Analysing Innovation & Commercialisation at Essence Drinks

This report provides a comprehensive analysis of innovation and commercialisation strategies, using Essence Drinks as a case study. It begins by differentiating between invention and innovation, highlighting the value of innovation to organisations. The report explores how organisational vision, leadership, culture, and teamwork influence innovation and commercialisation, and examines various sources of innovation and methods to foster an innovative environment. It delves into the Four P's of innovation, the innovation funnel, and frugal innovation, illustrating their application with examples. Furthermore, the report discusses the significance of the commercial funnel, New Product Development (NPD) processes, and the creation of an innovation business case, including financial reporting and measurement of overall effectiveness. Finally, it addresses knowledge and intellectual property management techniques, providing an evidence-based evaluation of different tools within the wider business environment. The report concludes by summarizing key findings and reinforcing the importance of innovation and commercialisation for organisational success.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 In compared to invention, the value of innovation to organisations...........................................3
P2 Organizational vision, leadership, culture and teamwork may all influence innovation and
commercialization............................................................................................................................4
M1 Various sources of innovation and also how organisations may promote and build an
innovative environment and culture.......................................................................................6
D1 Analyse how innovation is developed, embedded and measured....................................6
P3 The Four P’s of innovation and how to utilise the innovation funnel to evaluate and shape
creative ideas....................................................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context......................................................................................................................8
M2 Application of innovation funnel.....................................................................................9
M3 Role of frugal innovation.................................................................................................9
D2 Produce financial reports that accurately apply and interpret data for a range of business
activities..................................................................................................................................9
P5 The significance of the commercial funnel and the use of New Product Development (NPD)
processing......................................................................................................................................10
P6 An organization's innovation business case and financing options..........................................12
M4 Business Case for Innovation that incorporates measurements of overall effectiveness
utilising suitable methodologies to test, iterate and enhance...............................................14
P7 Organizations can utilise a variety of techniques to generate, maintain and protect knowledge
and intellectual property................................................................................................................15
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment.................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCE.................................................................................................................................16

INTRODUCTION
Innovation is referred to a constant process of creating new product or services for its
customers which could satisfy their needs and wants. Commercialisation is the process of
bringing of transforming thoughts, data and creativity to more monetary for the individuals,
corporates as well as society. The monetary incentives and market comprises of other business
and it required an acceptable return on the investment, design and development of products as
well as research in the rivalry industries. Essence Drinks is taken as the base company. In the
mentioned case study, Mr. Akshay Kumar's firm, Essence Drinks was established in the United
Kingdom two years ago with the launch of mango lassi which is regarded as a nutritious
beverage. In this report, it discusses the difference among invention and innovation and also the
several forms of innovation. Along with this, the procedure of commercialising invention is
mentioned. Moreover, it includes several strategies for protecting ideas and comprehending its
merit and demerits.
P1 In compared to invention, the value of innovation to organisations
Innovation is considered as the converting of ideas into reality. In other words, it could be
described as an change that made their efforts to the good and services in order to meet with the
consumer's needs and preferences. This takes place when a fresh and innovative commodities
penetrates and increases the customer wants by providing high quality goods and services.
Innovation can be referred to the launch or developing of new commodities, methodologies,
technology as well as the personalization of present products for fulfilling the demands of
customers and market (Auby, 2019). The process which has its contribution in the developing of
ideas and thoughts as well as its converting to consumer demanded commodities are
encompasses in the innovation definition.
The functions of innovating, creating or researching a fresh goods and services, procedures
is termed as inventions. It is the fresh and ideal logical conception which is generated with
testing and evaluating the commodity. Invention is considered as the developing of new product
or service with the potential to generate revenue and innovation is the alteration of products or
services which already exists to elevate consumer fulfilment and hence gain huge benefits.
In the case study, Essence drinks had high revenue in their first year as such to the
innovative blending but the business had a significant drop in sales after the second year due to

powerful competition. The company has to focus much more on innovation (Bigliardi and et. al,
2021). To get a competitive advantage in the business, organisations must significantly increase
manufacturing process. In terms of promotion or packaging, more focus might be placed on
modernizing the beverages. The difference between invention and innovation is mentioned
below:
Invention Innovation
 Invention is stated as the generation of
new ideas for product or service that
has not been developed by anyone.
 It is the creation of new product
 This has original ideas and the work
which is to be done will be in theories
 It is concerned with the single
production
 Innovation is the execution of the ideas
or product for first times.
 This adds value that is already present.
 This is based on the practical execution
of the new idea
 It is concerned with the collaboration of
several goods and service
P2 Organizational vision, leadership, culture and teamwork may all influence
innovation and commercialization
Innovation as well as corporate abilities plays important role in the success and failure of
organisation. The selected organisation bring various innovations in products and services
category that facilitates business to develop meaningful qualities in existing products or help to
expand product line through introducing new products in market place to attract customers. The
continuous innovation helps in organisational growth and development and maintain effective
positioning. If organisation regularly provides new and innovative products and services in
market, they will be able to differentiate it form other competitors as well as provides sustainable
competitive advantages (Bracken and et. al, 2020). Organisation examines current market trends
and customers needs and demands then take decision for introducing new products that satisfies
customers and retain them with organisation for long period of time.
Company's vision: Vision statement is defined as the written commitment that contains
organisational main objectives and goals for which it come in existence and want

accomplishment in the future. In vision statement, all activities are defined according to specific
time period such as, in five to six months the organisation want to achieve defined goals and
objectives efficiently. In the respective case, the main vision of organisation is to offer nutritional
drink to clients that contains flavour of mango to attract new customers and maintaining effective
positioning of brand in market place (Christensen and Grant, 2020). Through implementing
innovation in products, organisation can enhance sales ratio and attain higher customer base as
well. Respective organization can bring innovation in existing products by increasing quality or
launch new products. Vision of organisation is to lead business towards continuous growth and
development.
Leadership: Leadership is defined as the ability of leaders to inspire, motivate and
influence organisational team members to perform business functions in well-defined manner to
attain specific goals and objectives. Through motivation employees, leaders brings various new
and innovative idea and thoughts for developing new products and services. In the context of
Essence drink organisation, leaders adopt democratic leadership style as well as inspire
employees to take part in business decisions and perform functions in best possible manner
(Clarke and et. al, 2018).
Company's culture: Corporate culture is described as the employees as well as firms
working environment, characteristics and behaviour. As every organisation has different
corporative culture, this will create impact on the overall performance of business. Essence
drink adopt flexible working environment and motivates employees to provide ideas and take
part in decision making process.
` Team work: Team work is the most important factor which is required for proper growth
and development of organisation as well as facilitates. Essence drinks to bring innovation in
products and accomplish defined goals and objectives on time.
M1 Various sources of innovation and also how organisations may promote and build an
innovative environment and culture
Peter Drucker introduces seven source of innovation that facilitates organisation to
discover various possibilities and help to manage risk that are associated with innovation. These
sources helps respective organisation to being innovation in products and services and maintain
unique positioning of organisation form others (Denkova, 2019). Some sources are mentioned
below:

The unexpected: Essence drink organisation evaluates market trends and requirements to
gain various market opportunities. To avoid the uncertainty, organisation bring innovation in
organisational products and process.
Process need: Mr. Kumar has developed various organisational strategies and policies to
run business properly and bring innovation in organisation to produce new products and services
and sustainable competitive as well (Dukeov and et. al, 2020).
Demographics: There are various factors which are included in demographics such as
income of customers and population. The respective organisation take innovative decisions
according to demand of customers.
D1 Analyse how innovation is developed, embedded and measured
Innovation is required as the firm is in third year of their existence and now they required
innovation in their products in order to increase their sales. The first invention was implemented
to their beverages and then it has been evaluated in the commercialization stage such that the
company could make the most profit from it. Along with this, without assessing even without
regard for trends, the organisation develops many variety of beverages such that customers are
influenced by the firm's creativity and become associated with new products.
P3 The Four P’s of innovation and how to utilise the innovation funnel to
evaluate and shape creative ideas
The constant creation and developing of new items and services in a business helps in
the country's success is characterised as innovation (Fernández Pérez and et. al, 2019). The four
P's of innovation in relation to the selected firm are mentioned below:
Paradigm: The very first aspect of the innovation process is defined as a well-planned
framework which helps businesses in coping with alterations which may happen as a
consequence of the innovative approach or operation in the company, and also how businesses
require all of their operating processes to operate smoothly and efficiently. Within the context of
the selected company, the corporation must adequately govern its advancements, which may be
beneficial or damaging.
Product: The product is the most important item that every business provides to its
consumers; providing value added products to consumers serves to increase the organisation's

strength and usefulness. To increase productivity, the firm must create creative goods. In the
context of the firm, incremental modifications to their products may be implemented to boost
sales (Gifford, McKelvey and Saemundsson, 2021).
Process: It encompasses all of the corporation's tactics for efficiently advertising its
products and services to prospective consumers. Processing, hiring and selecting qualified
personnel, and training staff are all aspects of an efficient system for supplying goods and
services to consumers. In the aspect of business, in terms of variations, the firm must take into
account for implementing the technique that includes ensuring that the product meets the clients
efficiently.
Position: The aspect is positioning, which is the practice of developing a significant and
desirable brand reputation for goods and services through effective advertising. In the case of
Essence drinks, it may also be possible to guarantee that appropriate and effective market
positioning for their goods and services is developed (Gjelsvik, 2018).
Innovation funnel
The innovation funnel is the first stage in the development of an innovative concept,
product, or service. This is a continual process that is provided with creative notions that must be
carefully analysed in order to show exceptional ideas. The innovation funnel's main objective is
to perform many creative training sessions in effort to assess whether or not a specific concept
will be helpful. The use of an innovation funnel enables the management to receive a continual
flow of new ideas through brainstorming sessions, and its optimal utilisation aids in the
sustainable supply of products and services (Hallo, Payne and Gorod, 2019). In the case of
Essence drinks, effective funnel development can assist a firm in developing creative concepts to
enhance revenues and profits.
P4 Explain developments in frugal innovation and provide examples of how it
is used in an organisational context
The process of frugal innovation describe models of business in order to reconfigured the
proper value chain, redesign products which is available to the final customer. This will ensure
extreme level of affordability constraints. This is the vital process which deliver offerings to the
target customer with affordable price (Dincer, 2017). The aim of frugal innovation is to develop

valuable goods and services at very affordable price to capture big market share. This refers as
sustainable and scalable method that involve overcoming as well as tapping void in order to
constraint valuable resources. Mr. Kumar adopted frugal innovation because of its advantages so
that they can provide products at very low cost to generate more sale and revenue of company.
The frugal innovation is essential process because of following reason-
Environment constraints- This is linked with the energy, water and climate resources,
where resources are on high demand during frugal models that protect consumption as well as
production level.
New technology- This ensure drastic change in order to decrease cost which is involved
innovation, value, opportunity for optimal innovators.
Fast growing Market- It includes developing emerging economies which uplift real
demand towards improvement regarding products and services.
Example- The company mainly operates business in segment of Lassi drink in UK
country. The process that is used in frugal innovation will ensure customer preferences of
respective country so that they can easily recognize demand and supply of market (Razak, 2017).
The potential customer consist of sophisticated customer which update knowledge for
upcoming brand value for more concentration to launch innovative product during complex
functioning. This will target big share market of company with help of innovation frugal and
exercise business operation to gain profitability. This will maintain proper accessibility with
proper usage of resources to target market segment in parts of UK.
M2 Application of innovation funnel
In context of Essence drinks, frugal innovation will promote industry specific products
and services and improve its business activity to provide large production at low price
consideration. This will provide more benefit to organisation as more sale will be generated due
to cost affordability regarding commodities (Jorna and Waalkens, 2017). The significant
contribution enhance company sale and revenue. Company optimise their market success with
help of its productivity. Company use possible utilisation of advance technology so that they can
deliver cost effective product. This can be done with proper implementation of frugal innovation
which assist organisation expansion through effect of potential base of customer. This will
facilitates company outcome and income to generate more opportunity of company competitive
benefit.

M3 Role of frugal innovation
Mr. Kumar deliver more focus towards fulfilment of frugal innovation in proper
arrangement of nutritious kind of drinks that is highly incredible for suitable usage. The
department of corporate examine polls as well as request client feedback which collect the data
regarding respective goods and services to reduce operation cost (Karagiannaki, Trachana and
Doukidis, 2018). The information will be fully utilise and strategies in order to decrease cost of
products. Mr Kumar deliver range of products while using numerous avenues in business
practices.
D2 Produce financial reports that accurately apply and interpret data for a range of business
activities
Requirements Cost
Costs of fruits 4000
Machinery and equipments 2000
Labour 1000
Production costs 2000
Advertising costs 1500
From the above mentioned, the costs required to make the new product is segmented into
different particulars such as costs of fruits, machinery and equipments, labour, production costs
and advertising costs which are required to develop the new product and launch into the market.
P5 The significance of the commercial funnel and the use of New Product
Development (NPD) processing
One of the most significant aspect used in the context of business is commercial funnel or
most commonly known as sales funnel. Sales funnel is referred by the many marketers and
business professionals as a reference to the closure of sales and lead generation. Sales funnel is

often used by the marketers of business firms in order to gain insight and visualise the sales
process undertaken by the prospect customer (Kim and Yoo, 2019). It is referred to as the path
undertaken by the prospect customer for being a potential and valuable customer for the
business. Essence drinks makes use of sales funnel to measure the success of conversion of leads
into actual sales at each step of this funnel which clearly represents the customer influence and
his buying decisions. For better understanding of sales funnel and its importance Essence drinks
makes use four sections of sales funnel which is fuelled by the marketing efforts of the company
that is primarily aimed at create awareness and build a demand for the products and services.
Awareness: At this stage of sales funnel, Essence drinks makes efforts to raise awareness
about its core products and its existence with the help of marketing plans and strategies.
Customers at this stage only came to know about the existence of company but does not develop
any interest (King and Lyall, 2018).
Interest: Potential customer gradually develops their interest and wish to know more
about the company, its core products and services, pricing, packaging and what values they offer.
Essence drinks builds interest among customer by highlighting the USP of their product and
making target audience believe that, ideal solution to their problem is offered by Essence drinks.
Decision section: After comparing other substitute products or services on the basis of
quality, price, availability, packaging etc., prospect customer makes the actual buying decision.

Essence drinks makes use of promotional techniques to highlight their differentiation and cost
effective products and convince customer to make choice of products over other competitors
(Lindberg, 2018).
Action: This is the final stage of sales funnel where customer makes actual purchase on
the basis of marketing strategies and plans. Like other business firms, Essence drinks also aspire
to reach at this stage and convert every prospect customer into potential and loyal customers.
New Product development for Essence drinks
Product development process and plan is significant for each business firm and
entrepreneurs for creating and developing a product that is more appealing, customer oriented
and with the best quality features. Essence drinks makes use of new product development
process for their innovative product so that it can deliver more value than before and capture
large target segment.
Idea generation: At this initial stage, Essence drinks comes up with a range of different
and unique ideas which are being generated through internal and external sources. The internal
sources can be in house research and external sources are distributors, suppliers etc. The main
objective at this stage is to generate feasible ideas as much as possible (Louw and et. Al, 2017) .
Essence drinks develops the idea for creating a another drinks which is a mix fruits shake which
is completely made up of organic foods.
Idea screening: Essence drinks filter out the ideas that are not realistic and feasible,
keeping in mind company's values, mission and vision. It is essential to ensure that selected ideas
must meet the all the standards and criteria for the feasibility and has potential to deliver
adequate return.
Concept development and testing: After selecting the best idea, Essence drinks develops
the idea into detailed product concepts keeping mind customer's needs, desires and preferences.
The main idea behind this is to get insight about how the product will be perceived by the target
audience and entire market. After selecting the idea for developing a mix fruits shake as a
innovative products, Essence drinks develops the concept and test it on a target audience to
check its viability.
Development of marketing strategy: With the development of effective marketing
strategies, Essence drinks makes an effort into introduce a product as promised with the
customer. At this stage marketing mix plays a significant role as it helps in developing the

product as per the taste, budget and preference of a target audience(Macnaghten, 2020) . Essence
drinks makes use of effective marketing strategies to reach their target audience and generate
interest for the new developed innovative mixed fruit shake. This product is priced relatively
high in order to position the product as a high quality and reliable product.
Business analysis. Further, after developing effective marketing strategy essence drinks
put the mix fruits shake innovative product concept for testing or through vigorous business
analysis in order to determine the whether the production of the mixed fruits shake is financial
feasible or not along with assessing the risk associated with the concerned project. Apart from
this, essence drinks also makes sales projections and revenue streams to keep the business
healthy and profitable.
Product development: At this stage, mix fruits shake is produced with organic fruits
from the organic farming of a nation, after passing through the testing stage. Essence drinks
after conducting numerous tests takes decision to build a product after passing all the above
criteria. The drinks is measured on the basis of quality, taste, cost and availability of natural
resources.
Test Marketing: At this penultimate stage, Essence drinks conducts the testing of
product and its marketing strategies in a real market setting in order to determine its success rate
and how effectively its meet the targeted audience demand and needs (Yigitcanlar and et. al,
2018). Developed marketing strategy for the mixed fruit juice developed at initial stage is tested
on real basis to find out any deviations if any.
Commercialisation: After getting results from the testing stage, Essence drinks makes
decision to finally launch the mix fruits shake made form organic materials at greater scale for
the customers. The stage of commercialisation encompasses activities from production to
distribution, therefore this stage is crucial for the success of product or services.
P6 An organization's innovation business case and financing options
A business case for innovation is a systematic study that explains the importance of a
company's long-term goals and ambitions, including their mission and vision statements.
Executive summary: In relation to increasing sales, the Essence drinks seek to produce a
new flavour , and an innovative business case has also been created in the corporation's industry.
Mission: The mission statement of the company is to develop and offer quality and
healthy drinks to their potential customers.