Innovation and Commercialisation Report: Unit 8 for Essence Drinks

This report delves into the critical aspects of innovation and commercialization within the context of Essence Drinks. It begins by differentiating between innovation and invention, emphasizing the significance of innovation for the company's survival and competitive advantage. The report explores how innovation can be embedded within the leadership and culture of Essence Drinks, outlining a four-step process for aligning innovation with organizational goals. It then examines different forms of innovation, including incremental, disruptive, architectural, and radical innovation. The 4Ps of innovation (Product, Process, Position, and Paradigm) are thoroughly discussed, along with various approaches to processing innovative ideas, such as the innovation funnel and frugal innovation. Finally, the report details the process of new product development (NDP), offering recommendations for Essence Drinks to adopt incremental innovation and adapt to changing consumer preferences. The report underscores the importance of market research, product design, and the overall strategic integration of innovation to ensure the company's success in the competitive food and beverage industry.

Unit 8 – Innovation
and Commercialisation

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Difference between Innovation and Invention........................................................................3
2. Importance of Innovation to Essence Drinks..........................................................................3
3. Innovation embedded in the Leadership and Culture of Essence Drinks...............................4
4. Different forms of Innovation.................................................................................................5
5. Recommendation....................................................................................................................6
6. 4P's of Innovation....................................................................................................................6
7. Approaches to process Innovative ideas.................................................................................7
9. Process of New Product Development (NDP)........................................................................8
CONCLUSION..............................................................................................................................10
Part 2..............................................................................................................................................11
REFERENCES..............................................................................................................................22

INTRODUCTION
Innovation is a result that sought out result, the process of organisation of the work and
mindset that bring in the change in the existing techniques and methods (Gustafsson, Snyder and
Witell, 2020). This report outlines the difference between innovation and invention, value of
innovation to organisation with the process of embedding innovation in leadership and culture of
Essence Drinks. Further, types of innovation and 4p's of innovation with innovation funnel are
described. Frugal innovation and process of new product development is explained in this report.
At the end the tools of developing and protection of the intellectual knowledge and properties are
highlighted.
MAIN BODY
1. Difference between Innovation and Invention
Innovation is a process of generating ideas that are used to develop something entirely
new that helps in the improvement of the products and services. Innovation helps Essence Drinks
to survive and create competitive advantage within the industry. Innovation defines new ways to
perform tasks and application of techniques in the Essence Drinks. It adds value to the existing
product or services. Implications of the ideas to change the process and methods. It is concerned
with the composition of different processes and products. Innovation requires broad range of
knowledge and skills of different fields.
While invention is seen as the result of the research activities. It helps in the development
of new products which is entirely new and which brings significant change in the world
(Jefferson and et.al., 2018). An invention is seen as an scientific idea to develop a product, but it
will change to innovation when the product is used for the consumption of the societies. In this
process new ideas are generated for the creation of products and services. It is concerned with
the single item. Invention requires the use of scientific skills and knowledge.
2. Importance of Innovation to Essence Drinks
Essence Drinks must perform innovation or seize to exist. The process of innovation is
the fundamental and feasible to the Essence Drinks. If Essence Drinks do not follow the path of
innovation it will certainly fail in the long run. Innovation helps in the creation and development
of new processes and techniques which support the existing process to enhance performance.
The process of innovation helps in to differentiate Essence Drinks from its competitors. The new

process helps Essence Drinks to find out innovative ways to cope up with the existing challenges
arises. Innovation will result in to achieve success and growth in contrast to other similar
organisations in the industry. Innovation helps to attract new customers for a short period but
when the Essence Drinks implements the process of innovation in its entire business process it
will amplify the product quality (Yang and Jiachun, 2018). This will generate a path to increase
brand value in the market. Essence Drinks as the part of food and beverage industry has to
continuously analyse the demand, preference and change in the taste of the consumers.
Development and dispatch of new products in the market is done to attract and retain the
consumers. The basis of innovation is focused on the development of new products. It allows
formation of creative and innovative designing of the products that helps Essence Drinks to
maintain its position in the market and persuade customers to purchase the products.
3. Innovation embedded in the Leadership and Culture of Essence Drinks
Leaders are the persons who influence and guide those who follow them. Essence Drinks
as a function of business processes have human capital that forms groups within the
organisations. Leaders have responsibilities to ensure each member of the group understand the
objective of the Essence Drinks and works for the achievement of the goals. To simplify the
processes and provide change innovation is being introduced (Gerke and et.al., 2017). Innovative
techniques and solutions helps to build cooperative and creative culture in Essence Drinks.
Culture plays an important part as it defines vision and mission of Essence Drinks. Innovation
helps in the development of the suitable culture that will direct the human capital toward the
achievement of the goals of Essence Drinks. There are 4 steps that have been identified that help
Essence Drinks to align innovation with leadership and culture.
Develop an innovation objective: creation of an innovation objectives is the initial step to
embed in the culture of Essence Drinks. To develop the objectives an IS by proven approach
have been made. Innovation is then embedded through the implementation of the strategies in the
organisational process.
Examination of present scenario: collection and analysis of data is made. Interviews of the
employees of Essence Drinks is made and information on the key factors are been gathered.
Management of the Essence Drinks will examine what innovation had previously made in the
organisation and what are the root cause of missing innovation opportunities that are arises but
not addressed.

Designing and testing: the insights that are collected is used to develop innovation method that
is aligned with the Essence Drinks goals and objectives. Testing of this innovation method is
made on a specific targeted unit of the business (Li, Liao and Albitar, 2020). The whole process
is monitored and results are analysed which helps the management of the Essence Drinks to alter
and improve the innovation method.
Implementation: in this step the innovation method so developed and tested on a specific unit is
now implemented within the entire business process of Essence Drinks. It will help in creation of
the value for the customers and for Essence Drinks.
4. Different forms of Innovation
 Incremental Innovation: it is defined as sequence of little improvements that are made
to the Essence Drinks products. These innovations are basically focused on the product's
quality and create difference that helps in to gain competitive advantage. This type of
innovation do not require large funds or resources.
 Disruptive Innovation: This is also called as stealth innovation, it involves introduction
of new technology and procedures in the target market where the company offer its
products. This innovation is slightly disruptive as new technology will not provide the
required result in one go. It is seen as inferior to the existing technology. Introduction of
new technology generally is expensive and is more complex than the existing one
(Mirfakhradini and et.al., 2018). The implementation of the new technology is made in
the overall process only after the fewer alterations as per the requirements of the Essence
Drinks. Although it provides first mover advantage if the technology is effectively
implemented in the business process.
 Architectural Innovation: In this type of innovation analysis of the existing technology
and techniques are made. On the basis of the analysis notes are prepared and assessment
of the skills and knowledge in hand are sort out. These overall knowledge and skills are
then applied to the new market. The architectural innovation helps in obtaining new
customers as long as the market is receptive to the Essence Drinks. Generally, it requires
changes in the offered process to match the requirements of the new market.
 Radical Innovation: This innovation results in to provide revolutionary change in the
technological environment and to the industries. In radical innovation often new
industries are emerged or the existing one lose its existence. The new process will

entirely replace the technology or processes that are previously used by the Essence
Drinks.
5. Recommendation
Essence Drinks should adopt incremental innovation. The organisation will perform
market surveys and collect insights about the changing preference and taste of the population of
UK. It will help Essence Drinks to create different types of innovative products that will helps to
attract customers and increase brand reputation.
6. 4P's of Innovation
Product
Developing new products is the main element of the innovation. Market research is made
and insights are gained. These insights are then used for designing and developing of new
products and improvement in the existing products are made. Innovative products are created to
provide quality and satisfaction to the customers.
Process
Innovation in the process provides changes and development of new ways to perform the
business activities. It gives direction to the employees to adapt to the new change in the
environment and functionality of Essence Drinks. Innovation in the process brings structural
changes to Essence Drinks. Implementation of innovative methods helps in reducing cost and
create value to the customers.
Position
Essence Drinks have targeted UK market to offer its new products in the market.
Positioning of the product is important as it is specially made for the targeted segment.
Innovation in the positions will provide new insights of the areas where the products of Essence
Drinks might be offered.
Paradigm
It is to bring change in the existing models, beliefs, values and principles and find out
how to implement new values and change the traditional styles of Essence Drinks. Paradigm
helps in to understand how people around the world perceive things, how markets works and
what development procedures are followed (Kumar and et.al., 2018).

7. Approaches to process Innovative ideas
Innovation funnel
It is a mechanism that support generation of continuous ideas that implement in the
business to search for the feasible solutions. This process helps in the preparation of the
innovative strategies. The element of the innovation funnel is to generate large number of ideas
which are then segregated to prepare a development plan. An approach similar like funnel is used
to remove unproductive ideas from the large amount of ideas and in the end only few ideas
remain to develop a strategic plan. For example: many companies uses their own approaches to
develop new product in the market. Tesco is a company that uses the Agile approach to achieve
desired outcome from the existing and new products. Innovation funnel has 6 stages that help in
the development of innovative plans that are as follows-
Analysis of opportunities – in this stage the Essence Drinks will collect data from the market
and also from the customers to find out the current opportunities.
Generation of ideas based on analysis – on the basis of the results of the analysis new ideas are
generated. Brain storming is done and record of the ideas arises is made. Essence Drinks will see
for the research and development opportunities and search for the ways to bring innovation
(Safdar, Badir and Afsar, 2017).
Concepts formation – at this stage the most viable ideas are selected and sample product is
created on the basis of the insights.
Testing and standardisation – in this stage testing of the sample of products is performed. The
product quality and the performance is tested according to the standards.
Separation – after testing is made and information upon the product is collected. The
management takes the decision to take the product further to the next stage or not. The Essence
Drinks will also taken into consideration the costs, availability of resources, funds and credits.
Launching in the market – This is the last stage in which Essence Drinks will launch in the
market to consume by the customers and collect insights of the product whether the product is
successful or not.
Frugal innovation
The process of frugal innovation is originated for to support emerging markets. It helps in
the development of new and creative products and services that fulfil the emerging markets
needs and requirements. These products and services are available at a reasonable rate to provide

opportunities to all segment of population to consume. To achieve frugal innovation, the process
must fulfil three criteria i.e. significant cost reduction, focus on core functions, optimum
performance (Lasso and et.al., 2020). For example, Lean-start up is a innovation approach which
is basically used by the tourism and IT industry of UK in order attract the customers towards
their products and services. The another example is that the report states that the company like
Sainsbury and Tesla uses the user experience approach in order to identify the experience of the
consumers regarding their products and what recommendation customers wants to provide to the
company. Frugal innovation help Essence Drinks to seek out the constraints that affects the
existing process and create focus on reducing costs with achieving optimum utilisation of
resources.
9. Process of New Product Development (NDP)
Development of new product will is a crucial process as the preferences and taste of the
consumers changes with the introduction of new products. It will help organisations to develop
quality products and create value to the customers.

Essence drinks should follow new development steps to develop new product and
generate customer demand. The company should follow 8 steps which are being used to generate
ideas for new product and launching of product in market. The steps are as follows:
1. Idea generation: For launching a new product in market, first step is to search for a
product which is missing out in market. The idea generation should be done through
internal or external source of extensive research and development on products and
through contribution from employees, suppliers or competitors.
2. Idea Screening: Various ideas that are generated by research and development team
through various sources. Further this is being filtered and choose appropriate idea which
have high returns and demand in market. The idea should work for long term process
which help company to develop a product which is used for long term (Wlazlak and
et.al., 2018).
3. Concept development and testing: For working on the new product for market Essence
drink should use attractive ideas to develop the product. This includes idea for possible
product, a detailed vision of idea stated in meaningful consumer terms and an actual or
potential product that can satisfy the consumer need. These ideas so developed are then
tested in the targeted group of customers and find out if the idea is able to appeal the
consumer.
4. Strategy development for the targeted market: In this stage new marketing strategies
are developed based on developed ideas and insights of the testing of the ideas. These
strategies are developed in keeping in mind what type of market the Essence drinks
target, what value the company is going to offer, sales and revenue Essence drinks wants
to achieve. With the planning of pricing, distribution and resource allocation made by
Essence drinks to achieve its goals.
5. Business evaluation: At this stage Essence drinks analyse the overall business. The
review of sales, costs and resource estimation and the evaluation if these estimations is
sufficient to fulfil objectives of the business. The process of evaluation helps to find out if
the business has the capacity to mass produce the product (Lounsbury, and et.al., 2019).
6. Product development: At this stage production of the physical product is conducted.
The creation of product is examined to be produced with the standards. The research and

development of the product requires huge investments as the creation takes much time.
Also, the product developed has to be tested continuously to meet the standards.
7. Marketing: At this stage the marketing of the product is conducted and its effectiveness
is been tested in the real market. This process of marketing helps Essence drinks to gain
insights about what the consumer is perceiving about the actual product. Essence drinks
will able to know whether the positioning, promotion, advertising, pricing and packaging
of the product will be able to create impact or not.
8. Commercialisation: At the final stage Essence drinks will mass produce the product and
release the product in the market. The actual cost of manufacturing the product is realised
at this stage (Vasin, Gamidullaeva and Rostovskaya, 2017). The organisation will start
generating revenue at this stage.
CONCLUSION
At the end it has been concluded that to create brand awareness and success,
implementation of innovation is required. Essence drinks have to go through the different
functions of the innovation namely innovation funnel, frugal innovation and new product
development. These functions help in to gain key insights about the targeted market and helps in
the development of new and innovative product.

Part 2
 Along with the description of the resources required for market research and product
development.
 At the end tools to protect intellectual property rights are been highlighted.

 But the company faces the rapid decrease in sales in its third year because of the rise in
competition in UK.
 And a need for new and innovative product development is seen to by Essence Drinks to
regain the market share.