Innovation and Commercialisation Report: Essence Drinks Analysis

This report delves into the multifaceted world of innovation and commercialization, exploring key concepts and strategies for business growth. It begins by outlining the 4Ps of innovation (Product, Process, Position, and Paradigm) and introduces the innovation funnel, illustrating how organizations can identify and select the best opportunities for innovation. The report then examines frugal innovation and its role in adapting products to market demands, using the example of Essence Drinks. It covers the commercial funnel, including the development of an innovation business case, incorporating funding strategies and techniques for measuring effectiveness. Furthermore, the report addresses the nature of innovation and strategies to overcome associated challenges, such as funding and market demand. Finally, it explores tools for developing, retaining, and protecting knowledge and intellectual property, emphasizing the importance of these measures in a competitive business environment. The report provides a comprehensive overview of innovation and commercialization, offering valuable insights for businesses seeking to thrive in a dynamic market.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 and P2.....................................................................................................................................4
TASK 1............................................................................................................................................4
1.1 The 4Ps of innovation and the innovation funnel.................................................................4
1.2 Developments in frugal innovation.......................................................................................5
1.3 The innovation funnel in an organisational context..............................................................6
1.4 The role of frugal innovation in an organisation...................................................................7
TASK 2............................................................................................................................................7
2.1 Commercial funnel and its processing..................................................................................7
2.2 An innovation business case for an organisation, including funding
.....................................................................................................................................................8
2.3 Measurement of effectiveness
using techniques.........................................................................................................................8
2.4 The nature of innovation and strategies to overcome the challenges....................................9
TASK 3............................................................................................................................................9
3.1 The different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................9
3.1 Supported evidence-based evaluation of different tools in the context of the wider
business environment...............................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is the change that unlocks the new value. Innovation means bringing changes
to a existing thing which can bring a huge difference. In basic terms it is modifying or upgrading.
This report completely states what, how, where and when innovation is required and can be
utilised as a source to have a achievement over the market (Anokhin, 2011). Akshay Kumar, the
founder of Essence Drinks has invented “lassi” in the market of UK which has grown rapidly.
This states that it has captured the market and to be at stability it needs innovation in the existing
product. This report states that how a company can use the creativity in its business operations so
that more and more customers could be attracted towards the product.
P1 and P2
Covered in PPT
TASK 1
1.1 The 4Ps of innovation and the innovation funnel
Prior to any innovation the company has to identify in which part of the organisation it is
to be introduced. Innovation have parameters which are 4p's of innovation. These parameters can
4 P'S OF INNOVATION POSITION
PRODUCT
PROCESS
PARADIGM

be used by the Essence Drinks to recognise where the change or innovation is required. More
specifically these parameters can be illustrated as under: Product: Here the company innovates the product. As in marketing product is introduced
here also the product is innovated and introduced. This is the requirement in the Essence
Drinks to innovate its product to sustain in the market. Process: Process in a drinks industry would be how the drink is produced which also
requires to innovate so as to fulfil the demand on time. Essence Drinks have to add more
innovation in process of making lassi so that a new product can be generated. Position: This is same as the marketing place (Davila, 2012). The company have to
identify where the product is to be introduced. Positioning of the product is totally
related to serving the right customer at the right time. In other words positioning
according to the demand of the customer. Essence Drinks can target the market
according to demand.
 Paradigm: It means to bring change in the process of the company. Like it may bring the
change in operations of reaching the customer switching from retailing store to online
websites etc. This is totally concerned with the demand of the scenario in which the
business is operating.
1.2 Developments in frugal innovation
Essence Drinks has to first recognise the segmentation or approaches on which it will
identify the proper scenario of the market in which it is operating (D.B., 2008). Further the frugal
and funnel innovation can be used in context with the segmentation. These segmentation can be: Identifying the competition Evaluation of market trends Involving the customers in suggestions
According to all of the above factors the company should generate the process of
evaluation through frugal and funnel of innovation. As a proper direction is there in which
company has to operate.
Funnel and frugal innovation involves set of process used to launch a product after
identifying the internal and external environment and the opportunities which are available in
accordance with the business. Essence drink can follow the following process:

 Identifying The Opportunities For Innovation: The company should identify all the
innovation it can make in lassi to have product leadership. Selecting The Best: All the identified opportunities of innovation should be evaluated
and assessed. The best in every aspect among them is to be chosen. Communicating To The Employees: The innovation procedure and guidelines should be
communicated to the employee who are working. The change that will be brought to the
new lassi will be communicated. Action To The Innovation: According to the communication the employees should start
their operations. Making of the new lassi should be initiated (F. eds., 2013).
 Reviewing The Innovation: The changes that are brought should be checked regularly.
Like in case of Essence Drinks the new lassi's sales and customer feedbacks should be
taken so that if any change is required that can be accessed.
Likewise by following the process step by step Essence Drink will achieve success in
introducing a new product with innovation in the market of UK.
1.3 The innovation funnel in an organisational context
Innovation funnel is an another process which can be used by the organisation to identify
the opportunities available for innovation and selecting the best out of them to launch in the
business operations.
Above is the funnel diagram stating how it works (Shelton, R., 2012). First the idea
comes than all the resources available for that idea are checked accordingly the plan is developed
it is being tested and than launched to the market. It is illustrated below:

 Idea for Innovation: The idea for innovation develops in the business. In context with
the business there is a need felt to develop. Than the company regulates the idea of
innovation. Discover: The available ideas to innovation are discovered and analysed. Certainly the
best among them is chosen. Scope Analysis: Scope of the discovered idea is analysed. It is just like forecasting the
future of the idea generated. Build the Business plan:After considering the risk factor of the idea the best id chosen
and the plan according to it prepared (Rennings and Leone, 2013). Initiate: The prepared plan is brought to action in the business operation. Test: The performance of the regulated innovation is checked and compared with the
standards.
 Launch: In last the product is launched to the market at its best possible results.
Like this the funnel works and operates. Essences Drinks can use it to develop the new
innovation idea by carefully judging the idea at each parameter so as to have maximum success.
1.4 The role of frugal innovation in an organisation
Frugal innovation is changing the product or modifying the product according to demand
as Essence Drinks have done while introducing mango lassi in UK's market. It further can
modify the product by adding what customer like in UK its can be concerned with adding more
fruit flavours (Hemert, 2013). In context with the organisation it has grabbed the opportunity of
introducing lassi by modifying it so that it works in UK's market.
TASK 2
2.1 Commercial funnel and its processing
Commercial funnel is identifying all the available opportunities of producing products
and than selecting one or two from all of them. For example- Essence Drinks has identified that
it can produced many products related with diary in association with lassi but it choose lassi and
modified it. To produce a new innovated product the company has to identify all the possible
opportunities and in accordance to it best should be ascertained and chosen. Likewise the risk
and the opportunities associated with the product like- will it be working in the long term, does it
have the scope of getting success, will the customer like it etc. Regular feedback and advices

should be taken by the company to improve the productivity and sales. Frugal innovation can be
used by Essence drinks in value analysation by utilising the resources completely and the scarce
resources should be carefully taken care (Jagoda, 2011). So that the organisation have a cost
effective environment.
2.2 An innovation business case for an organisation, including funding
Essence Drinks can make new innovation to the lassi. Its is already producing Mango
flavoured lassi. Some more fruits could be added to the flavours like- avocado, grapes etc. some
more new products can be made by the company like: Pulpy Lassi Salted Lassi With Suitable Salad Smoothie With Thick Lassi Rose Flavoured Lassi
 Cardamom Lassi
The company can make all the above new products through lassi (Lee, S., and et. al.,
2010.). To introduce these products in the market the company can use different tools of
promotion which are permitted in UK. Like- advertising, pamphlet, hoardings, social media etc.
Techniques for testing the effectiveness of the product can be: Feedback from the customers
 Survey
The cost of innovation would be-
TRAINING OF THE EMPLOYEES £200
RAW MATERIAL £500
PROMOTION £100
TESTING THE EFFECTIVENESS £70

2.3 Measurement of effectiveness
using techniques
The company can use these innovation effectiveness testing techniques to achieve the
results so as to identify if there is improvement or change needed- Recording Views Of The Customers
 Questionnaire Can Be Filled From The Customers
Both of these techniques can be used by the Essence Drinks to have proper views of the
customers about the product. Accordingly the company can make changes by keeping in mind
the views to have a proper function of the innovation in the market (Walsh, P.R., 2012.). Any
lack in the product should be rectified by appropriate changes to satisfy the customers fully.
2.4 The nature of innovation and strategies to overcome the challenges
Everything have a positive as well as negative consequences. So as a new creation in a
company. Innovation in the product of Essence Drinks can be liked by the customers as well as
they can be not liked by the company. In context with the company so it can face the funding
problem. To overcome these challenges the company can use the techniques like- Evaluation Of Market Demand Customer Needs
 Innovating The Product According To The Demand
TASK 3
3.1 The different tools that organisations can use to develop, retain and protect
knowledge and intellectual property
It is necessary for any business who is completely starting a new business based on
innovation. Otherwise there are chances of getting copied, threat from substitutes, new
competitors can develop, no competitive advantage etc. issues can happen. Likewise Essence
Drinks is operating a business which is completely based on innovation and similar threats can
be faced by it while doing it. So the business has to develop a solution to such problems to
sustain. Many relief remedies are available for this threat which can be regulated in the business
like: Communicating the general information only: The company should communicate the
information to the employees which are less confidential and which have least threat of

spreading (D.B., 2008). The company should have its idea kept to the trusted people only
so that it can't be theft. Developing strict policies: The policy of secrecy of information should be regulated in
the company. Before anyone joins the business should be informed about this policy so
that no further issues can be generated. Maintaining the secrecy: The new ideas should be kept secret in the company's
boundary so that there would be no data threat. Loyalty of the people working the
organisation should be maintained by the relevant policies.
 Protecting the data: The confidential data should be protected under some securities,
passwords or by different tools of security. So that the loss of data would decrease.
3.1 Supported evidence-based evaluation of different tools in the context of the wider
business environment
In relation to protect the company from different threats which may occur from data theft
the company can take use of different intellectual property rights. Intellectual property means the
new innovation, invention or creation by someone for example: art, books, music album etc. So
to protect them from getting copied and develop ownership right on them the legal authorities
gives relief by some of the rights. These rights can be further classified as: Patent : The right granted for doing something in a new and innovative way. It can help
essence drinks to have the right over the new innovation in the product so that the product
can't be copied by the competitors. Trademark: These are the signs, logo or the marks used by a company to identify its
product. This is acquired to achieve the right over all these so that no one can copy the
logo. The company can be uniquely identified by it in the market.
 Copyright: This assigns the ownership right to the actual owner of the product. Hence no
other person can claim right over the product (F. eds., 2013). Essence Drinks can also use
this so that no other person in UK can claim the inappropriate right over its product.
Protecting the business from threats from internal and external environment is necessary.
One who develop an idea to do a new business needs to access the pros and cons associated with
it. This is a part of proper planning and is essential. Likewise Essence drinks can use all the
above rights and regulations available for the business operation in UK.

CONCLUSION
The information related to launch of a product and innovating it is identified in this
report. Innovation is important if we aim at operating the business on long term basis because the
needs and wants keeps on changing from time to time. Today the customers have become very
smart so they want choices so this project has a brief information about how the demands could
be ascertained and according to them the product is to be introduced. Essence Drinks wants to
innovate its product so this report is useful for the company while implementing the innovation.

REFERENCES
Books and Journal
Anokhin, S., Wincent, J and Frishammar, J., 2011. A conceptual framework for misfit
technology commercialization. Technological Forecasting and Social Change. 78(6).
pp.1060-1071.
Bagchi-Sen, S., 2010. Strategic considerations for innovation and commercialization in the US
biotechnology sector. European Planning Studies. 15(6). pp.753-766.
Davila, T., Epstein, M and Shelton, R., 2012. Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva. 50(4). pp.397-
421.
Guha, S and Yang, J., 2010. Thin film silicon photovoltaic technology–from innovation to
commercialization. In MRS Proceedings (Vol. 1245, pp. 1245-A01). Cambridge
University Press.
Gulbranson, C.A and Audretsch, D.B., 2008. Proof of concept centers: accelerating the
commercialization of university innovation. The Journal of technology transfer. 33(3).
pp.249-258.
Hemmelskamp, J., Rennings, K and Leone, F. eds., 2013. Innovation-oriented environmental
regulation: theoretical approaches and empirical analysis (Vol. 10). Springer Science &
Business Media.
Hoque, M., Chishty, M. and Halloway, R., 2011. Commercialization and changes in capital
structure in microfinance institutions: An innovation or wrong turn?. Managerial
finance. 37(5). pp.414-425.
Jagoda, K., and et. al., 2011. Development and commercialization of renewable energy
technologies in Canada: An innovation system perspective. Renewable Energy. 36(4).
pp.1266-1271.
Kutvonen, A., 2011. Strategic application of outbound open innovation.European Journal of
Innovation Management. 14(4). pp.460-474.
Lee, S., and et. al., 2010. Open innovation in SMEs—An intermediated network
model. Research policy. 39(2). pp.290-300.
Snow, C.C., and et. al., 2011. Organizing continuous product development and
commercialization: the collaborative community of firms model. Journal of Product
Innovation Management.28(1). pp.3-16.
Thore, S.A. ed., 2012. Technology commercialization: DEA and related analytical methods for
evaluating the use and implementation of technical innovation. Springer Science &
Business Media.
van Hemert, P., Nijkamp, P. and Masurel, E., 2013. From innovation to commercialization
through networks and agglomerations: analysis of sources of innovation, innovation
capabilities and performance of Dutch SMEs. The Annals of Regional Science. 50(2).
pp.425-452.
Walsh, P.R., 2012. Innovation nirvana or innovation wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Wong, P.K. ed., 2011. Academic entrepreneurship in Asia: The role and impact of universities in
national innovation systems. Edward Elgar Publishing.

Wonglimpiyarat, J., 2010. Commercialization strategies of technology: lessons from Silicon
Valley. The Journal of Technology Transfer. 35(2). pp.225-236.
Online
INNOVATION AND 4Ps OF INNOVATION. 2016. [online]. Available through
<http://www.bizexcell.com/innovation-and-4ps-of-innovation/> [Accessed on 13 May
2017].
Innovation at Heinz. 2016. [online]. Available through
<http://businesscasestudies.co.uk/heinz/innovation-at-heinz/#axzz4Rg1o4O1N>
[Accessed on 13 May 2017].
Innovation Funnel. 2016. [online]. Available through
<https://www.cleverism.com/lexicon/innovation-funnel-definition/> [Accessed on 13
May 2017].