Innovation and Commercialisation: Strategy for Essence Drinks UK

This report provides a comprehensive overview of innovation and commercialization strategies, examining their importance to organizations, particularly in the context of Essence Drinks. It delves into the impact of organizational vision, leadership, culture, and teamwork on shaping innovation and commercialization efforts. The report explores the 4Ps of innovation, the innovation funnel, and frugal innovation, providing real-world examples. It also covers the commercial funnel, new product development (NPD), and the creation of an innovation business case, including funding sources. Furthermore, it evaluates tools for developing, retaining, and protecting knowledge and intellectual property, offering valuable insights for businesses seeking to foster growth and competitiveness. The report covers topics like the difference between innovation and invention, the importance of vision and leadership, 4Ps of innovation, the innovation funnel, new product development, building an innovation business case, and knowledge and intellectual property. Finally, the report concludes with a discussion on the different tools that organizations can use to develop, retain, and protect knowledge and intellectual property.

INNOVATION AND
COMMERCIALISAT
ION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................3
TASK 2............................................................................................................................................5
P3. 4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas.
.....................................................................................................................................................5
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................7
TASK 3............................................................................................................................................8
P5. Importance of the commercial funnel and application of New Product Development
(NPD) .........................................................................................................................................8
P6 Build an Innovation Business Case for an organisation, including ways to access funding. 9
TASK 4 .........................................................................................................................................11
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
In today's world commercialisation and innovation are two important and required terms
for every business organisation. Innovation help the company in order to maintain sustainable
growth along with maximising profit in domestic as well as global level (Aarikka-Stenroos,
Sandberg and Lehtimäki, 2014). Commercialisation is the procedure of introducing new products
and services and processes into trade and commerce and making it available for targeted
customer base of the organisation. In context of given case scenario of Essence Drinks which
was developed by Akshay Kumar two years back. Along with this, Essence Drink Company
could not reach at growth stage because of competitors strategies. So, company launch new
product in UK market i.e., various flavours of Lassi for achieving their organisational goal and
enhancing a growth stage of their company. Also, in the first year they rise their sales by some
changes or innovative ideas and effective distribution channel. In context to this present report,
describes the meaning and importance of innovation and describe the difference between
innovation and invention. Also, it includes 4Ps of innovation and stages of innovation funnel for
improving a level of growth and success of an organisation. With reference to this, process of
new product development and funding ways are going to be covered. Lastly, different methods
of protecting an ideas and its advantages and disadvantages has been discussed.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation
It is a method of inventing a new ideas, thoughts or ways in order to accomplish
organisational goals and objectives. Along with this. Innovation is the process of generating an
innovative ideas for modifying goods and services that create a value according to customers
expectations and wants (Brunswicker and Van de Vrande, 2014). This will create more
opportunities which help companies to enhance their survival, growth and success at market
place. With reference to this, it aid organisations to expand their business at global level and also
to create level of competition in the market area.
Importance of Innovation

It is a vert important component of an organisation this is because innovation helps an
organisational to enhance their growth and success effectively or efficiently. Along with this, it
aid organisation to expand business or diversified activities at domestic market as well as
international market (Carayannis, Cherepovitsyn and Ilinova, 2016). In context to, essence
drinks, making innovation in their company play very crucial role at UK market as it helps
organisation to achieve their goal and objectives. Also, company can earn profit by fulfilling
their customers needs and requirement according to making innovation on products and services.
There are various important role of innovation in an organisation are as follows:-
 Maintaining customer relationship- Innovation means to add some extra and unique
features on their product and services. In order to satisfy customers requirement and
expectations, company add new features in their existing products and services. Along
with this, company can achieve their goals by satisfying their potential customers as it
will aid for success of their company. As per the mentioned case study I.e., Essence
Drinks who launch Mango Lassi for attracting new customers towards their product and
company. Also it will help company to retain their old customer for longer period of time
by satisfying their need and requirement accordingly. With reference to this, company
can make friendly and long term relations with their customers in order to accomplish
organisational goals and objectives effectively.
 Having unique selling proposition (USP)- According to the view point of customers in
order to add more values to the product every company should have some unique selling
point. Along with this, unique selling proposition help companies to sell their products in
unique style which also aid customers to easily differentiate between two similar products
at market place (Chesbrough and Bogers, 2014). In context to, Essence Drink company,
they use unique selling proposition for offering Mango Lassi in the market which will
help their organisation to create level of competition at market place.
Invention
It is a process of re-engineering and product development. Along with this, invention is a
method of creating, designing or discovering new method or product, which is not exist before at
market place. The major difference of innovation and invention are given as below:-

Bases of comparison Innovation Invention
Meaning It means to generate some new or
innovative ideas for creating
something new by adding value
on product and services according
to the customers demand and
wants ( Kilelu, Klerkx and
Leeuwis, 2014).
It is a unique process of
transferring thoughts into
product and process.
Concept It is bases on practical concept
with the motive of implementing
new and innovative ideas to
modify their products.
It is based on working
theories.
Required skills Company should have talented
employees who have proper
knowledge of innovation and also
they should have proper financial
resources.
For invention, company and
employees should have
technical & scientific
knowledge. Along with this,
company should analyse the
market situations and trend
which helps to think more
creative in invention.
Concerned with Innovation is concerned with
combination of products.
Invention is concerned with
single line of product,services
and new process.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
 Vision: In context to Essence Drink company, there vision statement is to became a
dynamic, creative and trusted soft drink company across the whole world. Also, the
company wants to be came first preference among the various customers which helps an
organisation to increase the competition at market (Fu, and Mu, 2014). Along with this,

company can create its positive brand image in the market place which will helps in
attracting a more customers and retaining old customers towards their organisation. Also,
vision aid company to mange their team by inventing something new and creative on
their product and services. Also, Employees of Essence Drink should understand
organizational vision which will help their organisation to expand it at global level.
Innovation aid company to lead with commercialization and gain more financial benefits
in order to accomplish organisational goals and objectives.
 Leadership: It is a skill or abilities of an individual which is used for influencing or
guiding their members in order to achieve organisational goal and objectives. Along with
this, leadership skills manage team for making an effective decision and also it inspires
others to do the same (Libaers, 2014). Also, there are different types of leadership style
such as, democratic, autocratic, participative, and so on. With reference to Essence Drink
company, their leaders opt democratic style of leadership. This is because, leaders
provide proper guidance and knowledge to their members and follower for innovating
something new in an organisation. Also, leaders have responsibility to provide
knowledge and direction to their employees as how to implement ideas into action and
make innovative products. In context to this, leaders plays an important role in Essence
Drink company as they give right direction to their employees which will aid them to
take right decision and choose right option for implementing an ideas of innovation.
 Culture: Organisational culture involves different policies, norms, behaviours and
attitude of their employees. Differentiation in organisational culture create both positive
and negative impact of their business in the process of innovation and commercialisation.
In context to, Essence Drink company, organisational culture plays an important role in
innovation and commercialisation (Paradkar, Knight and Hansen, 2015). Along with
this, effective organisational culture helps their staff members to take right decision at the
time of innovation process. Also, Essence Drink company, aim is to make feel their
employees comfortable as they can easily share their thoughts and opinion with their
managers.
 Teamwork: In every organisation team work helps in achieving a common goal and
objectives. Also, it is a platform which help their employees for haring an ideas and

thoughts with team which helps their members to create an innovative ideas. In context to
Essence Drink company, their leaders and managers provide proper training and
development sessions or programmes to their staff members for improving a teamwork
skills. Along with this, effective team work aid company for launching new product
which will enhance their long term profits and brand image at market place (McKelvey,
2014).
TASK 2
P3. 4Ps of innovation and use of the innovation funnel to examine and shape innovative ideas.
Innovation
it is a method of creating an idea by which company can launch new product and services that
will create a value for which customers will pay. Along with this, innovation is a process of
making something new or to do some changes in existing product and idea. Also, it helps
business to improve their services which aid an organisation to capture large number of market
share at market place. The main motive of innovation is to creativity in their business for making
them different with their competitors in order to accomplish organisational goals and objectives.
4Ps of innovation
4Ps model is also known as innovation mix which is developed by John Bessant and Joe
Tidd. This model helps to explore and expand their business at global level by improving on
services, product and process of existing business. Innovation mix plays a very important role in
an organisation as it provides direction of where they should expand their business and in which
area innovation is needed (Pellikka, 2014). Along with this, there are 4Ps of innovation such as
paradigm, product, position and process and it is described as below:-
 Paradigm: It is a first step of 4Ps model in which organisation has to face various
challenges for improving their business activities such as they have to bring some
changes in their product and services by generating an innovative ideas. In reference to
Essence Drink company they launch new product various flavours of Lassi for attracting
new customers towards their company and product. This is because it improves their
business growth and create competition at market place.
 Product: In every organisation their most valuable thing is, its product and services.
Along with this, businesses develop or invent new product and improves its services for

creating a good image of their company at market place. In context to Essence Drink
company they innovate new product i.e., Strawberry Lass, Coconut Lassi and so on
which is good is quality and also they provide good services for retaining old customers
and attracting new customers for long period of time. Along with this, company can
create their positive image at market place by offering good quality of product which
create a value in customers eye (Qian and Haynes, 2014). Further with the helps of 4Ps
model innovation and commercialisation can be done.
 Process: It is a mode of transferring goods from one place to another place. Along with
this process explains that how much time will be taken for delivery of goods to the
ultimate customers. In addition to, Essence Drink Company, are providing their products
on time to its customers by best and fast delivering process foe enhancing a growth and
success of their business. With reference to this, if Essence Drink Company do not
provide goods and service on time to its customers then it will decrease the goodwill or
reputation of company in this market. Also its affect the sustainability of their
organisation at global level.
 Position: In context to Essence Drink Company, their main motive is to create
competitive position at market place by providing best services to their customers in
order to achieve organisational goals and objectives.
Innovation funnel
it is also known as Funnel Management process which helps an organisation for
evaluating an idea or to innovate successfully. Along with this, company can use various steps
for developing a new product which aid businesses to achieve their goals and objectives
effectively (Rasmussen, and Eliason, 2017). Along with this, Innovation Funnel includes three
stages which are given below:-
 Wide moth of funnel- In context to Essence Drink Company, their main motive is to
gather an information from various source for developing a new and unique product in
the market. With reference to this, information can be collect by many ways such as
existing partners, institutes, travelling areas, competitors strategies, market analysis and
so on. Also it help company to develop creative ideas for innovating new product and
gaining a competitive advantage at market place.

 Narrow segment of the mouth- In this second stage of Innovation funnel, company
screen its whole process and match the whole information from organisational objectives.
In reference to Essence Drink company their main motive is to chose best idea and match
its relevancy. Also company decide to select best option which match their objectives and
make them different from its competitors (Walsh, Lee and Nagaoka, 2016). Along with
this, company test the product before providing it to its potential customers for knowing
the result of it.
 Narrow segment of the funnel- It is a last step of innovation funnel, which aid company
to implement its ideas into actions. In context of Essence Drink company, they execute
their plan into action. It means company deliver its product at the market in order to
achieve organisational goals and objectives.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal Engineering is an another name of Frugal Innovation. Also, it is a process which
aid companies to reduce its complexities and extra cost at the time of producing goods and
services. The concept of Frugal Innovation is arise from healthcare and transportation area and
then expand it into technological area. Along with this, Frugal Innovation aid in removing not
needed elements from imperishable products for cutting an extra cost and earning huge profit.
This process helps organisation to use optimum utilisation of resources and become successful in
order to accomplish organisational goals and objectives. This concept mostly useful for small
enterprises, as they do not have separate department of Research and Development (Yin, Shi,
and Yan, 2014). As a result, with optimum utilisation of resources company should follow
innovative practices as their main motive is to create value of products in customers mind at
market place.
For example, Essence Drink Company launch new product in UK market i.e., Coconut
Lassi, Strawberry Lassi, Cucumber Lassi and many more. By adopting Frugal Innovation
approach, company start reducing its complexities and extra cost in the manufacturing of
products. This is because it help a company to achieve its goals and objectives effectively and
also to gain competition at market place. Along with this, if a company provides its goods and
services on time and also to satisfied customers then, it will generate reputation and goodwill of
Essence Drink in the market. With reference to frugal innovation, management team helps in

removing an unnecessary resources in order to attain organisational goals in effective and
efficient manner.
TASK 3
P5. Importance of the commercial funnel and application of New Product Development (NPD)
Commercial funnel helps an organisation to fulfilling customers demand and expectations
in order to accomplish organisational goals and objectives (Xiao, Li and Liu, 2016). It is
categorised into four parts such as Attract, Convert, Close and Delight.
ATTRACT- In context to Essence Drink company, they are doing marketing for creating
an awareness at market and attracting customers towards their company and product. Along with
this, it influence people to visit on their official websites.
CONVERT- In this second stage Essence Drink Company give some benefits or offers
in their products which helps in encouraging people to purchase their product and also share its
personal details on websites for gaining more benefits from it.
CLOSE- In this stage the aim of Essence Drink Company is to maintain close and long
term relations with their potential customers and also influence them to becoming a paying
customers of their company.
DELIGIT- This is a last stage of commercial funnel in which Essence Drink Company
provide good quality of product and services to their ultimate customers for enhancing a
goodwill and reputation of company at market place.
Importance of commercial funnel is to aware customers about upcoming product and
services up opting various marketing strategies (Aarikka-Stenroos, Sandberg and Lehtimäki,
2014). In context to Essence Drink Company they do marketing for providing an information to
customers about its new product i.e., Mango Lassi and convince customers to purchase it. Also,
they provide meaningful message in their advertisement in which company provoke customers to
buy this as it is healthy and tasty. With reference to this, they opt marketing strategies for
increasing their sales and generate competition at market place.
New Product Development is process of creating something new and bringing some
uniqueness in their product which helps companies to attain organisational goal and objectives.
The new product development process involved eight stage which are discussed below:-

 Idea generation: According to Essence Drink Company, they generate an idea for
making some thing new i.e., to bring more flavour such as Cucumber Lassi, Coconut
Lassi, Strawberry Lassi and many some which is totally different form its competitors
and also similar to the customers expectations.
 Idea screening: After generating an idea Essence Drink Company, choose best one after
the whole market evaluation and research (Carayannis, Cherepovitsyn and Ilinova, 2016).
This is because it help a company to attract new customers and retain old customer for
long period of time.
 Concept testing: In context to Essence Drink, they test their new product i.e., Coconut
Lassi, Strawberry Lassi and so on from targeted customers for knowing the result of
these product. After collecting a feedback company can decide for selling its new product
for testing its sustainability in the market area.
 Strategic analysis: After concept testing, Essence Drink company establish marketing
strategies for creating an awareness about their product and services. It also help
company to attract new customers and retain old customers in the market.
 Product development : In this stage, Essence Drink, deliver its new product in the
market areas for testing an effectiveness of it.
 Market testing: It says about the actual position of new product which is launch by
Essence Drink in the market place. This can be done by feedback from customers and
market research.
 Commercialisation: With reference to Essence Drink, company made final decision for
launching its new product i.e., Cucumber Lassi, Coconut Lassi, Strawberry Lassi and so
on at the market.
 Product launch: Lastly, Essence Drink, company get positive feedback after launching
its new product and create a positive brand image of their company at market place.
With the help of NPD, the management of the company can find out the needs of the
customers and offer products according to them. They can monitor the cost that how much fund
can be incurred within the process of new product development when they manufacture it as per
the need of their target audiences.

P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Innovative Business Case means senior management made a document in the written
form in which they record all those information and details for formulation of innovative plan
(Pellikka, 2014).
. It is necessary for every organisation to prepare this plan as this aid in justifying a risk in
investment, provide logical thoughts in process (McKelvey, 2014). In context to Essence
Drink, the innovate business plan are given as below:-
Executive Summary The Essence drinks is small scale soft drink which was started by
Akshay Kumar two years ago. This organisation is provide Mango Lassi
in UK market but they decrease their sale due to competitors strategy
and they made a plan for launching new product. Along with this, with
the motive of increasing sales and brand image of company and product
at market place.
Need The need of innovation in Essence Drinks company is to launch new
product such as strawberry Lassi, Coconut Lassi and so on in order to
accomplishing effective results.
Solution The launching of new variant that is Lassi in various flavour such as
coconut, cucumber, strawberry and many more according to fulling
needs and expectation of consumers.
Consumer Analysis After launching these flavours in Lassi, consumers were highly satisfied
by this kind of innovation. Along with this, consumer analysis helps in
generating an various ideas for fulling a demand and expectations of
customers ( Kilelu, Klerkx and Leeuwis, 2014). Also, implement these
ideas for gaining competitive advantage at market.
Creation and
Improvement
In Essence Drink idea has been generated by the process of
communication and expectation for inventing a new product. Along with
this, they create something new by adding various flavours on it. Also,
the improvements are made by company for increasing its sales and