Innovation and Commercialisation: Business Report Analysis

This report provides a comprehensive overview of innovation and commercialisation within a business context, using the "Essence Drink Company" as a case study. It explores the importance of innovation, examining how organizational vision, culture, leadership, and teamwork shape innovation and commercialization. The report delves into the 4Ps of innovation, the innovation funnel, and frugal innovation, analyzing their application in the business environment. It further discusses the significance of the commercial funnel, new product development (NPD), and building a detailed innovation business case. Finally, the report addresses tools for developing, retaining, and protecting knowledge and intellectual property, concluding with an evaluation of these tools.

Innovation and
Commercialisation
Table of Contents
INTRODUCTION...........................................................................................................................1

TASK 1............................................................................................................................................1
P1. Innovation and its importance in an organisation............................................................1
P2. The way organisational vision, culture, leadership and team work can shape innovation
and commercialisation............................................................................................................2
M1: Different sources of innovation and development of culture of innovation...................3
TASK 2............................................................................................................................................4
P3. 4P's of innovation and use of innovation funnel to examine innovative ideas................4
P4. Developments in frugal innovation..................................................................................5
M2: Analysis and application innovation funnel....................................................................6
M3. Role of frugal innovation................................................................................................6
TASK 3............................................................................................................................................7
P5. Significance of commercial funnel and use of NPD........................................................7
P6. Innovation business case in Essence Drinking company.................................................9
M4: Building a detailed innovation business case which includes how to measure overall
effectiveness of company.......................................................................................................9
TASK 4..........................................................................................................................................10
P7. Tools used by organisation to develop, retain and protect knowledge and intellectual
property.................................................................................................................................10
M5: Evaluation of Different tools used in an organisation..................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is an essential need of an organisation to achieve growth and success in
competitive environment for longer duration. It can be done through adopting an effective
process, technologies and products in an organisation. Innovation includes the process of the
changing something into innovative and effective that will bring positive result to company. The
main purpose of this report is to provide the importance of innovation and commercialisation in
the success of an organisation. “Essence Drink Company”, a UK company which deals in
providing various drinks is selected for the purpose of preparing this report. The project covers
the contribution of the vision and objectives of the company in achievement of the innovation,
4Ps of innovation, significance of commercial funnel, commercialisation of innovation by use of
new product development and the different tools which are helpful in protecting intellectual
property rights (Baraldi and Waluszewski, 2011).
TASK 1
P1. Innovation and its importance in an organisation
Innovation Invention
It includes the process of making changes in
something into an effective that will bring
positive result to company.
It refers to creating of new ideas which comes
into market for the first time and then convert
into process of implementation.
The management of company is responsible to
bring innovation in existing technologies and
products in order to attract large number of
customers. For example Implementing
innovative technologies will reduce cost of
production and therefore the company can able
to provide their products at an effective prices.
Introducing new ideas and after analysis its
benefits, implementation of such new ideas
should be done with a motive to fulfil the
needs and demands of targeted customers. For
example Mobile phones are first invented by
Martin cooper.
Innovation implies implementation of idea for
various products and process for very first
time.
It is basically occurrence of an idea for product
that has been never made before.
For example, innovation in energetic For example, Essay drink can have invented
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ingredient in the drink can draw the attention
of healthy people.
wide number of drinks according to the
demand of customers or in many flavour.
Importance of innovation in an organisation: It is considered as an important need of an
organisation if they want to survive in competitive market world for longer duration. Implement
changes in existing products or technologies will help in bringing positive outcome to company.
It also motivates employees to work on innovative technologies that will help them in bringing
efficient in work. Some other advantages of innovation in Essence Drink company are as
follows:
Competitive advantage: An organisation if focuses on adopting innovative changes in
existing production and marketing process will help in achieving competitive advantage.
Bringing innovation on production process will help in reducing cost of production and bring
maximum output through which they can able to provide its products at a reasonable price to the
customers (Bianchi and et. al, 2010). As Essence Drink company engaged in providing drink
products should require to focus on bring into something new into the market such as introducing
Mango Lassie in UK which grabs an attention of large number of customers. This will improve
the overall sales and revenue of company and provides tough competition to their rivals.
Establishment of best methods in organisation: It is essentially required for an
organisation to bring new ideas and methods in an organisation so that they can sustain in
competitive market for linger duration. Adopting new changes in marketing process will help
company in attracting large number of customers. For example, bringing new and unique
concept in an TV advertisement of product will help in grabbing attention of targeted customers
which may improves sales as well (Innovation in Marketing, 2016).
P2. The way organisational vision, culture, leadership and team work can shape innovation and
commercialisation
The vision, culture and leadership and team work in an organisation should contribute
maximum in the development of the innovation in company. A leader is responsible to bring new
and innovative methods in completing task in more effective and efficient way. The vision,
culture, leadership and team work of an organisation are defined as below:
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Vision: It refers to the future events that need to be achieved by company in near future.
The vision of Essence Drink company is to capture large market share of UK so as to achieve
strong stable position in market for longer duration.
Leadership: A good leader is one who attained all leadership qualities and contribute
their maximum efforts in achieving desired goals and objective of company. The leaders of
company are liable to identify new and innovative ways and methods in competing business
activities in more effective and efficient manner so that it will help in improving the overall
performance of company (Bradley, Hayter and Link, 2013). Adopting innovative changes in
technologies in an organisation and helping employees through giving guidance and direction of
using innovative technologies will directly motivate the employees to focus on completing their
task in profitable manner. Therefore, the leadership plays an effective role in growth and success
of employees as well as an organisation (Innovation and commercialization, 2010).
Team work: As there are different department in an organisation who perform their
delegated roles and responsibilities to achieve common organisational goals and objectives.
Therefore, it is important to all departments to work in a team so as to bring maximum result to
company. Working in a team will help in maintaining healthy environment which directly
motivates employees to bringing new ideas and process that will help company in meeting
customer's needs and requirements.
Culture: The culture of an organisation depends on where they are located and operating
business operations. As there are different countries having different cultures due to which the
company need to implement moral, norms, rules and regulation, values etc. within an
organisation in order to run business operation more smoothly. The employees working in an
Essence Drink company are from different countries due to which they may find difficulties ion
adjusting in working environment of company which affects the performance of company as
well. Therefore, it the duty of manager to make cultural equality in organisation and focus on
maximising satisfaction level of employees (Caniëls and van den Bosch,2011).
M1: Different sources of innovation and development of culture of innovation
There are different sources of innovation which are provided by Peter Drucker are as follows:
Unexpected: It involves the occurrence of any event which is not expected by company.
In order to solve issues or problems occurred due to which non-expectancy the company need to
generate new ideas and concepts after collecting information from market.
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Incongruities: It refers to thinking different from their competition which make them
more successful in market. This seems to be key growth excitedly successful businesses but their
complicated.
Demographic: Company can constantly see changes those are occur in population. Income
level and human capital. At present they are one of the largest as well as the most affluent
demographic team with wide level of disposable income. Essence drink company can uses this
sources to target wide number of customers.
TASK 2
P3. 4P's of innovation and use of innovation funnel to examine innovative ideas
4Ps of innovation helps in improving the quality of product through adopting innovative
methods in the process of manufacturing product which help in providing motivation to
employees of an organisation. Such 4Ps are defined as below:
Process innovation: It refers to bringing innovation in process of manufacturing quality
products so as to achieve huge sales and revenue for company. Essence Drink company is
essentially required to adopt new ways and techniques in production process which help in
reducing cost of production and help in bringing efficiency in work of employees. This will help
company in providing good quality products to customers at reasonable price and competitive
with rivals in an effective and efficient manner.
Product innovation: It refers to making innovative changes in the features of products so
as to attract large number of customers. Therefore, in order to generate huge sales and revenue
the company must need to adopt specific changes in existing product which grabs an attention of
large number of buyers. For example, introducing Maggie lassi in market by Essence Drink
company is successfully grabs attention of large number of buyers due to which the sales and
revenue of company goes high.
People: As Essence Drink company is small-sized company therefore it is required to
change the organisational structure of company so that it can provide opportunities to employees
to educate and enable to perform their role most effectively within an organisation (Cooper,
Seiford and Zhu, 2011).
Press innovation: In order to innovate new products within the company to clever
fiction. It went products to be among their people favourites. In order to dispose all the latest
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innovation in the drink segment the media landscape is more essential for the company take into
account.
Innovation funnel: It refers to development of products through implementing ideas into
action in order to meet market needs in an economical form. It includes three steps which are as
follows:
Wide of mouth: The main objective is to collect new ideas from different sources
because having more ideas the company has, the more changes the company can implement in
their product. Collecting ideas and concepts through various sources such as competitors,
conducting research, existing members or institutes etc. which help them in identifying the need
and requirements of market and accordingly modifying their existing products in an effective
and economical form.
Selection of idea: This step involves the selection of best ideas and concepts among
various options which help company in improving sales figure and generate huge revenue. In this
stage the company need to first test the products or service with actual customers and thereafter
select an appropriate and effective ideas which will bring positive result to company (Crossan
and Apaydin, 2010).
Implementation of ideas: At this stage, the company finally implement selected ideas or
concepts into actions so as to achieve desired goals and objectives of an organisation. In this
stage the manager focus on adopting selected plans and ideas to produce quality products so as t
attract large number of customers.
P4. Developments in frugal innovation
Frugal innovation: It refers to process of eliminating the complexity and reducing the
cost of production which directly help in reducing cost of product as well. Frugal innovation
means eliminating unnecessarily features which deceases the sales of products. Therefore
Essence Drink company is required to use frugal innovation in their company so as to avoid the
cost of unwanted resources used in manufacture quality products. This will help company in
generating huge revenue and attain strong position in competitive market world. Some of the
advantage of adopting frugal innovation are as follows:
Reduce production cost: In order to provide quality product to customers at reasonable
price the company needs to focus on reducing cost of irrelevant material used in production
process due to which they can able to offer products at low prices.
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Development of new feature: In this step, the company focuses on adding some extra
value to the existing products according to the needs and requirements of customers so that they
can maximises their level of satisfaction and attain s strong image in competitive market world.
Use of new technology: In this step, the company need to focus on adopting new and
advanced technologies in the production process so as to bring efficiency in work and
productivity. Using advanced technology help company in producing good quality products with
the help of using limited resources in an optimum manner. Through this, the company can bale to
compete with their rivals (Dries and et. al, 2014).
M2: Analysis and application innovation funnel
It is important for company to first analyse the innovation funnel and accordingly make a
decision regarding implementation. Through following steps, the company can apply innovation
funnel in an effective manner:
Gather ideas: In the first step the company need to generate new ideas and concepts
which is helpful in getting positive result in production process.
Selection of best idea: In second step, the company need to select one ideas out of many
on the basis of their effectiveness and benefits.
Implementation: In this step, the company finally decide to implement ideas into action
in order to achieve best possible result to company (Edquist, 2010).
From the above discussed various application of innovation funnel, it is essential to make
use of proper resources so that chances of getting better outcomes can be more in near future
time.
M3. Role of frugal innovation
There is different role of frugal innovation which are as follows:
 In order to minimise difficulties in production process.
 Reducing the cost of products.
 Eliminating irrelevant materials in production process.
All the necessary finding would indicate that frugal innovation can work effectively in only
those situation under which there is certain value with less resource at minimum cost are present
in front of them. Further, the role of innovation funnel is to facilitate collaborative ecosystem
along with a deep embeddedness in the local economy.
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TASK 3
P5. Significance of commercial funnel and use of NPD
It is the useful in changing interest and buying behaviour of customers towards their
quality products so as to increase sales figure of company. Adding some extra value to the
existing products which makes them different from their rival's product help company in
achieving competitive advantage in market. Some of the advantages of commercial funnel is
defined as below:
Enhance quality: It helps in enhancing quality of products through adopting an effective
methods and techniques (Plewa and et. al., 2012).
Minimising losses: Implementing advanced and effective technologies help company in
reducing the cost of production and eliminate all irrelevant materials which increases cost of
production.
Research: Conducting research help company in identifying the needs and requirements
of market, competitor's strategies and perception of customers relating to their product.
Increases goodwill: Introducing wide variety of drinks in market easily grabs an attention
of buyers due to which they may show their willingness to purchase their new product which
help company in attaining strong position in market and achieve good image in competitive
market world (Gray, 2011).
New product development: It help company to introduce new product in market
according to their needs and requirements so that they can capture large market share in UK.
Essence Drink company need to focus on developing their product through following the process
of NPD which are as follows:
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Sources: Maximilian Claessens, 2015
Generate idea: At this step, the new ideas are generated in order to enhance the quality of
product of Essence Drinking company. The ideas should be created which help in reduction of
cost of product and improve its quality.
Idea screening: At this stage, the company need to think critically that which ideas
should bring positive result to company (New product development process, 2015).
Define concept: In the test, the company needs to test the ideas and concepts which will
be taken in future and analyses its benefits achieved by company.
Marketing strategy: In this stage, the company needs to market their products In market
so as to attract large number of customers.
Business analysis: In this stage, the company need to identify the effectiveness of new
products so as to achieve better possible result.
Product development: Implementing new techniques and tools which should be used in
production process which results in maximising the features and characteristics of product.
Test marketing: In this step, the company need to test and launch the product into market
through adopting various marketing strategies so that they can reach their products to maximum
no. of people (Guan and Chen, 2010).
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Illustration 1: New product development process, 2015.

Commercialisation: This is the final step in which the company took final decision
regarding launching new product in market. Adopting various promotional tools in order to
promote their product such as social media, television ads etc. through which they can get huge
attention of public towards their new product.
P6. Innovation business case in Essence Drinking company
Essence Drink, a UK company which is generally small in size and offered variety of
drinks in market with a motive of achieving growth and success for longer duration. While
operating business, they may also find various difficulties which restrict them to capture large
market share. The innovation business case of company includes many strategies:
Executive summary: Essence Drink company is a UK based company which deals in
proving various types of Drinks product to customers. The main market strategy the company
adopted in product differentiation. For example, the company introduces Mango Lassi in market
due to which they give tough competition to their rival companies (Lin, 2010).
Need: Introducing new products in market according to the needs and requirements of
customers.
Solution: It is important for company to conduct market research in order to identify the
strategies of their competitors so that they can implement an effective pricing strategies in order
to compete with them.
Research on customers: It is also important for comply to identify the needs and
demands of targeted customers through conducting research where they can collect feedbacks
and perception of customers towards their products.
Design and develop plan: It is necessary to design the plan for adding an effective
feature to the product which help in maximising the level of satisfaction of customers.
Investment requirements: Introducing new product or implementing new technologies
requires huge financial resources therefore the company need to attract investors and
shareholders to invest money in their business so as to get maximum return in future (McCoy
and et. al., 2010).
M4: Building a detailed innovation business case which includes how to measure overall
effectiveness of company
Innovation business case includes the different strategies and techniques which is helpful
in measuring an effectiveness. Such techniques are as follows:
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Feedback: Gathering feedbacks from workers related to views and suggestion of
customers towards their products (Micheli and et. al., 2012).
Customer view: Getting review and opinions from customers towards their products.
Acceptability: Knowing about the acceptability of the product by the customers of new
products.
Often what is missing is ensuring the innovation business case takes a clear method and
helps to build proper arguments up in a sound structured manner. A good business case for
innovation concept required to indicate the areas of clear analysis of brushing over the unknowns
but attempting to quantify proper qualify them as effective way to increase the market share of
the company.
TASK 4
P7. Tools used by organisation to develop, retain and protect knowledge and intellectual property
There are various tools which need to be used by company in order to develop, retain and
protect their innovations. Such tools are described as below:
Patent: This tool helps company in protecting their innovation from their competitors so
that they can achieve competitive advantage in market. The company is required to take patents
on their innovation so that their rivals could not use for their benefits (Huang and et. al., 2012).
With the advancement or use of any method can protect the person by using correct option or
legal support from the government.
Trade market: It is useful in protecting the name of company, the work, tag line and
anything related to company. The duration for renewing is 10 years which is compulsorily
required for company to renew. People can easily understand brand with the help of signs. It can
be printed on label, vouchers and so on. Along with this, it can be represented on enterprise's
building
Copyright: It is the right of using company's name in order to sell into market for
generating huge revenues. The company should give its rights to anyone after getting some kind
of payment from them. If any person found of distributing their product without getting
permission, then the company have full right to file a case against them. Fundamentally, it
incorporates books and thus, it is not it is easy to do different creative works such as music,
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