Innovation and Commercialisation: A Case Study of Essence Drinks

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[ INNOVATION AND COMMERCIALISATION]

Table of Contents
INTRODUCTION............................................................................................................................. 2
TASK 1............................................................................................................................................ 3
P1 Explain Innovation and comparing the importance of innovation and invention to
organizations............................................................................................................................. 3
P2 Vision, culture, leadership and teamwork of organization shaping innovation plus
commercialisation..................................................................................................................... 6
REFERENCES...................................................................................................................................8
1

INTRODUCTION
In the current business environment, small business organization and entrepreneurship is at its
peak in the UK as there are about 5.7 million SMEs in the UK in 2018 (Chris, 2018). This
assignment aims at understanding the definition as well as the scope of entrepreneurship. A
case scenario of essence drinks is undertaken in this assignment to understand the impact of
enabling factors and barriers on the business. The founder of UK based company Essence drinks
is Akshay Kumar who sells healthy mango shake for two years. In its initial two years, the
company achieve remarkable growth in sales attributable to its distribution capabilities plus an
innovative formula. But the company observed a significant decrease in sales due to the entry
of competitors in the market. The founder of the company aims to introduce an innovative
range of Lassis. As a junior brand strategy innovation consultant, this assignment evaluates the
situation and provides suggestions for the progress of the company.
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TASK 1
P1 Explain Innovation and comparing the importance of innovation and
invention to organizations
EXPLANATION:
INNOVATION:
Innovation is interpreted as the process of applying new idea, thoughts, imaginations or
creativity to existing or new products or services with the aim to improve it and meet the
desired purpose. Innovation acts as a catalyst for the growth and progress of the organization
(Bigliardi and Galati, 2013). Due to rapid changes in the business market environment, business
organizations focus on developing new products and services or developing present
technologies, designs, processes or marketing to reach to new customers, increase their
efficiency or resolve any issue and ultimately increase their profits (Chun et al., 2015). The focus
of Akshay Kumar of essences drinks must be on adaption as well as prospering in the
marketplace due to the introduction of an innovative range of seasoned Lassis.
INVENTION:
The invention is described as the process to create an overall new product or service. It
comprises all the process and engineering to develop products or services. The invention is to
be protected by a patent under intellectual property rights by an individual, group or business
organization. The invention may serve as a basis for innovation as the products or services that
have been invented earlier are innovated to improve them and serve the market. It is related to
the product or service development which did not occur or existed before (Costa, 2013). In-
depth research is undertaken by the company in the invention process to create a new product
or service that fulfils the customers' unmet requirements or needs.
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INNOVATION vs. INVENTION
Difference base Innovation Invention
Meaning In innovation, a process to
introduce new ideas is undertaken
to develop or improve the present
product services, methods and
process and meet the needs of
customers (Seyfettinoglu, 2016).
In the invention, an idea is
conceived in order to proceed to
create a new product, process,
service and methods which were
not present before.
Concentration It is related to a combination of
various processes as well as
products
It is related to just one product,
method, service or process
(Seyfettinoglu, 2016).
Skill
requirements
A broad set of strategic, marketing
and technical skills are required.
Generally, scientific skills are
required.
Concept Practical implementation of a new
idea is conceptualised in
innovation activities that are
spread across the organization.
Original ideas and its theoretical
working are conceptualised in
invention activities that are
restricted to R&D department v.
Examples Examples in business are iPhone,
Zipcar, Microsoft, smartphones,
advanced eye protection, book
readers and so on (Seyfettinoglu,
2016).
Examples in business are the
stapler, telegraph, calculator,
television, international electronic
banking, and bar code and so on.
COMPARING THE IMPORTUNE OF INVENTION OR INNOVATION TO BUSINESS
The processes f both invention and innovation are essential for the business to prevent from
stagnation in their activities, function and growth. It is not surprising the innovation and
invention is synonymously used by the people. For innovation, the business organization
requires limited time and cost as it focuses on improving the existing products and services as
compared to the invention (Bigliardi and Galati, 2013).
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The business requires being innovative to cater to changing needs of the customer over time
thus making it one of the most crucial elements for organizations' success and expansion while
there are various benefits of the invention to the business but its level of necessity and
importance differentiate as per industry. The invention serves as a basis while innovation is
related to improvement (Bigliardi and Galati, 2013). Here in case scenario, the company has
already established in the market as a healthy Lassis server, here Akshay Kumar needs to just
innovate and improve their Lassi products to cater to a large number of customers considering
their personal requirements.
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P2 Vision, culture, leadership and teamwork of organization shaping
innovation plus commercialisation
The success of essence drinks depends on the clear vision framed by its owner Akshay Kumar
using his effective leadership style with the support from open and strong culture and
development of effective teamwork. Innovation and commercialisation can be effectively
shaped by introducing and linking innovation practices with the abovementioned essentials of
business (Wang and Rafiq, 2014). The vision, culture leadership and teamwork are reviewed by
Akshay Kumar in order to outline innovation as well as commercialisation for introduction new
seasoned Lassis and enhance sales.
VISION OF ESSENCE DRINKS
A defined direction is laid through the roadmap to accomplish the company aim and objectives
for its growth and progress is referred to as organizational vision (Lee et al., 2012). The vision
of essences drinks must be developed by Akshay Kumar so that they encourage and inspires its
staff members to share innovative ideas in developing new products that are seasoned Lassis.
The essences drinks' vision must be to ensure the quality of health and create a memorable test
and experiences.
LEADERSHIP STYLE OF AKSHAY KUMAR
Leadership style is the approach adopted by the leader in order to direct, motivate, inspire and
encourage its employees in various situations (Nusair et al., 2012). The suitable leadership style
required to adopt by Akshay Kumar is democratic or participative. This will inspire and
encourage the staff and employees to share their innovative ideas for developing new seasoned
Lassis and also make them feel engaged, involved and crucial part of the company. This will
helps in satisfying the taste and preferences of the consumers.
TEAMWORK AT ESSENCE DRINKS:
Effective teamwork is collaboration and coordination among the staff that utilise their
individual skills to collectively work together under different situation and attain company goals
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and objectives despite disputes and differences (Fay et al., 2015). The employees of the essence
drinks are encouraged and motivated to develop trust, companionship and faith in them and
share their individual experiences, views and ideas to integrate innovation and
commercialisation.
CULTURE AT ESSENCE DRINKS:
The social and psychological business environment is contributed by the values, behaviours and
shared vision is referred to as a culture. The way in which the individuals interact at their
workplace is influenced by its culture (Gaynor, 2013). The open strong and communicative
environment is created with the adoption of democratic of participative style by Akshay Kumar.
Effective communication between Akshay and his team members result in positive work culture
inspiring them to share their views and ideas for innovating new seasoned Lassis for increasing
company sales.
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REFERENCES
1. Bigliardi, B. and Galati, F., 2013. Innovation trends in the food industry: the case of
functional foods. Trends in Food Science & Technology, 31(2), pp.118-129.
2. Chun, D., Chung, Y. and Bang, S., 2015. Impact of firm size and industry type on R&D
efficiency throughout innovation and commercialisation stages: evidence from Korean
manufacturing firms. Technology Analysis & Strategic Management, 27(8), pp.895-909.
3. Chris, R., 2018. Business statistics (Online) available at
https://researchbriefings.files.parliament.uk/documents/SN06152/SN06152.pdf
Accessed on 4th May 2019
4. Costa, A.I.A., 2013. Collaborative product innovation in the food service industry. Do too
many cooks really spoil the broth?. In Open Innovation in the Food and Beverage
Industry (pp. 154-173). Woodhead Publishing.
5. Fay, D., Shipton, H., West, M.A. and Patterson, M., 2015. Teamwork and organizational
innovation: The moderating role of the HRM context. Creativity and Innovation
Management, 24(2), pp.261-277.
6. Gaynor, G.H., 2013. Impact of organizational culture on innovation. IEEE Engineering
Management Review, 41(2), pp.5-7.
7. Lee, S.M., Olson, D.L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration,
and co-creation for organizational values. Management decision, 50(5), pp.817-831.
8. Nusair, N., Ababneh, R. and Kyung Bae, Y., 2012. The impact of transformational
leadership style on innovation as perceived by public employees in Jordan. International
Journal of Commerce and Management, 22(3), pp.182-201.
9. Seyfettinoglu, Ü.K., 2016. Analysis of relationships between firm performance and open
innovation strategies and stages in the Turkish food and beverage industry. New Medit,
15(1), pp.42-53.
10. Wang, C.L. and Rafiq, M., 2014. Ambidextrous organizational culture, Contextual
ambidexterity and new product innovation: a comparative study of UK and C hinese
high tech Firms. British Journal of management, 25(1), pp.58-76.‐
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