activities associated with invention is
limited to only research and
development department within an
organisation
P2 Determine organisational vision, culture, teamwork and leadership can shape innovation and
commercialisation
In order to gain competitive advantage over rival companies, every firm is required to
implement innovative ideas and concepts. This will helps in commercialisation of products and
services in large quantity that will results in enhanced sales and profitability. In this regard,
Essence drinks needs to have clear vision, culture, leadership and teamwork so that required
targets and goals can be acquired in a pre-determined way. If organisational vision will be clear
to employees working in essence drink, this will helps in sustaining a positive working
environment at workplace. These aspects will helps shaping up innovation and
commercialisation by desired means. Explanation of these terms in context with company is
mentioned below:
 Vision: In order to execute organisational function and operations in a systematic
manner, clear vision is required. This will help the employees working in Essence drink
to understand organisational goals and objectives in a more desired manner. Vision will
helps the business owner of company to formulate long term objectives that will results in
achievement of targets in an organised way. Main vision of essence drink is to became a
market leader by introducing new flavours in Lassi so that high revenues and market
shares can be achieved. This vision of company will shape innovation and
commercialisation in Essence drink. (Ke, Fang. and et. al., 2015).
 Leadership: Leaders and their leadership skills plays an essential role in guiding
workforce towards right direction. If a leader is not able to motivate and guide
employees, this will results in reduced organisational productivity. As Essence drink is
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going to introduce new flavours in Lassi, appropriate leadership is required by employees
so that new drinks can be created without compromising with taste. In this respect,
leadership will assists in shaping up innovation and commercialisation in Essence drink.
 Team work: In order to innovate new range of flavoured Lassi and improved
distribution, it is essential for the workforce in Essence drink to work as a team in a
unified manner rather than performing duties as individuals. Team spirit is essential to
perform work in an organised and timely manner. It will helps in shaping up
commercialisation and innovation in company as work related with introduction of new
Lassi can be performed in a unified manner if employees will perform team work. Team
leader of the company has responsibility to encourage the employees so that all new
flavours in Lassi can be introduced to customers in a desired manner.
 Culture: It will helps in sustaining a positive working environment within an
organisation due to which working potential of workforce will enhance. It will helps in
resolving the conflicts of employees in an simplified manner. Business owner in Essence
drink is required to ensure that a peaceful, unified and creative atmosphere should be
maintained at workforce. In this regard, culture of company shape up innovation and
commercialisation.
TASK 2
P3 Discuss 4Ps of innovation and specify the use of innovation funnel to evaluate innovative
ideas
The innovation mix or 4P's of innovation is concerned with the model or instrument that
allows an individual and organisation to develop and learn the importance of innovation process,
what it can bring to the business and how it can be improved. This helps in understanding and
giving direction for the business and helps in understanding the areas which are needed to be
improved with the help of innovation. It supports the idea generation and helps in implementing
the new idea of flavoured lassi. This tool further helps in exploring the possible enhancements in
each area of the business (Knoke, Missikoff and Thoben, 2017).
 Step 1 : Product innovation : This type of innovation is concerned with the various
products and services which can be innovated. It is related the aspect of redesigning an
already existing product. And then this change is offered to the customer. For instance,
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the normal curd lassi has undergone a change with different flavours in which existing
product is innovated into a completely new product for the purpose of providing various
innovative aspects to the customers.
 Step 2 : Process innovation : This type of innovation is concerned with the methods or
ways through which the product or services are converted into innovative product. In
other words, it emphasises on the process through which the new product can be
delivered to the customers. This is because there are numerous products which are used
in relief settings and are inception-ally developed for non relief context. For instance, the
current product will be innovated with the help of various technologies that will convert it
into flavoured lassi and served to the customer on their demand.
 Step 3 : Position innovation : This is concerned with the place or market where the
innovative product will be sold. It is relatable with the own perception and promotion is
just one of the processes in the organization that affects this aspect of the innovation
(Masanell and Zhu, 2013). In other words, it is the change in the context in which the
products and services will be introduced in the market. For this, the company will use
various promotional tools and methods like advertising through poster, in newspaper and
television, hoardings, social media, etc.
 Step 4: Paradigm : In this step, innovation is used to improve the way of doing business.
It stresses on that changes are radical in nature but at the same time it also focuses on that
it must not be kept in mind because all changes does not supply positive results, some can
affect the business by negative consequences. For instance, in this the product is changed
completely by adding different flavours to it. Furthermore, it relates to the mental models
which shape what an organisation or business model is all about.
Innovation funnel
Innovation funnel is a mechanism which enables constant stream of ideas that are screen
to acknowledge their viability. It is a popular approach which is used by different companies to
formulate a realistic and innovative action plan. Main aim of this funnel is to generate different
ideas and large portion of these ideas will be refined and transformed so that development plans
can be formulated. This funnel is used to describe the various steps that takes place in developing
a process and product. The purpose of all the innovation is to produce product that matches the
market needs. The initial stage of the funnel comprises with development or collection of ideas
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which further goes through refinery system. After screening few ideas are left with the business
that can be implemented by the same. The ideas which survive the screening process are then
combined to develop a new and innovative concept (Moreddu, 2016).
Source: ( Innovation funnel, 2016)
P4 Determine developments in frugal innovation and discuss how it is used within organisations
Frugal innovation is defined as a method that will helps in reducing the cost of services
and products during their developmental stage. It helps in reducing the product along with
enhancing their feature so that higher sales can be attained by the organisation. For example, it
will assists essence drinks in decreasing the cost of production, appropriate utilisation of
electricity, lower product cost etc. Essence drink can take the help of frugal technologies like
social media, website etc. in order to sustain the requirements of customers at low prices. It has
some principle which are discussed below in context with organisation: Sustainable Solution: Organisation is required to emphasize on the problems and issues
so that errors can be resolved in a simplified manner. With the help of this, errors will be
eliminated that will results in success and growth of the business. Asset Flex: Essence drink is required to divert its attention towards innovation and new
concepts. This will helps in generation of better strategies that will benefits the company
in gaining competitive advantage over rival companies. Due to this, company will be able
to tackle the demands and issues of customers in a more specific manner.
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Illustration 1: Innovation funnel, 2016

 Form Consumer Behaviour: Concerned organisation can offer efficient products to the
clients by identifying their preferences and needs. This will results in formulation of
desired strategies.
Different aspects related with frugal innovation is mentioned below:
 New market opportunities: It is essential for a firm to analyse market in an appropriate
manner so that available opportunities can be identified in a competitive manner.
Exploring market and other aspects related with customers will benefits Essence drink in
introducing their innovate product in a frugal manner. Innovation in existing products
leads to modification that helps in enhancing sales and profitability.
 Resources: These are the assets for an organisation. In case of Essence drink, it is
essential for the company to properly utilise their resources this will benefits them in
retaining market for a longer time period. In order to create frugal developments,
sufficient amount of resources is needed (Olaniyi and Prause, 2016).
 Innovation funnel: It is associated with the development of a new product so that
competitive benefits can be attained by a company. In this case, frugal development is
needed as it will help in formulating desired business model. Company is going to
introduce new flavour of Lassi i.e. Banana, chocolate and Strawberry flavour in
marketplace.
Steps of Frugal innovation
 Generating idea of innovation: In this step, an idea is generated by business owner or
an employee working in an organisation. To attain beneficial idea, appropriate market
research is required by manager in Essence drink so that those products can be innovated
that will be widely accepted by customers.
 Screening new idea: In this stage, new generated idea is screened to acknowledge
whether it is able to satisfy the needs and desires of customers or not.
 Idea screening: New and innovative ideas related with different flavoured Lassi will be
screened.
 Testing: It will helps the company in understanding whether their newly innovate
product i.e. flavoured Lassi is up to the mark or not. If it will not be up to the mark then
required modifications will be carried out.
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 Internal analysis: In this analysis, different aspects will be evaluated to check if all the
factors are under control or not.
 Review marketplace: After introducing product in market, it is essential to review the
opinion of customers and performance of new flavoured Lassi within marketplace. This
will helps in carrying out further improvements of required.
TASK 3
P5 Importance of commercial funnel and application of new product development for
commercialisation in innovation
In context with business, commercial funnel is defined as a framework which involves
different three phase. This helps in reforming existing products and services with the
implementation of different policies and plans. Adopting commercial funnel will benefits the
company in enhancing their revenues and profitability. Benefits associated with Commercial
funnel in respect to Essence drink are mentioned beneath:
 Picking market strategy: Commercial funnel will helps manager in Essence Drink to
understand which business model or marketing tool will benefits the business owner in
succeeding as an entrepreneur (Servajean-Hilst, and Calvi, 2018).
 Relating with customers: In order to achieve organisational success, it is essential to
related with customers in an appropriate manner, commercial funnel will benefits the
concerned company in initiating exciting offers and relevant content due to which
customer engagement can be enhanced. This will helps in high sales and market-shares.
Process of NPD
New product development is a tactics under which an entire new product is created by a
organisation by following some steps. This helps in enhancing sales and revenues of firm in a
desired manner. Steps associated with NPD are defined below:
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Source:(Developing new products, 2019)
 Idea generation: This is the first step under which market analysis will be carried out so
that a new concept and idea can be generated that will helps in achievement of
organisational goals and targets. In case of Essence drink, innovative idea that is
generated is about introducing Lassi in different flavours. In this regard, desired
information about customers preference and taste is collected so that needed product can
be created.
 Idea evaluation: In this step, idea of introducing flavoured Lassi will be evaluated so
that errors and obstacles in the procedure can be eliminated.
 Concept definition: After analysing and evaluating idea about flavoured Lassi, a
concept will be formulated and defined that will helps in promoting the product in a
desired manner. For ex, Flavoured Lassi will helps the customers in dealing with hot
summer season along with giving them the taste of different flavours.
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Illustration 2: Developing new products, 2019

 Strategic analysis: In case of strategic analysis, manager in Essence drink is required to
assure that their product will be appreciated by more and more people. Also, they need to
rate genuine price so that popularity of product can be further enhanced. Product development and testing: during this stage, different tests are carried out to
assure the produced product is ready to introduce in market. In this stage, quality and
taste of Lassi will be determined. Commercialisation: It is essential for a firm to have commercialisation in its product. It
will help in introducing product with the help of effective market-plan.
 Product launch: This is the last stage in which flavoured Lassi will be introduced in
marketplace.
New product development has a positive impact on the business organisation as it will
helps the company in enhancing their sales and revenue along with sustaining a positive image
within market place.
P6 Develop an innovation business case for a company, involve ways to access funds
Business case is defined as the verbal or written document which includes all those
aspects that will helps in achieving goals and objectives. It will include all relevant information
which is required by company to manage its business operations. In this regard, business case for
Essence Drink is prepared below:
Executive Summary: This business case of Essence drink introduces different flavoured
Lassi within markets of UK. It is essential to draw market strategies in in an appropriate manner
so that large number of customers will prefer to drink Lassi. Other than that PESTLE and SWOT
will benefits in analysing the needs and requirements of market properly. It will helps in grwoing
business desirably.
Mission statement: Mission associated with Essence Drink is to create healthy and tasty
flavoured Lassi as firm believe in offering real, tasty and healthy drink to people.
Objective: Objective statement of Essence Drink are stated below :-
 Satisfying customer need and making them happy by providing products beyond their
expectations. Ensuring high quality supplies for producing different flavour Lassi.
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