Innovation and Commercialisation Report - Unit 08: [College Name]

This report delves into the multifaceted aspects of innovation and its commercialization within the context of a small business, specifically using Essence Drinks as a case study. It begins by defining innovation and contrasting it with invention, emphasizing their importance for organizational growth. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It examines the 4Ps of innovation (Paradigm, Product, Process, and Position) and the use of innovation funnels to develop ideas. Furthermore, the report explains frugal innovation and its application, providing examples in the context of Essence Drinks. The report also highlights the importance of the commercial funnel and the application of New Product Development (NPD) processes for commercializing innovation, including a business case for Essence Drinks. Finally, it discusses tools organizations can use to develop, retain, and protect knowledge and intellectual property. The report offers a comprehensive overview of the key elements in innovation and commercialization, providing valuable insights into how businesses can foster innovation and achieve sustainable growth.

Student Name ID
Unit Number and Title 08:Innovation and Commercialisation
Academic Year
Unit Leader
Project Title Innovation in a small business context
TABLE OF CONTENTS
INTRODUCTION .............................................................................................................1
LO 1................................................................................................................................. 1
P 1. Explain innovation and its importance to organisations in comparison with
invention. .....................................................................................................................1

P 2. Assessment of how organisational vision, leadership, culture and teamwork can
shape innovation and commercialisation.....................................................................2
LO 2................................................................................................................................. 3
P 3. Explanation of 4Ps of innovation and the use of innovation funnel to shape
innovative ideas. ......................................................................................................... 3
P 4. Explanation of frugal innovation and examples in organizational context of
Essence drinks. ...........................................................................................................5
LO 3................................................................................................................................. 5
P 5. The importance of commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. ........................5
P 6. Innovation business case for Essence drinks.......................................................7
LO 4................................................................................................................................. 8
P 7. Tools that organization can use to develop, retain and protect knowledge and
intellectual property. ....................................................................................................8
CONCLUSION................................................................................................................. 9
REFERENCES...............................................................................................................10

INTRODUCTION
Innovation is the process of improving or making significant contribution to the
existing line of product or services which leads to higher success and growth of the
business. On the other hand, invention is the process of actualizing new or fresh
insights, thoughts and ideas into action for the first time into the market. This study will
highlight, innovation and its importance to Essence Drinks in comparison with invention
and various sources of innovation. It further highlights, how Essence Drinks vision,
leadership, culture and teamwork can shape innovation and commercialisation. It
includes 4 P's of innovation and how they help in shaping innovative ideas. It further
includes role of frugal innovation in accordance with Essence Drinks. It further
highlights, the process required to commercialise innovation and the importance of the
commercial funnel or commercialisation of innovation. Lastly, it also highlights, different
tools that organisations must use to protect and retain intellectual property.
LO 1
 Innovation: Innovation is the process of creating ideas and thoughts into the
business which leads to higher sustainable growth and development of business.
Innovation refers to creation of more effective way of doing some task by
implementing new insights which helps in creating more dynamic products by
improving the existing service of the business which leads to higher operational
performance and productivity. There are various effective drivers such as
courage, intellectuality, knowledge, thinking and creativity which push innovation
process in a business context.
Sources of innovation: As per Peter F. Ducker there are seven sources of innovative
opportunity which mainly comprises that innovation can be unexpected, incongruities,
market structure, necessity, demographics, changing perception and new knowledge
are the source of innovation (7 Sources of Innovation by Peter Drucker, 2012). Commercialization: It is the process of bringing new insights, thoughts and
ideas into the organization. Broadly, commercialization includes production,
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marketing, sales, distribution, customer support to achieve sustainable growth
and success in the organization. Invention: Invention is the procedure of actualizing new insights, thoughts and
ideas into action. Invention is the act of bringing something new into the market
which has never been launched or used before (Witell and et.al., 2016). Invention
helps in creating competitive advantage in the market by inventing something
new which leads to higher operational efficiency, performance and productivity.
Difference between innovation and invention.
 Innovation is the process of improving or making significant contribution to the
existing line of product or services in the Essence drinks. On the other hand,
invention means introduction of product, process or service for the very first time.
 Invention refers to creation of brand new product or service, whereas, innovation
is the process of making change in the existing product or service by introducing
new thoughts and ideas (Difference Between Invention and Innovation, 2016).
 Innovation helps in bringing distinctive approach to the company which leads to
long term sustainable growth and development for Essence Company.
Innovation helps in adding value to the existing products, process or services,
whereas invention helps in creating something new for the first time by bringing
in fresh insights, ideas and thoughts.
Importance of innovation in comparison with invention at Essence Drinks:
Innovation is the major contributor for the growth and success of the Essence
Company which helps in improving the products according to the needs of the
customers. Innovation gives first mover advantage to the company by delivering value
to the customers. Innovation attracts talented people which provide greater opportunity
to the organization for higher operational efficiency and productivity. Essence drink is a
company in UK, who aims at innovating their products by offering new flavoured lassi to
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its customers whom will helps them competitive advantage in the market (Kelly, 2016.).
Essence drink aim at improvising their lassi by bringing Kesar-pista lassi into the market
which adds value to their products and services and ultimately helps in sustainable
growth and development of the business. Innovation is of greater importance than
invention because invention is the result of innovation which helps in attaining
competitive advantage and eventually leads growth and success of the company.
Organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation:
Commercialization:
Creation of new thoughts, ideas and insights are the core purpose of innovation
and invention helps in actualizing the new thoughts and ideas. The main purpose of
invention and innovation is to effectively commercialize the products and services
offered by Essence drinks which leads to higher operational efficiency and helps in long
tern sustainable growth and development of the company. Commercialization is the
process of marketing, communication production and distribution to the customers
which leads to higher satisfaction (Datta, Mukherjee and Jessup, 2015).
Essence Drinks Vision:
Organization vision helps in shaping innovation and culture as it helps in achieving
goals of the company effectively by satisfying the needs and wants of the company. For
example, essence Drink Company has the vision to provide wide range of flavoured
lassi to its customer. For this they need to bring in innovative ideas and thoughts to
provide the best quality flavoured Kesar-Pista lassi to its customers and
commercializing the product into the market (Vision and leadership important in
cultivating innovation, 2015). Adaption and implementation of effective technology helps
in higher operational efficiency, performance and productivity of business.
Leadership is the process of leading and guiding employees or staff of the
company to effectively achieve organizational goals and objectives of the company.
Essence company aim at implementing autocratic leadership style into the organization
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where the leader has the right and power to take all the decision effectively to effectively
improvise their product by understanding the needs of customers (Hohenberg and
Homburg, 2019).
Essence drink use autocratic style of leadership to guide and motivate each employees, so that
leader has effective control on their decision which leads to higher operationla efficiency and
productivity of the business.
Culture:
Essence company has set of organizational culture which includes values,
attitude, belief, norms, behaviour of employees and management which are essential
for the growth and development of the company. Organization has various cultural
differences which adversely affect the process of innovation, invention and
commercialization. The effective values and attitude of Essence company helps in
achieving goals and objective of the company which helps in shaping innovation and
commercialisation.
Essence drinks company focus on sharing task and responsibilities to each individual
effectively. Essence drinks company aims to focus on healthy and positive work
culture , so that needs of employees and customers are satisfied. Essence drinks
company also focus on building strong relationship between customers and company.
They also focus on employee friendly principles and guidelines and encourage healthy
discussion at workplace.
Teamwork at Essence drinks:
Essence company aim at building teamwork which effectively helps in solving
problem and work towards attainment of organizational goals and objectives which
helps in shaping innovation and commercialisation (Fang, Lerner and Wu, 2017).
Teamwork is a collaborative process which helps to function and accomplish the
particular task and common goal of the company in a coordinated manner altogether.
Essence drinks company focus on leadership teamwork, problem solving teamwork and
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self directed teamwork to effectively accomplish the goals and objectives of the
company in a coordinated manner.
LO 2
4Ps of innovations-
The 4Ps of the innovation are developed by John Bessant and Joe Tidd. It states
that the innovation in the organization is a process by which there is invention of the
new ideas. The process of innovation includes the 4Ps which are as follows-
Paradigm- This refers to as the planned process by which the organisation
recognizes the need for the change in the organisation. After recognition of the need the
company than plans for the changes to be taken. The company determines and
evaluates the various threats and challenges in relation with the changes. The company
Essence drinks has planned to bring the new product Kesar-Pista lassi in the market,
and the various challenges in association with it.
Product- The product is the main source of change in the organization. It is the
material offered to the customers and required the adequate care to launch it. In the
company Essence drinks the product Kesar-Pista lassi is launched which can be
successful as it is a unique product and a variation from the normal lassi offered by the
other lassi makers (Zahedi, Mirghfoori and Morovati Sharif Abadi, 2018).
Process- It includes the way by which the final product is delivered to the final
customers. In the company Essence drinks there is the delivery of the product Kesar-
Pista lassi by the company which is to be delivered timely.
Position- This refers to the position where a company wants itself. There is
possibility of the success of the new product Kesar-Pista lassi and the company
Essence drinks can accomplish the organisational goals.
Innovation funnel of Essence drinks-
Innovation funnel determines the process of developing the new innovations and
ideas in the organisations. The innovation funnel assists the company to launch the new
product and accomplishing the goals of the company. There can be various types of
ideas and innovations in the company and also the different types of funnel.
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In the company Essence drinks the innovation funnel is used to launch the new product
Kesar-Pista lassi, which will help the company in accomplishing the company goals
and objective.
 In first step of innovation funnel there is evaluation of the new ideas which
determines the level at which the new product will meet the need of the
customers (Witell and et.al., 2016).
 The second step of innovation funnel includes the process by which the new idea
will be implemented. And thereafter analysing the success of the idea in the
company Essence drinks.
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Illustrat
ion 1: Innovation funnel
(Source: The Closed Innovation Funnel Model. 2018)

Frugal innovation:
This type of innovation is referred to as the innovation of a product or service in
the context of the scarce resources available to the company. It depends on various
factors like political, economic, environmental and social factors in the country. It also
relates to the production of the product at low cost and better utilization of the scarce
resources. It also includes the reduction in the complexity of manufacturing process of
the product and the delivery of the product to the consumers. The frugal innovation
focuses the customer satisfaction by providing of the product which are easy to use and
understand by the customers (Scott, 2018).
For example- Samsung company who produce the smartphones for the
customer in UK and India. The company produces two types of smartphones, one which
is less complex in functions and have lower cost for the people in India as the people in
India are not able to use the complex features. Whereas the second type of product is
complex having advanced features and high cost, it is suitable for the people in UK.
Frugal innovation application at Essence Drinks:
There is use of the frugal innovation by the company Essence drinks in bringing
the Kesar-Pista lassi by changing the process of making the lassi which is cost effective
and easy. The company Essence drinks uses the big blenders in order to blend the lassi
together of all flavours and then adding the flavours to the lassi. This process makes the
lassi in bulk and the cost for making the lassi again and again is saved (Rousseau and
Dutta, 2017). Also there can be increase in the channels in the supply of the products
by the company Essence drinks to increase the sales of the product.
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Therefore the frugal innovation is used by the company Essence drinks to lower
the cost of production and use of the scarce resources of the company in achieving the
organisation goals and the customer satisfaction. This also increases the sales of the
product Kesar-Pista lassi and thereby increasing the profit of the company Essence
drinks.
Suggestions for Essence Drinks to apply Frugal innovation to reduce
cost and use less resources:
As a junior brand strategy innovation consultant, I suggest The company Essence
drinks can use the big blenders in order to blend the lassi together of all flavours and
then adding the flavours to the lassi. This process makes the lassi in bulk and the cost
for making the lassi again and again is saved
LO 3
commercial funnel :
Commercial funnel refers to buying process that companies lead customers through purchasing
process. It facilitates customers and companies in the sales process.
Importance of commercial funnel
Commercial funnel is the simply the journey of the new innovations though the
various channels of the market. The commercial funnel is also known as sales funnel.
Any new ideas and innovation have to go through the funnel and then the ultimate
consumers. It also relates to the process of purchase of goods by the consumers
(Lemley and Feldman, 2016). There are three main stages of the commercial funnel
which are as follows-
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The Marketing Funnel Segment- This is managed by the management in the
company Essence drinks which deals with developing the need of any product in the
market. The marketers create the demand and also evaluate the existing demand for
the specific product in the market. The company Essence drinks studies the customer
needs for the introduction of the new product Kesar-Pista lassi in the market.
The Sales Funnel Segment- It is managed by the sales staff of the company.
The main purpose of this segment is to convert the people already in the business cycle
top purchase the specific product. Various communication methods are used to inform
the existing customers about the coming of the new product to the current customer.
The company Essence drinks used text messages and advertisement channels to the
existing buyers and also the new buyers of the product Kesar-Pista lassi(Kelly, 2016).
The Customer Funnel Segment- This segment relates to the service after the
sales have been made. This relates to the command on the customers which includes
the after sales service, retaining the customers and obtaining repetitive orders from the
customers. In the context of company Essence drinks there are many regular customers
to the company who regularly buys the product of this company. The loyal customers
are more valuable and profitable than the other customers. Therefore the customer
satisfaction is important part of commercial funnel.
Application of New Product Development in the company
Essence drinks
Kesar-Pista lassi
New product development is the journey of innovation into the new product. This
is a process which leads invention of the new idea to a product and thereafter moving it
to the final consumers.
Essence drink aim at improvising their lassi by bringing Kesar-pista lassi into the market
which adds value to their products and services and ultimately helps in sustainable
growth and development of the business. Innovation is of greater importance than
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invention because invention is the result of innovation which helps in attaining
competitive advantage and eventually leads growth and success of the company.
Image
Ingredients
Flavours
packagin
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Illustration 2: ingredient of lassi
(source: Simple Sweet Lassi - The Write
Balance. 2019)
Illustration 3: flavours of kesar pista
lassi
(Source: (Kesar Pista Tea Premix .
2019)