Business Strategy: Innovation and Commercialization Report

This report examines innovation and commercialization strategies within the context of the Healthy Juice company. It explores the importance of innovation, organizational vision, culture, leadership, and teamwork. The report delves into the 4Ps of innovation, the innovation funnel, and frugal innovation. It also assesses the significance of the commercial funnel and the application of new product development (NPD). A business case is presented for Healthy Juice, outlining strategies for knowledge and intellectual property protection. The report analyzes the company's approach to product innovation, process improvement, and market positioning, highlighting the role of teamwork and leadership in achieving organizational goals. The study emphasizes the importance of adapting to consumer needs and leveraging innovation to maintain a competitive edge in the market. The report also covers the significance of commercial funnel and application of new product development (NPD) for Healthy Juice.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and its importance to firms in comparison with invention..................................1
P2 Organisational vision, culture, leadership and teamwork can shape innovation and
commercialisation.......................................................................................................................2
TASK 2............................................................................................................................................3
P3 4Ps of innovation and use of innovation funnel.....................................................................3
P4 Developments in frugal innovation........................................................................................4
TASK 3............................................................................................................................................5
P5 Significance of commercial funnel and application of new product development (NPD)....5
P6 Innovation business case for Healthy juice............................................................................6
TASK 4............................................................................................................................................7
P7 Various tools that Mr Green can use to develop, retain and protect knowledge and
intellectual property....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Innovation is a procedure of translating an invention as well as idea in to services or
goods which develops some value for customers which they pay. It is essential that idea should
be economical cost and also helpful in fulfil particular requirements of consumers. In addition to
this, organisations should innovate its product products as well as offerings in context to assure
that they are retain at competitive market place (Chesbrough, 2010). This report is based on
Healthy juice that is founded through Mr Daniel Green. This firm operate its business in the
market of United Kingdom with one single drink and also accomplish increment in sales in its
first year by using innovation as well as distribution capability.
TASK 1
P1 Innovation and its importance to firms in comparison with invention
Healthy juice company uses innovation in its business for the purpose of achieving
development as well as growth of an organisation that will aids in attract large number of
consumers. It is necessary that this firm should develop creative process for manufacturing its
unique or tasty juices or drinks to target more consumers. In addition to this, it is important for
an organisation to analyse wants as well as demands before developing goods (Dahlander and
Gann, 2010). Company should know about what drinking flavours consumers like and their
tastes. Significance of innovation given below as above:
 Manager of healthy juice develops its current strategy in order to gain attention of
customers.
 It is helpful in generate more revenue as well as revenue in effective manner.
 Top management of healthy juices organisation continuously trying to develop new
policies and applied them at workplace for make changing in current products.
 It is helpful in developing innovative goods for achieving aims of firm with in set period
of time.
Difference among invention and innovation
INNOVATION INVENTION
It is helpful in change and alter current services This term is used when an individual can create
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of products which are prepare for introducing
at large market. Its main focus on finishing the
requirements as well as demands of consumers
in an effective manner (Drucker, 2014).
and also develop some unique goods and
services which are never manufactured before.
Under this, it is necessary for changing in
healthy juices through enhancing in ingredients
value in order to gaining more attention of
many consumers.
The main focus of Healthy juices to design
fresh as well as new products which are not
seen through anyone before.
In addition to this, it is necessary for Healthy juices organisation to develop as well as
adopt new goods and make improvement in existing products. It will be helpful in fulfil demands
of consumers in significant or effective manner. Under this, innovation and invention both are
necessary for firm to increasing productivity and growth of business. The sales of Healthy juices
are increasing year by year.
P2 Organisational vision, culture, leadership and teamwork can shape innovation and
commercialisation
Healthy juices are set its vision, objectives and mission in order to accomplish set
objectives and aims in an effective manner (Edquist, 2010). For retain business in competitive
marker, it is necessary for Healthy Juices to bring some creative or innovative alterations in an
organisational structure to achieve objectives.
Vision- In order to clear regarding objectives and aims of company for increasing
motivate of manufacturing team for producing better quality of services and goods by increase as
well as execute better policies and plans. It is necessary for Healthy Juices to share vision of
company with its staff members for achieving set objectives in significant way.
Leadership- IT is necessary component of company and helpful in increasing
motivational level of team members for developing goods on the basis of needs of consumers at
market place. The employees of Healthy juices are more talented and have an ability to deal with
customers in significant manner. They needed for creating positive working environment so that
every staff member can give their better performance.
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Culture- The organisational culture of this firm is flexible and every one can adopt or
mix with its culture. The working culture of this firm is normal and motivate each person to give
its better performance. It will be helpful in address behaviour of person related to the cultural
activity by take care sentiments of all staff members.
Team work- In an organisation, team work is necessary and helpful for firm to achieve its
particular goals or aims which are necessary (Gassmann, Enkel and Chesbrough, 2010). It will
be helpful in analyse behaviour of employees which are working at workplace. Behind
motivating of employees, leaders play a necessary role and also provide right direction to them.
For employees, team work is essential because from this all employees can focus on achieving
aims of firm with in given time period.
TASK 2
P3 4Ps of innovation and use of innovation funnel
4P's of innovation invented through Joe Tidd and John Bessant. It is a necessary part of
an innovation and helpful in implementing change at workplace. Different kinds of 4's
innovation are mention below as above:
PRODUCT INNOVATION- It refers to introduction of services and products which are
new or make improvement in intended uses or characteristic. It is introduction and create new
services and goods or make some effective improvement in existing services and products to
make attractive. It is helpful in bring some change in product ion the basis of demands of
consumers. The Healthy juices produce goods by knowing about the needs of different
consumers. At market place, there are many people which come up with the new innovative
products. It will be helpful in increasing development and also growth rate of firm by motivate
staff members in an effective manner.
PROCESS INNOVATION- It refers to an execution of improving the manufacture or
delivery method. Small improvements and modifications and enhance manufacture capabilities
by adding the logistics or production system which are same as already in the usage. Process of
product development plays a necessary role in an organisation. It n addition to this, it is
necessary that continuous system update for increasing profit and manage time in proper manner
(Goldberg, 2013). Management of Healthy juices are use different techniques and tools in order
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to analyse business strategy in more suitable manner. For make improvement in production
process, this firm invest more money to purchase new machineries as well as technologies.
POSITION INNOVATION- It refers to modifications in particular process and goods
which are perceived as well as used. Its main focus on reposition of establish process and goods.
It includes activities which are conduct for reposition that the goods at market place for introduce
new. This kind of innovation is helpful for firm to supply goods which are liked through
consumers and make some of the necessary changes.
PARADIGM INNOVATION- It refers to dominant paradigms of firm or whole
industry. It is concerned with the metal model which give shape to business or firm. This
innovation deals with implementation of innovative thoughts in an organisation. It is helpful in
attaining objectives which are impacted through these kinds of innovation.
Innovation funnel- It is necessary funnel which firm use for choosing better idea. With the help
of this, all ideas those are represent in firm are more redefined and select one that suits on firm.
The ideas are developed through highly skilful staff members of an organisation.
P4 Developments in frugal innovation
Frugal innovation is an innovation which is helpful in use the less resources and reduce
operational cost in producing any new products. Frugal innovation is helpful in remove all
complexities in production process. At starting stage, Healthy Juice produces only single drink
but after some time it produces many other drinks. Frugal innovation is known as frugal
engineering with an aims of execute new marketing schemes as well as plans for achieving
attention of large number of consumers. In this modern era, there are different people which
convenience through in quality products (Huizingh, 2011). There is a need to Healthy juice drink
to manufacture goods which should be related with better quality of raw material. Frugal
innovation is helpful in creating as well as executing many strategies for develop many unique
products to consumers at market place. Some points related with development of frugal
innovation given below:
Reduce in production process amount- Through using the frugal innovation, Healthy juices try
to minimise its expenses cost in order to producing services or products. In addition to this, this
company buy better quality of raw materials at minimum cost and also work for the poor
individuals.
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Additional features of current products- IT is necessary for Healthy juice company to enhance
quality of products by using the better techniques and tools by implementing better policies for
plans to satisfy demands of consumers.
Develop reasonable and durable goods- Frugal innovation is helpful in generating more profit
as comparison to its strong competitors (Kline and Rosenberg, 2010). Healthy juice firm
manufacture durable products are reasonable cost for its consumers.
Maximise in innovative methods- The main focus of Healthy Juice company is on produce
goods of better standard as well as quality of using better tools and equipments for purchasers.
There are some stages in development of frugal innovation given below as above:
Iterate and Engage- In this, Healthy juice organisation regarding demands or needs of
buyers. It can only happen through observe customers and related to development of products in
effective way.
Flex your assets- Under this, manufacture tools are concerned with new raw materials
and supply chain which can reduce supply as well as demand in distribution channel and
procurement.
Develop sustainable solutions- In this, an employer should have better capabilities to
develop the effective solutions to production and R&D.
Shape behaviour of customers- In this, it is essential for company to know about provide
better shape to behaviour of consumers and they will also feel very satisfied.
Co- develop value with consumers- IN this modern era, consumers are regenerate to the
prosumers and their main focus is on making brand more attractive.
Make some innovative friends- With all external partners such as universities,
capitalistic, healthy drink company can make better collaboration in order to develop better
frugal products.
TASK 3
P5 Significance of commercial funnel and application of new product development (NPD)
The main focus of Healthy juices are on various ranges of services as well as goods
which are provided to consumers. It is a responsibility of manager to focus on produce better
quality of goods by using effective raw material. Through this, reputation of an organisation can
be improved in significant manner.
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Commercial funnel- It is procedure by which an entity determines better sources in
order to provide better quality of services and products. Innovators as well as managers thinks
regarding use of effective distribution channel to use better development and productivity
(Leonard and Rayport, 2011). With the help of using commercial funnel, management is able to
enhance its sales many times. Management of Healthy juices organisation use this concept at the
time of developing nay new product at market place.
Importance of frugal innovation given below:
Minimise loss- Through using the commercial funnel in better manner, any kind of defect
as well as loss can be minimized and with the help of this additional cost will also be reduced.
Improve quality- With the help of this, quality of goods will be improved by using
advanced technologies.
Stages of commercial funnel mention below:
Awareness- It consists more amount of prospects of consumers. At this stage, consumers
have identified issues and started searching effective solution to aware firm via marketing
content, social media etc.
Interest- Under this stage, number of prospects consumers start to reduce but possibility
of increasing sales enhances.
Desire/Decision- In this, consumers are aware about firm, reached out and also the
sought answers to necessary questions. It consists sales related offers.
Actions- It is a final step and in this consumers take their final decision regarding buy of
specific goods.
New Product Development- Innovating as well as introducing new things at the market
place in order to attract more consumers and also get competitive market. In addition to this, it
able an organisation to increase its profit level for retain at market place for long period of time.
Some steps in this process given below as above:
Idea Generation- It is first stage and under this firm develop its mind and use innovation
ideas for making staff members in its process of decision making. Ideas from various directions
are included by doing SWOT analysis.
Idea Screening- After generating many ideas, in this step there is a requirement to screen
all those ideas and select only that ideas which is worthful for company. In addition to this, it is
helpful in examining that new product should be beneficial for firm or not.
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Concept development and Testing- Under this, management selects an idea which has
been already screened and also made a discussion regarding convert idea in to product (Lundvall,
2010). For this purpose, goods sent to small market for testing and know about perception of
consumers.
Market strategy and development- Strategy is developed through project managers in
order to establish goods at target market. Under this, there is a need to company to develop its
market.
Business analysis -In this, management identify volume and sales which are determined
to specific goods or services. Under this, whole analysis is completed concerned with estimation
of sales, cost and profit in order to fulfil needs of consumers.
Product development- Under this stage, Healthy juice company finalize the
specifications of the final goods in order top fulfil demands of consumers in a better or effective
manner.
Test Marketing- Under this, marketer has an effective opportunity to test new goods at
market place and know about behaviour as well as perception of consumers towards that new
products. According to feedbacks of consumers, this organisation makes changes in its goods.
Commercialisation- IT is a last stage and in this, new product is introduced at market
finally. Healthy juices organisation execute its whole marketing plan and also faces more
production, promotion and advertisement cost.
P6 Innovation business case for Healthy juice
Business case is suitable technique as well as method which Healthy Juice company used
for generating more profit and also attract large number of consumers. Under this main aim to
choose this business case is to control as well as manage many barriers of this firm during
process of production ( Sawyer, 2011). Under business case, there are some various steps are
given below as above:
Executive summary- Healthy juices company offers its drinking products for consumers
and also develop for them various kinds of flavoured drinks so that they can enjoy and like
them., founder of this firm is Mr Daniel Green in United Kingdom.
Objectives- Main objective of this company is to offer modern and better quality of
flavoured drinks to people for attracting to domestic as well as international consumers so that
they can purchase more.
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Solution- This seeks to remove all problems or issues in order to produce creative
services to goods which provide them on the basis of their tastes or needs. Its main solution is to
using goods products and services in easy manner and enhance convenience of consumers.
Goods should be according to demands of customers.
Market analysis- Under this, it is a necessary process which aid in offering same
products to customers (Stokes, 2011).
Business analysis - It is essential for company to develop better planning as well as
support staff members in context to preparing innovative along with creative goods to attract
more consumers at market place.
Financial analysis- It is necessary tool which firm use to manage and doing all the
business activities in systematic manner. Under this, there are some different sources of funding
and these are investors, friends, family, shares, bank loan etc.
Expectable benefit- In this, it is necessary for Healthy Juices firm is to develop
innovative goods to many people will buy and provide benefits to company in an effective
manner.
TASK 4
P7 Various tools that Mr Green can use to develop, retain and protect knowledge and intellectual
property
The term intellectual property linkages which creations of minds, such as – new
inventions, artistic work, designs and symbols which are being for commercial purpose. IP is
protected in by law, it involves patents, trade markets, copyrights that enables individuals to
yield more profits in terms of money from what they have been create. By striking, proper
balance between interest of innovators and customers' interest; IP system helps in fostering the
environment which tend to flourish innovation (Tebbe, 2011). Following are the main tools
which are involved in intellectual property rights, such as -
Trademarks – It consists with recognizable sign, design or logo which differentiate a
product or service of a specific seller from similar substitutes of other traders. In traditional
times, trademarks consists to put a mark on products which are delivered to customers; it shows
identity of the company. Although, trademarks are easy for customers to find a dealer or seller as
it acts as an efficient communication tool.
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Copyrights – It gives exclusive rights to innovator or creator of the work but for a certain
time period. Copyrights may be applied for several creations and intellectual work; it ain't covers
ideas and information itself. Right related with this cannot be used for another person; it protect
innovation from any kind of misuse.
Patents – It is kind of guarantee which is given by the government to an inventor to
make, use, sell and import new products or services for a specific. It means, after patent no one
can generate similar products for commercial and non-commercial purpose (Teece, 2010). Along
with this, it is the responsibility of patent owners to disclose necessary information about their
inventions to general public so as to enrich knowledge level and stimulate innovation.
Professional help- IT is an effective methods which can use through healthy juice drink
in order to secure the intellectual property. In this, experts give protected password to owner of
an organisation.
In order to retain or secure an intellectual property, Healthy juices use copyright tool.
CONCLUSION
It has been concluded from the above given report that innovation is helpful in increasing
sales and also productivity of business in an effective or proper manner. Organisational, mission,
vision, core competencies, teamwork and culture which can shape an innovation and also
commercialisation also discussed under this mention report. Commercial funnel is very
importance for making innovation is better and at the time of developing or launching new goods
at market place, Healthy juice uses commercialisation for innovation.
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REFERENCES
Books and journals
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Dahlander, L. and Gann, D. M., 2010. How open is innovation?. Research policy. 39(6). pp.699-
709.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation. R&d
Management. 40(3). pp.213-221.
Goldberg, D. E., 2013. The design of innovation: Lessons from and for competent genetic
algorithms (Vol. 7). Springer Science & Business Media.
Huizingh, E. K., 2011. Open innovation: State of the art and future perspectives. Technovation.
31(1). pp.2-9.
Kline, S. J. and Rosenberg, N., 2010. An overview of innovation. In Studies On Science And The
Innovation Process: Selected Works of Nathan Rosenberg (pp. 173-203).
Leonard, D. A. and Rayport, J., 2011. Spark innovation through empathic design. In Managing
Knowledge Assets, Creativity And Innovation (pp. 355-369).
Lundvall, B. Å. ed., 2010. National systems of innovation: Toward a theory of innovation and
interactive learning (Vol. 2). Anthem Press.
Sawyer, R. K., 2011. Explaining creativity: The science of human innovation. Oxford University
Press.
Stokes, D.E., 2011. Pasteur's quadrant: Basic science and technological innovation. Brookings
Institution Press.
Tebbe, J., 2011. Where good ideas come from: The natural history of innovation.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Online
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