Analyzing Innovation and Commercialization for Healthy Juice Company

This report examines the critical aspects of innovation and commercialization within a business context, using the case of Healthy Juice. It begins by differentiating innovation and invention, highlighting the importance of innovation for achieving competitive advantage and long-term success. The report then explores the factors shaping commercialization and innovation, including vision, leadership, teamwork, and culture. It delves into the 4Ps of innovation (product, process, position, and paradigm) and the innovation funnel, outlining the process of idea generation, screening, and product launch. Furthermore, the report discusses frugal innovation and its benefits. The assignment also covers the commercial funnel, new product development (NPD) processes, and the development of an innovation business case. Finally, it addresses tools and techniques for protecting and retaining knowledge and intellectual property. The report provides a comprehensive overview of innovation and commercialization strategies, offering valuable insights for businesses aiming to enhance their market position and profitability.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1..........................................................................................................................................3
P1 Innovation and its comparison with invention.......................................................................3
P2 Shape of commercialization and innovation through different factors..................................5
TASK 2..........................................................................................................................................6
P3 4P’s of innovation and innovation funnel..............................................................................6
P4 Frugal innovation..................................................................................................................8
TASK 3..........................................................................................................................................9
P5 Commercial funnel and the process of new product development (NPD)............................9
P6 Build an innovation business case for the organisation......................................................10
TASK 4........................................................................................................................................12
P7 Tools and techniques use to protect and retain knowledge and intellectual property........12
CONCLUSION.............................................................................................................................13
REFERENCES............................................................................................................................15

INTRODUCTION
Innovation and commercialization are two important aspects of any organisation
as they increase the sales and profit for the company. Innovation is a new idea or
thought which can be used to develop new products or services. This involves
application of different knowledge, imagination, and information (Arora and et al, 2013).
In relation to business context, superiors think new ways which can enhance their
business and implement innovative ideas so that they can produce something different
from their competitors. In this case study, Daniel Green is the founder of Healthy Juice
and started his company in order to sell health milkshake. With his innovative thinking,
Daniel has achieved dramatic rise in his sales in first year. In the third year, there has
been a significant decrease in sales. This assignment will focus on comparison of
innovation and invention and importance of innovation. Different forms of innovation and
approaches which Mr. Green can take into considerations are mentioned in this
assignment.
TASK 1
P1 Innovation and its comparison with invention.
As described above, innovation is a process of generating or developing
something new which has unique qualities and no one has seen it before. It has
distinguished qualities from other products and has the capacity to attract large number
of customers at the same time. Innovation is important in current situation, because
every company is developing something new on a daily basis, to maintain the current
position in the market, it is important to innovate something new (Pinkse and Van den
Buuse, 2012). With the help of innovation, company can lead from its competitors and
can gain desired success. In the case study, Daniel Green has started a new company
which offers milkshakes to their customers. With his new formula of milkshakes, he has
encountered a drastic rise in his sales and attracted large number of customers towards
his product. Mr. Green has innovated something different from others, which is the
reason he was capable enough to sell hi product in large amount. Customers are mainly
attracted towards new and unique products and this encourages sales f a company. In
the case study, in the third year, Mr. Green has encounter decrease in sales of

milkshakes because of entry of competitors. It is necessary for Mr. Green to develop
some new ranges of milkshakes in order to gain attention of customers again.
On the other hand, inventing a product is totally new to customer as well as
customers. Below are some differences between innovation and invention-
BAISIS FOR
COMPARISON
INVENTION INNOVATION
Definition Invention is defined as an
idea for a process or
product that is new to
everyone.
Innovation is related to the
implementation of ideas for
a product or process for the
first time.
What is it? Something new is created. Changes are done in
existing products.
Concept It consists of an original
idea.
It is practical
implementation of idea.
Occur when When new idea occur in the
mind of scientist.
When existing product
require improvement.
Concerned with Single process or product. Combination of various
process or products.
Above are some comparison between innovation and invention. Some of the
importance of innovation is mentioned below:
Create a competitive advantage: It is necessary for Mr. Daniel to introduce some
new ranges of milkshakes in order to achieve competitive advantage over its
competitors (Robinson and et al, 2013). This helps him to stand in the market and able
to attract customers. With the help of new ranges, he might gain lead for his rival teams.
Implement best method: Implementation of best strategy is necessary as this
give benefit to the company. If Mr. Green think of something new and implement that in
his production, then he can maximize his sales and thus gaining profits for his company.

Achieve long term success: If Mr. Green wants to achieve long term success
then he should use innovation process and invention in order to attract customers and
increase its sales. This greatly helps company to make a strong hold in the market and
enable company to maintain its position for a longer duration of time through new
products or services.
P2 Shape of commercialization and innovation through different factors
As mentioned above, Innovation and commercialization are two important factors
of a company in order to achieve competitive edge over others. Innovation is mainly
concerned with implementation of new products or making changes in the existing
products and re – launch it into the market whereas commercialization is concerned
with a process of launching new products into commerce or to a market (Walsh, 2012).
In this case study, Mr. Green has invented healthy milkshakes in the starting of his
venture and has gained popularity in no time due to effective distribution and innovation.
Distribution of the product is also important because through this customers can get
their product on time. With innovation and commercialization, company can achieve its
desired goals or objectives. Main aim of every company is to satisfy its customers
because only satisfied customers will prefer their products over and over again. Below
are some factors which contribute in innovation and commercialization:
Vision: It is an inspirational statement of a company which is designed by top
level management and superiors, which they want to, achieve or accomplish in future.
Vision motivates company and its employees to achieve their vision as soon as possible
(Chun and et. al., 2015). It is essential for managers to communicate about vision of
company to every employee, so that they can formulate new ideas and develop
innovative products which can increase their sales as well as attract customers. This will
help them to maximize their profitability.
Leadership: This is defined as the capability of a leader to direct, control,
motivate, inspire, and guide a business organization. Proper leadership is required by
every company in order to maintain the decorum of organisation as well as to achieve
goals of the company. Leaders of company generate new ideas which they implement
in their procedures so that their company can develop products which can satisfy the

need and demands of customers. They can give new ideas to marketing department
about commercialization and distribute their products to target market and customers.
Teamwork: This is an initiative taken by managers to assemble employees of
different departments in order to work on some project or assignment. Teamwork is a
great combination of unique talent ad skills where different employees come together
and share their views and ideas develop innovative products (Davila, Epstein and
Shelton, 2012). An enterprise becomes famous due to their style of performing activities
and by employees, who perform very hard to achieve its organizational goals.
Culture: It is defined as beliefs, values, norms, religions and attitude of employees
working in an organization and poses a great effect on innovation and
commercialization. Employees coming from different backgrounds and culture provide
unique ideas to their seniors whom they can implement in their procedures and product
development. Healthy and positive environment initiates good thinking process and help
organisation to establish a good reputation in market.
TASK 2
P3 4P’s of innovation and innovation funnel
There are 4P’s of innovation and they are product, process, position and paradigm
and these are described below:
Product: It is an intangible item which is manufactured or produced by a company
with the aim to accomplish all wants and requirements of customers. It is the best way
to serve your customers. Most focus of the company is paid on while developing
products as they will decide loss and profit for the company. Sometimes, organisation
makes alterations in existing products and again launches it in the market with modified
qualities. It is essential for company to manufacture new products which can attract the
attention towards their product as new products enhances sell and increases profits.
Process: It is another important aspect of innovation because only best process is
able to produce the best product needed by consumers (Van Hemert, Nijkamp and
Masurel, 2013). It is important for managers and superiors to generate various ideas for

designing a product and implement the best process. Scrutinizing of the best idea is
known as innovation funnel.
Paradigm: This is associated by implementing innovative methods in working of
company. Managers can modify their working style to make it more effective.
Position: This is related to the implementation of new ideas or ways to reach
target customers. By using innovation model, managers can select the best distribution
channel in order to supply their products to customers. This help in increasing the
satisfaction level of clients by reaching them on time.
Innovation funnel: The major aim of any manager is to select best ideas, process
and machineries for development of best products and this is possible by selecting best
from others. While selecting ideas, they have numerous ideas in front of them which
they have to analyze and scrutinize best from them (Yin, Shi and Yan, 2014). Innovation
funnel provides a proper framework for thinking about generation and screening of
alternative development options and combining a subset of these into a product
concept. Development of innovation funnel mainly involves three steps and they are as
follows:
 Wide mouth of funnel: Funnel has three segments, in which this step focuses
on increasing the knowledge and information and collects as many ideas as
possible. If company has many ideas, then there are greater chances of
developing unique products. In order to move fast, managers should have clear
idea about their objectives and what they have to produce. This helps be
collection of information much faster.
 Narrowing part of funnel: This represents the second step. The main purpose
of this step is to screen out all the ideas with the help of suitable methods and
techniques that match the needs of company as well as customers. Basically,
assessment is carried out and selection of best idea takes place.
 Narrow segment of funnel: This is the last step. In this company introduce new
product or service into the market place.

Mr. Green can use innovation funnel in order to regain its place in the market. This
will help him to develop new ranges of drinks and juices which can attract customers
towards his drinks and this will encourage his sales.
P4 Frugal innovation
Frugal innovation (FI) is referred to that, where non important features are
removed from the product or services. It helps in reducing cost of the products and
increases its durability. This concept is gaining popularity in almost every company and
has become a new attraction for them (Blok and Lemmens, 2015). As Mr. Green is
manufacturing Healthy milkshakes which has attracted many people towards his
products at initial stage, but after sometime, the sale has reduced due to entry of
competitors. In that case, Mr. Green can use innovational and frugal innovation to
increase its sale. He can do this by developing new methods to manufacture different
types of milkshakes and can remove non essential features in previous milkshakes and
re - launch in the market. Following are some importance of frugal innovation:
 When company encounters low growth in its business, they can use frugal
innovation to cut down their research and development expenditures as well as
manufacturing costs.
 Frugal innovation presents several opportunities to developed countries in order
to enter different markets and attract customers.
 As affordability is the key, if the prices of products or services are affordable and
economic, then this will increase the sales as customers mostly prefer economic
products and thus increase the revenue for company.
 Production department adopt this concept in order to manufacture products at
lower prices. Due to this, large customers are attracted towards the products.
Mr. Daniel can use this concept in order to increase its sales and durability of
products. There are some other examples, in case of Apple and Virgin, they operate in
different parts of the world and make changes according to customer preferences. In
order to enhance their sales, they can exclude different charges and features which are
non essential in the eyes of customers.

TASK 3
P5 Commercial funnel and the process of new product development (NPD)
With the help of commercial funnel, company can sell their products and services
in different markets where they can encounter maximum sales and profits. It is
important for company to decide their distribution channel and adopt this concept which
gives them the ideas about where to sell their product to get maximum profitability.
Commercial funnel is an effective tool to manage company's sales (Anokhin, Wincent
and Frishammar, 2011). Below are some importance of this funnel:
 By adopting this concept of commercial funnel, managers can select the best
way to reach their target market and encourage their sales of product and
services.
 This concept is very helpful in delivering goods and services to customers on
time.
New Product Development Process
This is a process which includes all procedures that are carried out in developing
a new product. Every product has to go through certain stages before going to market.
Following are some stages:
 Idea generation: This is the foremost step of product development. Suggestions
and ideas are given by everyone involved in production team. All the ideas are
related to development, marketing, design of products, launch events, etc. This
help in formulating effective strategies in right directions.
 Idea screening: In this step, screening of ideas takes place. Many factors play a
part in scrutinizing of idea such as, company's strength and weakness, customer
needs, expected return on investment, affordability, etc. Concept development and testing: A concept is basically a strategy which is
made after the analysis of idea. Different ideas that passes screening test are
turned into concepts for testing process (Aryal and et. al., 2016). Concepts are
tested on target market where customers are chosen to test the concept.

Customers are given the brief about the features of product and told them to
visualize it. Employees gets the feedback from customers and ask them, whether
they liked the product or not. Business strategy analysis and development: With the result of analysis,
company decides the final strategy for product development. In this step,
analysis of market and other strategies are done.
 Product development: After approval of all strategies, product concept is
converted in actual product with all specifications. Test marketing: Feedback is taken from customer and further changes are done,
if required. If any feature of the product s not matching with the desires of
customers, then company can make suitable changes in their products and then
launch it in the market. Commercialization: Marketing strategies are decided and formulated with the
help of marketing functions and marketing mix. Marketer develops best strategy
which can facilitate supply and time distribution to target customers. This is an
important step as this will gain the trust of customers. Introduction: Final introduction is done at this stage. It includes launch events
where samples of the products are launched in order to attract customers
towards the product.
P6 Build an innovation business case for the organisation
To achieve desired success, it is crucial to develop an innovative business case. It
should be developed in systematic and appropriate manner that support and
understand entire processes as well as activities in better manner (Bagchi-Sen, 2010).
Some specific planning is included and is given below:
 Identifications of company’s objectives: It is the first step to identify goals and
objectives of a company. It is important step for adopting innovative ideas and
ways to achieve those targets. If the objectives are already known to managers
and employees, then they can develop more effective strategies and plans in
better manner. It also helps in aligning the changes as per the requirements and
targets of the company.

 Market research and survey: It includes research and survey which company
runs in order to gather information and facts related to target market and
customers. Research is an important part for achieving success because it gives
an exact idea about what are the desires of customers and what is going on in
the market (Breznitz and Etzkowitz, 2016). This is essential for Mr. Green to find
out the preferences and tastes of his customers, it will help in making different
flavors or variety of milkshakes and will able to attract customers. This enhances
sales and profit for his company.
 Evaluation: This is the next stage where Mr. Green evaluates different
parameters which can result in more profits to his company in available
resources. It is an effective process for getting best results or output.
By above steps, Mr. Daniel Green can maximize his sales and also regain his
positions which were lost due to competitors. Innovation and commercialization help
him to produce great varieties of flavors which will seek attention of customers and also
increases the profitability of the company. In order to implement this, company requires
appropriate funds or capital. Company can take help from various banks and investors
which can facilitate the company to do his best. There are different types of investors
and are mentioned below in detail:
Angel investors: They have high funds resources and provide financial
assistance to small and medium enterprises. They also help entrepreneurs to start up
their ventures. Investors invest more funds in order to get high return or outcomes with
little capital investment.
Venture capital funds: These types of investors are not interested to take risks
or uncertainties. They don’t like to bear any losses and to avoid this, they ask for partial
ownership with the firm in which they invested their money. They take part in all
decision making process and management activities.
Bank: These are financial institution providing appropriate funds to micro, small
medium and large level enterprises at nominal interest rates. In this, company has to go
through some formalities while applying for loans. After clearance of all formalities,

company are eligible to take their funds provided by bank and can start their business
activities.
TASK 4
P7 Tools and techniques use to protect and retain knowledge and intellectual property
Intellectual properties are essential for company to consider while making any kind
of innovation in order to keep it safe from rival teams. It is considered as fundamentals
for innovation (Godin, 2012). This property broadens consumer choices of products and
technology. Various form of intellectual property such as patents, trademarks, design
right; copyrights are considered as principal way for establishing authority rights to
invention and ideas. It help in creating legal foundations by which intangible ideas and
innovation can provide benefits to company, employees as well as society. Some
important elements of intellectual property are mentioned below;
Patent: It is a license issued by government that gives holder exclusive rights to
process, design or new invention for designated time period. Applicants are mainly
handled by government agencies of that country. After patenting a particular part, no
one can steal or imitate that. If anybody tries to that, illegal action against him can be
charged.
Trademark: It is represented by logo, symbol, and sign, expression which
represents product or service of particular sources. Owner of trademark can be either
an individual or business organisation. It can be registered at national level and
approved by government if that country. Trademark is mainly represented on their
building and in their labeling of products, services, etc.
Design rights: This is subjected to copyright of design made by company. If any
company has registered their design then nobody can produce that designs. Registered
designs protect visual appearance of a product or item which gives an exclusive right for
that appearance.
In order for a registered design to be valid, it must:
 Be new. (No similar or identical design should be registered before).