Innovation and Commercialisation in Essence Drinks: A Business Report

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INNOVATION AND COMMERCIALISATION 1
Innovation and Commercialisation

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Table of Contents
Introduction................................................................................................................................3
P1 Innovation and determine its importance to organizations in comparison with invention...4
P2 Ways of shaping innovation and commercialization by organizational vision, leadership,
culture, and teamwork................................................................................................................4
P3 4Ps of innovation and the use of the innovation funnel to shape innovative ideas..............6
P4 Developments in frugal innovation and provide examples of using in an organizational
context........................................................................................................................................7
P5 Importance of the commercial funnel and the application of new product development
(NPD) processing for commercialization of innovation............................................................8
P6 Build an innovation business case for an organization.........................................................9
P7 Different tools that organizations can use to develop, retain, and protect knowledge and
intellectual property.................................................................................................................11
M1: Different sources of innovation that organizations can foster and develop an environment
and culture of innovation.........................................................................................................12
M2 Apply the innovation funnel in an organizational context................................................13
M3 Role of frugal innovation in an organizational context.....................................................14
M4 Build a detailed innovation business case which includes measure its overall
effectiveness using appropriate techniques available to test, iterate, and improve..................15
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment entrepreneurs..............................................................................15
D1 Innovation is developed, embedded, and measured in an organizational context.............16
D2 Critically evaluates the nature of innovation and the context in which it is developed,
providing evidence-based judgments on how organizations can overcome challenges to

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develop successful innovations................................................................................................17
Conclusion................................................................................................................................18
References................................................................................................................................19

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Introduction
In this report, the innovation and commercialization are illustrated with respect to Essence
drinks. This company is UK based that has initiated to sell healthy mango drink for two
years. It has developed promptly in these two eras but after that, its sales are declining due to
distribution capabilities and innovative structure while the company has penetrated into the
third year. Hence, the founder of Essence drinks is introducing some new innovative drinks
for their company. This report explains the innovation and determines its importance to
organizations in comparison with the invention. It also discusses the ways of shaping
innovation and commercialization by organizational vision, leadership, culture, and
teamwork. It also explains the 4Ps of innovation and the use of the innovation funnel to shape
innovative ideas. It also discusses the developments in frugal innovation and provides
examples of using in an organizational context.This report also defines the importance of the
commercial funnel and the application of new product development (NPD) processing for
commercialization of innovation. It also builds an innovation business case for an
organization, including ways to access funding. It also demonstrates different tools that
organizations can use to develop, retain, and protect knowledge and intellectual property.It
illustrates the different sources of innovation that organizations can foster and develop an
environment and culture of innovation. This report also discusses the innovation funnel in an
organizational context. It also defines the role of frugal innovation in an organizational
context. It also explains the detailed innovation business case which includes measure its
overall effectiveness using appropriate techniques available to test, iterate, and improve. This
report also presents the supported evidence-based evaluation of these different tools in the
context of the wider business environment entrepreneurs. It also explains that innovation is
developed, embedded, and measured in an organizational context.

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P1 Innovation and determine its importance to organizations in comparison with
invention
Innovation:
It is the procedure for bringing the new ideas regarding the products and services into
Essence Drink that have higher effects on organizational achievements (Adebiyi, et al.,
2018). There are several drivers that may push the innovative procedure in the context of
organization, intellectuality, thinking, courage, and differentiating is the key driving factor in
the innovative procedure of essence drink, UK.
Invention:
It is the procedure related to actualizing the innovative ideas and thinking into action. It is a
secondary phase ofdeveloping the new product as well as services. Innovation helps to bring
new ideas and new thinking of current products whereas invention is the procedure to bring it
to market by shaping in objectively (Zannini, et al., 2016).
Difference between Innovation and Invention:
Innovation is the initial phase to take a product and hence there is a need to pool the new
ideas as well as a distinctive strategy to the company. Moreover, the invention is dealing with
the procedure of how healthy mango Lassi can bring it to the customer in an actual manner.
P2 Ways of shaping innovation and commercialization by organizational vision,
leadership, culture, and teamwork
Development of new idea is the key purpose for innovation whereas, an invention supports
for actualizing this innovation and decode the new rationale. The key goal of these
inventions, as well as invention, is to commercialize the products as well as services of
Essence Drink. Commercialize is the procedure for gathering to all invention and innovation,
marketing as well as communication to the consumers (Geldes, et al., 2017).

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Commercialization is the procedure for launching the new product into the market. For
commercializing, different factors may affect the procedure of commercialization and
invention and with respect to Essence Drink, it is not distinguished.
Organizational culture is none of them that involve all the field of prospect objectives as well
as goals of the company. For instance, Essence Drink vision is to offer a healthy product to
consumers and for this, there is a requirement for innovate the new thinking and ideas
regarding the current and new products (Bahadırand Sezgintürk, 2015). Along with this,
there is a need to invent the idea and commercialize to product into the market. It is a key
method for entering into the market by launching healthy drinks in Essence Drink Company.
Hence, the vision of this company has a higher effect on innovation and invention procedure
(Tell, et al., 2016). Use of advanced technology for offering healthy drinks and makes it
available to a large number of regions and outside the cities may be a vision of Essence
Drink. This vision may terminate as well as direct the invention as well as innovation
procedure of that corporation.
Leadership is a technique to organize the Essence of Drink as per its goals with objectives in
order to get success. It is also supportive of attaining targeted behavior and norms of Essence
Drink. There are several kinds of leadership such as democratic, autocratic, participative, as
well as laissez-faire. In this way, autocratic leadership is feasible to style for Essence Drink in
terms of attaining goals (Aithal, and Aithal, 2016).
Organization culture is the integration of norms, attitude, and value of workforces and that
are maintained by the corporation for different years and the procedure of how things are
performing at the workplace. Although, culture can be shaped through the attitudes and value
of the nation, sometimes, it is addressed that, due to cultural diversity, one factor is essential
for one nation and may be restricted in another one (Ghosh, et al., 2016). Hence, the cultural
difference has affected the procedure of innovation as well as commercialization of products

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and services. For instance, Essence Drink is aggressive as well as agile for accomplishing the
goals and objectives, hence culture can support for shaping the procedure related to
commercialization and innovation (Guerrero, et al., 2016).
The team is a dynamic aspect for addressing the issues in a consequence of the company and
to accomplish the particular task as per the planning. For attaining every type of an
organization, Essence Drink has some team who performs the entire targeted task for
innovation as well as commercialization of products (Vyas, 2014).
P3 4Ps of innovation and the use of the innovation funnel to shape innovative ideas
To gain sales and to gain the profits of the business, the company can execute some effective
sales tools. These are described as given below:
Process innovation:
This innovation is a procedure of transformation in the method where Essence Drink can
create and deliver the product. It is an essential method where a product is delivered to
consumers. But, the longer delivery process can create issues in terms of declining the
chances of getting success. In the case of the shorter delivery process, the chances of success
can be gained. Hence, Essence Drink should focus on delivery process of healthy mango
drink to get success (Vojtovic, Navickas, and Gruzauskas, 2016).
Paradigm innovation:
This model is used to outline the activities of the company. This model helps to create
innovation in Essence Drink. It is planned procedure where a company faces the
transformation of being taken the innovative thinking and ideas as well as the procedure of
how an organization performs all the tasks with respect to performing the jobs by facing
threats and challenges (Galanakis, et al., 2015). Essence Drink should make a plan regarding
how to perform the business in transforming condition. For example, customers are moving
towards health-conscious products hence Essence Drink can restrict to use health standard in

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drinks in product innovation. In this way, it can emphasize on delivering healthy drinks
(Santeramo, et al., 2018).
Product Innovation:
This type of innovation shows the transformation inthe productor the company. As per this
model, the company offers an innovative and value-added product to customers that would be
valuable for the company (Vree-van Stratenand Roodenburg, 2014). With respect to Essence
Drink, when it launched the new products and offers the best services to consumers then it
would be competent to deliver the added value to the company. This can be beneficial for
increasing the competitive benefits hence; the product is a key element of 4 Ps though which,
commercialization, and innovation can be performed (Martins, et al., 2016).
Position innovation:
Position innovation is used in the alteration of product introduction. In this type, Essence
Drink determines the goals of particular innovation as well as commercialization. Through
this goal, Essence Drink will want to attain the position by offering the unique and best
facility to consumers (Nasrand Sewilam, 2015).
P4 Developments in frugal innovation and provide examples of using in an
organizational context
Essence Drink could use innovative tools and techniques for operating the business activity
and get higher competitive benefits (Dries, et al., 2014). The organization might take
probable innovative thoughts as it is discussed as below:
Get social
The organization should engage their audience by considering social media to develop a
compelling conversation between the organization and consumers. The social media of the
firm will be driven by considering the different sources of online method. It could also be
effective in increasing the profitability of the organization (Seyfettinoglu, 2016).

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Sponsor community events
The organization could obtain the opportunity of marketing, which could directly impact the
growth of the firm. The organization could make a partnership with other firm and market for
operating the business for getting competitive benefits (Santoro, Vrontis, and Pastore, 2017).
Become a resource
The organization could also give value to its consumers so as to the organization would be
capable to increase their sell. The organization might deliver guideline for the specified
products and services as it could lead to getting a higher outcome (Bigliardi and Galati,
2016). The following steps might be considered by the Essence drink:
 Initially, the organization will address the market, demand, as well as the price of the
product that will be delivered.
 For running the business, the organization has redesigned the portfolio
 For increasing the growth of the firm, the firm could make the link between function
and performance.
 The organization should develop value by considering the mid-term approach to its
retail consumers.
 The organization could target the efficient application of commercial investment.
P5 Importance of the commercial funnel and the application of new product
development (NPD) processing for commercialization of innovation
Commercial funnel is also known as purchase funnel. In this way, commercial funnel depicts
the customer journey with respect to the purchase of products and services. There are
different phases of commercial funnel such as opinion, preferences, consideration,
preferences and last of all buy.
Essence drinks is a health drink corporation in the nation of the UK. The company was
initiated two years ago with only one healthy product such as mango drink. Due to its

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distribution capabilities as well as innovative formula, Essence drinks can increase its sales of
the product in the future. As Essence drinks penetrate into next year, the revenue of
corporation is rapidly declined due to flavored drinks are favored by customers. Hence, a
customer of the UK is becoming attracted towards the entrepreneurs that provide flavored
beverages.
In order to deal with this issue, Essence drinks can provide a healthy drink with several
flavors. But, at the same time, the quality of the health drink should be effective. Essence
drinks can make innovation in the product in terms of introducing the product with several
features:
 Available in several flavors
 Tasty
 100% fat-free
 Highly nutritional and natural
 No turbine and caffeine
Different kind of risk can be generated while a corporation wants to initiate the health drink
at the marketplace. The initiation of a new product can take a longer period and increases the
production cost. In the circumstance of the commercial funnel, Essence drinks have to ensure
that customer would have product awareness because the customer will include the product in
their preference list as well as purchasing of a product.
P6 Build an innovation business case for an organization
Essence drink can focus on the innovative ideas for increasing the revenue of an organization.
It can personalize the healthy drink as well as deliver it to the door of their consumers. The
corporation can also practice digital marketing for product advertising. The customer would
be more influenced to product when they have chances to get an order from home and can get

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the product at their home. Hence, Essence drinks will provide the health drink at the door of
consumers in the UK.
One effective technique for a product can be advertising. It can be illustrated as paid
promotion or communication related to Essence drinks. There are different decision
considered in the advertisement such as message, mission, measurement, media, and money.
Through advertisement, different customers can be aware as well as attracted to the product.
Different kinds of advertisement could be considered by Essence drinks such as print media,
internet, direct marketing, print media, and broadcast media. The essence drink can apply the
environment testing related to testing the effectiveness of a new product. For building the
innovative business case, Essence drinks can estimate the budget for the entire business.
Projected total expenses of Essence drinks
Type of expenses Cost
Manufacturing cost $500
Cost of Raw material $400
Cost of Labour $450
Cost of Management $300
Cost of Marketing $150
Total $1800
Projected total revenue of Essence drinks
Name of the
product
Price of the
product
Quantity of the
product
Revenue from a
single type of
product
Litchi Lassi $3.50 200 $700
Mango Lassi $ 2 250 $500

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Pineapple Lassi $ 3 200 $600
Orange Lassi $ 2 200 $400
Plain Lassi $ 1.50 400 $600
Total revenue $2800
Hence, the projected total profit of Essence drinks will be
(Total Revenue – Total cost)= ($2800 - $1800)= $ 1000
P7 Different tools that organizations can use to develop, retain, and protect knowledge
and intellectual property
Essence drink can create as well as protect the understanding as well as intellectual property
by practicing different fundamental technique. It is described as given below:
Patent:
With respect to any invention, the patent can be used as the property right of shareholders.
For 20 years after filling the application date, the patent can be an effective invention and
non-obvious. In the UK nation, protection is obliged as well as patent must be applied for
protection of the patent.
Trademark:
An expression, sign, and design that address services and product of a specific source is
known as a trademark. It also contains the logo or brand. Essence drinks can use a trademark
as a caption, tagline, and business name.
Copyright:
In the circumstance of creative work such as films, artistic work, computer programs, music,
and sound recording, copyright can be used as a set of rights. It can be granted only with the
intention of reproducing the material by the owner.