Analysing Innovation & Commercialisation for Business Development

This report analyses the concepts of innovation and commercialisation within the context of Healthy Juice, a business facing declining profits due to increased market competition. It explores various aspects of innovation, including its importance compared to invention, how organisational vision, leadership, culture, and teamwork shape innovation, and different sources of innovation. The report also delves into the 4Ps of innovation (Paradigm, Product, Process, and Position) and the application of the innovation funnel to shape innovative ideas. Furthermore, it examines frugal innovation, its developments, and its use in an organisational context, along with the importance of the commercial funnel and new product development (NPD) processes for commercialisation. The report also covers building an innovation business case, measuring its effectiveness, and evaluating tools for developing, retaining, and protecting knowledge and intellectual property. It concludes with a critical analysis of how innovation is developed, embedded, and measured in an organisational context, providing evidence-based judgements on overcoming challenges to develop successful innovations.

Innovation and Commercialisation
1

Table of Contents
Introduction......................................................................................................................................4
P1 Explain innovation and determine its importance to organizations in comparison with
invention......................................................................................................................................5
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................7
M1: Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation........................................................................................8
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................9
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context................................................................................................................11
M2 Analyse and apply the innovation funnel in an organisational context..............................12
M3 Evaluate the role of frugal innovation in an organisational context...................................13
D1: Critically analyse how innovation is developed, embedded and measured in an
organisational context................................................................................................................14
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation......................................15
P6 Build an innovation business case for an organisation, including ways to access funding..16
M4 Build a detailed innovation business case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve....................17
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................18
2

M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment......................................................................................................19
D2 Critically evaluate the nature of innovation and the context in which it is developed,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations..................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
3

Introduction
The report will study the case study of Healthy Juice, which represents a reduced share of profits
and sales for the business. The increased competition and availability of increased substitutes in
the market has affected the profitability of Healthy Juice. The report will discover concepts of
innovation and commercialisation in order to increase the sales and market share for the
organisation. It will draw recommendations to identify new and innovative products such as
milkshakes, flavoured juices, energy drinks etc. The report will study various attributes of
innovation such as Frugal Innovation for sustainable development and growth of business. It will
confirm upon the various benefits provided with deploying the aspects of innovation in the
business products, processes, procedures and paradigm.
4

P1 Explain innovation and determine its importance to organizations in comparison with
invention.
Innovation:
Innovation refers to the process of transmitting an idea or a concept into services and products
that are able to create value and satisfaction level for consumers. It must entail the feature of
consumer willingly paying for the developed product or service. Innovation creates opportunities
to develop products and services that are modified and are in accordance with the altered needs
or requirements of the consumers. Innovation provides with possibilities to enter new areas of
products to satisfy the increased requirements of the consumers (Cook, 2016). The concepts of
innovation cover for out of box thinking and application of new models or processes. Innovation
is undertaken in order fetch the current and potential market needs of the consumers. The
characteristics of innovation includes for the following:
 Out of Box Thinking
 Development of new concepts and processes or models
 Replicable at an economic cost
 Satisfies the developed or modified needs
 Derives greater values
 Deploys lesser resources (Datta, et. al., 2015)
 Evolutionary or Revolutionary ideas
(Source: Datta, et. al., 2015)
5

The Importance of Innovation:
Invention refers to development of a new method, product, services or a device with the
application of theories and concepts of innovation. It may be represented as an end product of the
various processes of innovation. Invention and innovation are two essential aspects for the
growth and development of the business. Innovation discusses for more importance as in contrast
to invention on the following grounds:
 Innovation creates employment: The development of new products or services creates
employment opportunities for the people of society. Employment is created as it requires
an increased number of human resources to fulfil the production requirements and
monitor the progress of the innovative ideas and concepts (Datta, et. al., 2015).
Innovation increases the capacity of the economy and further profits the business and
society.
 Develops new industries and business: Innovation is also accountable for developing
new industries and business for the economy. Innovation creates employment and
establishes new industries and businesses to undertake the innovative ideas and concepts.
New and developed business areas and industries are required to fulfil the objectives and
aims of the innovation to succeed.
 Innovation fuels the Patents Culture: Innovation is also observed as the fuel to
implement a patent culture in the business and economy. Patent refers to trade marks
undertaken by the developer of the business to distinguish and safeguard the copying of
innovative ideas and concepts (Datta, et. al., 2015). Innovations are patent in order to
restrict their use and application by the competitors in the markets.
 Organizational growth and development: Innovation fosters for the growth and
development of the business as it creates an increased market value and consumer base
for the business and its activities. Innovation creates new market needs and further
increases the profits and benefits of the business.
6

P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.
Innovation and commercialisation are shaped and developed with the help of vision, leadership,
culture and teamwork of the organization. Innovation is fostered by the aspects and approaches
of vision and leadership in various manners and approaches.
Vision:
The vision developed and initiated by the organisation such as Healthy Juice constructs for the
scope and undertakings in the name of innovation. The vision of an organisation is aimed to be
progressive and developed in a manner which fosters for increased growth and satisfaction of the
consumers (Rothenberg, 2015). Owing to the increased competition and alternatives available in
the market, Healthy Juice is required to develop such vision and aims for the organisation which
fosters growth and increased profits. Thus vision announces for innovation.
Leadership:
Leadership creates innovation in an organisation in an empirical manner. A leader in an
organisation such as the managers and the executives motivates and leads the employees in a
manner that fetches for innovation and new developments for the success of the organisation.
Leadership provides with the required amount of motivation, zeal and confidence to the
employees for venturing into new ideas and models of the business processes.
Culture and Teamwork:
Culture of an organisation also shapes for the possibilities and opportunities of innovation. An
organisational culture must be futuristic which envelopes for future possibilities for dreaming
and executing new and developed business methods and approaches (Souto, 2015). Teamwork,
on the other hand, provides with the support and efforts to create a new idea and pursue it with
the required amount of motivation and dedication.
7

M1: Analyse different sources of innovation, and how organisations can foster and develop
an environment and culture of innovation.
Sources of Innovation:
 Needs of the Processes- fosters for innovation as it allows identifying the required
changes and alterations in the business processes and activities.
 Changes in Market Structure- also adapts for innovation as developed and modified
market structure creates the area to invent new and execute innovative processes.
 Demographics of market- it includes for changes in needs and requirements of the
consumers, emergence of a new segment of the consumers, increased competition and
greater need to expand in the market (West and Bogers, 2014).
 New Concepts and Models- also develop for sources of innovation. New concepts and
models developed for the requirements to invest into something new that creates
increased values and yields greater returns.
8

P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas.
Innovation is based on the model of four P’s of innovation. These four P’s provide with a
strategy to undertake and develop the ideas of innovation in an organisation. The four P’s of
innovation are discussed as below:
Paradigm: This P of innovation states for Paradigm. It denotes for developing and altering the
paradigm of the business processes it establishes exercising innovation in the model and
procedures of the business to develop products and services at decreased costs and increased
profits.
Product: This P of the innovation model stands for innovating in the products of the business.
Product innovation is required in order to include the attributes in product to satisfy the
diversified and modified needs or requirements of the business (Kerr, 2016). Product innovation
is also undertaken to increase the consumer base and market presence of the business
organisation.
9

(Source: Kerr, 2016)
Process: The innovation in Process is required to alter the procedure and processes of the
business. Process Innovation is undertaken in order to implement and execute new and
developed methods of production, monitoring, delivery of products etc. Process Innovation is
required to reducing the costs of the business processes and increase the profitability of the
business.
Position: Positioning in products is an essential concept. Innovation is required in the concepts
and aspects of positioning the products in the markets and the min-sets of the consumers. The
positioning of products can be undertaken through innovative ideas and marketing strategies
(Witell, et. al., 2016). Healthy Juice is in the need to expand into innovative ideas and strategies
to innovate and develop the products developed by the business.
Innovation Funnel
It depicts the process through which the product or a service is developed by an organisation.
The innovation funnel entails all the steps required in order to fulfil the market needs and
requirements. The first step is to focus towards the gathering and accumulating the knowledge
and information of the consumer needs and requirements. The stage is required to access the
detailed data for identifying and allocating the needs of the innovation in the existing products
and services (Phaal, et. al., 2015). The second step is to screen the possibilities and opportunities
in the innovation funnel. The second step is to access the integration of innovation with the goals
or aims identified by the organisation. The third step in innovation funnel is to execute the most
highly integrated innovation process which is capable of delivering the aims or objectives of the
business along with the needs or requirements of the consumers.
10

P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal Innovation refers to the act of the organisations identifying and responding towards the
limitations or shortage of the resources available with the organisation. Resources can be
identified as human, capital, non-renewable or strategic etc. Frugal innovation looks towards
establishing a sustainable approach towards the development of the business (Zeschky, et. al.,
2014). It can be executed by developing an innovative and practical solution to overcome the
shortage and limitations of the resources. Certain and exemplary developments have taken place
in the global economy to foster frugal innovation.
(Source: Pilav-Velić and Marjanovic, 2016)
Healthy Juice can apply the approach of Frugal Innovation in order to reactivate the lost
consumer based due to increased competition in the market of the United Kingdom. The
organisation by applying the approach of Frugal Innovation can reduce the costs incurred in
producing the juices this will enable to attract the consumer share in the market (Pilav-Velić and
Marjanovic, 2016). Due to increase in the competition in the market, it is required by Healthy
Juice to develop a variety of juices and shakes in order to increases the market presence in the
sector of healthy drinks in the United Kingdom. The approach of system engineering of Frugal
Innovation will enable to develop the same amount of quantity of juices and shakes with reduced
costs and higher returns for Healthy Juices.
11

M2 Analyse and apply the innovation funnel in an organisational context.
Innovation Funnel can be applied at the Healthy Juice in order to depict an evidence based
understanding of the innovation Funnel. The first stage for innovation funnel is to access the
details and information regarding the new demands and requirements in the market by the
consumers. Investigators will access and identify the market needs for developing new products
and services (Neumann, et. al., 2017). The second stage is to develop the innovative products
such as the shakes, milkshakes, drinks, protein drinks and energy supplements etc. The last stage
is to market the developed and innovative products into the markets by regular supply and
increasing the needs of these products.
(Source: Pilav-Velić and Marjanovic, 2016)
12

M3 Evaluate the role of frugal innovation in an organisational context.
Frugal Innovation is important for an organisation due to the following attributes:
 Frugal Innovation fosters sustainability as it provides with opportunities to reduce the
costs of the business processes and yields greater returns on the investments.
 This type of innovation is required by the future generations and business models as there
is a shortage of resources and raw material in the ecology (Neumann, et. al., 2017).
 The environmental constraints also foster for deploying Frugal Innovation to cope up
with the rapidly ageing society and ecological systems.
 Frugal Innovation creates an atmosphere to new technological platforms to reduce the
costs burdens and modifies the systems in order to generate satisfaction.
13

D1: Critically analyse how innovation is developed, embedded and measured in an
organisational context.
In an organisational context, it is necessary to develop, embed and measure the innovation
undertaken. Innovation is developed through progressive thinking and implementing the
developed ideas into strategies for further execution of the ideas. Development of innovation is
also fostered by effective leadership and management of the human resources and the ideas
conceptualised by the employees and the leaders (Kerr, 2016). There is no particular approach to
measure the concept of innovation and innovative ideas in an organisation. Innovation is
measured by basically evaluating the ideas generated and executed by the employees in a time
period of a measurable frame of time. Innovation must be measured to analyse the impact of
various leadership and managerial strategies and approaches executed in the organisation to
foster the scope and execution of innovation and its ideas.
14

P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.
Commercial funnel stated as a process through which business become able to launch their
product and services at the market. Commercial funnel enables in generating a high profit so that
management could be gain leverage from others. A major reason behind commercial funnel in
the innovation process is just to earn high amount of revenue as well as for maintaining a strong
position (Li, et. al., 2016). It is really important for managers to aware of all innovation of
market and discovers new things which attract more number of customers to purchase. This
aspect requires an understanding by Mr Daniel Green when a new range of drinks will be
launched.
Along with this, Mr Daniel Green requires to determine the application of NDP in their business
operations so that they will be going to launch innovative health drink. This applicability will
enable in taking leverage so that better product could be launched:
 Idea generation: On this level, business managers, employees and internally associated
individuals contribute towards generating a new idea (Pauwels, et. al., 2016). Healthy
juice individuals start working on to identify the idea which enables them in taking
leverage.
 Idea screening: On this level, managers start evaluating each and every single idea
properly with their feasibility. Mr Daniel Green starts inspecting each and every
alternative idea properly before commencing it into their operations.
 Business analysis: Healthy juice start identifying that concern idea and their business
situation is feasible and appropriate or not. This analysis support in defining the objective
properly.
 Product development: Healthy juice will be going to produce a new product on this
level. Thus, product development supports them in generating more and more profit.
 Commercialisation: This is the last stage where healthy juice owner will be going to
launch their product in the market world so that conceive growth could be estimated
(Schot and Steinmueller, 2016).
15

P6 Build an innovation business case for an organisation, including ways to access funding.
A business whenever wants to attain growth and leverage from competitors, they need sufficient
fund for launching an innovation (Schwarz and Potter, 2016). It is really essential to identify
various sources of fund and reflect appropriate business case in front of investors so that their
decision making would become easy. In such frame, managers of Healthy juice require to create
an innovative business case.
The Investors
Healthy Juice
Dated: 18/06/2018
The company will be going to launch some more range of fruit drinks which are rich in health-
related ingredients. These drinks are wide in range as well as include various flavours of fruits.
These ranges of health drink would be the most amazing fruit drink in taste and attract a wide
number of individuals as well.
To fulfil such criteria, Mr Daniel Green determines certain sources of the fund which describe as
follow:
 Bank Loan: One of an appropriate and effective source of fund for Healthy juice
would be a bank (Coffee Jr and Palia, 2016). They can easily raise money through
banks by signifying their last year financial statement.
 Shares: Another aspect which defines as a most appropriate source of funding will be
shared. Healthy juice will be going to become IPO by issuing their shares at the
financial market to raise capital.
16

M4 Build a detailed innovation business case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve.
In the given case study of Healthy Juice the effectiveness of innovation applied through the
approach of Frugal Innovation can measure and tested through the following approaches:
 Measuring the financial performance: The effectiveness of innovation can be
measured by measuring the financial performance. The financial performance is required
to be accessed before and after implementing the innovative products at the Healthy
Juice.
 Improvised Quality of the Products: The innovations can be tested by accessing the
quality of the products developed by innovative ideas and methods (Datta, et. al., 2015).
Quality is required to be increased and developed to provide with increased satisfaction
for the consumers.
 Accessing the consumer base: Another technique to improvise or measure the
performance of innovation at Healthy Juice can be determined by accessing the consumer
base in the market. Increased consumer base depicts for increased effectiveness and
performance of the innovations.
17

P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
It is utterly significant and essential for the business to develop, retain and protect knowledge
and intellectual property. Intellectual property refers to an intangible property or belonging of a
business. Intellectual property and knowledge are of immense importance for the business and
organisations. There are several tools and techniques the businesses such as Healthy Juice can
apply in order to protect the intellectual property and knowledge.
 Patents: It refers to establishing a legal attorney on the innovations and innovative
methods or procedures developed by the business. Legal undertaking enables to claim for
any forge replication and application of the innovations by the competitors in the
markets.
 Trade Marks: Trade Marks are securing the logo, symbol, label of the business and its
identity to differentiate from the other competitors in the business. Healthy Juice can
trade marks its symbols and innovative menu in order to protect the knowledge of the
recipes or ingredients of the juices and shakes produced (Chasanidou, et. al., 2014).
 Copyrights: It is securing the rights of infringement and copy righting the products of
Healthy Juice. Copyrights provide with opportunities to protect the innovative ideas and
procedures developed.
 Non-Disclosure Agreements: These are the agreements entered by the inventor with its
business associates and ancillary partners. The Non-disclosure Agreement states for
licensing, employment agreements, and sales contracts to restrict the disclosure of the
essential information of the innovative procedures (Schwartz and Sichelman, 2017).
 Increased shares in profits: In order to develop and retain the knowledge and talent in
the organisation, it is necessary for the business to share the profits with the employees in
order to motivate and retain the taken and knowledge within the organisation.
18

M5 Present supported evidence-based evaluation of these different tools in the context of
the wider business environment.
In context to wider business environment, it is essential to evaluate the different tools and
techniques applied by the business organisations. In the case of Healthy Juice flavoured shakes
and energy drinks are considered as the innovative product to increase the effectiveness and
captivate the lost market share. The organisation may focus towards analysing and evaluating the
tools by measuring the economic performance (Datta, et. al., 2015). It can be measured by
increased profit share and return on the innovative processes by the organisation. Another
evaluation can also be undertaken by examining the internal analysis of the business processes
and procedures. By applying the Frugal Innovation system thinking and production are deployed
at the Healthy Juice. It is aimed to provide with increased profits and reduced costs for greater
lots of production.
19

D2 Critically evaluate the nature of innovation and the context in which it is developed,
providing evidence-based judgements on how organisations can overcome challenges to
develop successful innovations.
Innovation is a concept of diversified nature. It requires for various out of box thinking and
applies the essence of creativity in its orbits. Innovation is the need of the hour for any business
organisation to succeed in this competitive business environment. It is essential for the business
to compered the importance of innovation. Innovation also entails the nature of incorporating
creativity and strategic thinking. It is not always necessary for the innovations to work out in the
required direction and turn out to be economic (Neumann, et. al., 2017). Thus it is important to
access the nature of innovation before implementing and developing the ideas as a business
process.
Organisations like Healthy Juice can deploy the approach to empirically study and examine the
implications and outcomes of the innovative process. In order to ensure successful
implementation of the innovation the challenges of limited resources and decreased profitability
are required to be eradicated.
20

Conclusion
From the above report, it can be concluded that innovation is the need of the hour for successful
development and growth of the business organisation. In the given case study it has been
observed that Healthy Juice is required to develop flavoured milkshakes and energy drinks in
order to ensure the captivation of the lost market share due to increased competition in the
market. It has also been observed from the report that innovation provides with opportunities to
develop increased satisfaction for the consumers. Innovation reduces the costs of production and
yields greater returns for the business. It has been recommended in the report for Healthy Juice
to implement the approaches and strategies of Frugal Innovation to ensure sustainable and
strategic growth of the business.
21

References
 Chasanidou, D., Gasparini, A. and Lee, E., 2014. Design Thinking Methods and Tools for
Innovation in Multidisciplinary Teams. In Workshop Innovation in HCI. Helsinki,
Finland: NordiCHI (Vol. 14, No. 2014, pp. 27-30).
 Coffee Jr, J.C. and Palia, D., 2016. The wolf at the door: The impact of hedge fund
activism on corporate governance. Annals of Corporate Governance, 1(1), pp.1-94.
 Cook, P.J., 2016. Leading innovation, creativity and enterprise. Industrial and
Commercial Training, 48(6), pp.294-299.
 Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&D Management, 45(3),
pp.215-249.
 Kerr, W.R., 2016. 3 Innovation and Business Growth. Moving to the Innovation Frontier,
p.41.
 Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability
growth planning in early product-development stage. IEEE Transactions on
Reliability, 65(2), pp.769-781.
 Neumann, L., Wecht, C. and Gassmann, O., 2017. Insights on Organizational Processes
and Structures for Frugal Innovation.
 Pauwels, C., Clarysse, B., Wright, M. and Van Hove, J., 2016. Understanding a new
generation incubation model: The accelerator. Technovation, 50, pp.13-24.
 Phaal, R., Farrukh, C. and Probert, D., 2015, March. Roadmapping for strategy and
innovation. In IEE Seminar on justifying and selecting innovation projects.
 Pilav-Velić, A. and Marjanovic, O., 2016. Integrating open innovation and business
process innovation: Insights from a large-scale study on a transition
economy. Information & Management, 53(3), pp.398-408.
 Rothenberg, S.S., 2015. Developing neonatal minimally invasive surgery: Innovation,
techniques, and helping an industry to change. Journal of pediatric surgery, 50(2),
pp.232-235.
22

 Schot, J. and Steinmueller, E., 2016. Framing innovation policy for transformative
change: Innovation policy 3.0. SPRU Science Policy Research Unit, University of Sussex:
Brighton, UK.
 Schwartz, D.L. and Sichelman, T.M., 2017. Data sources on patents, copyrights,
trademarks, and other intellectual property.
 Schwarz, C.G. and Potter, M.E., 2016. Revisiting mutual fund portfolio disclosure. The
Review of Financial Studies, 29(12), pp.3519-3544.
 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.
 West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of
research on open innovation. Journal of Product Innovation Management, 31(4), pp.814-
831.
 Witell, L., Snyder, H., Gustafsson, A., Fombelle, P. and Kristensson, P., 2016. Defining
service innovation: A review and synthesis. Journal of Business Research, 69(8),
pp.2863-2872.
 Zeschky, M.B., Winterhalter, S. and Gassmann, O., 2014. From cost to frugal and reverse
innovation: Mapping the field and implications for global competitiveness. Research-
Technology Management, 57(4), pp.20-27.
23