Essence Drinks: Innovation, Commercialisation, and Strategic Analysis

This report provides a comprehensive analysis of innovation and commercialisation strategies within Essence Drinks, a large-sized organisation providing healthy mango lassi. It differentiates between invention and innovation, discusses the value of innovation for organisations, and suggests methods for embedding innovation within the organisational leadership and culture. The report recommends next steps for Essence Drinks to derive new and innovative drinks, including the application of the innovation funnel and teamwork strategies. It also explores different forms of innovation, such as paradigm, product, process, and position innovation, and assesses how Essence Drinks can use the innovation funnel effectively. Furthermore, the report examines the importance of the commercial funnel and New Product Development for commercialisation, evaluates the innovation business case, assesses funding, and discusses tools for developing, retaining, and protecting intellectual property.

8 – Innovation and
Commercialisation

Table of Contents
Table of Contents.............................................................................................................................2
PART 1............................................................................................................................................5
1. Explanation of the difference between invention and innovation..................................5
The value and importance of innovation to organisations and how this can be embedded within
the organisational leadership and culture at Essence Drinks.......................................................7
Explain and recommend the next steps Essence Drinks should go through to derive a new and
innovative drink...........................................................................................................................8
Discussion of approaches that Essence Drinks can get to process innovative ideas, involving
frugal innovation........................................................................................................................11
PART 2..........................................................................................................................................13
Background to the company and problems...............................................................................13
Importance of commercial funnel and application of New Product Development for
commercialization......................................................................................................................13
Innovation business case for an organization and assessment of funding.................................15
Evaluate the different tools that can be use by organization for developing, retaining, and
protecting the intellectual property............................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is defined as practical implementation of ideas and opinions which are
developed by an individual for the purpose of running their business. The aim of business
organization is to bring the new products and services in timely basis and attracts the large
number of customers. It has seen that innovation is one that increases the chances to react the
changes and discover the business opportunities. For each business organization it is needed to
have proper knowledge and understanding which can be used to develop the business
performance and productivity. This also provide the chances to grow their business and maintain
the higher performance (Rahman and Oh, 2020). Commercialization is the another activity which
used by business concern for selling their products and services in the changing environment and
attain the competitive advantages. To understand about innovation and its related term Essence
Drinks, has been selected that is large size organization providing the healthy mango lassi to
their customers and grow their business effectively. The report covers innovation, difference
between invention and innovation, types of innovation, process required to commercialize
innovation, and methods for protecting ideas and understanding advantages and disadvantages.
PART 1
1. Explanation of the difference between invention and innovation
Innovation is defined as a procedure in which new concepts as well as thoughts get
converted into finished services and products. Main aim behind this process in to influence
mindset of consumers in a well define and effective manner. It has been evaluated that
innovation significantly add value to organisation through which they can satisfy consumers at
great extent. While on the other hand if it is talked about the concept of invention it is termed as
a unique method of development process in which a service or project get converted for the first
time. It has been evaluated that with the help of this process organisation can showcase its
creativity to consumers and can offer them something unique. Furthermore, it has been
underlined that this process also allow organisation to enhance its competitiveness in market
segment. According to the analysis it has been underlined that both of these method offer
advantages of organisation through which they can gain more competitiveness as well as

profitability. However, there are some certain differences prevailing between invention and
innovation which is being defined below:
Difference between innovation and invention
Basis Innovation Invention
Meaning Innovation is basically termed as
a procedure in which significant
improvement undertake place in
already existing services and
products (Reyes and et.al.,
2021).
Invention is a process in which
introduction of new service or
products form first time take place.
Value Main value that innovation add
is that is entirely develop new as
well as improved services and
products as per rapid changing
needs and demands of
consumers.
Innovation add value in terms of
adding new or unique product in
market place that has not been
present present in market segment
(Smith, 2020).
Skills required Skills that are required for
innovation is related to strategic,
marketing and technical.
Skills which is significantly needed
to invention are scientific skills.
Occurs Innovation mainly occurs when
there is a significant need to
undertake improvement in
existing services and products.
This process mainly occurs when
new ideas get generated in the mind
set of scientist.
Thus, as per the analysis it has been evaluated that both innovation and invention plays
essential role for an organisation through which they can offer products and services to
customers in effective way. However it is essential for an organisation to have effective
understanding of both of these methods in order to apply the same in the process. In terms with
Essence drinks it is essential for them to apply all the steps of innovation in order to offer unique
products in market segment.

The value and importance of innovation to organisations and how this can be embedded within
the organisational leadership and culture at Essence Drinks
Innovation significantly add value to organisations, it has been evaluated that this process
is playing important role for organisation as it duly increases their chances to effectively react to
changes while discovering new opportunities. In addition to this, it has been stated that it also
help organisations to effectively foster competitive advantages and also allow them to build
better services as well as products for consumers. This process is also playing important role for
organisation and it allow them to undertake risks and challenges through which they can
maximise their growth and development in marketplace. Furthermore, it has been evaluated that
innovation also allow organisation to develop both consumers empathy and intimacy in a well
define and effective manner. With the help of this process Essence Drinks can not only satisfy
consumers with unique offerings but can also ensure more profitability. Mentioned below the
manner in which innovation can be embedded within the Essence drinks leadership and culture is
being defined:
Leadership:
Leadership is defined as an art in which leaders within organisation engage in the process
of attracting as well as motivating individuals towards organisational goals. In order to
effectively implement the process of innovation in organisation workplace structure it is essential
for leaders within Essence drinks to encourage, motivate and guide employees. This will
significantly help in shaping innovation and commercialisation. For example, Within Essence
drinks there is democratic leadership style adopted by leaders. It allow them to lead employees in
effective manner. Thus, it has been underlined that with the help of this leadership style Essence
drinks leaders can engage employees in the process of decision-making. It not only increases
employees engagement but also allow company to offer job satisfaction to employees. This will
significantly helps Essence drinks to implement innovation process with the help of coordination
and engagement of all employees which significantly help company to ensure success of their
innovation process (Sergeevna, 2021).
Culture:
Culture of an organisation mainly include aspects related to values, beliefs and policies
that duly differentiate it from other organisations in market segment. It has been evaluated that
organisational culture helps organisation to influence employees in effective manner. It has been

evaluated that with the help of positive organisational culture Essence drinks can effectively
shape commercialisation and innovation in effective way. As per Handy Charles organisational
culture model there are some certain elements such as power, tasks, role, person. According to
these elements with the help of role culture Essence drinks can effectively encourage every
employees and can further delegate them role as per their skills and talent (Muizniece, 2020).
Explain and recommend the next steps Essence Drinks should go through to derive a new and
innovative drink
It is essential for Essence drinks to effectively go through steps to derive a new and
innovative drink. In this company is required to emphasise upon innovation funnel elements such
as investigation, development and shipping products. It is recommended to Essence drink to
apply innovation funnel in effective manner in order to launch their innovative products. This
will not only help company to analyse competitors strategies in effective manner but also allow
them to gain more competitiveness in market segment while more profitability. In addition to
this, company is also recommended to embrace teamwork in order to collaborate efforts of each
and every group member, for this Essence drinks is recommended to follow Bruce Tuck man
theory in order to conduct effective team development process.
The different forms of innovation and four directions of change
Innovation is the main activity for business organization in which new products and
service are launched for the purpose of developing the business and maintaining productivity. In
the changing environment needs and wants of customers are getting to change where it is
important to launch the variety of products which can influence the number of customers and
helps to increase the organizational sales. The innovation is bases on 4 P's which are important
for business industry and supports to attain the competitive advantages. The Essence Drinks is
the large size lassi provider where management uses the four P's for the purpose of bringing
changes and running their business effectively. The explanation is defined below:
Paradigm Innovation – Thomas Kuhn has given the concept of paradigm that states the
fundamental change and create the organization values and practices. In this, changes are based
on mental model that show what organization does alternatively and manage the all function. IN
relation to Essence Drinks, Paradigm is adopted by management that can help to introduce the
different types of products and services (Min, Kim and Sawng, 2020).

Products innovation – This can be explained as change manner in which product and
services is created or delivered. In this, management is require to introduce the new products and
services which can attracts the customers. The management of Essence Drinks uses process
innovation for the purpose of launching new products in changing environment as per customer
needs which can help to develop organizational productivity (Liu and et.al., 2020).
Process Innovation – This can be explained as change process in which changes are
introduced for the purpose of bringing changes in process and procedure of launching new
products. This can help to managing the all functions and activities. In relation to Essence
Drinks, process innovation is adopted which can help to bring changes in manufacturing and
distributing process effectively that can help to attain the competitive advantages.
Position Innovation – This states product and service positioning at the market place and
it introduce the changes in their products which can help to maintain good position. Essence
Drinks is creating higher position at the workplace which can help to attain the higher
performance and competitive benefits (Stojčić, 2021).
Innovation Funnel – This determined as mechanism and tool that relates to continuous
stream of innovative ideas which can be screened for viability. In every organization innovation
funnel is needed as it is used by individuals for the purpose of generating many ideas as possible
and being converted in to development plans. Essence Drinks is using the innovation funnel for
innovative products and managing the all functions and activities. The chosen organization is
using Innovational funnel in their workings that are as explained:

Assessment – This is the stage in which different ideas and opinions are created by
different person who are working in the organization and share collectively. This can help to
getting different opinion and new thinking for the purpose of running their business. Such as
management of Essence Drinks, uses the assessement stage where number of ideas are generated
for growing and running their business continuously in changing environment.
Development – This is the stage of harvesting or looking towards valuable and relevant
ideas which can match with needs of organization and run their business effectively. Such as
management of Essence Drinks, develop or harvest their ideas out of all which can help to
manage the organizational functions and activities effectively (Lin, Xiao and Wang, 2021).
Test – This is the third stage in which ideas are evaluated and chosen which can help to
develop the organizational activities. For example, Essence Drinks management conduct the test
analysis for all ideas and thoughts which are created within organization and marketplace
(Hnatenko and et.al., 2020).
Launch – After doing all stages next phase is related to launching new products and
services by considering appropriate ideas. Essence Drinks used this process for launching new
products by considering all information and better ideas.

Thus, 4P's of innovation and Innovation funnel is used by Essence Drinks for the purpose
of running and growing their business in changing environment that can help to attain the higher
business performance and productivity.
Discussion of approaches that Essence Drinks can get to process innovative ideas, involving
frugal innovation
Frugal Innovation – This can be explained as frugal engineering that is the process of
reducing the difficulties and cost of good and its production. For all companies it is important to
conduct the market analysis and think about how an organization can increase their productivity
and profitability. To increase the business sales and production, cost saving and cutting is the
method which used by companies by removing non essential features from durable good and
service (Hayter and Link, 2021).
Essence Drink is the mango lassi provider that provides the delicious and healthy lassi to
their customers which can help to develop the organizational productivity and profitability. The
management of selected organization used the frugal innovation for the purpose of improving the
business activities and performance in changing environment (Dunn, 2020).

Frugal process is using by management where it reduce the unnecessary cost from lassi
manufacturing activities which can help to developing the business performance. This focuses on
each activity such as design, features, delivery of products and services which can help to
managing the all functions and attaining the higher performance.
The different approaches to frugal innovation
Engage and iterate – This is stage of getting engage all employees in the business
activities and managing the all functions which are important for organization. In Essence
Drinks, this principle is used by management and employees which can help to running the all
business activities by making understand staff and performing well.
Flex the assets – This means flexing all assets of organization and innovating the
workflow continuously. This can help to increase business functions and maintaining the higher
performance. In relation to Essence Drink, management focuses on their task and flex the assets
by managing all functions and bring the changes in their performance (Wang and et.al., 2020).
Creating sustainable solutions – This stage is relating to identifying the problems and
creating the possible solution of all activities which can help to develop the business activities.
This approach is most important for all business organization as it create the sustainability and
solution by finding the problems. In relation to Essence Drink, management is single one who
plays important role by finding the problem which are pertaining in the business environment
and provide the optimum solution that can help to attain the business goals and objectives
effectively.
Shape customer behaviour – The main expectation of each business is to increase their
customer base where it is needed to understand buying behaviour of customers and provide them
better level of satisfaction. This needed at the workplace and managing the higher performance
in the competitive environment by attaining the competitive advantages.
Co-operate value with prosumers – This can be defined as prosumer concepts that is
relating the business functions and managing the all activities. In the changing environment,
needs and wants of customers are changing day by day where variety of products and services
are provided accordingly. In relation to Essence Drinks, management is focusing on all needs
and bringing the changes in their products which can help to develop the business performance
(Daneshjoovash, Jafari and Khamseh, 2020).