Essence Drinks: Innovation and Commercialisation Strategies for Growth

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INNOVATION AND COMMERCIALISATION

Table of Contents
INTRODUCTION............................................................................................................................. 4
P1 EXPLANATION ABOUT THE INNOVATION AND DETERMINING ITS IMPORTANCE FOR ESSENCE
DRINKS BY COMPARING IT WITH INVENTION................................................................................5
P2 EXPLANATION ABOUT HOW THE LEADERSHIP, VISION, CULTURE AND TEAMWORK OF AN
ORGANISATION COULD SHAPE THE INNOVATION AND COMMERCIALISATION............................7
P3 EXPLANATION ABOUT 4P'S OF INNOVATION AND INNOVATION FUNNEL IN EXAMINING AND
SHAPING INNOVATIVE IDEAS.........................................................................................................9
P4 EXPLANATION ABOUT THE DEVELOPMENTS IN FRUGAL INNOVATION AND ITS UTILISATION
IN ESSENCE DRINKS......................................................................................................................12
P5 EXPLAINING THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND THE APPLICATION OF
NEW PRODUCT DEVELOPMENT (NPD) PROCESSING FOR COMMERCIALISATION OF INNOVATION
..................................................................................................................................................... 14
P6 BUILDING AN INNOVATION BUSINESS CASE FOR ESSENCE DRINKS WHICH WOULD ALSO
INCLUDE FUNDING PROCESS.......................................................................................................18
P7 EVALUATION OF THE DIFFERENT TOOLS THAT ESSENCE DRINK COULD UTILISE TO DEVELOP,
RETAIN AND PROTECT KNOWLEDGE AND INTELLECTUAL PROPERTY..........................................20
CONCLUSION............................................................................................................................... 22
REFERENCES.................................................................................................................................23
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LIST OF TABLES
Table 1: Comparison between Innovation and Invention..............................................................5
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LIST OF FIGURES
Figure 1: Elements of Innovation...................................................................................................7
Figure 2: 4P's of Innovation........................................................................................................... 9
Figure 3: Innovation Funnel.........................................................................................................11
Figure 4: Frugal Innovation..........................................................................................................12
Figure 5: New Product Development...........................................................................................15
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INTRODUCTION
Innovation is a procedure of increasing the quality of the current product by providing new
ideas so as to present it in an appropriate manner. Using an innovative procedure is essential as
it helps a business to grow and increase its presence in the given market. In the present
scenario, the performance of any given organisation could be increased by using innovative
methods to enhance their business (Bain and Kleinknecht, 2016). In the given report, there
would be a discussion about the importance of innovation for an organisation called Essence
Drinks and how it is helpful in shaping culture, leadership and teamwork of the given
organisation. Furthermore, various types of innovations would be given due consideration.
Besides, there would also be a discussion about the process which would be required to
commercialise the innovation. At last, various innovative tools would be discussed with their
advantages and disadvantages.
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P1 EXPLANATION ABOUT THE INNOVATION AND DETERMINING ITS
IMPORTANCE FOR ESSENCE DRINKS BY COMPARING IT WITH INVENTION
In order for a business to grow and develop, innovation plays an essential role. It provides a
different structure to a given product so that it would be easy for the organisation to attract a
large number of customers. In order to adopt the innovation in a significant manner, the
coordination between the team and effective communication is an important part of the
innovation (Classen et al., 2014). There are various elements which have been given the highest
priority by the innovation and are as follows:
 Bringing improvement in an existing product
 Renovating the existing product
 More focus on useful content
 Bringing good changes in the product (DaSilva and Trkman, 2014)
There are various competitors for Essence Drinks in the given drink industry. The major purpose
of the company is to provide a healthy drink to their customers so that they would be able to
remain fit and thus would be able to maintain a healthy life. The head of the given organisation
came to know about changing the priority of the customers every day and thus identified the
use of innovation so as to satisfy the demands of their customers in a significant manner. In
order to expand their business beyond the UK, Essence Drinks require utilising services of
various innovative techniques so that they would be able to grow in other areas also (Cassiman
et al., 2016). There is a significant difference between innovation and invention which could be
understood using the following table:
Table 1: Comparison between Innovation and Invention
S.NO. INVENTION INNOVATION
1. It is a procedure where the idea has
been created but this idea is not utilised
further for creation of the new or
renovation of the existing product.
Innovation is a procedure the new idea
is effectively utilised for the creation of
an effective and accurate product.
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2. Invention requires the use of abilities
and scientific skills.
For innovation, marketing and
marketing skills are more than enough.
3. The invention utilises the services of the
theoretical approaches
Practical approaches are utilised for
using innovation for the creation of the
products
4. The invention can be used for further
research and development.
Innovation is effective in bringing
significant improvement in the current
quality of the given service or the
product.
5. The invention is impossible for the
normal people as only experts with
some scientific knowledge would be able
to perform it in an effective manner
Innovation could be utilised by people
with creative ideas and thus help in
providing benefits for the given
organisation (De Massis et al., 2015)
So although innovation and invention are different from each other, yet they are essential for
the smooth functioning of the given organisation and could adopt them based on their
situation. Thus, the growth in a business is possible by using both invention and innovation.
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P2 EXPLANATION ABOUT HOW THE LEADERSHIP, VISION, CULTURE AND
TEAMWORK OF AN ORGANISATION COULD SHAPE THE INNOVATION AND
COMMERCIALISATION
The innovation has a significant impact on the organisation leadership, vision, culture and
teamwork effectively. If the employees of the given organisation follow important standards
and policies, they would be readily being able to accept the innovation in their working. The
employees who are a highly talented and skilful person would be able to provide innovative
ideas and thus increase the growth and success rate of the given organization (Delgado-Verde
et al., 2015).
In order to gain more profit from the given industry, Essence Drinks could launch a new and
innovative drink in the market which should be supported by its management as well as
employees. Use of innovative products by the company would help it to attract a large number
of customers. Besides doing a different way to promote the product would help it to get a
cutting edge against its competitors. Leaders, teamwork, culture, and vision of the organization
are essential elements of the organization which in turn have a significant positive and negative
impact on the given organisation (Evans, 2018).
Figure 1: Elements of Innovation
Source: [Cassiman et al., 2016]
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VISION
The vision of the Essence Drinks is to provide to its customer's healthy products for their
consumption and thus increase their profitability. Furthermore, with the use of innovative
strategies and plans, the given organisation would be able to enhance its position in the given
market and thus secure a higher place in the given industry.
LEADERSHIP
Various leadership styles are followed by the leader of the Essence Drinks so as to easily tackle
any kind of problems. For the given organisation to grow in a significant manner; its
management should have strong and effective leadership. It is mandatory for the leader to
evaluate the requirement of innovation within its organisation in an appropriate manner (De
Massis et al., 2015).
CULTURE
There should be a good organisational culture which must be comfortable enough for
sustaining all the employees to work significantly in the given organisation. Essence Drink has a
well-managed modern culture where all the needs and requirements of the employees are
satisfied and where they work for their best to enhance the growth of the given organisation
(Fidel et al., 2016).
TEAMWORK
The most important part of any organisation is the teamwork which helps them to achieve the
goals and objectives of the organisation in a successful manner. If teamwork is accurate, it
would be easy for the management to accomplish their targets and goals easily. With the help
of teamwork, their team members would be able to accept innovation and changes within the
organisation effectively (Evans, 2018).
Thus teamwork, culture, and leadership have shaped the commercialisation and innovation
within the given organisation. There has been a significant impact of innovation on the
profitability of the organisation and thus helps it to enhance its productivity.
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P3 EXPLANATION ABOUT 4P'S OF INNOVATION AND INNOVATION FUNNEL IN
EXAMINING AND SHAPING INNOVATIVE IDEAS
The concept of innovation works on the procedure of 4P’s of the innovation as it helps in
understanding its needs and aspects in a different manner. It is required by the organisation to
understand the model and utilise it so as to fulfil the business needs. Essence Drinks has
adopted the given model which has been explained as follows:
Figure 2: 4P's of Innovation
Source: [Goss, 2015]
PARADIGM INNOVATION
It is a type of a fundamental innovation which provided new and innovative ideas so that the
given organisation would be able to develop its product in an appropriate manner. This would
help the given organisation to enhance its brand image and increase its presence in the given
market. Essence Drinks could utilise this innovation for launching a new healthy drink and thus
increase its presence in the given market.
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POSITION INNOVATION
The business position of the given market is enhanced using this innovation. With the help of
this innovation, the Essence Drinks would be able to improve their position in the given market.
Moreover, it helps in maintaining a good level of competition and thus is able to promote its
product in an appropriate manner (Hausman and Johnston, 2014).
PROCESS INNOVATION
Process innovation has less risk as compared to another kind of innovation and helps in bringing
significant improvement in the overall process of the given organisation so that it would be able
to enhance its product in an effective manner. Process innovation has some essential elements
such as:
 Plan implementation
 Problem resolution through the description
 Change Assessment
 Improvement in ideas via strong explanation (Goss, 2015)
For Essence Drink, this innovation would bring significant improvement in its growth and would
allow it to accept the growth in an appropriate manner.
PRODUCT INNOVATION
This innovation is useful when a new product pattern arrives in the market. In innovative
products, there is a showcase of synthesis, elaboration and resolution. Thus, this innovation
helps in enhancing the design and quality of the product.
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Figure 3: Innovation Funnel
Source: [Mahr et al., 2014]
INNOVATION FUNNEL
It is an important stage for innovation where the most essential ideas are first chosen and then
implemented and in this way, it helps in gaining a good amount of new and innovative ideas for
increasing the business of an organisation. In order to successfully attain a large number of
desired goals, the innovation funnel is important as it brings with it a large number of ideas.
Innovation funnel has various stages such as:
 Fulfilling the customers’ requirements by providing appropriate information
 Narrowing the tunnel’s section
 Providing cost-efficient resolution
 Laying emphasis on the group of customers which are cost-sensitive (Love and Roper,
2015)
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