Innovation and Commercialisation Report: Essence Drink Case Study

This report provides a comprehensive analysis of innovation and commercialization strategies within a business context, using Roger White's 'Essence Drink' as a case study. The report delves into the importance of innovation for organizations, comparing it with invention, and explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It examines the 4Ps of innovation (product, process, position, and paradigm), explaining the use of the innovation funnel and the concept of frugal innovation. Furthermore, the report discusses the commercial funnel, the application of New Product Development (NPD) processing, and the importance of building an innovation business case, including accessing funding. Finally, it evaluates tools for protecting intellectual property. The report is structured to provide a detailed understanding of the commercialization process from inception to market introduction and protection of intellectual property, providing strategies for success in a competitive market.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Explain innovation and its importance to organisations in comparison with invention .....1
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.......................................................................................................................2
TASK 2 ...........................................................................................................................................3
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine .....3
P4 Explain frugal innovation and provide examples of how it is used in an organisational .....4
TASK 3 ...........................................................................................................................................4
P5 Importance of the commercial funnel and the application of NPD processing ....................4
P6 Build an Innovation Business Case for an organisation, including ways to access funding. 6
TASK 4 ...........................................................................................................................................7
P7 Evaluate the different tools that organisations can use to protect intellectual property. .....7
CONCLUSION................................................................................................................................7
....................................................................................................................................................8
REFERENCES ..............................................................................................................................9

INTRODUCTION
Commercialisation refers to the process of introducing the new product in the market.
The product from its initial stage to mass production and finally to the distribution
commercialisation took place(Abou-Ras, Kirchartz and Rau eds., 2011). It include activities like
product, distribution , marketing, sales and customer support. The company make the strategy
how the new product supplies in the market and meet the customer needs.
Innovation can be a new process or method which gives the better solution to meet the
new requirements. Innovation leads to more effective method to solve any problem and which
bring the concept in the market.
An innovation business case is one of the toughest concept because returns of of new
business is unclear and in this stage the company go for commercialisation process. In this report
the roger white is developing the new idea to make innovate its product(essence drink). Few
years ago the roger launched the essence drink in the market and the demand is high. After few
years because of new entrance in the market the demand decrease of essence drink. So roger is
finding the solution by making innovation in his essence drink(Snow and et. al., 2011).
TASK 1
P1. Explain innovation and its importance to organisations in comparison with invention
The meaning of innovation is quite deep it depends on the usage. Its is exploitation of
new concepts and new ideas. Companies get lot of advantage through this such as they earn
revenues, expand market, new profit margins and other profits(Eesley, Hsu and Roberts., 2014).
Innovation leads to the new process and method required to improve the product efficiency and
its demand in the market. Innovation help the company to maintain the competitiveness but not it
is not able to create the competitive advantage for longer run.
Importance of innovation
Innovation is very important for every organisation to maintain the competitiveness. It is
necessary for every business to brings new idea, new concept, to maintain fresh, original
operation to serve their customers. It has many advantage such the innovation can help the
company to retain its customers for longer term. Innovation bring the new concept of doing
things in easy manner. Following are the importance of innovation.

 Create competitive advantage: innovation help the company to have the competitive
advantage over its competitors. In today's economy it is very important to have the
information about the global(Aarikka-Stenroos and Sandberg., 2012). The organisation
has to access the best new ideas around the world. There is different view of technology
for different people like some of the people see innovation as the value of the money,
some costumer as change in product features. Innovation can help you to stay ahead of
the competition as the market and continue the trend in the market. Innovation establish the best method for the business: every organisation is having its
own problems and issues. For these issues the company establish the innovation to get the
best method. The company innovate its product by recognising their current resources,
by developing opportunities, response to the customer in proper manner.
Difference between innovation and invention
Invention is something which is invented or introduce for first time while innovation
termed as making changes in the existing product for its up gradation.
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Its is very important for the CEO of the company to have clear vision and mission of the
company because these element has large impact on the business commercialisation. The vision
leads to the aim which company wants to achieve in future and mission tends to make all the
strategy to reach its vision. Leadership tends to train the employees of the company to follow the
particular task. Culture refers to sharing common belief, value, norms among the group in the
organisation. These all elements took place in the organisation. These elements are having
negative and positive affects on the innovation and commercialisation. Leadership in
organisation help to trained its employees and leader also encourage the followers to express
there views by which company is getting new ideas. For bring the commercialisation in the
organisation the coordination of employees is very important. The leader creative roles can
contribute in the innovation and commercialisation process.
At initial stage of the product the employees of the company trained in a manner so that
they advertise its product to its customer in a better way. The employees are trained to how they
should communicate the buyers and generate leads. Culture factors influence the
commercialisation by values, belief and norms of the enterprise employees. If they bale to

change according to time the commercialisation can be easy for them but if the employees of the
company are rigid in nature and they do not like to accept their way of working it have the
negative impact on the commercialisation. At last the team work it main objective of the
commercialisation to introduce the new product in the market and get the financial benefit from
it. The team coordination is important to produce the good in good quality and with less cost. If
the employees are working in team it is easy to achieve the company goals.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
As like the marketing mix is having 4 p's product, price, place and promotion. The
innovation also having the 4 p's( product, process, position and paradigm). These 4 p's of
innovation are as follow. Product: first thing that comes into mind that how the company changes should
company make in its product(Visser., 2011). In context to the case roger white needs to
make change in the essence drink like they can add new favours, ingredient, new
packaging and so on. The company CEO make these changes and assume that the sale
can be increase by these changes. There can more aspects the Robert white can look into
like its delivering aspects and provide the freshness of the product. Process: what are the process and the method used in the essence water. But company
can change its other process like distribution, accounting and recruiting. Company can
make changes in these aspects to innovate and commercialised its product. The company
should adopt the innovative process and method so they can provide the services in
quicker time and in lesser cost. Position: In marketing mix the position is similar with the promotion. But they are
different terms having the different implication. Positioning termed as what position
company wants to get in their consumer mind. Like in this case the Robert white
positioning its product has the healthy essence drink. For example Nike has position its
product as the sports brand. Positioning is depend upon what perception consumer has
on the particular product.

 Paradigm: paradigm is concern the changes made by the organisation while serving its
product. The company can change its way of delivering, the company can start selling
the product on-line and so on. It doesn't means that the company get the better business.
These all 4p's are related to each other like better product and process have the better perception
and better perception leads to more sale and more profits(Baltzan., 2012).
Innovation funnel gives the steps that take place in developing, producing the product.
The purpose of the innovation funnel is create the process and product which can meet the
customer needs. The innovation product includes three steps investigation, development and
shipping the product.
P4 Explain frugal innovation and provide examples of how it is used in an organisational
Frugal innovation tends to reducing the complexity and cost from company product.
Many companies use this process to reduce the cost and increase the sale of the company. This
help the enterprise to attract the large number of customers. Example coca cola have its
campaign where they suggest the customer to write the name on the can. They took the
celebrities face on the can and this campaign is like if you know the Kate meet the Kate and
other celebrities. In very short term periods the sales of the drink increase and company select 50
names. By this new innovation of advertisement the company famous its product by incurring
lesser cost and time.
In context to this case company can also adopt the frugal innovation strategy to increase
the sales. With the sell of the products company should also add some more additional services
to the customers. Company can start a campaign like giving the code number under the cap of
the bottle and the top 10 customer get the chance to go foreign trip. This can increase the sales of
the essence drink in the market and more customer can get attract to it. There are many other
competitor in the market who sell the same type of product. So company has to add some
additional services with the product which competitor doesn't have.
TASK 3
P5 Importance of the commercial funnel and the application of NPD processing
Funnel helps the company to identify the customer needs. Design and developing the
needs according the customer expectations. Generate the leads to sell the product and and satisfy
customer. Funnel includes three steps investigate, development and selling the product. Funnel is

different from customer point of view and sellers point of you according to customer point of
view funnel have different three steps such as awareness, discovery and purchase. The
commercial funnel is very important for the business because of the following reasons.
 It help the company to know what the competitor are offering to its customers.
 To generate the right sales leads.
 It help to generate the awareness among the customer.
 It save cost of the company by producing good having demand in the market.
 It increase the sales of the goods.
 Commercial funnel is important to satisfy its customers by providing the excepted quality
product. Its help to build strong relation between seller and buyer.
Application of new product development
For every organisation productivity is most important element of the product
development. The new product development is that stage where company innovate its product.
Its the initial stage of the product(Hanington and Martin 2012). New product development new
the coordination of the team to implement the process in successful manner. There are steps
given below for the new product development. Generating: the first step is to identify the marketing trends by SWOT analysis. This can
help the company to know the strength, weakness, opportunities and threats of the firm. Screening the idea: the idea of new development is analysed in this step. The company
seek the need of innovation and the idea which help to innovate. Testing the concept: after the screening the testing of concept is done in which the
company see which market they need to target and communicate. The company
understand the needs and wants of the customers. Business analytics: the company need to develop the system during product development
process by which company can analysis the time take by each activity. The company
need develop the metric of input to out put. The company need to monitor the activities
that provide the information to the company Marketing test and commercialize: the company test the new product in the market by
sampling and take the customers reviews about the product. This can give the company
valuable information for any chances required in product. After testing product is ready

for the commercializing in the market. Companies needs to dispatch the product to sell in
the market. Company need to choose the distributor to sell the product. Company
advertise its product from different sources to bring the awareness among the customers.
 Post launch reviews: after commercializing the company monitor the reviews of the
customers and their feedback. The excepted performance is measure by the actual
performance to know the result.
In context to this case Robert white should go for new product development. Company
can follow these steps to retain existing customers and attract the new customers. The company
took this decision because the demand of essence drinks decrease and the company wants to sell
the product in that particular selected market.
P6 Build an Innovation Business Case for an organisation, including ways to access funding
This is most complex process in the innovation. Most of the time information is unclear
in the initial stages of the product. The company has determine the new idea from the
commercialisation process. To solve this problem and uncertainty company has to take clear
methodical approach(COlEmaN, ClaRkSON and Cassim., 2016). Business case is affect by the
emotions. A good innovation case includes the clear discussion about the area. The company
should ensure the conclusion to reduce the more emotions so that the company can see the real
benefits.
For making any business case company need to clarify the model that company want to
adopt. This tends to gives structure to the business case. The company need to argue about the
facts and figures to figure out the challenges. In business case their should be transparency for
every information. Following are the steps followed by the company to prepare its business case.
 Robert writer the CEO of the company use the different tools to the process. In this the
company employees discuss on the same topic and analyse the facts and figure in the
problem. Then the company employees can give their individual views to solve the
problem. In this case the problem is the company want to increase the sales of the essence
drinks.
 After the discussion the building part of the business case comes into picture. The
company need to over look the cost and benefit, clarify the opportunity needs, clarify the
uncertainty, analyse the stakeholder interest.

 Next step the company make the analyse the competitors, and take down the tactical tools
they need use to attract the customers. The company look out the competitor which are
selling essence water and then company apply tools by which they can give different
services to the customer such as company can brings the new favour of water, they can
also change the packaging or add the extra services with its product.
 In last the company study all the facts included in the business case and evaluate the
resources which can be use for implementing this business case(Peppers and Rogers.,
2012). Give the best financial solution to the business case to do its best. The company
allow to share the thinking to reduce the conflicts.
TASK 4
P7 Evaluate the different tools that organisations can use to protect intellectual property.
There are different tools which company can use to protect the knowledge and
intellectual property. It is important to protect these assets so that no other person or a company
can copy it or use the same brand name to sell the duplicate products. If company do not take
any measures to protect there assets the competitor can use it in negative way which can lead to
incurred losses for the company. The tools which are used to protect the intellectual property are
as follow. Patent: patent can be done on design, utility, plant to protect so that no other person can
copy it. Trademark: trade mark refer to symbol, sign, name, logo that can use on the product for
the goods identity. The brand name help to improve the brand image and customer can
recall the product by its logo or brand name.
 Copyright: copy right protect the articles, literacy, artistic and music lyrics.
This are tools which Robert white can use to protect its process of production, its brand name
and the product packaging.
CONCLUSION
The report is about how company adopt the new techniques and innovation to increase
the product sales. The innovation is very important for the organisation to gain the competitive
advantage over its competitors. The teamwork, vision, mission and objective of the firm has
influence on the innovation. There are 4 p's of innovation that are used by the company to meet

the customer expectation. In this report the funnel innovation concept has been discuss and how
frugal innovation can help the company to reduce its cost and time. The company need to go for
new development process to diversified its product. for that company make the business case and
also take measure to protect its information property.

REFERENCES
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