Innovation and Commercialisation Report for Essence Drinks UK Business

This report provides an in-depth analysis of innovation and commercialisation strategies within the context of the Essence Drinks company, operating in the UK market. The report begins by defining innovation and its importance, followed by an examination of how organisational vision, culture, leadership, and teamwork contribute to innovation and commercialisation. It then explores various sources of innovation, including Peter Drucker's seven sources, and delves into the 4Ps of innovation (process, product, position, and paradigm) alongside the use of innovation funnels. The report also discusses frugal innovation, its developments, and the role it plays in cost reduction and product enhancement. Furthermore, the report covers the significance of commercial funnels and new product development (NPD), using Essence Drinks as a case study for innovation business cases. Finally, it addresses the tools organisations use to develop, retain, and protect knowledge and intellectual property. The report offers insights into competitive advantage, best methods in organizations, and the development of innovation within an organizational context.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Innovation and its importance in organisation......................................................................4
P2. Contribution of organisational vision, culture, leadership and team work in innovation and
commercialisation.......................................................................................................................5
M1. Different sources of innovation ..........................................................................................6
D1. Development of innovation in organisation.........................................................................6
TASK 2 ...........................................................................................................................................6
P3. 4P's of innovation and use of innovation funnel to examine innovative ideas.....................6
P4. Developments in frugal innovation.......................................................................................8
M2. Analysis and application innovation funnel........................................................................9
M3. Role of frugal innovation.....................................................................................................9
TASK 3............................................................................................................................................9
P5. Significance of commercial funnel and use of NPD.............................................................9
P6. Innovation business case in Essence Drinking company....................................................11
TASK 4..........................................................................................................................................12
P7. Tools used by organisation to develop, retain and protect knowledge and intellectual
property.....................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation includes to provide better solutions to fulfil the new requirements and the
customer needs. This can be achieved through using more effective processes, technologies and
products in the organisation. Innovation always includes something original and effective which
changes the entire process of performing the activities. In this report explain about, Essence
drink which started their business in UK, providing various drinks.
In this present report discuss about, importance of innovation in organisation,
contribution of the vision and objectives of the company in achievement of the innovation, 4P's
of innovation, Importance of the commercial funnel, commercialisation of innovation by use of
new product development and the different tools which are used by the organisations to protect
intellectual property rights.
TASK 1
P1. Innovation and its importance in organisation
Innovation Invention:
It includes the process of providing better
solutions to the problems of organisation.
It includes new scientific idea which helps in
accomplishment of targets.
This can be achieves by the management of
company by applying new technologies,
products etc. It includes the process of
developing something new which helps in
improvement the performance of the
organisation.
To become invention the only need is to prove
them it is workable which is differ from
innovation because it includes something new
which fulfil specific needs.
:

Importance of innovation in organisation: Innovation is the development of new
process which makes the production of the new product more feasible and fulfil the specific
needs. It helps the organisation to achieve the organisation targets more effectively and
efficiently. It also motivates the employees in organisation to work with more enthusiasm. It
helps in personal and professional development. Some other points regarding the importance of
innovation to Essence drinks is described below:
 Competitive advantage: The organisation has competitive advantage because of the
using of the innovative ideas in organisation. These new ideas are providing the extra
edge to company thinking process. This helps the company to attract the customers. The
Essence Drink also gets benefits after innovation of the new drink. The innovation of
providing mango lassi in UK market provides the extra edge to their products which
attracts customers. This is the main reason behind the drastic increase of the sales of
Essence Drink.
 Establishment of best methods in organisation: The new ideas and the innovative
thinking of management of the company helps in identifying the best methods of
production of the product. This helps the company in cost cutting in production process.
It also provides the opportunities to company in assessment of the future risks and the
solution regarding them. Essence Drink company is providing the drinking products
which have many competitors in market. It required to adopt the new process of
production of drinks which increases their production reduces their operating cost.
P2. The way organisational vision, culture, leadership and team work can shape innovation and
commercialisation
There is huge contribution of the Essence Drink company vision, culture, leadership and
team work in development of the innovation in company. A good leader takes the initiative to
perform the work and to find the new ways of completion of tasks. Organisations vision, culture,
leadership and team work is described below:
Vision: Vision of the company includes their future events which they wants to achieve.
The vision of the Essence Drink is to capture the UK market by providing the unique drinks. The
vision of the company, also includes the use of the innovative technologies and process for the
development of the products.

Leadership: A leadership qualities of the manager of the company always contribute in
innovation process of the company. The initiative of the manager to finding new ways for
performing the work helps the management in development of new technologies. The dedication
of the manger also motivate the employee to perform better and contribute in the success of
organisation. The leadership qualities in employees of Essence Drink, helps in solving the
problems at their own level which faster the work of the departments. The guiding and
supportive nature of the leader helps in developing the sense of responsibility in employees
which motivates them to innovate new process in success of organisation.
Teamwork: The work of the organisation is divided into different departments but they
all work for the achievement of the common objectives of organisation. So, to achieve
organisational targets effectively it is important that to have team work in all departments.
Teamwork helps in operating the activities of the department smoothly without any conflicts.
The helping nature of employees helps in developing the good working environment in company
which motivates the employees to think and create new ideas and process which satisfy the needs
of the organisation.
Culture: The culture of every organisation is different from each other. The culture of
the organisation is mostly depends upon the country where it is established and operating their
activities. The culture of the company includes moral, norms, rules, regulations and values
introduced by the organisation. Every employee is required to follow the culture of company. If
the employee is not suitable with the cultures, it affects the performance of employee and also its
thinki9ng process. It is the duty of management of company to resolve the cultural difference in
the company. The essence Drink company is operating its business in UK, but the employees are
working there are come from different culture. It is difficult for the new employees to adjust as
per the conditions of the company which affects their individual and organisational performance.
The managers of the company has the duty to make the cultural equality in organisation.
Supportive behaviour of organisation helps the employees of Essence Drink to create the new
ideas of innovation and commercialisation.
M1. Different sources of innovation and development of culture of innovation
Peter Drucker is provided seven source of innovation which helps in development of
innovative ideas in organisation. These sources are defined below:

 Unexpected: It includes the happening of the event which is not expected by the
company. This helps the employees to generate the new ideas to solve the problems arise
due to such unexpected event.
 Incongruities: It includes the process of thinking differently. It means thinking different
not only from the competitors but thinks different from society also. This helps the
management to find out the creative ideas of selling
D1. Development of innovation in organisation
There are many ways of developing the innovation in organisation which is described
below:
 Be a model: To create innovation in employees it is required that management of the
company act as role model for the workers. It motivates them to produce new ideas.
 Provide challenging tasks: The management of the company has to give the difficult tasks
to employees. So, they use their mind in application of the new methods for completion
of tasks.
TASK 2
P3. 4P's of innovation and use of innovation funnel to examine innovative ideas
It helps in maintaining the quality of the products and motivation of the employees in
organisation. Innovation is the main reason which develops the personality of the individual. The
4p's of the innovation is described below:
 Process innovation: It includes the innovation of process which is used by the company
for the development of the products (Gooren, 2011). This helps the company to be cost
efficient and improving the qualities of products. Essence Drink company is need to
provide new process to compete with others companies in market. Process innovation
includes the establishment of new technology of production of products. This helps
company to provide unique and quality products to customers.
 Product innovation: Product innovation includes the production of product which has
different characteristics and have unique qualities. This gives competitive advantage to
the company. The Essence Drink company, also uses the product innovation to increase
their sales in market. They launch new product mango lassi in UK market which helps

the company to increase their sales figure and gives them opportunity to earn higher
profit.
 Position innovation: It includes the interchange the positions of the current products and
services provided by the company. It can be considered as modification in process under
which goods are detected.
 Paradigm innovation: It includes the shape of business firm. If the shape of the company
is good then it motivates the employees to innovate new things. In Essence Drink
company, there is need to change the structure of organisation. This gives the
opportunities to employees use their own methods in completion of project. This
motivates employees and helps in creation of new ideas and technology.
Innovation funnel: It helps in development of new methods. The main aim behind is to satisfy
the customer needs and market expectations. Innovation funnel includes three steps:
 Wide of mouth: It includes development of skills and knowledge. The main aim is to
gather many ideas and make services of company better (Hartung, 2014). Essence Drink
company uses the data collection methods to gather the review of public on their product.
This gives opportunity to company to make changes as per the requirements of customers
in their products.
 Selection of idea: This step includes the process of identifying the best innovative idea
which is more suitable for company to increase their sales. The idea which is selected by
company is flexible and economical.
 Implementation of idea: In this step, company implements the idea selected above in the
activities of business organisation. It helps the company to produce the goods by using
the new strategies adopted by company.
P4. Developments in frugal innovation
Frugal innovation: It includes the process of reduction of complexities in production
process, minimise prices of products and overall manufacturing cost. This helps the company to
reduce the additional cost and removing the cost of the unwanted resources which are not useful
in production of product. The contribution of this step is that it reduces the overall production
cost of the company which provides the competitive advantage (Hui, Lord and Caulton, 2014).
Essence Drink company uses frugal innovation in their company to reduce the cost of unwanted
resources. This helps the company to reduce the prices of the products and provide economical

products to customers. This will change the sales scenario of company and contributes in higher
earning of company. Another thing which change by company is to remove complexities in
production drinks. It increases the production capacity of company. Some point which shows
development in frugal innovation are described below:
 Reduce production cost: For the development of frugal innovation, the first step adopted
by company is to reduce the production cost of company. To reduce production cost,
management has to remove the unwanted resources which are used in production and
improve the quality of performance of workers so the quantity of waste material is
reduced.
 Development of new feature: In this step, company has to add some new features in their
products as per the needs of customers. This helps the company to satisfy the wants of
consumers. It increases the image of company in market.
 Use of new technology: In this step, for frugal innovation company has to introduce the
use of new technologies for their production of products (Kreag, 2014). It helps in
increasing the productivity and efficiency of company. The use of new technology also
provides more quality products to company which gives them competitive advantage to
them against their competitors.
M2. Analysis and application innovation funnel
Innovation funnel: It includes the process of development of new methods and process
for completion of tasks. The main purpose is to fulfil market expectations and consumers want.
There are many advantages of the application of innovation funnel in organisation. Essence
Drinking company apply this innovation funnel to attain organisational targets.
 Gather ideas: The first step of this funnel, includes gather new ideas and views of the
employee towards the producing the new processes. This increases the personality of
employees also. Same should be applied by Essence Drinking company to produce more
drinking products.
 Selection of best idea. In second step, management of Essence drinking company has to
adopt the best idea which increases the efficiency and quality of product.
 Implementation: It includes the procedure of application of idea on production of
products and to review the performance of company after that.

M3. Role of frugal innovation
There are many role of frugal innovation which are:
 To minimise difficulties in production process
 Reduction in the prices of products
 To reduce the overall production cost
 Remove additional cost of unwanted resources
TASK 3
P5. Significance of commercial funnel and use of NPD
It is the process which is used by company to manipulate buyer at the time of purchasing
products and services. It helps in identification of the current sales figures of company. It can be
done by change in features of existing products and make attractive for the customers (Lacy,
2010). Some importance of commercial funnel is described below:
 Improve quality: It helps in improving the quality of products by use of new methods.
 Reducing loss: Use of new technologies helps in reduction of cost and remove the defects
from products.
 Research: It helps in identification of competitors policies, market strategies and their
existing products.
 Increase goodwill: Use of new technologies helps Essence Drinking company to provide
quality drinks and diversified products to customers. This increases the image of
company in market.
New product development helps the company to provide new product to customer as per their
requirements. This strategy contributes in capture more market and get competitive advantage.
Essence drinking company uses this strategy for introducing new product in market. The process
of NPD includes:
 Generate idea: It includes the process of development of new idea by Essence Drinking
company (New Product Development Stages, 2017). The ideas created by company are
helpful in reduction of price and increase in quality of product.
 Idea screening: In this step, company needs to find out there best ides which suits the
company more.

 Define concept: It includes the process of testing the concepts behind the production of
goods (Margaret, 2015). This helps Essence Drinking company, in identification of the
idea selected by them.
 Marketing strategy: It includes the making of strategy for selling the product in market:
- Determination of target places and the maximisation of profits of company
- Make plans regarding cost of goods, preparation of budget and establishment of distribution
channel
 Business analysis: Companies identifies the effectiveness and attractiveness of new
goods.
 Product development: Company link new development with actual development and
analyse effectiveness of new product.
 Test marketing: company launch their product and test in real manner. This helps the
company to know about he market strategies which they have to adopt in this respect.
 Commercialisation: This the final step in which company takes final decision regarding
launch of product in market. Company also uses many promotion tools to promote their
products like social media, print media, television ads etc.
P6. Innovation business case in Essence Drinking company
Essence Drinking company is medium company which operates in UK providing varity
of drinks. But sometimes company has to face many problems. The innovation business case of
company includes many strategies:
 executive summary: Essence Drinking company is operating its business activities in UK
which provides the variety of drinks to customers. The main market strategy of company
is product differentiation (McKie, 2012). Company introduce new product in market
mango lassi which increases the sales of company.
 Need: To provide new drinks as per the requirements of customers.
 Solution: Company need to market research of the competitors and reduce the prices of
the products of company.
 Research on customers: It includes the research of preference of customer. It includes the
identification of tastes of customers regarding their products.
 Design and develop plan: The company has to design the plan for the manufacture of
product as per the needs of customer and implement them in organisation.

 Investment requirement: Now the duty of company is to fulfil the finance requirements to
start the production activities of new product. For this purpose they have to take the help
of shareholders to finance their projects.
M4
Innovation business case includes the strategies which are used by the company to
expand their activities. It includes need, solutions, research on customer, design of plan and
investment requirements. To measure the effectiveness of this case following techniques are
used:
 Feedback: To collect feedback from the employees regarding plan and view of customer
on products.
 Customer view: To get customer review on quality and price of the products.
 Acceptability: To know about the acceptability of the product by the customers of new
market.
D2
Innovation includes the process of generate new ideas , use of new methods and
technologies in production of the products of company. The various challenges has to faced by
company during innovation in company. Some measures to overcome them are:
 To motivate employees to accept the changes in processes by providing them offers.
 To provide training programs to employees to improve their skills
 To expand distribution channels
TASK 4
P7. Tools used by organisation to develop, retain and protect knowledge and intellectual property
Various tools are used by company to protect there innovations. These tools helps the
company to safeguard there innovations. The tools which are used by company to protect the
innovations are described below:
 Patent: It the safety measure which is provided by the government that companies take
patents on their new innovations (Sauerteig, 2012). It protects the innovation which is
not used by anyone for particular period of time.

 Trademark: It secures registration of company, its work, symbol, tag line and any thing
related to company. The protection time period under this 10 years after that is required
to renew it.
 Copyright: It is the right, given by government to innovators to distribute their rights
regarding selling, manufacturing products to others. The rights are only used by such
person to which it has to be given. Other persons are not allowed to use it.
M5
The tools discussed above are important to protect the innovations of the company. The
analysis of these are given below:
 Patent of innovation helps the company to restrict the other users to use the such
innovations. Ex. Design of products of M & S are not used by any other companies.
 Copyright gives the opportunity to few persons to use innovation if the right is provided
by company.
CONCLUSION
It has been concluded from the above report that innovation is helpful in increasing the
productivity of company. It also helps in reduction of prices of the products of company. The
4P's of innovation helps the company to maker the strategies according to that. Apply of
innovation funnel helps the company to properly implement the new technologies in company.