Innovation and Commercialisation: A Business Case for Essence Drinks

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INNOVATION & COMMERCIALISATION
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Table of Contents
LIST OF FIGURES.............................................................................................................................3
INTRODUCTION............................................................................................................................. 4
LO1.................................................................................................................................................5
P1 TO DETERMINE THE IMPORTANCE OF INNOVATION IN COMPARISION WITH INVENTION. .5
P2 TO DETERMINE HOW ESSENCE DRINKS’ VISION, LEADERSHIP, CULTURE AND TEAMWORK
CAN SHAPE INNOVATION AND COMMERCIALISATION..............................................................6
M1 TO ANALYSE DIFFERENT SOURCES OF INNOVATION, AND HOW ORGANISATIONS CAN
FOSTER AND DEVELOP AN ENVIRONMENT AND CULTURE OF INNOVATION............................7
LO2............................................................................................................................................... 10
P3 TO DETERMINE THE 4PS OF INNOVATION AND THE USE OF THE INNOVATION FUNNEL TO
EXAMINE AND SHAPE INNOVATIVE IDEAS...............................................................................10
M2 TO ANALYSE AND APPLY THE INNOVATION FUNNEL IN CONTEXT WITH ESSENCE DRINKS
................................................................................................................................................. 11
P4 TO ANALYSE DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE EXAMPLES OF HOW
IT IS USED IN CONTEXT WITH ESSENCE DRINKS.......................................................................12
M3 TO EVALUATE THE ROLE OF FRUGAL INNOVATION IN CONTEXT WITH ESSENCE DRINKS. 13
LO3............................................................................................................................................... 14
P5 THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND THE APPLICATION OF NEW
PRODUCT DEVELOPMENT (NPD) PROCESSING FOR COMMERCIALISATION OF INNOVATION.14
P6 TO BUILD AN INNOVATION BUSINESS CASE FOR ESSENCE DRINKS INCLUDING WAYS TO
ACCESS FUNDING.....................................................................................................................14
M4 TO BUILD A DETAILED INNOVATION BUSINESS CASE WHICH INCLUDES HOW TO MEASURE
ITS OVERALL EFFECTIVENESS USING APPROPRIATE TECHNIQUES AVAILABLE TO TEST, ITERATE
AND IMPROVE......................................................................................................................... 15
LO4............................................................................................................................................... 17
P7 TO EVALUATE THE DIFFERENT TOOLS THAT ESSENCE DRINKS CAN USE TO DEVELOP,
RETAIN AND PROTECT KNOWLEDGE AND INTELLECTUAL PROPERTY......................................17
M5 PRESENT SUPPORTED EVIDENCE-BASED EVALUATION OF THESE DIFFERENT TOOLS IN THE
CONTEXT OF THE WIDER BUSINESS ENVIRONMENT...............................................................18
CONCLUSION............................................................................................................................... 19
REFERENCES.................................................................................................................................20
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LIST OF FIGURES
Figure 1 Innovation Sources.......................................................................................................... 7
Figure 2 Innovation Funnel............................................................................................................ 9
Figure 3 Innovation Funnel.......................................................................................................... 10
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INTRODUCTION
The growth of organizations depends upon the new innovations as well as commercialization in
the market. In this report, the discussion will be laid upon the innovation and commercialization
in context with the Essence Drink Company. The increase in the competition in the energy
drinks company has made the Essence Drink to promote the innovative products in the market.
Thus, this report will emphasize how through commercializing the innovative products, the
company sustains in the dynamic market. There is a huge impact on leadership as well as a
culture on the innovation. The suitable innovative form and the related methods will be
determined for the company’s development. In the later segments, the detailed discussion will
be laid upon the innovation frugal and innovation funnel and also the innovation process that is
to be commercialized.
In the UK, Essence Drink Company founded by Akshay Kumar is being established which
produces the drink named lassi prepared from fresh mangoes. There is a huge demand for lassi
in the UK market. So as innovation consultant of Essence Drink, this report will explain the
importance of innovation in the competitive market by continuing to sell lassi but along with
producing the new products makes the Essence Drink to increase the revenues.
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LO1
P1 TO DETERMINE THE IMPORTANCE OF INNOVATION IN COMPARISION WITH
INVENTION
Generally, there is no difference between innovation and invention as the main concept of the
terms is to introduce the new items and products in the competitive market. But the basic
difference between the two is explained in this segment and also their importance in the
organization named Essence drink is presented (Goffin and Mitchell, 2016).
Innovation
The process of launching the idea for the new products in the market is known as innovation.
The innovative products lead the organization to success. The factor that drives the process of
innovation is intellectuality, sophisticated, differentiating, etc. that makes an organization to
produce innovative products (Jensen et al., 2016).
Invention
In the process of invention, the execution of the idea developed is being done. This means that
invention deals in formulating the idea developed in the innovation stage to bring the new
products in the market (Kasemsap, 2017).
Comparison between innovation and invention
Innovation Invention
Implements the idea for developing the new
products or modifying the existing products.
Executes the implemented idea for developing
the product.
Skills of marketing, strategic and technical are
required.
Scientific skills are required.
Concerned with the combination of several
process and products.
Concerned with the single processor products.
The whole organization is involved in
innovation.
Only the research and development
department is involved (Bertoni and Tykvová,
2015).
Importance of Innovation in context with Essence Drinks in comparison to invention
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Innovation is the process of inventing the new idea for a new product while the invention is to
convert the ideas into the action. Essence Drinks the UK based company produces the mango
lassi. The innovation of the product at Essence drink means to modify the lassi or to bring the
new product in the market while invention at Essence Drinks means to actualize the process of
an innovative idea. Most of the successful companies invent their products by adding the
innovative features in the products so that their products get differentiated from the existing
product and also with the competitors’ products which is the key towards their success
(Alexander and Joe, 2019). The main reason for the importance of innovation is that the people
nowadays demand innovative products, different products which drive the companies to
produce innovative products and become successful. In Essence Drinks, due to the huge
demand of lassi among the people of UK, and the increase in the competitors with different
flavoured drinks, it is required to develop the innovative ideas and add value to the services so
as to increase the revenues and become successful. While the invention is the process that will
formulate the idea generated at the company to modify and bring the new variations in the
products of Essence Drinks. Thus there is the great importance of innovation in the company so
as to reach to the stage of the invention and this will help Essence Drinks to compete in the
market (Jensen et al., 2016).
P2 TO DETERMINE HOW ESSENCE DRINKS’ VISION, LEADERSHIP, CULTURE
AND TEAMWORK CAN SHAPE INNOVATION AND COMMERCIALISATION
The innovation focuses on generating innovative and creative ideas. The invention deals with
formulating innovative ideas so as to generate the final new products. The main purpose of
innovation and invention is the commercialization of new products and services. The process of
commercialization deals in the collective process of innovation as well as invention, marketing
the products and communicating/advertising to the customers. In short, commercialization
means to launch new products in the competitive market (Kasemsap, 2017).
In an organization, the people wo0rking in the company has to perform according to the
organization’s vision, mission and objectives. At Essence Drinks for inspiring the employees, for
encouraging the workers, the concept of organizational leadership and culture is very essential.
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The vision of Essence Drinks deals in for achieving the growth in the sustainable terms, the
employees, partners, performance, and efficiency collaborate and accomplish with the goals of
the company (Jensen et al., 2016).
The leadership strategy at Essence Drinks adopted by the management is participative
leadership which ensures that the decisions of the employees are also taken into consideration
while forming the plans for the company. With the help of the leadership strategies followed at
the Essence Drinks, the managers of the company are responsible to manage the employees at
the workplace. This helps in inspiring the employees so that they also contribute in developing
the innovative ideas and will also provide the necessary suggestions (Overall, 2015).
The culture is another important factor that deals in bringing the innovative change in the
organization. The culture of Essence Drinks revolves around to encourage the organizational
employees to contribute to the change that took place should be innovative. The employees
will also feel motivated to work effectively towards the innovative goals of the company and
thus this will increase the efficiency of the business operations (Jensen et al., 2016).
With the team in the organization, the business operations are effectively performed. The
proper coordination and collaboration of the employees in the teams make the organization to
work in an effective manner. The teams at Essence Drinks perform their tasks as per the
defined vision and objectives and overcome the market challenges that affect the business
operations of the company by developing the innovative ideas (Overall, 2015).
M1 TO ANALYSE DIFFERENT SOURCES OF INNOVATION, AND HOW
ORGANISATIONS CAN FOSTER AND DEVELOP AN ENVIRONMENT AND
CULTURE OF INNOVATION
Innovation has various sources that will help in improving and enhancing the organizational
growth of Essence Drinks. This will also make the organization to attain the competitive level in
the market. Peter Drucker has introduced some sources of innovation that are applied in the
context of Essence Drinks as follows (Skibiński and Sipa, 2015):
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Figure 1 Innovation Sources
(Source: Pratap, 2018)
The unexpected
The market is the place where there is a number of opportunities found to develop the
business. Thus the founder of Essence Drinks Akshay Kumar focuses on analysing such
opportunities along with the research and development department of the company through
surveying the market. Through this, the demand for lassi and other drinks will also be analysed
(Pratap, 2018).
The incongruity
Sometimes there is the inconsistency among the performance of the tasks. This leads to the
incongruity. The incongruity is termed as the most complex term but is the primary key for
organizational success. The innovation that is to be required at Essence Drinks is influenced
through the incongruity.
Need for Process
The need process helps to determine the weak parts of the company so that the required steps
can be processed to overcome the weakness. Thus the process need is the task-oriented that
will assess the innovation sources and the related approaches for the execution of the business
(Skibiński and Sipa, 2015).
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The
unexpect
ed
Demograph
ics
Sources of
Innovation
The
incongruity
process
need
Changes in
consumer
perceptionn
new
knowledge
Changes in
industry and
market
structure

Changes in the market structure and industry
In this part, the technological changes that influence the company to take the necessary steps
to produce innovative products are being emphasized. Therefore, it is to be required at the
Essence Drinks to conduct the survey on the periodical basis to know the trends of the dynamic
market which will help the company to initiate with the innovative decisions (Pratap, 2018).
Changes in the perception of consumers
The perception of the customer's changes according to the trends. This influence the Essence
Drinks to get some innovations done in the lassi so as to increase the demand for the products
in the market.
Changes in Demographics
Demographical changes deal in the changes in the economy which drives the companies to
focus on innovative decisions such the income of the individuals, the demand as per the ages,
education level, and taste and preferences of the customers. Therefore, Essence Drinks has to
consider such factors and produce innovative products (Skibiński and Sipa, 2015).
New Knowledge
The new knowledge deals with technological advancement and the new ways of conducting the
business. Essence Drinks has to stay regularly updated and develop new ways by framing the
plans of innovation (Pratap, 2018).
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LO2
P3 TO DETERMINE THE 4PS OF INNOVATION AND THE USE OF THE
INNOVATION FUNNEL TO EXAMINE AND SHAPE INNOVATIVE IDEAS
The innovation is the process of innovating the new ideas in an organization for the
development of the new or the existing products. John Bessant and Joe Tidd have introduced
the 4 Ps of innovation that is followed by Essence Drinks in the process of innovation mix
(GLAVESKI, 2017).
Paradigm
It is generally the business model of the organization which describes the requirement of the
innovation, changes required and how to get the changes implemented.
Position
In the position innovation, the company focuses on framing and communicating about the
products and services in the market to form the position.
Process
The process of innovation in the innovation mix depicts the process through which innovative
products are required to be generated.
Product
In the innovation mix, product innovation deals with the products that are offered by the
Essence Drinks and the already existing products that are required to be modified (Alexander
and Joe, 2019).
INNOVATION FUNNEL
Figure 2 Innovation Funnel
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(Source: Martin, 2016)
The process of innovation is determined through the innovation funnel. Such an innovation
process is used by the organization for developing the best quality innovative products so as to
satisfy the customer requirements. The feasibility of the idea is evaluated and helps Essence
Drinks to attain the objectives (Martin, 2016). The occurrence of the idea is evaluated through
the process which also involves the screening and thus eliminates the unused portion for
meeting the objectives. The innovation funnel comprises of three stages including the stage of
development, delivering the products and investigating the outcomes which also involves the
screening of the available resources. Thus ultimately develops the product and delivers the
same (Alexander and Joe, 2019).
M2 TO ANALYSE AND APPLY THE INNOVATION FUNNEL IN CONTEXT WITH
ESSENCE DRINKS
The following given diagram represents the process of innovation funnel that is adopted by the
Essence Drinks
Figure 3 Innovation Funnel
(Source: van den Ende, et al., 2015)
Engage and Inform
In the innovation funnel, engage and inform is the 1st stage that deals in converting the
developed idea at Essence Drinks into the execution of the idea for producing the innovative
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products. The in-depth information related to the products developed are collected (Wang,
2017).
Accept and Stretch
In the 2nd stage of innovation funnel, the filtration of the data is processed through which the
best possible outcomes can be achieved at Essence Drinks.
Selection
This is the last stage of the innovation funnel in which the Essence drinks executes on the
option selected in the last stage and develops the best quality innovative products (Wang,
2017).
P4 TO ANALYSE DEVELOPMENTS IN FRUGAL INNOVATION AND PROVIDE
EXAMPLES OF HOW IT IS USED IN CONTEXT WITH ESSENCE DRINKS
Frugal innovation means to reduce the cost of the product and increased simplicity. The main
purpose of frugal innovation is to eliminate the undesired characteristics of the product (Radjou
and Prabhu, 2015).
The main features of frugal innovation consist of restructuring the products for serving the
needs of the consumers, to reconfigure the value chains and also to ascertain the new models
of business. The innovation helps in overcoming the weak constraints of the company and will
help to sustain in the market (Weyrauch and Herstatt, 2017).
Essence Drinks for increasing the customer base towards the company not only for the mango
lassi, has emphasised on generating the new health effective drinks by being innovative in the
competitive market. The costs of the products of Essence Drinks have been reduced and the
demand of the customers is being considered while the innovation of the new products. Thus,
as well as new innovative drinks of Essence drinks, increase the profitability of the company.
Therefore, through the frugal innovation, the business model of the Essence Drinks is newly
developed and sustain among the competitors in the market (Radjou and Prabhu, 2015).
The customers’ perception their views are considered and the products are introduced by
fulfilling their requirements through the innovative products and services. Thus the low calories
drinks introduced by London Essence Company have increased the revenue of the organization
(Weyrauch and Herstatt, 2017).
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