Innovation and Commercialization Strategies at Healthy Juice Company

This report analyzes innovation and commercialization strategies for the Healthy Juice Company, founded by Mr. Daniel Green. The company initially experienced success with its healthy milkshake product, but sales declined due to increased competition and product uniformity. The report emphasizes the importance of innovation for business competitiveness, productivity, and adapting to market changes. It explores different sources of innovation, including unexpected events, incongruities, process needs, and market structure changes. The 4Ps of innovation (Product, Process, Position, Paradigm) are discussed in the context of the company, along with the innovation funnel and frugal innovation. Furthermore, the report highlights the importance of a commercial funnel and new product development (NPD), providing an innovation business case for Healthy Juice Company and analyzing ways to access funding. The report also addresses the use of intellectual property tools for protecting knowledge and concludes with recommendations for fostering a culture of innovation within the company.

INNOVATION AND COMMERCIALIZATION – HEALTHY JUICE COMPANY

CONTENTS
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
P1 INNOVATION AND IMPORTANCE OF INNOVATION FOR HEALTHY JUICE COMPANY................3
P2 ANALYSING HOW ORGANIZATION, VISION, LEADERSHIP, CULTURE, TEAMWORK CAN
SHAPE INNOVATION AND COMMERCIALIZATION.......................................................................5
M1 ANALYSING DIFFERENT SOURCES OF INNOVATION AND DETERMINING HOW IT CAN
FOSTER AND DEVELOP AN ENVIRONMENT AND CULTURE OF INNOVATION.............................6
TASK 2..............................................................................................................................................9
P3 4P’S OF INNOVATION AND USE OF INNOVATION FUNNEL FOR HEALTHY JUICE COMPANY.....9
P4 EXPLAINING DEVELOPMENT IN FRUGAL INNOVATION AND ITS USE WITHIN THE HEALTHY
JUICE COMPANY........................................................................................................................13
M2 APPLYING INNOVATION FUNNEL FOR HEALTHY JUICE COMPANY.....................................13
M3 EVALUATING THE ROLE OF FRUGAL INNOVATION FOR HEALTHY JUICE COMPANY..........14
TASK 3............................................................................................................................................15
P5 IMPORTANCE OF COMMERCIAL FUNNEL AND APPLICATION OF NEW PRODUCT
DEVELOPMENT (NPD)................................................................................................................15
P6 & M4 INNOVATION BUSINESS CASE FOR HEALTHY JUICE COMPANY AND ANALYSING WAYS
FOR ACCESS FUNDING...............................................................................................................19
TASK 4............................................................................................................................................22
P7 USE OF INTELECTUAL PROPERTY TOOLS FOR PROTECTING KNOWLEDGE...........................22
M5 SUPPORT BASED EVIDENCE AND EVALUATION OF DIFFERENT TOOLS IN CONTEXT OF
HEALTHY JUICE COMPANY.........................................................................................................23
CONCLUSION.................................................................................................................................24
REFERENCES...................................................................................................................................25
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INTRODUCTION
Innovation is the process of innovating something new by translating the ideas into goods and
services. In the present competitive environment, it is essential for an organization to constantly
innovate its products and services in order to remain competitive in the business. The purpose
of this assignment is to make readers understand the importance of innovation within the
context of an organization.
The chosen organization for this assignment is the Healthy Juice Company whose founder is Mr
Daniel Green. Daniel Green started the company with one single product in the market and it
was a healthy milkshake. In the first year a dramatic rise in sales was seen but in the third year,
sales got declined with the increased number of competitor companies in the market. The
reason for sales decline for uniformity in products and in this report, some suggestions will be
given to Mr Daniel Green for bringing diversity in products so as to survive in the market.
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TASK 1
P1 INNOVATION AND IMPORTANCE OF INNOVATION FOR HEALTHY
JUICE COMPANY
INNOVATION
It basically refers to translating an idea into some product or service that in turn creates value
for which the customers will pay some amount in order to purchase that product or service. It is
the combination of knowledge acquired by different sources for developing a new product or
service (Kline and Rosenberg, 2010).
IMPORTANCE OF INNOVATION
The main purpose of bringing innovation in business is to diversify the product offering to the
customers by renewing, changing or making improvements in the product or service. Innovation
helps a firm to retain loyal customer base in the business as the varying demands of customers
are met from time to time (Petkovska, 2015). The importance of innovation for the Healthy juice
company is mentioned below.
 Business Competitiveness
By bringing innovation in business the healthy juice company will gain a competitive ability by
offering quality products at competitive costs that meet the quality standards (Yee and Eze,
2012).
 Productivity
Innovation helps in improving the productivity as diversified products will be developed by
healthy juice company and it will be consumed by a variety of customers. It is evident that more
supply and demand of products will increase due to innovation (Manyika, et al. 2011).
 Improved products and Meeting the demand of the consumers
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If innovative products are offered then customers develop a perceived notion that products are
of good quality. Moreover, firms give more emphasis on improving the quality of meeting
customer standards (Manyika, et al. 2011).
 Adapting to new trends and market changes
Innovation is also required because market changes rapidly and so are the demands of the
customers. The products are improved and modified as per the market needs thereby helping
firms to sustain in the market (Manyika, et al. 2011).
INVENTION
The invention is the process of inventing something new that has never been invented before.
For example, the invention of the electric bulb, the aeroplane etc. (Wagner, 2016).
COMMERCIALIZATION
It is essential for firms to commercialize its products so that it can be consumed by the
customers. Manufacturing the products isn’t enough as firms also need to introduce its product
in the market for getting consumed so that company gains profit (Frishammar, et al. 2012).
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DIFFERENCE BETWEEN INNOVATION AND INVENTION
Innovation Invention
Innovation refers to making changes in the
existing product for gaining commercial
success.
It refers to the creation of a new idea or
concept that was never introduced before
It requires technical expertise, knowledge
about current market trends and competence
The invention requires financial help,
knowledge and competence
The activities are spread all across the
organization
Activities in Invention are restricted to R&D
centre
Innovation brings changes in the organization. The invention may bring changes in
organization’s policies, procedures and
practices.
P2 ANALYSING HOW ORGANIZATION, VISION, LEADERSHIP, CULTURE,
TEAMWORK CAN SHAPE INNOVATION AND COMMERCIALIZATION
VISION
The mission and vision statements are critical elements of an organization’s strategy. Without
these elements, the employees of the organization will be directionless as vision describes the
values of the organization. It is essential for Healthy Juice Company to have values as it inspires
employees and gives them a sense of purpose (Cummings and Worley, 2014).
LEADERSHIP
A leader in an organization is a person who leads and directs a team under him. The role of a
leader is to motivate the employees of the company and helps them in their day to day tasks.
The leader of healthy juice company will ensure that all member of the team unites together for
achieving one common goal of the company (Sarros, et al. 2011). It is essential that company
used various types of leadership techniques in order to motivate employees to achieve the
mission and vision statement of the organization.
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CULTURE
The culture in an organization is determined by the ideas, behaviour, principles and beliefs of
the individuals working in the organization (Sarros, et al. 2011). All organizations have different
cultures and have a different set of beliefs. It is essential that culture of an organization is united
and all employees work in conjunction with achieving their personal as well as professional
goals. Positive Culture in the Healthy Juice Company will keep employees motivated and loyal
(Sarros, et al. 2011). It is essential that Healthy Juice Company to bring innovation into the
culture as it would help employees in becoming more creative thereby bringing new innovative
ideas for new product development in the business.
TEAMWORK
Teamwork is defined as the combined action of a team for achieving a common goal or mission.
The members of a team exhibit collaborative effort for achieving a particular task or an activity.
It is essential that Healthy Juice Company hire employees having innovative skills and abilities
for bringing positive change in the organization (Sarros, et al. 2011).
M1 ANALYSING DIFFERENT SOURCES OF INNOVATION AND DETERMINING
HOW IT CAN FOSTER AND DEVELOP AN ENVIRONMENT AND CULTURE OF
INNOVATION
SOURCES OF INNOVATION
The unexpected
It is essential for the healthy juice company to analyse the unexpected events in the company
because these unexpected events will create a scope of opportunity for the company. For
example identify the current market trends, changes in the buying behaviour of the consumers
etc. (van, et al. 2013).
Incongruity
It is essential for the healthy juice company to operate in different ways as and when required.
The company should change its method of operations as per the new trends and market
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changes. For example, a company should change the process of a making a particular product
for reducing the cost of production (van, et al. 2013).
Process Need
It is essential for companies to identify the gaps in processes and methods for executing a
particular activity or operation. It is not certain that all processes will deliver fruitful results,
therefore, a firm must identify a new process that can bring in productive results for the
company.
Industry and market structure change
Market structure refers to the degree of competition in the market related to the products and
services. It is evident that market structure is likely to change when firms make innovative
products with the help of new technologies, tools and techniques. Hence the healthy juice
company must also use new technologies for producing innovative products to remain
competitive in the industry (van, et al. 2013).
Demographics
The disposable income of the consumer varies from one market to the other. It is essential that
healthy juice company vary its product pricing by analysing the income of customers in a
particular demographic area.
Change in meaning perception and mood
The demand for new products and services is a never-ending process. Therefore it is important
for the healthy juice company to identify the changes and make changes in product
development strategies from time to time (van, et al. 2013).
New Knowledge
Innovative products can be developed by utilizing the power of knowledge. It is seen that firms
using the knowledge and skills are more successful in developing innovative products and
thereby gaining a competitive advantage in the business.
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DEVELOPING AN ENVIRONMENT OF CULTURE AND INNOVATION IN THE HEALTHY JUICE
COMPANY
There are many organizations which are struggling to develop an environment of culture and
innovation due to many reasons for example lack of skilled employees, negative culture in the
organization and lack of vision and leadership capabilities among the employees (Büschgens, et
al. 2013). The environment of a culture can only be developed by educating, training and
guiding the employees of the company. It is essential for firms to educate employees about the
importance of innovation in business for their individual growth and success. Moreover, having
an effective vision and mission statement for the organization can also be an attempt towards
creating an environment of innovation and positive culture in the organization.
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TASK 2
P3 4P’S OF INNOVATION AND USE OF INNOVATION FUNNEL FOR
HEALTHY JUICE COMPANY
4P’S OF INNOVATION
Figure 1: Innovation Space 4P’s
Source: [David, 2016]
Product
A product is something that can be offered to the customers for satisfying their needs and
demands. It can be defined as an idea or a substance that is derived from subsequent efforts
and results of a process or an activity (Anderson, 2013).
Product innovation concept urges business owners or manufacturers to develop innovative
products that meet the demand of the consumers. The company can make changes in the
products by offering diversifies products for example along with the healthy juice drinks
company can offer some additional variety of drinks and beverages to the customers.
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Process
The process can be defined as a series of actions or steps taken for achieving a result. It also
refers to the utilization of resources for executing an activity for achieving the desired outcomes
(Anderson, 2013).
The healthy juice company can make changes in its processes by identifying newer technologies
and implementing these technologies for making a change in processes, techniques and
methods.
Position
Positioning refers to a way of arranging and putting something in a place. It also refers to a
place that a company or a brand occupies in the minds of the consumers (Koren, 2010).
The healthy juice company can use the positioning strategy for attracting more and more
customers for its products and services. For example, positioning strategy can be used by the
company by analysing the products offered by the competitor companies and then offer similar
kinds of products to the customers as a competitive positioning strategy (Anderson, 2013).
Paradigm
A paradigm can be defined as a model for something that explains how it can be produced. It
can also be referred to as a type of proof that explains how a particular activity, event or
existence. For example, the healthy juice company can create a positive paradigm in the minds
of the consumers by offering quality products to the customers (Koren, 2010).
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USE OF INNOVATION FUNNEL FOR THE HEALTHY JUICE COMPANY
Figure 2: The Innovation Funnel
Source: [Spruijt et al. 2013]
Innovation funnel is a process for product development that takes an idea from a concept and
converts that idea into reality or in the form of a product that meets the demand of the
customers (Vanhaverbeke, 2013). The process of innovation funnel starts with an idea for new
product development as it is essential for the healthy juice company to offer diversified
products to increase its market share and competitiveness. The 3 stage model for new product
development is described below.
3. STAGE MODEL FOR NEW PRODUCT DEVELOPMENT
IDEA GENERATION AND SCREENING
The first stage of new product development takes an idea and that idea is converted into
product or manufacturing form. The development process actually starts with conceptualising a
range of inputs and then defining the inputs and selecting the best input (Vanhaverbeke, 2013).
The development funnel graphically explains the screening and generation process for
alternative development options for new product development. A range of product and process
ideas enter into the funnel for investigation but only the best part makes it to the development
stage.
DEVELOPMENT
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