INNOVATION AND COMMERCIALISATION: A Report on Essence Drinks Company

This report provides a detailed analysis of innovation and commercialization strategies, focusing on Essence Drinks, a UK-based company. It begins by differentiating between innovation and invention, emphasizing the importance of innovation in a business context. The report explores various sources of innovation, including organizational vision, culture, leadership, and teamwork. It then delves into different types of innovation (radical, disruptive, incremental, and architectural) and the concept of the 4Ps of innovation (Paradigm, Product, Process, and Position). The report also examines frugal innovation and its application within Essence Drinks, along with the commercial funnel and new product development processes. A business case for Essence Drinks is developed, including potential funding avenues for a new product. The report concludes with a discussion of the importance of innovation in today's competitive market and the role of various factors in driving successful product launches.

INNOVATION
AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Difference between innovation and invention and importance of innovation is business..........3
Different sources of innovation and role of vision, leadership, culture and teamwork in
embedding innovation.................................................................................................................4
Different types of innovation and concept of 4Ps of innovation and concept of innovation
funnel...........................................................................................................................................5
Developments in frugal innovation and its use at Essence Drinks to process innovative ideas. 7
Commercial funnel and New Product Development..................................................................8
Business case for Essence Drinks and ways for funding access.................................................8
TASK 2 ...........................................................................................................................................9
Covered in PPT...........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
In today's competitive business environment, every organisation focuses on to bring
innovation so that it can satisfy needs of customers and also sustain in markets. Essence Drinks
is a UK based company that started selling a Healthy Mango Lassi which achieved dramatic rise
and rapid early stage growth. The reason behind this was its innovative formula and its
distribution capacity. The founder of Essence Drinks i.e. Akshay Kumar decides to introduce a
new and innovative drink in the market. The report will explain about the difference between
invention and innovation and importance of invention in the business context. The report will
also explain about the various sources of innovation and concept of 4Ps will also be discussed.
Development of frugal innovation is also discussed and its uses for processing new and
innovation ideas. Further a business case will also be developed for the Essence Drinks and it
will also include ways for accessing funds for new drink.
TASK 1
Difference between innovation and invention and importance of innovation is business
Innovation refers to the process or act for making changes in the existing products or
services or business processes by introducing new ideas or ways. Innovation can also be stated as
bringing the change that leads to add value to products and services.
Invention refers to the creation and introduction of new device or products. It can be
defined as the act for creation, design, discovery of new device, process or method which has not
existed before (Difference Between Invention and Innovation, 2017). The invention can be a new
method or process for producing the product or it may be any improvement in the product.
Essence Drinks aims at introducing new drink that can achieve dramatic rise in sales and
also regain the market share. The introduction of new drink in the market can help the company
to gain competitive advantage. Thus, Essence Drinks focuses on introducing Fruit Punch Lassi
which is made from the blend of fruits and different flavours are also added to it such as nutmeg,
cardamom and saffron (Rosca, Arnold and Bendul, 2017). Innovation has a great and positive
impacts on the business organisation. Distinctive products can gain more attention and success in
the market which can be achieved by business organisation by innovating the products and
services. In case of Essence Drinks, introduction of new product that is also distinctive from
other competitors in the market area and also adds value to customers, it can achieve great results

and outcomes. Thus, innovation has great importance and brings many benefits as compared to
invention in the context of Essence Drinks and in today's competitive market environment.
Different sources of innovation and role of vision, leadership, culture and teamwork in
embedding innovation
There are different sources of innovation and it can be explained with use of Innovation
Opportunity listed by Peter Drucker. The 7 Sources of innovation are:
1. The unexpected success or failure
2. The incongruity
3. Process Need
4. Industry and market structure change
5. Demographics
6. Changes in perception, meaning and mood
7. New Knowledge
Unexpected success or failure of products and services is the main source of innovation.
In case of essence Drinks, failure of the Mango Lassi in the markets, created the option for
introduction of new product and its innovation. Changes in meaning or perception and process
needs are the other sources of innovation, in the case of Essence Drinks (The 7 Sources Of
Innovative Opportunity, 2019).
Organisational vision: The vision of the business organisation describes about where the
company aspires to be upon after accomplishing the mission (Zahedi And et.al., 2018). The
vision statement of Essence Drinks describes that it wants to become one of the most premier
company that provides innovative and high-quality beverage and drinks to people. And
according to the vision statement, company and its employees focuses on introducing the
innovative beverage and drinks idea.
Organisational culture: The culture of the company is aggregate of norms, values and
attitudes of its employees and it describes how things are to be done in the organisation. The
culture of the Essence Drinks focuses on selective recruitment, providing required training and
development programs and regular performance management and all these factors enable and
ensures that employees come up with innovative and creative ideas.
Leadership: Essence Drinks focuses that there are various personalities hired by the
company for delivering quality and innovative services (Tidd and Bessant, 2018). The leaders

and management team of the Essence Drinks are very innovative and they are focused on
effective guiding the employees. Different styles and perspectives are used by leaders for
providing direction and guidance to employees so that they can come up with innovation and
creation in business context.
Teamwork: Essence Drinks focuses that every member of the organisation works in a
team as it brings more benefits and effective outcomes. The organisational culture and structure
is formed in a way that people work in a team. It further helps in creation and introduction of
new ideas as people can share their views and ideas with other people.
Therefore, organisational culture, vision and mission statement, leadership and teamwork
can help in development of innovation in the business context.
Different types of innovation and concept of 4Ps of innovation and concept of innovation funnel
Crafting new and innovative idea is considered as the main purpose of the innovation
process and invention can be used for actualizing the innovation and for decoding the new
thinking (Souto, 2015). Essence Drinks aims at introducing new products for increasing the sales
volume and profitability as well. Thus, it needs to focus on following various forms of
innovation, such as:

Different forms of Innovation
Radical innovation: This form of innovation includes giving birth to new industry and it
includes creation of revolutionary technology. In the radical innovation, new products, process or
services are introduced and it brings significant changes.
Disruptive innovation: It involves application of new process or technology to the current
markets of the company. And it is known as stealth innovation (Rosca, Arnold and Bendul,
2017).
Incremental innovation: This is most common form of innovation and it focus on utilizing
existing technology and adding value to the customers by changing designs or features within the
existing market area.
Architectural innovation: This can be defined as taking lessons, overall technology and skills
and application of this is the new target market area.
Concept of 4Ps

The 4Ps of innovation or innovation mix needs to be used by the organisation, and it is
explained in brief as follows:
Paradigm: This is considered as the planned process through which organisation faces the
changes that takes place after implementing the innovative thinking, idea and process (4PS-
EXPLORING THE INNOVATION SPACE, 2015). For example, Essence Drinks needs to plan for
doing the business in the changed business situation. For example, this refers to bringing changes
or innovation in the underlying mental models which frames what organization does.
Product: This is considered as the main item that is offered by the company and this needs to be
able for providing value to customers. For example, Essence Drinks launches new Fruit Punch
Lassi and also provides effective services to customers, then it will lead to add value to company
and help in gaining competitive advantages. For example, the product innovation refers to

making changes in the things that is offered by the company, for example, in this case, the
product will be Lassi.
Process: This is referred as the way through which the products are provided to customers and it
is very important for gaining competitive advantage. For example, Essence Drinks needs to focus
on reducing the delivery process and it will help in increasing the sales of new product and also
in gaining competitive advantage (Radjou and Prabhu, 2015). For example, this refers to
bringing innovation or changes in the ways in which products of company are created and being
delivered to company.
Position: This deals with promotional activities which company performs for establishing its
existence in the markets. For example, in case of Essence Drinks, position innovation deals with
advertisement for new products and company through various mediums i.e. TV ads, billboards,
etc. For example, this refers to bringing innovation and changes in the context in which products
and services of company are being introduced.
Innovation Funnel and its use in examining and shaping innovative ideas
Innovation funnel refers to the mechanism which enables constant stream of ideas which
are then screened for the purpose of viability. This is also known as funnel management process
and it is used by business organisations for creating innovative ideas and also a realistic action
plan. Essence Drinks can make use of the innovation funnel for developing new ideas by
describing required steps through which idea can be used for effectively delivering better
services to consumers (Mollick and Robb, 2016). The steps of innovation funnel includes
collecting information and many ideas regarding particular concept. The next step includes
screening process for ensuring that idea matches with the organisational objectives and then last
step deals with the fact of chosen idea for delivering the objectives which are set by the company
as a whole.
Developments in frugal innovation and its use at Essence Drinks to process innovative ideas
Frugal innovation can be referred as the set of tools and techniques which are applied for
reducing the cost of products, its production and complexities as well. The non-essential features
or steps are removed in the frugal innovation in order to achieve required quality and to meet the
demands of customers. Essence Drinks can make use of the frugal innovation for reducing the
expenses and cost of products in dramatically low level by removing the unnecessary feature
from the products (Forés and Camisón, 2016).

The main components of frugal innovation are redesigning the products, reconfigure the
value chain and also to discover new business models. The innovation includes either to tap or
overcome organisational resource constraints for creating more inclusive markets. This is
considered as the extreme case of the innovation process. And in case of environment having
extreme resource constraints and cost, new applications are innovated for the purpose of
innovation. The information regarding the fact that how business organises the frugal on an
organisational purpose will be very small, if the frugal innovation's phenomenon are described
form the perspectives of product.
Commercial funnel and New Product Development
Commercialisation can be defined as the process that aggregates all the invention,
innovation, communication and marketing to the target customers. Overall, commercialisation is
the process for launching the new products or services into the markets. Commercial funnel is
also known as purchase funnel and it demonstrate the customer's journey towards purchasing of
product or service (Cunningham and et.al., 2016). Commercial funnel have five steps and they
are awareness, opinion, consideration, preference and last is purchase of product. The main
importance of commercial funnel is that it includes awareness of customers and also
identification of the problems thoroughly. They are also involved in finding out the respective
solutions for the problems by using social media marketing and through email campaigns.
Essence Drinks has developed concept in such a way so that it can obtain new and
innovative ideas and also to execute them within the product development process. The company
as incorporated the New Product Development, and through this, different products enter into
markets and it leads to widen the scope for employment opportunities (Bhatti and et.al., 2018).
Essence Drinks has adopted and implemented New Product Development and commercial
funnel, and through this, company is able to drive products into the markets. The importance of
this can be described as it gives importance to iteration routes to the markets and also to market
testing and thereby it leads to successful market launch.
Business case for Essence Drinks and ways for funding access
Essence Drinks aim at increasing the sales and market share of the company and for this
it can take any innovative business idea (Berry and Berry, 2018). The company may apply
environment testing in order to test the effectiveness of the new product. The nature of the
innovation implemented by the Essence Drinks is Incremental innovation. The company may

focus on personalizing the drinks and also ship the drinks to customer's doors. Essence Drinks
may also focus on using digital marketing for promoting and advertising the new products i.e.
Fruit Punch Lassi. In order to effectively commercialize the new product in the markets, both
innovation and invention plays a great role. The company also needs to focus on providing
required training and developments to its employees so that they can effectively solve the
business problems that may arrive in the implementation of new product into the business
context.
However, for introducing new idea and products in the market, company requires funds
and business needs to focus on accessing the ways for funding. The company may explore some
ideas for investment and funding opportunities to successfully implement the new product idea
in the business context (Aarikka-Stenroos and Sandberg, 2016). Following are given some ways
through which, Essence Drinks can access funds for the innovation of new product. Essence
Drinks may make use of personal savings and can also take personal loans. The company may
also take loans from the banks. It may also access funds through crowdfunding and this is
considered as the effective and fun way for raising money. The crowdfunding relies on various
small investments from the large number of people.
TASK 2
Covered in PPT
CONCLUSION
The present report will be based on innovation and commercialization of the business
organisation. Innovation can be simply defined as the transformations of an idea into the reality
and it can lead to bring great benefits and success for the business organisation. In order to
commercialise the product or service into the markets, various factors affect the innovation and
commercialisation process. The organisational culture, vision, leadership and teamwork helps in
developing and embedding innovation. There are four forms of the innovation which are
explained in the report and report also includes explanation of 4Ps of innovation. The report also
includes brief description of the innovation funnel, frugal innovation, commercial funnel and
New Product Development. Further a business case is also prepared that also includes ways for
accessing funds.

REFERENCES
Books and Journal
Aarikka-Stenroos, L. and Sandberg, B., 2016. Creating and Establishing Networks for the
Commercialization of Innovations. In Innovation in Healthy and Functional Foods(pp. 74-
89). CRC Press.
Berry, F.S. and Berry, W.D., 2018. Innovation and Diusion Models in Policy Research.
In Theories of the policy process(pp. 263-308). Routledge.
Bhatti, Y. and et.al., 2018. Frugal Innovation: Models, Means, Methods. Cambridge University
Press.
Cunningham, P. and et.al., 2016. The innovation policy mix. In Handbook of Innovation Policy
Impact. Edward Elgar Publishing.
Forés, B. and Camisón, C., 2016. Does incremental and radical innovation performance depend
on different types of knowledge accumulation capabilities and organizational
size?. Journal of Business Research. 69(2). pp.831-848.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review. 58(2). pp.72-87.
Radjou, N. and Prabhu, J., 2015. Frugal Innovation: How to do more with less. The Economist.
Rosca, E., Arnold, M. and Bendul, J.C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services. Journal of Cleaner Production. 162.
pp.S133-S145.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management. 51. pp.142-155.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Zahedi, A.E. And et.al., 2018. An integrated map to developing the innovation and
commercialization potential of Iranian knowledge-based companies. Cogent Business &
Management. 5(1). p.1523345.
Online

4PS- EXPLORING THE INNOVATION SPACE. 2015. [Online]. Available through:
<https://egyptinnovate.com/en/innovation-tool/4ps-exploring-innovation-space>
Difference Between Invention and Innovation. 2017. [Online]. Available through:
<https://keydifferences.com/difference-between-invention-and-innovation.html>
The 7 Sources Of Innovative Opportunity. 2019. [Online]. Available through:
<http://www.incrementalinnovation.com/innovation-management-development/7-sources-
innovative-opportunity>