Detailed Report on Innovation and Commercialisation for Essence Drink

This report examines the importance of innovation and commercialization for businesses, using Essence Drink as a case study. It explores the role of organizational vision, leadership, culture, and teamwork in fostering innovation. The report delves into the 4Ps of innovation (product, process, position, and paradigm) and the use of innovation funnels. It also discusses frugal innovation, the commercial funnel, and new product development processes. Furthermore, it analyzes a detailed innovative business case for Essence Drink, including funding access, and evaluates tools for knowledge management, intellectual property protection, and employee motivation. The report highlights the significance of these strategies for gaining a competitive advantage and achieving business success. This report aims to provide insights into how companies can effectively adopt innovative processes and develop their products and services to thrive in a competitive market.

INNOVATION
AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1.Innovation and its importance in comparision with invention..........................................3
P2. Role of organizational vision, leadership, culture and teamwork in innovation and
commercialization..................................................................................................................5
LO 2.................................................................................................................................................6
P3. 4ps of innovation and use of innovation funnel to examine innovative ideas to employees
in Essence Drink company.....................................................................................................6
P4. Developing frugal innovation and its use in essence drink..............................................8
LO 3.................................................................................................................................................9
P5. Importance of commercial funnel and application of new product development process to
employees in Essence Drink...................................................................................................9
Importance Of Commercial Funnel........................................................................................9
P6. Detailed innovative business case of essence drink and ways of access funding for
innovation.............................................................................................................................10
LO 4...............................................................................................................................................12
P7. Evaluation of different tools to use in developing and retaining and protecting knowledge
and Intellectual Property.......................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation and commercialisation is necessarily to be adopted by every business in order
to gain competitive advantage. Organisation should come up with innovative process and also
develop its product and services to ensure to remain in competitive market. Adopting a
commercial approach of innovation and creation leads to increase the return of investment(ROI).
Essense drink company manufactures and supplies variety of drink essesnce and it is prepared by
high quality of fruits and botanicals. The products offered by essence drinks include soft drinks,
ice-creams, beverages, bakery products, stabilizers, etc. In this study report, various tools and
techniques used by organisations to adopt innovation are discussed. Importance of commercial
funnel and development of frugal innovation are also discussed further.
MAIN BODY
LO 1
P1.Innovation and its importance in comparision with invention.
Essence Drink company is based in UK and provides complete range of drink essence
and drinks are made using the finest ingredients and botanical. Essence drink formulates its
products and beverages in hygienic and clean environment and also under supervision of food
processing experts. Essence drink manufactures and exports the best quality of food products and
beverages to its customers.
The essence drink company started selling healthy mango Lassi and resulted in positive
outcomes. The company adopted innovation formula and also developed its distribution
capabilities which benefited organization to expand its market share and profits. Currently,
Essence Drink is facing decline in its sales because other competitors are providing wide range
of products and services which are luxurious and healthy and able to attract customers through
their marketing skills. Therefore, Essence Drink decided to develop its product and introduce
new products in markets. And for that company focuses on bringing innovative ideas and
techniques which can result in development of new product and it also benefits organization to
maximize its return On Investment(ROI).
Essence Drink has various number of key activities such as manufacturing, marketing,
selling and distribution, etc. This key activities are day-to-day activities handled by business
organization to generate revenue and sustain in competitive market. And Essence Drink aims at
managing its key activities in a way that it leads to bring effectiveness in operations which

further leads to maximize the Return On Investment. Essence Drink focuses on introducing a
Healthy Fruit Juice which can meet expectations of customers and attract them. For this, Essence
Drink can use innovative ideas and techniques to bring effectiveness and result in positive
outcomes. It also aims at adopting various tools and techniques of marketing that leads to attract
customers and tend them to buy the product pf essence drink. The development and innovation in
key activities will bring positive outcomes for Essence Drink(Kelly 2016. ).
INNOVATION- it is key concern of the organization and its has an inalienable role in the
development and coordination of the market. Product development, methods of management,
ways of doing work in all the human area innovation is applicable.
Importance of innovation for Essence employees
Improve efficiency- innovation help the workers by the improving working efficiency
workers can improve and expand there knowledge, they can work more effectively on their task.
Employees can deal with new ideas it will help them for their personal growth as well as for the
company. In competitive market only those employees required who has the best quality in them.
Innovation help to boost the career, for Essence company innovation help the employees by
reduced their work load and improve work quality(Janis And et.al., 2016. ).
Motivation- Employees are very interested in further development of company,
innovation help the employee by motivate them. Motivated employees feel themselves for
adopting new technology and business environment. Employee can engage with the company
long time if they get the proper training and development session. Innovation help to motivate
the employee to create the passion to learn something new. Motivated employees can work more
effectively for the company. Innovation provides many new ideas for the work it helps the
employees to diversified their working style.
Decrease work load- innovation of the product development help the employees by
reduce of the work load of the employees. Employees of the many companies have much work
load either it could be the physically or mentally, innovation help to reduce the work time which
help the employees they can work with more speed. Its help to save the energy of the employees

so they can work with more effectively without doing any error in their work(Uyarra, Shapira
and Harding, 2016).
INVENTION- Invention is very different from the innovation, many people think that
this both are similar but innovation relate with introduce the existing product with some changes
and invention relate the process of creating something that has never been made before.
Different source of innovation-
 The unexpected- exactly the sounds its unexpected
 The incongruity- basically different
 process need- it is similar to incongruity
 industry and market structure change- unexpected in business
 Demographics- is essentially the change in population
 changes in perception, meaning and mood – perception is the way of people perceive
something
 New knowledge- New knowledge of technology both scientific and non scientific.
P2. Role of organizational vision, leadership, culture and teamwork in innovation and
commercialization
Organisational Vision, Leadership, Culture And Teamwork Can Shape Innovation And
Commercialisation
For the company to be successful, the management needs to set their objectives and goal
and make to create a clear vision that how can they achieve that all. Vision is the key for the any
planning it is the first step which have to follow to achieve the goal and objectives of the
company. The employees of the Essence company needs to understand that without setup of a
vision an objective can not be achieve. Vision creates a motivation in the employees to
something better for the company(Do and et.al., 2018.).
For any objectives that company want achieve in future that can not be possible to
achieve without any good leadership skills, leader are the one who guide the employee and
motivate them for their work. Leader has the abilities to find out the employees who have the
right technical skills as well as who has willing to adapt and work well with team. Leaders create

an environment that allow the employees to work independently that gives them time and energy
for employees to experiment. Leaders help the employees by taking the responsibilities of the
work. Leader helps the team member by giving the support in their task and guide them for their
work.
Culture and team work beneficial for the innovation by bringing different ideas and
perception of the people. A right culture of the environment always motivate and help the
employees they will confident with their ideas which they want to implement on the innovation.
Team work is a most important for the any innovation and commercialization working in team
many ideas as well as dividing of the task help to complete the work on time. A strong positive
company culture helps to engaged the employees with company. It results to get more sale, profit
and help to success for company(Lawson, Krause and Potter 2015.).
Organizations Develop Environment And Culture Of Innovation
Build capabilities for learning and innovation- without learning innovation is not
possible, to develop a environment of innovation organisations needs to put a place of culture, a
good leadership skills, a good working structure and good rewards for promote learning
behavior. A significant improvement in organizations is possible with the high quality learning
conversation and collaboration process.
Set goals and measurement of progress- for creating a culture of innovation
organization has to set the goals and introduce that goals with the employee and also allot the
different task on the basis of their working capabilities. Measurement of innovation is not the
easy as measure of revenue it is very tricky it has many stages like idealization, evaluation
selection, re-iteration, development, implementation based on this stages measuring can be done.
LO 2
P3. 4ps of innovation and use of innovation funnel to examine innovative ideas to employees in
Essence Drink company
Innovation refers to development of new idea or method which brings effectiveness in
process and results in positive outcomes. Essence Drink focuses on bringing innovation in the
business operations in order to increase its sales and market position. And therefore, it should
follow different method of innovation to gain competitive advantages(Duncan and Elkan, 2015).
Innovation funnel is actually converting idea into actual product development. The idea
of process or product development is taken from concepts of development and finally applied to

process in reality that is able to meet demands of customers. Essence Drink implements its plan
and ideas and then apply strategies and develop the new product. There are various things that
must be kept in mind by essence drink while introducing new product or developing the process.
The idea of development or innovation should be resource focused i.e. company should have all
available resources for managing innovation. Organization should able to find and introduce new
ideas and strategies which result in increasing sales and also market share. Essence Drinks
should introduce its product that meets the demand and expectations of customers and for that
company should properly research about the taste and preferences of target markets. Essence
Drink should make and develop its product accordingly which meets demands of target market
which helps in achieving estimated sales and market share(4PS- EXPLORING THE
INNOVATION SPACE,2018.).
4Ps of innovation idea can be applied by Essence Drink to increase its market share and
profits. The 4Ps of innovation stands for product, position, process and paradigm. The implement
of 4Ps benefits Essence Drink in developing its product. Process innovation refers to changing
methods of operation and process. Essence Drink can bring changes in business operation or
processes in order to bring product development. Essence Drink can also go for product
innovation by changing the existing products of company. It refers to bringing change in product
line in order to bring innovation and increase market share(Drucker, 2014. ). Position innovation
can be also adopted by Essence Drink which refers to bringing change in the context of
launching of new product. And paradigm innovation refers to bringing change in the activities or
operations of organization. Essence Drink should select the best option of innovation which
result in achieving it objectives of increased market share by increasing sales and profits.
 Product innovation- this means to change that has to be bring in things that is been
offered by a company. It may be products or services and attract large volume of
customers towards the brand by way of innovation. In this innovation Essence Drink
company can innovate new products to expand its business across the world. Company
can innovate new drink products by targeting younger generations such as- soft drinks
and beverages, ice-creams, bakery products and healthy fruits and juices.
 Process innovation- this means adopting changes in ways in which the products or
services are created and way in which they are delivered to customers. This also leads in
attracting large number of customers towards the brand. In this innovation Essence Drink

company will change in its distribution methods for their products. Essence drink
company can adopt new distribution methods by using technology such as- online selling.
Company will maximize the profitability by adding some significant values to improve
the production methods.
 Position innovation- this means to change in context in which products and services that
are actually introduced. In this stage Essence Drink company can introduce its products
in different context that will help to attract more customers. Company can sell their
products on different stores and supermarkets.
 Paradigm innovation- changes in underlying mental models which frame what is done by
organization. Essence Drink company can shift to a completely different type of
technology for all processes such as – for production unit, for sales and marketing etc.
P4. Developing frugal innovation and its use in essence drink
Every organization survives in the competitive environment by generating profits through
sales and sales revenue. Essence Drink focuses on increasing its sales and market share in order
to survive in competitive market by bringing innovation in its business operations. Company can
also adopt innovative ideas in order to bring effectiveness in business process.
Frugal innovation refers to reducing the cost and also complexity of products. Frugal
innovation focuses on removing extra or unnecessary features from the existing product. Its main
aim is to redesign the production process. It also reconfigure the value chain system and develop
innovative business models. Essence Drink should focus on implementing frugal innovation in
its business operation in order to bring innovation and in product development. It can benefit in
reducing the extra cost which will result in effectiveness and bring extra profits(van den Ende,
Frederiksen and Prencipe 2015).
Essence Drink can develop its marketing techniques in order to attract its customers and
target market. Organization can influence its target market via social media. Advertisement and
promotion can be given on social media sites in order to attract them and tend them to buy
product by its effective advertisement. Essence Drink can sponsor community events and build
its brand image which can result in increasing its market share and sales. Essence Drink should
take important steps for bringing innovation and introducing a new product.
1. It should first do effective market research in order to find needs and wants of customers
so that new product can meet expectations and result in positive outcomes.

2. Company should bring changes in business operations and bring innovation and creation.
3. Essence Drink should come up with innovative ideas for marketing its product which
leads to attract customers.
4. Essence Drink should also aim on building relationship with its shareholders such as
customers, suppliers, manufacturers, etc.
5. Essence Drink should not get trapped by balance of power, it should be in a condition to
tackle it.
LO 3
P5. Importance of commercial funnel and application of new product development process to
employees in Essence Drink
Importance Of Commercial Funnel
Commercial funnel also known as the sales funnel or revenue funnel it refers to process
where companies guide the customers when they are buying the products of that
company(Sharmelly and Ray 2018. ).
Product awareness- it is important for the Essence to introduce the new product in market.
Sales funnel provides the useful framework to help on this concept. Sales funnel helps to connect
with the more customers. Sales funnel helps to awareness of the product in customers more
customer will know about the product.
Increase in sales- commercial funnel help to the company by attract more customers its main
aim to introduce the products benefits and why consumer have to buy that products.
Increase the conversion rate- when people moving to the sales funnel it helps to filter the
potential customer into long term buying consumers
Application Of New Product Development Process
Product strategy- innovators has to set the goals and objectives of their products,
Essence had planned to launch their new health drink in market. So on the demand increasing
from past few years of health drink that's why Essence planned this strategy.
Screening the idea- after getting the different ideas from people there has to st the
specific criteria that which idea should have to dropped or continued(Fatkhiev, Postalyuk and
Safiullin 2016.).
Testing the concept- it is different from test marketing, in this concept employees make
the structure Of idea in detailed that how product will present what is it quality etc.

Business analytic- business analytic relate to determine the production cost and other
cost and how much profit has to be generate from the product etc.
Marketability tests- it means the trial run of the product it could be done by the
company to provide sample.
Product development- After all the process company will give the green signal to the
production of the product.
Commercialize- after the production company introduce its product to the customers
Overcome Challenges For Successful Innovation
There are many challenges has to face by the company to launch an innovation that could
be relate with the legal challenges, operational challenges and cultural challenges. Company
have to get the proper knowledge of the innovations and legal documentations. In operational
challenges company have to focus on the employees and communicate with them time
understand there needs and demand and try work in coordination to avoid any conflicts and
company have to create an innovation environment to survive with the cultural challenges.
P6. Detailed innovative business case of essence drink and ways of access funding for innovation
Essence Drink company was introduced in the year 1986. Essence drink company
manufactures and provides variety of authentic soft drinks and beverages which are made up of
the highest quality of fruits and botanical. Essence Drink offers variety of food products and
beverages to its customers and it includes ice-creams, fruit juices, soft drinks, stabilizers, bakery
products, etc.
Essence Drink aims at bringing innovation and creation in its business process and
operations to achieve its objectives and also to increase its market share. Essence Drink develop
its ideas and strategies to find ways for developing and introducing a healthy drink which can
attract customers and result in increase the market share and profits as well. Therefore, Essence
Drink focuses on developing different flavors of healthy soft drinks which result in diversifying
the taste of customers. Organization can focus on choosing and selecting tools and techniques for
marketing of its new product. It can select digital technology of marketing which attracts
customers by providing them the benefits of ordering from mobile phone and getting delivery at
home.

Organization can also select variety of marketing media mix to advertise its new product
in markets. Essence Drink can also use marketing technique and reach the customer's doors for
promotion. Advertisement is the best tool to introduce from which customers get aware about the
new and developed product, it also attracts them. Essence Drink can also select direct marketing
or print media or it can also make use of E-commerce or internet for introducing and promoting
its product(Brav and et.al., 2018.).
Before developing and introducing a new product, company make its budget plan to estimate the
expenses and revenues, which is as follows.
Estimated expenses for Healthy Fruit Juice:
Expenses Cost (amount in Euro)
Raw materials 480
Production cost 610
Technological advancement expenses 495
Labor cost 500
Marketing techniques expenses 350
Total expenses/ cost 2435
Estimated revenue after introducing new product:
Name of products of
Essence Drink
Price of product Estimated quantity
sold
Revenue generated by
selling the product
Soft drinks &
beverages
6 300 1800
Ice-cream 4 150 600
Bakery products 5 200 1000
Healthy Fruit Juices 4 150 600
Total 4000
Estimated revenue- estimated expense= estimated profit

i.e. 4000-2435= 1565.
Therefore, total estimated profit of essence drink is capable of bringing innovation and managing
technological advancement in order to develop and introduce new product i.e. Healthy Fruit
Juice.
LO 4
P7. Evaluation of different tools to use in developing and retaining and protecting knowledge
and Intellectual Property
There are many tools for protect knowledge and intellectual property these are below
Copyrights- copyrights is a legal right of the owner of intellectual property. It means only those
people can reproduce the product who has gets the authorization from the original creator of the
product. Copyright law gives creators of original material. Essence drink company can use this
tool (copyright) for protecting its intellectual property. It is a basic tool which encourage the
organization to develop new products by guaranteeing the protection for proprietary ideas.
Trademark- trademarks is a symbol that denotes a specific product or service and legally
differentiate it from other products. It is a identity a product or service with a specific company
and it is recognition of that company ownership of that brand. Essence Drink company can use
this tool for brand recognition of the company.
Design rights- design rights relate that if a company is producing a specific designs products,
design rights gives an exclusive rights of that particular design. An unauthorized party can not
use that design if they are doing then company have the rights to take a legal action against them.
This tool will help to the Essence drink company to save the design of their products.
Patents- Patent is an exclusive right granted for an invention, patent gives the right to the
inventor to stop others from making, producing, selling for a limited usually times 20 years.
Essence Drink can use the patents for saving the rights of inventions of a particular product.
CONCLUSION
Innovation is important tool adopted by every organization in order to sustain and gain in
competitive market environment. New product launching, important of the innovation funnel for
the understanding the marketing demand are meet with new product and commercial funnel help
the customers to guide the buying product. Different types of protection right which are help to
protect the inventions.