Innovation and Commercialization Strategies: Essence Drinks Report

This report provides an analysis of innovation and commercialization strategies, focusing on Essence Drinks and their potential launch of a new product in the UK market. It differentiates between invention and innovation, emphasizing the importance of value creation and brand image improvement. The report explores various approaches for generating innovative ideas, including Drucker's sources of innovation, and evaluates how organizations develop, embed, and measure innovation. It also explains the 4Ps of innovation (Paradigm, Product, Process, Position) and the utilization of the innovation funnel. Further, the report elucidates developments in frugal innovation, providing examples relevant to Essence Drinks, and outlines the steps the company should take to derive a new and innovative drink. The second part of the report discusses the significance of the commercial funnel and New Product Development (NPD) processes, building an innovation business case for Essence Drinks. It evaluates the nature of innovation and the context in which it is developed, highlighting tools for developing, retaining, and protecting knowledge and intellectual property.

Innovation and
commercialisation

CONTENTS
INTRODUCTION......................................................................................................................1
PART – 1....................................................................................................................................1
Presenting an innovation along with its importance...............................................................1
Presenting how organization’s vision, leadership, culture and teamwork can shape
innovation...............................................................................................................................2
Sources of innovation.............................................................................................................3
Evaluating the manners in which innovation is developed, embedded and measured in an
organisational context.............................................................................................................3
Explanation of the 4Ps of innovation and utilization of the innovation funnel for examining
and shaping innovative ideas..................................................................................................4
Elucidating developments in frugal innovation and providing examples..............................5
Steps Essence Drinks should go through for deriving a new and innovative drink...............5
PART – 2....................................................................................................................................6
Background of the company and the problem........................................................................6
Significance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation.........................................................6
Building an Innovation Business Case for an organisation....................................................7
A detailed Innovation Business Case.....................................................................................8
Evaluating the nature of innovation and the context in which it is developed.......................8
Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property with support-based evidence.................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Innovation is the process through which the product and services is renewed and
brought in a different manner by applying new process and introducing new technique that
helps to create a new value. However, the entire study is based upon the essence drink which
launch another new product into UK market that help to attain sales. The report will explain
difference between invention and innovation and provide value to the company as well.
Further, it also determines different approaches which a firm can take in order to generate an
innovative idea and then recommend the best as well. Further, report will also assist to
identify the ways through which the new products can be improved and provide a business
case as well. Also, report will determine the different tools which in turn assist to protect the
company by applying different intellectual property rights so that the product can be
protected.
PART – 1
Presenting an innovation along with its importance
Innovation is the process through which the company can renew its product and
introducing new technique which assist the business to attract new customers. It is all about
the creation of value and improve the business brand image (Reyes and et.al., 2021). It is
somehow different from invention and that is why, company are now focus more upon the
innovative ideas rather than invention.
Particulars Invention Innovation
Significance It is entirely related with the
creation of new product
It is all about adding value to
something which is already exist.
Concept It is mainly run on an original
idea and in the theory
It deals with a practical
implementation of new idea.
Concerned with The company when uses the
same deal with a single product
It is a combination of different
product
Example Light Bulb by Thomas Edison Small electric cars, a healthy mango
lassi by Essence Drinks (Barfi and
Sackey, 2021).
Importance of innovation for an organization:
 Growth: Company easily grows when it keeps adding new products into its business
and that is why, it helps a business in a rapid expansion. Similarly, Essence drinks
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also uses innovation at workplace in order to allow the business to work smoother and
expand the business.
 Differentiate: It has been analyzed that company is able to make itself differentiated
from others in order to let customers enjoy the services (Wang, Phillips and Yang,
2021). Also, company can remain competitive in such operations that help to improve
its brand image.
 Adaptability: It has been identified that pandemic affect entire business into negative
manner and that is why, providing new products and adding things into existing one
will help a company to overcome the challenges and raise the business performance.
Presenting how organization’s vision, leadership, culture and teamwork can shape innovation
The vision of the company is to provide an effective product and be a leader. This in
turn shows that the company can fulfilled the same by offering an innovative product that
helps to increase the overall performance. The main goal of the firm is to understand the need
of customers and also improve the process of launching new product so that effective
outcome can be generated. The leadership is that method which in turn help the company to
meet that organizational goal so that it assists to raise the success of a firm. There is only one
leadership style opted by the company’s leader which include democratic leadership and this
in turn assist to raise the success of the firm as well (Scott and et.al., 2020). Also, improving
the innovative product will help the business to generate a best outcome and this causes
positive impact over the business performance.
The culture of the company also shapes the innovation and commercialization
because company’s culture always helps the business to determine which values need to add
in the business so that effective outcome can be generated. Essence Drink also have an
effective working culture that create a better outcome and shape the process of innovation as
well (Cheah and Yuen-Ping, 2021). Teamwork of the company always help to solve the
problem and provide better outcome so working in a team always help a business to end with
a better result, As Essence drinks also prefer to work in the team that help to manage the
work in a specific deadline so that it also provides new ideas that help to shape the innovation
and improve business performance as well. That is why, it has been stated that team work
always help to formulate the process of an organizational innovation and commercialization.
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Sources of innovation
According to Drucker’s source of model, it has been analysed that there are 7 sources
that helps the business to improve the business performance. Some of them are also used by
Essence Drinks which are as mentioned below:
 Unexpected occurrence: Sometime innovation might be surprisingly and occur
coincidentally, that might be beneficial for the company to manage the same (Jiao and
et.al., 2018).
 Incongruities: The incongruity between the expectation and result is also open up the
possibilities for an innovation and that is why, Essence Drink also use the same in
order to improve the business performance.
 Process needs: It is the necessity where company need to make an action that helps to
provide bright ideas which in turn create a better thing and fulfill the existing needs.
Also, it can be stated that the things that need to be change so that it will help to
improve the operations of the company. That is why, it assists to improve the business
performance.
 Industry and market change: Industry along with market structure can remain stable
for many years but with the advancement of technology, many industries get
disrupted. In other words, the industry and market trend keep changes and that is why,
company need to adjust the same by analyzing the changing need of customers. A
change in the market or the industry provides opportunity for innovation.
 Demographic changes: Company can be impacted by one or the other by the
alteration in demographics. Further, these modifications have a significant influence
on the market because they identify the demands of the products (Bessant and Tidd,
2015).
Evaluating the manners in which innovation is developed, embedded and measured in an
organisational context
When talking in relation with the healthy drinks, innovation is being regarded as an
essential element as in its third year, Essence Drinks requires innovation in its old mango
lassi and need modification in its drink type. Nevertheless, being an innovation consultant, it
is crucial that firstly the innovation will be introduced on the types of drinks offered and final
it will be measured in commercialization with a view to have maximum profit. On the other
hand, alteration in the present processes is also needed as changes are done as per the
demands of the market and considering the upcoming results. Many a times, it happens
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without taking into account market trends and judgement, company manufactures varied kind
of healthy drinks with a view to get the clients inflected by the innovation of the firm and
remain in touch with the fresher things (Drucker, 2016).
Explanation of the 4Ps of innovation and utilization of the innovation funnel for examining
and shaping innovative ideas
Innovation is being referred as the process through which the firm develops novel
ideas as well as thinking, ne product and services. The 4 Ps of innovation that Essence Drinks
can take are as follows:
 Paradigm – This includes making improvement in the manners of business
techniques. It is also concerned with the alteration that in the existing products as well
as services.
 Product – It encompasses making the ways of making the product better through
utilizing innovation techniques. It is known as incremental change. However, radical
change involves making a product from the scratch.
 Process – It defines the manner in which the product is being delivered to the clients.
further, process does not involve preparation process and consists of activities such as
supplying, training, hiring and maintaining workflow (Matthews and Brueggemann,
2015).
 Position – The last one is position innovation, which is concerned with the own
perception. Further, it is a psychological category and decides the way firm frames the
product in front of the market through promotion.
All the above defined 4Ps of innovation helps in building the product and its
augmentation in an enhanced manner. In reality, it symbolises the all questions along with its
answers in one frame.
Innovation funnel
Innovation funnel defines the process of developing the product as well as processes.
As the name suggests funnel defines the overall process for creating along with attaining the
requirements of the marketing of the products and services. Innovation funnel act as a
refinery system in product innovation and its launching. There are different steps being
innovated in the innovation funnel in its journey of modified product as well as services. The
very first step encompasses the extensive mouth of the funnel which signifies collection of
information in regards with the innovation of the product, ideas and development of different
prospects for innovation (Wang, 2017). The second step is concerned with the segmentation
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of the accumulated data. In other words, it signifies screening of the gathered ideas. The last
step is in regards with delivering the selected idea effectively and meeting all the goals for the
firm is being established.
Elucidating developments in frugal innovation and providing examples
Talking in relation with the frugal innovation, it is being referred as the reduction in
unwanted cost along with production of valuable products for achieving greater profit
margins. Further, it helps in decreasing the complexity of innovation and offers maximum
number of profits from minimum resources for attaining sustainability. Frugal innovation
functions on bottom to top approach in comparison with the standard innovation which
functions on top to bottom approach. Frugal innovation plays an important role in Essence
Drinks and some of the reasons behind its importance are being elaborated in the subsequent
section:
 Lacklustre – Because of the growth and cutting funds for decreasing the debt will
augment the need for frugal products, service and innovation processes (Kralisch and
et.al., 2018).
 Environmental constraints – Due to the environmental restraints around resources,
water, energy and climate will augment the need for more frugal production models
and consumption.
 New technology platforms – Due to the development of new technology there has
been reduction in the cost of some forms of innovation, which in turn has developed
novel prospects for frugal innovation.
 Fast growing Markets – Since, the markets are developing at a faster rate, there is a
high demand of frugal products and services
For example, considering the case of Essence Drinks Frugal innovation, it will play a
crucial role in adding some new features as well as components in the existing healthy mango
lassi such as adding feature of low calorie and elimination of feature of yogurt and replacing
it with the milk or nay other form of diary item (Valikangas and Gibbert, 2015). This will
also help in reducing the cost and
Steps Essence Drinks should go through for deriving a new and innovative drink
Lassi is being regarded as a famous drink in the Asian restaurant in the UK market.
Mr. Akshaya Kumar has introduced mango lassi which is being loved by the clients in the
market. now, the firm is required to introduce a new flavour into the existing product for
gaining good share in the market and augmenting its sales. Firstly, it is important that the firm
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should perform, extensive research on the UK market for understanding taste and preferences
of the people. This can be done by conducting tests and surveys. After accumulating
information, the firm is required to know their own abilities and resources which are present
for fulfilling the demands of the clients (Morais and et.al., 2021). The leader of the firm
should keep innovative working environment and culture. Additionally, the Essence Drinks is
required to launch new flavours such as mint lassi, caramel lassi and chocolate lassi and the
samples should be given for checking whether consumers are liking the flavour or not. all
these new flavours will cater not only to the young generation but also kids and adults. Based
on the liking flavours can be launched in the market and promotion can be done though social
media, billboards and other forms of advertisements. With these simple steps, the company
can introduce new drinks in the markets of UK.
PART – 2
Background of the company and the problem
Essence Drink was being established by Akshaya Kumar two years back in the
markets of UK. The company has launched healthy mango lassi and achieved good amount
of sales and share in the market. However, with the stepping in the third years, the sales of
the company started decreasing and now the firm is required to launch new flavours in their
existing product lassi for regaining the share in the market and increasing their sales.
Significance of the commercial funnel and the application of New Product Development
(NPD) processing for commercialisation of innovation
Commercial funnel is also referred as sales funnel and depicts the journey of the
clients in regards with the purchase of a product and service. Further, they also act as a
revenue funnel thereby depicting different ideas in relation with the initiation of the sales
where a large group of clients are related and the ways they tend to get smaller throughout the
purchase time. The main significance that lies with the commercial funnel encompasses
awareness of the clients and determining of the issues carefully (Datta, Mukherjee and
Jessup, 2015). Moreover, there are five important steps of the commercial funnel and these
are awareness, opinion, consideration, preferences and purchase. It also involves searching
out of respective solutions to the issues through the utilization of an email campaigning as
well as social media marketing. Efforts are also being made for augmenting the client’s
interest to make sure that even with the reduced prospects of clients, the sales will augment.
Moving further towards the application of new product development (NPD)
processing of commercialisation of innovation it encompasses generation of the ideas,
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screening of the ideas, market evaluation, development of product and commercialisation.
The products are fully tested by the workers prior launching it in the market. seeking help
from the new product development and commercialisation funnel, Essence Drinks will be in a
position to drive products into the market and thus, building the innovation business case
(Trott, 2018). In addition to this, the market testing and the iteration direction to market are
given more significance in the process which further results in successful launching of
product in the market.
Building an Innovation Business Case for an organisation
The hardest element within innovation is making the business case. A good business
case is required to reflect the parts of clear discussion so that better qualification and
quantification of the information can be done. Further, it also needs to make sure conclusions
must reduce emotive parts for allowing the notion to firm up. some of the needs should be
enlisted for making innovative business case for allowing the company to measure their
performance and delivering ideas of their future activities. Essence Drinks is required to
involve the process of their product development, customer awareness program, pricing
strategy and market emergence. The first action that the company is required to conduct it to
develop their offerings of the product (Morais and et.al., 2021). They can do this by
modification and adding new flavours in their next batches such as mint, chocolate and
caramel lassi. Further, for earning more revenue, Essence Drink is required to set an
affordable price to the targeted clients. in the same manner, they are also required to set the
pricing skill for delivering the product in a fair price.
Other than this, the innovative business case should focus over funding as it is the
main process after innovation. Funding covers most of the part of the innovation. Thus,
below are certain measures that needs to be considered by Essence Drinks for raising funds
while performing innovation:
 Involvement of the stakeholders
 Clear vision of the firm
 Involving partners in the decision of the firm
 Plan for raising funds
 Suggested approach from experienced people
 Selecting right sources of funds that results in higher profits in minimum time
In addition to this, there are different funding options which are available to the
company such as research and development tax credits, equity finance, smart grants, debt
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finance, private investors and venture capital funds (Lüdeke and Freund, 2020). There are
different resources needed for proceeding with the innovation business case such as
operational, informational, material, technological and monitory resources.
A detailed Innovation Business Case
Building a detailed innovative business care provides exclusive technique of
managing one of the real issue areas within the innovation which makes the case very
convincing. Essential data should be offered to all the stakeholders by a clear transparent
process and these are:
 Providing varied creativity tools for starting the process, organising project data,
illustrating varied definition of success, offering recommended direction for
individuals making the case (Berendsen, 2015).
 Further, it is important to build the case, cost and benefit evaluation, factor evaluation,
illustrating prospect requirement and uncertainties and finally, evaluation of the
interest of the stakeholders.
 Another crucial factor that needs to be taken into account is making the strong
valuations of the competition level, tactical moves and what business model does the
business case considers for offering the fit and attracting commitment (Stead and
Hastings, 2018).
 Finally, moving back to the business case components check-list for presenting a
format that helps in building up and breaking down the case logically with the best
possible inputs, USP, financial and commercial value, clear time lines and milestones
and future resources required for translating this case into captivating commercial
prospects
Evaluating the nature of innovation and the context in which it is developed
Innovation is the fast becoming one of the most crucial factors for the success and
growth of the Essence Drinks. However, cultivating innovation in the company can prove to
be a dangerous inventiveness. Irrespective of this, there are many challenges which can be
faced by the company which might hinder the innovation progress. Some of the important
challenges are being illustrated below with steps to overcome the same for developing
successful innovations and these are:
 Workers are not empowered to innovate – The manager at Essence Drinks fears that
the innovation will distract the workers from the daily routine and thus, most of the
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workers are not empowered to take risks. This can be overcome by offering leadership
support to the workers (Biemans, 2018).
 Lack of collaboration – Another challenge which can be faced by the company is lack
of collaboration. Both internal as well as external collaboration is being regarded as
the key to innovation. This can be overcome by having innovation ecosystem as
through this, clients, competitors and industry partners are brought together for
driving innovation.
Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property with support-based evidence
Speaking in volume in relation with the intellectual property, it comprises unique and
different names, symbols, images, creation, artistic work, technology and notions that can
offer a firm some financial benefits. Further, the intellectual property protection laws support
in defending and caring the unfair utilization of knowledge and features of products by the
competitors. Essence Drinks can have four types of tools for developing, retaining and
protecting knowledge and intellectual property and these are as follows:
 Patents – A patent offer property rights on a specific innovation. It also stoeps people
and other investor to produce, sale or make utilization of the same invention. It is
crucial to protect the invention because they can offer competitive edge to the firm in
the market (Davoudi and et.al., 2018).
 Trademarks – Trademarks are being defined as the symbol, phrase work and design
that supports in determination of one business from the other group of same kind of
business. Essence Drinks can register their trademark with UPSTO.
 Trade Secrets – This is very diverse from intellectual property as it is a formula and
business technology or information that the firm keeps private for getting a business
edge over the other competitors. This can be anything that is product formula, client
list or survey outcomes. Furthermore, the company will not get protection just by
registering in some protection bodies. Rather, the firm is required to keep it secret by
their own.
 Copyright – It helps the company by protecting the original work from getting
imitated or produced (Lewin-Lane and et.al., 2018). At the time of having copyright
protection, the firm or the group is required to reveal the work in some kind of
palpable medium of appearance.
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CONCLUSION
By summing up above report it has been concluded that innovation plays an important
role in the success of a company and that is why, most of the company implement different
technique in order to improve the business performance. Also, the study concluded that
innovation plays an important role in vision, leadership and culture because it assists to shape
the business values. Moreover, the importance of commercial funnel also entails that
company need to identify the ways through which it meets the need of customers and
improve the business performance as well. Also, it has been identified that bank loan and
personal saving are considered as a major source of funding which in turn assist to meet the
defined aim. Therefore, it has been concluded that different intellectual property needs to be
used which assist to develop and retain the company’s product that include trademark.
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