Report on Innovation and Commercialisation for Essence Drink Company

This report provides a comprehensive analysis of the innovation and commercialization strategies employed by Essence Drink Company. It begins by defining innovation and comparing it to invention, highlighting their importance within organizations. The report then delves into how organizational vision, leadership, culture, and teamwork shape innovation and commercialization, particularly in the context of Essence Drink's efforts to introduce a Strawberry lassi. The study explores the 4 P's of innovation (Product, People, Process, Press) and the application of the innovation funnel to generate innovative ideas, followed by an explanation of frugal innovation and its relevance, with examples. Furthermore, the report examines the importance of the commercial funnel and the application of new product development processes for commercialization. It also discusses business cases and accessing funds for innovative products, and concludes by outlining tools organizations can use to develop, retain, and protect knowledge and intellectual property. The report provides valuable insights into how Essence Drink can enhance its market position through strategic innovation and commercialization efforts.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Innovation and its importance to organizations in comparison with invention................3
P2 organisational vision,........................................................................................................4
leadership, culture and teamwork can....................................................................................4
shape innovation and.............................................................................................................4
commercialisation..................................................................................................................4
LO2..................................................................................................................................................5
P3 4 P's of innovation and the use of innovation funnel to shape innovative ideas...............5
P4 Explanation of Frugal innovation and examples in case of Essence Drink Company......6
LO3..................................................................................................................................................6
P5 Importance of commercial funnel and application of new product development processing
for commercialisation of innovation .....................................................................................6
P6 Business case and accessing funds for innovative product...............................................8
LO4..................................................................................................................................................9
P7 tools that organisations can use to develop , retain and protect knowledge and intellectual
property ..................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation refers to creative thoughts, new ideas and new method of doing things.
Innovation aims at finding better solution of the problem for taking market opportunities and
meeting new marketing need. The present study is done on Essence Drink, a cold drink
company, which has initially launched Mango drink but because of decrease in sales it has to
take innovative efforts and now it is planning to offer Strawberry lassi to consumers. study is
done on importance of the innovation in the business organisation and a brief discussion is done
on 4 p's of Innovation. Apart from that, the present study also explain importance of commercial
funnel in innovation and innovative business case of an organisation. Along with this, there are
various tools to retain, develop and protect intellectual property that has been described in the
study in depth(Aydin, 2016).
LO1
P1 Innovation and its importance to organizations in comparison with invention
Innovation: Innovation can be described as addition of value to the strategy of the company or
product or service apart from this innovation requires depth research and study that should be
always better than the research or study done by competitors .
Invention: invention refers to introduction of new strategy , device, product or service based on
experiment and study and the experiment done by the company are registered through patent
rights, as patent protect the right of ownership of any study or invention done by the inventor
(Bettig, 2018).
Comparison between innovation and invention
Innovation and invention are commonly interchangeable terms but both differs from each
other and have their own importance in different areas. Innovation occurred when there is a need
of product improvement as needed in Essence Drink Company because of decrease in its sales,
it can improve its sales by introducing Strawberry lassi (Aydin, 2016).
Innovation Invention
Innovation is important then invention as
innovation is the backbone of invention in
Essence Drink Company because either it is
an outcome or predecessor of the invention
invention contain high risk of having
unknown and negative results on the other hand
innovation is less risky because it i only deals
with addition of value to the product which

(Robert Brands, 2013). does not contain any depth experiment or study
so ultimately risk of having negative result is
quite less then invention
Innovation requires technical, marketing and
strategic skills
invention requires scientific skills as it need
experiment and depth study
Innovation is the major contributor in maximising profit and growth of the company as
here Essence drink company can introduce advanced product as per the need of the consumer
(Gibson, 2016). Innovation aids in influencing mind of consumers and generating sales of
product when it is in maturity phase. Furthermore, innovation is beneficial tool that aids the firm
in standing out from competitors and help in gaining competitive advantage.
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.
Essence Drink company can shape its commercialization and innovation by its
organisational vision as its objective is to be a no. one leader of soft drinks in the market. for that
it has to innovate new ideas or adding something to its existing product like because of
decreasing in sales of Essence Drink company now it is planning to introduce new product that
is Strawberry lassi. Vision of company is to offer high quality lassi products to consumers and
for that it is essential to innovate new products that can meet needs of consumers effectively.
Thus vision of the company somewhere encourages innovation and commercialization, company
can do it by using new technologies (Goffin and Mitchell, 2016).
Leadership is the way of influencing people to achieve organisational goal. it can take
form of Autocratic, democratic, Laissez faire style of leadership. Leadership plays significant
role in shaping innovation and meeting the commercial goal of business. There are many kinds
of leadership styles such as autocratic, democratic etc. Leaders of that company has to ensure
which kind of leadership would be suitable that may help in shaping that innovation and meeting
with organisational goal. Leaders put hard efforts to obtain qualities thus, it is essential to correct
leadership process so that this innovative idea can be implemented efficiently.
Culture of the organisation have major impact on innovation. Culture of organisation can
be defined as values, norms of the business. Each country has its own cultural values, cultural
difference has high impact over innovation and commercialisation (Golder and Mitra, 2018).

Essence Drink has to first identify values of particular country in which it is going to offer this
new product and accordingly has to implement this unique idea. This will help in meeting or
shaping innovation and meeting the objective of commercialisation.
Team working plays significant role in the organisation, team working aids in minimising
complex situation and avoiding issue of resistance. Essence Drink has built up such team those
who are ready to perform given task and offering new lassi products to consumers. All members
in a teamwork effectively and share their feelings with each other, this aids business in meeting
the objective of innovation and implementing it successfully.
The vision of Essence drink will make its employees and the management to produce,
manufacture and sell the product which successfully align with the vision of a company. The
product produced and introduced in a market should be such that which will help the Essence
drink to achieve its goal successfully. Secondly leadership, culture and teamwork also plays a
huge role in shaping innovation. The leadership in an Essence drink should be such that which
provide a friendly work culture to the employees. So that employees can preset their ideas freely
with the other employees as well as with top management and can discuss about the idea in order
to put it into action. Teamwork is also essential within the organisation in order to shape
innovation and plan how to do the commercialisation of product. The reason behind this is that
as many the number of ideas given by the different team members the chances arises of getting
the best idea out of it.
Therefore it can be said vision, culture, leadership and teamwork all play an important
role in commercialisation and innovation.
LO2
P3 4 P's of innovation and the use of innovation funnel to shape innovative ideas
Essence Drink Company uses 4 p's of innovation mix which are as follows-
Product- It is the main aspect of innovation mix as it provide value to the customer .
Like Essence Drink Company is introducing Strawberry lassi for providing value to its customer
to take competitive advantage and with the aim of increasing its sales. So product is an important
aspect on which innovation and commercialization is done.
People- These are such persons those who utilises their skill and show abilities in order
to implement innovative idea which is offering Strawberry lassi to consumers so that overall
sales increase objective of company can be accomplished. Managers and leader motivate

employees so that they support the firm and contribute well in creating this new product
successfully (Hagedoorn and Zobel, 2015).
Process- It means method or way in which product should be delivered to the customer ,
if the delivery process of Essence Drink Company is slow then there will be less process of
success on the other hand if delivery process is faster then there will be more chances of success.
Press- It can be defined as environment in which person works for creating a new
product. If environment is positive then it will encourage new ideas but if it is negative then it
will prohibitive creativity (Goffin and Mitchell, 2016).
Innovation Funnel of Essence Drink Company
Innovation funnel can be described as the process of creating new ideas by analysing
each step to identify the best possible idea for providing improved products and services to the
customer. Here for introducing innovation funnel in case of Essence Drink Company has to
collect information and making a pool of idea on the basis of information collected and then it
should be scrutinize. After scrutinization relevant ideas will be considered and other will be
discarded .The ideas that are considered will be implemented on the product for providing value
added goods to the consumer.
Figure 1Innovation funnel
(Source: Innovation funnel,2018)

Company has to utilize collected information effectively so that correct decision can be
taken for innovation (Dwyer, 2017). Funnel will be helpful in minimising consequences and
creating more opportunities for the organisation. Data collection, scrutinizing aids in taking
correct actions so that innovation can be shaped and can address needs of consumers (Pinna and
et.al., 2018).
P4 Explanation of Frugal innovation and examples in case of Essence Drink Company
Frugal innovation can be defined as process of minimising cost of goods and reducing
complexity in innovation process so that product can be developed in cost effective manner with
desired quality (Pinna and et.al., 2018). It is the application that discovered innovative business
models and redesign products by reconfiguration of value chain system of business.
Essence Drink Company can emphasize on following things to obtain good quality of
results in innovation like system thinking at macro level , new ways of developing and designing
product, innovative business models, design thinking at product level , using modern
technologies to deliver lower cost solution. Samsung is the great example which has used frugal
innovation in successful manner. Samsung manufactures different smart phones across the
world. Consumers of different countries have different demand thus, company has used this
frugal innovation process so that it can design new smart phone in cost effective manner and can
meet the needs of consumers. When Samsung has launched its new smart phone in Idea then it
has used this application so that it can offer cost effective product to its buyers.
Principles of frugal innovation are: engage and iterate, creating sustainable solutions, flex
assets, shaping behaviour of consumers, creating value with prosumers, making innovative
friends.
Essence Drink Company can use frugal innovation process in the firm in order to
introduce new lassi product to consumers. It can collect information about market needs and can
design this new product. It can select distribution channel and can reach to target consumers. In
this manner it will be able to use this process in effective manner and will be able to offer new
lassi to consumers in low cost (May, 2015).

LO 3
P5 Importance of commercial funnel and application of new product development processing for
commercialisation of innovation
Commercial funnel refers to a process of introducing new product in the market that
includes distribution, sales, marketing, customer feedback with aim of earning profit. Apart from
that commercialization aims at assigning clear roles and responsibility which is the key to
successful business because when different groups are working together then there is
requirement of trust and free communication(May, 2015). Trust can be only achieved when
there is competition between the parties within the research cosortium. In addition to that
commercialization helps in encouraging research and development that helps Essence Drink
Company to increase its productivity and profit of the company. Apart from that commercial
funnel helps to find out potential customer in the market because it includes marketing research ,
ultimately that will help in segmenting the geographical area and positioning of the brand image
in the minds of consumer (Pinna and et.al., 2018).
Commercial funnel is very important for the organisation it aids in raising awareness of
people towards product and increasing interest of people towards the product and services. It
helps in converting the target consumer into actual buyer. Sales transactions get increased that
aids the business in enhancing revenue of business unit to great extent. Funnel is helpful in
getting proper direction for implementing some creative ideas and getting correct direction
through which company can gain positive results. It is beneficial in getting massive opportunities
through which actual innovative or unique idea can be implemented in cost effective manner. By
this way firm can raise its sales and can attract more customers towards the brand.
Essence Drink Company can take following steps to introduce its new product in the
market.
Generating ideas-Ideas regarding new product can be generated by pooling method in
which staff members of the company will give their ideas based on previous knowledge and
make a pools of it (Leenders and Dolfsma, 2016).
Screening of ideas-After generating ideas now it is the time to analyse the pooled ideas
and it will be decided that which idea should be considered and which idea should not. The ideas
which is best fitted for new product development will be accepted and others will be rejected.

Concept testing-Concept testing helps in identifying consumer's understanding towards
the product ,if there is any need of new product, apart from that it also helps in identifying that
consumer will accept the product or reject the product.
Business analysis- The next step is business analysis which helps in finding out the
demand for new product, commercial profitability of the product, seasonal or regular demand of
the product (Powell, 2017).
Development of product and test marketing- Essence Drink Company will now take
steps to develop product which includes production and distribution of new product that is
Strawberry lassi. Production department will be engaged in preparing plans to make new product
and marketing department will take care of its advertisements and promotion. (Leenders and
Dolfsma, 2016).
Commercialization and review- The final step of the product development is
introducing the product in the larger market thus the new product is launched in all over the
country for that Essence Drink Company has to make huge investment and now advertisement
and promotion will be done through television, internet etc..
P6 Business case and accessing funds for innovative product
Executive summary
Essence drinks has planned to provide Strawberry lassi to its consumers, this innovation
is being implemented with the objective to raise sales of organisation and gain attention of mass
audience.
Requirement solution
Over a period of time, sales of the company is getting down thus, there is essential
requirement to make changes in its products and offer something new that may help in increasing
sales of business unit to great extent.
Need of innovation
One of the main reason of offering this product is that demand of Strawberry items is
very high. Taste of this lassi is amazing and it is healthy as well. If this product will be offered
by company then it will help in raising sales of business unit to great extent.
Market research
Essence drinks will market this product through social networking sites. It will first send
detail of this product on Facebook and Twitter account of consumers. This will help in

developing strong connection with buyers and influencing their mind as well. Essence drinks
will conduct market research and will analyses needs of people and accordingly it will
implement this idea.
Investment require
In order to implement this idea successfully Essence drink will require investment of
around 500 Pound.
Expected benefits
As mango lassi innovation of the company was very successful thus, if the firm offer new
product of lassi then it will also give positive outcome to the organisation (Leenders and
Dolfsma, 2016). Distribution of Strawberry lassi will be done through direct and indirect both
channels. Essence drinks will also provide home delivery options to its consumers, this is the
best way through which enterprise would be able to attract more people (Leenders and Dolfsma,
2016).
Ways to access funds
Essence drinks requires funds to implement this new idea, it has variety of options
through which firm can gather money for this innovation. These are explained as below: Bank Loan: It is most commonly used source of finance, Essence drinks can take loan
from financial institutes and can repay that amount in easy instalment manner. This is
cost effective way to get fund and by this way company can collect huge money that
would help in fulfilling long term monetary needs of business to great extent. But firm
will have to bear repayment burden (Leenders and Dolfsma, 2016). Retained earnings: Owner of Essence drinks can also utilise portion of profit for further
investment in order to implement this innovative idea successfully. This would be best
way for the small size firm to get funds. This will limit the obligation of the firm and will
control over the expenses as well. This helps in maintaining financial stability and aids in
strengthen the value of the organisation. But sometimes improper utilisation of fund may
affect the financial position of business to great extent.
 Owned capital: Owner of Essence drinks can invest own amount for implementing this
innovative idea. person would require money for market research, product development
so that Strawberry lassi can become able to increase sales of business. One of the main
advantage of investing own fund is that owner is not liable to pay interest to any third

person. Furthermore, there is no need to share ownership with other individual. Thus, it is
the best way to get fund for implementing innovation in the business unit (Mauerhoefer,
Strese and Brettel, 2017).
LO4
P7 Tools that organisations can use to develop , retain and protect knowledge and intellectual
property
There are various tools that Essence drinks can use to protect its knowledge and
intellectual property which are as follows-
Patent-It is the right of the owner which exclude others from using copying and selling
the invention for a particular period of time. The term of patent is usually 20 years for which
inventor has to pay particular amount of fees. If someone uses or sells the patented invention of
the innovator then it will be known as infringement of patent. To get protection of patent
Essence drinks has to grant patent from US Patent and Trademark Office. In addition to that
process of getting patent right is complex, expensive and time consuming as it contain various
formality. Apart from that primary goal of the patent is to encourage innovation of technological
advancement (Mauerhoefer, Strese and Brettel, 2017).
Trademark- Trademark can be defined as symbol, words or design that distinguishes a
company's product from others. The objective of trademark is to protect the product from being
used by others. Trademark can be bought and sold with the permission of owner. For having
right on trade mark Essence drinks can register itself with USPTO.
Copyright- it protects the original work of the Essence drinks, in this case the
photography, advertisement, recording or any kind of video created for the marketing of new
product that is Strawberry lassi can be protected under copyright act . Here term of protecting
copyright is 70 years or more. Apart from that as a copyright owner Essence drinks have right to
transfer its original work to anybody through licensing or assigning (Powell, 2017).
The essence drink can use various tools in order to protect the idea. The company can
protect the knowledge by using data protection policy. It will help the company to protect data so
that it is not used or collected by a third party. In order to do so the company should provide
proper training to its employees.
Essence drink should use trademark in order to differentiate its product from others. So
that no other company or person in a market can sell it without the permission of Essence drink.

Similarly the company should also perform copyright which will give the right to essence drink
to protects its work as well as transfer it to others through licensing and assigning.
CONCLUSION
From the above study, it can be concluded that innovation is more important then
invention as it is the backbone of invention. Apart from this it can be identified that culture and
leadership plays important factors that encourages innovation and teamwork also has it different
significance in the process of commercialization and innovation . In addition to this it can be
found out that paradigm and product are the main aspect of innovation mix ,also innovation with
optimum utilisation of resources helps in decreasing cost of the product. Through analysing the
stages of new product development it can be justified that it is a complex procedure. Then it can
be identified that innovation needs huge funding and there are different methods of funding these
innovation process. At last it can be analysed that organisation can use various tools to protect its
intellectual work through getting right under patent , trademark or copyright act.