Innovation and Commercialization in Essence Drinks: A Case Study

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INNOVATION AND COMMERCIALISATION SHELL
STUDENT NAME-
STUDENT ID-
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Table of Contents
Introduction.................................................................................................................................................3
LO1. Explain the context for innovation and determine the difference between innovation and invention. 4
P1. Explain innovation and determine its importance to the organization in comparison with the
invention..................................................................................................................................................4
P2 Explain how organizational vision, leadership, culture, and teamwork can shape innovation and
commercialization...................................................................................................................................6
LO2 Explain the different types of innovation............................................................................................8
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.......................................................................................................................................8
P4 Explain development in frugal innovation and provide examples of how it is used in an
organizational context............................................................................................................................10
LO3 Discuss the process required to commercialize innovation................................................................12
P5 Explain the importance of commercial funnel and the application of New Product Development
(NPD) processing for commercialization of innovation........................................................................12
P6 Build an innovation business case for an organization, including ways to access funding...............14
P7 Evaluate the different tools that organizations can use to develop, retain and protect knowledge and
intellectual property...............................................................................................................................16
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
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Introduction
The report focuses on the innovation and commercialization need in an organization. The
organization chosen is essence drinks which started with just a mango lassi in the UK and now
wants to grow and produce more health drink to survive the competition. This is the reason why
innovation and commercialization are in need of this organization. This report will focus on the
importance of innovation and various types of innovation. Also, a deep understanding of
innovation and invention will be learned and what is the major difference between them. The
organization wants to focus on the 4P's of marketing which concludes to product, price, place,
and promotion. As a deep understanding of 4P's can be very helpful for the organization in the
commercialization of the new products. Innovation funnel and frugal type innovation will also be
discussed. As these two are necessary for an organization like essence drinks(Annala et. al.,
2018). The organization has been boomed in two years with only one drink only. For the
commercialization, the commercial funnel will be looked upon. A budget will be calculated in
the business plan made for the essence drinks to help grow and beat their competitors. In the
ends, the report will focus on various tools and methods to save the knowledge of the
organization from being copied.
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LO1. Explain the context of innovation and determine the difference between innovation
and invention.
P1. Explain innovation and determine its importance to the organization in comparison
with the invention.
Innovation is the practical implementation of the invention projects. Innovation is done to make
the product better and up to the users' satisfaction. Innovation helps in making the company grow
and reach a higher level. By reaching the higher level the organization is basically leaving its
competitors behind. Innovation refers to the implementation of creative and new thoughts. For
the implementation, the user may require various other methods and tools. These tools might be
related to the invention. Innovation is more practical then invention. The invention is the
thinking of a completely new idea which has never been thought before. The invention does not
include practical implementation, only the theoretical part resides in the invention. Innovation is
the most important than invention for any organization. As a company can stay in the market or
withstand its competitors if their products are better than the other organization (Berry & Berry,
2018). If the organization maintains the quality of the product, it is easy for them to reach a
higher level. Innovation is required to satisfy customers and make their old product new. Many
strategies can be used for this, the strategies would include Ansoff's growth matrix. In this
market, penetration is seen which is connected to introduce the old product in a new market. This
is important for the introduction of new technology and techniques in the society and the people.
Along with this, many other people have also done this work and have achieved great height
with the help of this. The organization is on top of the sky with this.
The invention is the beginning of a new project which has never been seen before. These types of
projects are rarely seen and are needed for the betterment of society. With the help of invention,
new projects can be created which can be of further help to other people and organization (Falola
et. al., 2018). New technologies will involve in this work and the project will then be completed
and given to the organization for the practical implementation which comes under innovation.
Invention and innovation may seem like the same but are very much different and needs to be
proceeded along with their procedure. Both of the terms procedures cannot be mixed. Essence
drink is based in the UK and as a UK organization, it takes up a lot of courage to introduce only
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one product i.e. mango lassi in there for the betterment of the people. Many people were
attracted to it and gave a full welcome to the organization. This has helped the organization in
reaching a new height. But looking at such a great exposure many other competitors have applied
the same technique, for which the organization needs to work upon and give an innovative drink
to the society. This is the main reason for the essence drinks to produce innovative drinks to
withstand the competition and produce more healthy drinks (Haque et. al., 2019). This can help
them to grow and not to fall back because of the presence of other drinks.
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P2 Explain how organizational vision, leadership, culture, and teamwork can shape
innovation and commercialization.
Organization vision is very much important for any step that is being taken up the organization
for the betterment of the products and the growth of the organization. As the organization know
and have a vision before starting any project. So the person knows that whether the product is
going to be a boom in the society or not. For this organization vision is important. Many other
methods and techniques have been used for implementing the organization vision. This vision is
related to the knowledge present in the organization related to the product that which is correct
and which is not. What all methods can be applied and what all cannot. Vision helps in the
innovation as well as in the commercialization (Jena et. al., 2018). Commercialization is related
to the marketing and advertising of the product that is being made and advertised to be brought.
Leadership skills are some of the very basic skills which are needed for maintaining the shape of
the procedures which are being followed. There are many shapes which are being followed by a
person to achieve something and the same goes for the organization. There are some of the steps
which are needed to be followed for the proper shape of the innovation in a certain product. Here
comes the role of a leader which is very much needed by the organization. Leader's job is to see
what is going on and instruct other employees to work accordingly. Leaders are not meant to be
following other but they should have that much capacity and quality that they should not be
doing all this work and should only lead for the shaping of the innovation and commercialization
procedure. For essence drinks also, some leaders are needed to keep in check the procedure of
the work which is going to be followed throughout for the innovation in the drinks and the
development plan for the drinks which needs to be developed (Lee et. al., 2018). All this is for
the betterment of the essence drinks only. This can make them reach a higher rank in the drink
industry.
Culture of every employee in the teamwork is required for the better growth and preparation of
the innovation. As innovation requires everyone thought to make it better so the culture of every
employee plays an important role in it. Along with this, many other methods are also being
involved in this. Culture is related to all the teaching which is being reached to a person which
plays an important role during the innovation. In drinking sector, essence drinks should see to all
the culture in which they are going to produce the drinks as any substance which is not related to
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their culture. Teamwork should be the first priority for any organization because it can help in
bringing up the best product for the sale (Leliveld & Knorringa, 2018). Essence drink can take up
a lot of help while looking towards the teamwork and the culture of the product. This will help in
the shaping of the innovative drinks in the essence drinks and its commercialization.
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LO2 Explain the different types of innovation
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.
Essence drinks is an organization which started with one mango lassi drink in the UK and has
grown rapidly. But nowadays the innovation has many stages and levels and many types as well.
All this is done to help the organization reach a much higher position in the market. There are
four types of innovation present in the market. The first is the disruptive innovation in which
new technologies are used and applied to the organization. The second is the Radical innovation,
in which revolutionary technologies are being used and set up for the performance of the
organization and help the organization to perform the revolutionary act and produce the
revolutionary product. In the third innovation which is incremental innovation, customers are the
one on whom the whole asset is focused upon(Marks & Gottlieb, 2018). Their satisfaction is the
foremost thing which is being worked and looked upon. Architectural innovation can be
understood by that it is focused upon performing and implementing various needs, skills and
technologies to the products that are being developed in the market. These are some of the types
of innovation on which the organization can think upon and work upon for the betterment of the
organization.
There is 4P's present for the innovation which should be followed and acknowledged by every
innovation in the organization. These 4P's stand for product, price, place, and promotion. Product
is the end product on which the innovation is being done and performed. Product is being made
by looking upon the needs and demands of the customers. Products should be made for the
betterment of society and not for the betterment for an organization only. Price of the product
plays an important role in the innovation and the sales department. As the price should not be
that much high, that there is no value for the innovation. In the starting the price should be
maintained at a low level, i.e. there should not be a huge profit, as it will help in attracting the
customers and ones the customers get addicted to the taste and function of the product than the
price of the product can be increased. The place should be looked upon first, this is directly
proportional to the demands of the people. Where ever the demand is the highest, the product
should be launched there and innovative ideas should be taken from that place. This should be
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done to gain the maximum profit. As more the number of people more will be the buyers for the
product. The next P is the promotion this comes under the commercialization department but
should be done to their full extent to help the organization (Meagher, 2018). The promotion can
be done of various means nowadays the most common is social networking. As everyone is
connected to social media, so it will be easier to create awareness for the product in the people.
These are some of the points which should be kept in mind for the development of innovation in
the product or an organization.
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P4 Explain development in frugal innovation and provide examples of how it is used in an
organizational context.
Frugal innovation can be referred to the innovation which focuses on not inventing something
new but making the old product better and useful by removing the unwanted functions. These
functions can be unwanted or are wastage for the product if are present, this will only increase
the value of the product or the resources which are utilized for the product will be wasted. Frugal
innovation can be very useful for small organization as they can easily save the resources and the
cost which are going to be useful for the organization in some other way (Pisoni et. al., 2018).
All this can be very helpful in maintaining the funds of the organization and the resources. As
this can be a solution for the depletion of the resource and can be worked upon in order to save
resources. All of the following work should be maintained and done with care and in a precise
manner to help the organization.
For the essence drink, frugal innovation can be of very much help as essence drink is not a very
large organization but is a small organization which can use frugal innovation for making their
drinks better than their competitors. Essence drink started from selling a mango lassi but has now
reached a much higher level and above their expectation. But the company still needs to grow
and beat their competitors. For this, the organization will not waste that much of resources(Peretz
et. al., 2018). As being a small organization the essence drink does not have that much of
resources available, so by implementing frugal innovation, they don't have to invest that much on
the accounting department. In fact, they can create a new product by implementing another
flavour in the already present drink. All of this is being done to help the organization to not
waste resources and use that money for the other procedures.
Essence drinks can use frugal innovation depending upon the area in which the organization is
going to operate. The area here refers to the place in which the organization will operate and the
product will entirely depend upon the needs and demands of the customers. All of this is needed
for the betterment of the product. Essence drinks can operate a more functional drink which can
be healthy, nonfat, gluten free in the upper east are of UK while there can be a less of people
who will not have that much knowledge about the work and can be of very much use in the
department and the area. Another flavour of drinks can be made, which can be very helpful for
the organization and as well as effective while implementing the frugal innovation. All the work
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should be done in the following manner and in proper steps and process only. Frugal innovation
can help the essence drink to reach a new and a much higher level in the market and among the
competitors without investing that much of funds in the innovation.
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LO3 Discuss the process required to commercialize innovation.
P5 Explain the importance of commercial funnel and the application of New Product
Development (NPD) processing for commercialization of innovation.
According to (Rajapathirana & Hui, 2018) to gain profit, it is important for an organization to
develop and provide the product in the market according to the demand of the market so that
maximum profit can be made through the new product in the market. It can observe that each
product need to be provided in the market on time so that it becomes easy for an organization to
enhance their policies in the product and can be used to cover the basic principle of the market.
Commercialization is necessary for the new product to develop and applying the improvements
in the product because improvements can be collected from the customer through their feedbacks
about the product. These feedbacks need to be implemented on the new product for the proper
growth of the product in the market.
Importance of commercial funnel for NPD processing
Commercialization means to provide the product in the market for organizational growth.
Development of new product is based on the market demand and the type of customer base
available in the market. So, for each organization, it is very important to understand the market
needs accordingly to provide the most suitable product to the customer for better use and to make
more profit to enhance the capabilities of an organization to perform well in the market.
 Development of the base for the product in the market: Commercial funnel is important
for an organization to provide the customer base in the market so that product can be
easily available for sale in the market. Also, to keep the product attractive and effective it
is important for an organization to search the area where the demand for the product is
highest so that product quality can be maintained in the market. Availability of the
product is an important goal for an organization which needs to be fulfilled by the
organization because if the product is available in the market then it will be easy to get
more profit (Rosca et. al., 2018).
 Strategy development: Commercial funnel is helpful in deciding the strategies for the
market according to the type of customer base available in the market to improve the
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