Innovation and Commercialisation: Essence Drinks Case Study

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INNOVATION AND COMMERCIALISATION

Table of Contents
INTRODUCTION............................................................................................................................. 3
TASK 1............................................................................................................................................ 4
P1 Innovation and its importance to organization in comparison with invention.....................4
P2 Vision, leadership, culture and teamwork of the organization shaping innovation and
commercialisation..................................................................................................................... 7
TASK 2............................................................................................................................................ 9
P3 Explanation on 4 Ps of innovation and innovation funnel usage to examine and shape
innovative ideas......................................................................................................................... 9
P4 Developments in frugal innovation and its usage in context to Essence Drinks.................13
TASK 3.......................................................................................................................................... 14
P5 Importance of commercial funnel and application of new product development processes
to commercialise innovation................................................................................................... 14
P6 Building a business case including ways for accessing funds for Essence Drinks................17
TASK 4.......................................................................................................................................... 19
P7 Using different tools for development, retention and protection of knowledge and
intellectual property by organizations.....................................................................................19
CONCLUSION............................................................................................................................... 20
REFERENCES.................................................................................................................................21
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List of Figures
Figure 1 4 Ps of Innovation............................................................................................................ 9
Figure 2 Innovation Funnel.......................................................................................................... 11
Figure 3 Commercial or Sales funnel........................................................................................... 14
Figure 4 Process for New product development.........................................................................15
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INTRODUCTION
This assignment includes the understanding of the innovation as well as commercialisation in
context to the case study of Essence Drinks. Akshay Kumar is the founder of Essence Drinks
which is a UK based company that sells healthy Mango Lassi for two years. Tremendous and
rapid growth was achieved by the company in its initial two years because of its distribution
capability and innovative formula. However, the company observe a significant decline in sales
during the third year. Some new innovative Drinks are required to be introduced by the founder
of the businesses. The aim of this assignment is to understand the context and significance of
innovation and different type of innovation. Also, a discussion is to be carried out regarding the
process required to commercialise innovation (Dincer, 2017). At last this assignment includes
the interpretation of the tools and techniques required to protect ideas and intellectual
property in context to Essence Drinks.
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TASK 1
P1 Innovation and its importance to organization in comparison with
invention
DEFINITION
INNOVATION:
Multiple activities are involved in the processes to identify new ways of doing things and this
process is referred to as innovation. It refers to the alteration in processes or creation of new
effective processes, ideas, products and services. While referring to business, innovation means
implementing new ideas and designs in order to create dynamic products or improve existing
products or services (Dincer, 2017). It acts as a catalyst to the business for their success and
growth. Akshay Kumar of Essence Drinks is focused on creating new innovative flavours of
Lassis so as to improve and enhance its sales against the competitors in the market.
INVENTION:
The process carried out to create something new that has never been made is defined as the
invention. It is an intellectual exercise that connects multiple problem statements and comes
up with a new combination of an idea or thought to solve the problem. It is an overall
development of new product or services by the company that has never existed before (Chun
et al., 2015). There are various examples of the invention such as tube light, the telephone,
mobile phones and so on. The invention is the process used by the company when it goes into
in-depth research in order to develop new products or services which fulfils the ultimate needs
and requirement of the customers that have never met before.
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INVENTION vs. INNOVATION
Basis of
difference
Invention Innovation
Meaning It is referred to the conception of the
idea for a process, product or service
that has never been made before
(Powell, 2017).
It is referred to the conception of
ideas to improve and develop
existing the process, product or
services and meet the present or
new customers’ needs (Dezi et al.,
2018).
Focus Major concentration is on individual
product, service or process (Dezi et
al., 2018).
It combines all the different types of
products, services and processes
(Currie, 2018).
Concept The activities of the invention are
limited to the R&D department
conceptualise an original idea and its
theoretical functioning.
The activities of innovation expand
all over the organization and
conceptualize the practical
implementation of a new idea (Dezi
et al., 2018).
Skill
requirements
It requires scientific skills. It requires a broad set of technical,
marketing and strategic skills.
Examples The examples are electricity, fan,
helicopter, fan, printing press,
typewriter and telephone etc. (Currie,
2018)
The examples are iPhone, mobile,
tablets, LED bulbs, refrigerator,
colour televisions and so on
COMPARISON BETWEEN IMPORTANCE OF INVENTION AND INNOVATION TO THE BUSINESS
ORGANIZATION
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In order to avoid stagnation in business activities and functioning, both invention and
innovation are required. Innovative businesses adjust existing services, implement new ideas
and create dynamic products. In case if a business is not innovative then there arises the risk of
getting behind the competitors resulting in losing staff, decreasing engagement and ultimately
losing sustainability (Dezi et al., 2018). Most of the business organizations accredit their success
to the adoption of innovative practices, while the invention is can be beneficial to the business
however there is a difference between the level of importance and necessity according to the
industry. For example, is there is no innovation in education or technology, the development of
human beings would become flat and the requirement for the invention would be less relevant.
Therefore it is essential for the company to learn from the fast and take chances for the future
to grow.
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P2 Vision, leadership, culture and teamwork of the organization shaping
innovation and commercialisation
The owner of the Essence Drinks is required to have a clear vision along with effective
leadership, supportive culture and efficient teamwork in order to be successful. The innovation
practises must be aligned with their organizational elements so as to ensure innovation and
commercialisation (Tsai, 2015). Akshay Kumar needs to review its leadership, culture, vision and
teamwork so as to integrate innovation plus commercialisation in order to introduce new
flavours of Lassis and increase its sales.
ESSENCE DRINKS’ VISION:
The organizational vision is referred to the roadmap indicating the aims and objectives of the
company through laying a defined direction for the growth and progress of the company. The
owner of Essence Drinks must develop its vision as it greatly impacts the innovation and also
invention processes (Tsai, 2015). The vision of Essence Drinks can be to create a memorable
experience and taste to ensure the quality of health and wellbeing. It inspires the employees at
Essence Drinks to shape their innovative ideas and develop new flavours of Lassis to satisfy
consumers’ tastes and requirements.
AKSHAY KUMAR’S LEADERSHIP STYLE:
It refers to the manner plus approach selected by the leader to provide directions, implement
plans and motivate people in different situations (Bilandzic et al., 2018). Akshay Kumar is
required to adopt the leadership style in such a manner that he can inspire and encourage its
employees to generate innovative ideas to develop new wide flavours of Lassis. Akshay Kumar
can adopt either a democratic style or participative style so that the employees can share their
ideas and notions and develop a creative work environment.
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ESSENCE DRINKS’ CULTURE: it is referred to the behaviours, values and shared vision
contributing to the psychological and social environment of an organization (Powell, 2017). It
influences the way of interactions among the people and team along with clients and
stakeholders. Since participative or democratic leadership is adopted by Akshay Kumar which
creates open and effective communication between the team and owner. This encourages a
positive work culture and also inspires the employee to share their ideas and opinions
regarding the creation of new flavours of Lassis to increase sales.
ESSENCE DRINKS’ TEAMWORK: effective teamwork is crucial for business success. Teamwork is
the collaboration and coordination among the employee so as to utilise their personal skills
effectively in various situations and provide constructive feedback for efficient achievement of
goals or objectives (Powell, 2017). Akshay Kumar needs to develop a sense of faith, trust,
companionship and engagement among its employees and encourage them to work together
and shares their personal experiences, ideas and approaches to enhance innovation and
commercialisation.
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TASK 2
P3 Explanation on 4 Ps of innovation and innovation funnel usage to examine
and shape innovative ideas
ESSENCE DRINKS’ - INNOVATION MIX:
Bessant and Tidd developed a model named the innovation mix or the 4 Ps of innovation which
can be used to explore the innovation space in order to define the direction of innovation by
focusing resources to it (Akgun et al., 2017). It is imperative for the businesses to be innovative
to survive or sustain in business however the company is required to be innovation in all four
areas to gain long term competitive advantage.
Figure 1 4 Ps of Innovation
Source: Akgun et al., 2017
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The 4 Ps of innovation are product, position, process and paradigm. It provides the direction to
the business and determines the areas of the business or innovation. Innovation space supports
the process of idea generation and also the way the new idea is nurtured. In the model, the
circle is the potential innovation space indicating the area for operations by an organization
(Rubin and Abramson, 2018). 4 Ps of innovation is defined to four directions of change within
which innovation can be positioned ranging between incremental to radical change.
The elements of the innovation mix are:
Process: it includes the change in all the ways, activities and actions undertaken in the creation
and delivery of product or services (Akgun et al., 2017). Incremental change can be undertaken
by the owner of Essence Drinks so that the nutrition level and taste of Lassis sustain regardless
of making improvement in its manufacturing process and delivering processes.
Position: it refers to the changes made in the introduction and positioning of products and
services of the company among target consumers and in the market (Rubin and Abramson,
2018). Incremental change is to be taken by the owner of Essence Drinks so as to position itself
as healthy and nutritious Drinks among the customers and in the market with effective
customer experiences.
Product: it refers to making changes and improvements in the products and services of the
company to make it more appealing and better than the Drinks sold by the competitors (Rubin
and Abramson, 2018). The owner of Essence Drinks can make either incremental change that is
presentation delivery of Mango Lassi to radical change that is including frozen dessert of mango
Lassi or any other healthy fruit Lassi such as banana, strawberry, mint, chocolate, black grapes,
cardamom, and orange and so on.
Paradigm: it determines the changes and improvement in the ways of doing business. It
includes the changes in underlying mental models which frame the activities or doings of the
organization (Akgun et al., 2017). The owner of Essence Drinks can make changes in its business
models and include the delivery of Lassi orders through any online food ordering restaurant
application or personalised application and company website.
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INNOVATION FUNNEL:
Majority of the companies aims to evaluate the ideas generated and conceptualise products
and services in order to develop or improve new product or service. Innovation funnel is a
mechanism that helps the company to innovate its products and services effectively (Bagno et
al., 2017). It is a decision-making tool used by the organization enabling it to screen constant
stream of ideas for viability. It helps in generating a pool of ideas and refines it to convert the
ideas into the concrete development plan.
Figure 2 Innovation Funnel
Source: Bagno et al., 2017
The owner of Essence Drinks is required to use this innovation funnel in order to select one of
the most suitable and viable ideas to innovate its product, processes or services. The innovative
work environment is to be maintained by Akshay Kumar at Essence Drinks in order to an
innovative and realistic action plan. The management process of funnel innovation focuses on
screening each idea carefully and constantly while comparing it to various criteria, rules and
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