Analysis of Innovation and Commercialisation: Essence Drink Company

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on their significance in organizational growth and success. It delves into the core concepts of innovation, differentiating it from invention, and emphasizes its role in achieving a competitive market advantage. The report uses the case study of Essence Drink Company to illustrate key aspects such as organizational vision, leadership styles, culture, and teamwork, highlighting their influence on innovation and commercialization processes. It explores the 4Ps of innovation, various types of innovation including architectural, radical, incremental, and disruptive models, and the use of an innovation funnel. The report also examines frugal innovation with relevant examples and discusses new product development techniques and intellectual property rights. Overall, the report provides valuable insights into the practical application of innovation and commercialization strategies for business development.

Innovation and
Commercialisation
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Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the concept of innovation and its benefit to organisations in comparison with
invention.................................................................................................................................3
P2 Describe how organisational vision, leadership, culture and teamwork will guide
innovation & commercialisation............................................................................................5
TASK 2............................................................................................................................................6
P3 Discuss 4Ps of innovation and also explain the use of innovation funnel to shape
innovative ideas......................................................................................................................6
P4 Explain the development of frugal innovation with the help of appropriate example......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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Introduction
This report is conducted for better analysing the concept of innovation and
commercialisation. It was analysis that in the growth and success of an organisation both these
factors will play an essential role. Innovation refers to an idea which is transforming into the
reality and effectively solve the problems of their customers. Innovation will help an
organisation to achieve competitive advantage in market because with the help of innovation an
organisation is able to provide something unique and creative as compare to their customers
which will assist them in better attracting more and more customers toward the company. On the
other hand commercialisation refers to a process which is used by an organisation for
successfully introducing their new products and services in the market (Cillo, and et. al. 2019). It
is a wider concept as it will include different factors such as production, distribution, customers
support, marketing and sales of products and services. This report is based on the case study of
Essence Drink Company. It was founded by Akshay Kumar. This report will include the
difference between invention & innovation in organisation. Other than this it will include 4Ps of
innovation, various types of innovation. Frugal innovation and how it will assist in achieving
higher growth and also the process of new product development id included in this report. In last
it will include the different techniques and intellectual property rights of innovation.
MAIN BODY
TASK 1
P1 Explain the concept of innovation and its benefit to organisations in comparison with
invention.
Innovation-It signifies the practical implementation of ideas & thoughts which resulted
in terms of introduction of new products or services as well as improvement iv existing ones.
It refer to the modification in any goods and services by the organisation. It will deal with the
production of creative and unique products in a company (Jia, 2018). By doing innovation in
organisation they are not launching something new but they will modified the existing products
as per the taste of customers and market trends. In Context of Essence Drink, if they will launch
a new taste in their Lassi than it is called innovation.
Invention- It is a process which is either related with improvement in machine or product
or an entirely new process for development of an object.It refers to an idea which is not develop
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before. It will provide something new and unique to their customers which will assist them in
achieving competitive advantage. In other words it refers to the development of a new idea
which is not exist in the market and developed for the first time. In context of selected company
in the case study their mango lassi is an invention as because they will provide an unique and
different combination of lassi and mango.
Difference between Invention and innovation
Innovation: The concept of innovation is based on practical implementation. It was analysis that
the activity of innovation is spread in all departments of organisation. It will require marketing
skills, technical and strategic skills etc.
Invention: The Invention concept is based on theoretical facts. Its work is only limited to the
research and development department (McKelvey and Saemundsson, 2018). It will require one
main skills and that is scientific skill.
Advantage of innovation
Provide clear direction to innovation- It was analysis that invention is the first stage of
innovation and it will provide a clear and correct direction to invention. In context of Essence
Drink Company, their invention of new mango lassi will guide them to further innovate
something new.
Assist in reinforce brand- As from the case study it was analysis that they will achieve
higher profit from their new idea but also encourage competitors, which will influence their
profitability. But with the help of innovation they will again reinforce their brand image in the
market by providing unique taste.
Creating USP- Unique selling point will help an organisation in differentiating their
products from other, which will attract more and more customers towards company products. In
relevance of Essence drink, innovation will assist them to create UPS for their products and
customers (Molnar, 2018).
From above discussion it is analysis that both the invention & innovation will look like
two similar words but there is huge difference between both of them. But both will play an
essential role in providing competitive advantage to company. Invention will require effective
skills and knowledge while innovation is play an essential role in the success of an organisation
and also assist in attracting the best talent towards the company.
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P2 Describe how organisational vision, leadership, culture and teamwork will guide innovation
& commercialisation.
Innovation will provide a creative idea to organisation and on the other hand
commercialisation will help the organisation in successfully introducing that idea into the
market. Hence both will play a crucial role in the growth and assist in smooth functioning of
business operations. Other than this it was analysis that the growth of an organisation is not only
based on one factor its culture, teamwork, leadership strategy, vision etc. will also play an
essential role in guiding and directing innovation idea and commercialisation. In context of
selected company, these factors are discussed below:
Organisation vision- It refers to the statement which will describe the purpose of the
company. It will clearly define that what an organisation wants to achieve in the future. A clear
vision of an organisation will assist them to make effective strategies and successfully achieve
the organisational goal. In context of Essence Drink Company, their vision is to grow their
business throughout the UK by providing unique and creative taste in their drinks. With the help
of their vision they always put their efforts to create something unique so that they will achieve
their vision successfully. It was analysis that their vision will guide them towards innovation and
also make them to effectively commercialize their innovative products (Naor, Druehl and
Bernardes, 2018).
Leadership style- It refers to the activity of the leader in organisation which he use for
guiding and motivating their employees towards the achievement of particular work or goal. In
relevance of chosen case study, their leader will adopt the democratic leadership style in their
organisation. As per this leadership style they will motivate their employees to give their
suggestion in or creative ideas which will help company to innovate new product and through
this leadership style they will motivate their employees to efficiently launch the new product in
market.
Organisational culture- It refers to the belief, values, and norms which are developed by
the leader and managers of organisation and effectively transfer it to the employees. These
characteristics will guide the behaviour and attitude of employees in organisation. In relevance of
selected company in case study, their organisation will follow an adhocracy culture. Under, this
culture top- authorities have power of decision making. They take all the necessary decisions &
then controlled subordinates accordingly. This type of organisation culture will promote
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innovation and creativity in business. Their employees are always motivated and encourage to
take risk and introduce new and creative idea which will help in guiding innovation &
commercialisation in business.
Team work- It means when all employees in a team or in organisation are work with full
cooperation and coordination with each other and together put their efforts towards the
achievement of organisational goal. It was analysis that for the success of any organisation team
work of their employees will play an essential role in successfully achieve the goal of company.
In context of Essence drink company in case study, they will prepare a team of highly skills and
talented employees and their main purpose is to develop new and creative ideas of innovation are
developed. They will play an essential role in directing innovation & commercialisation in
business (O’Kane, and et. al. 2019).
TASK 2
P3 Discuss 4Ps of innovation and also explain the use of innovation funnel to shape innovative
ideas.
Innovation means to improve or replace something. It is a process by which an
organisation will introduce something unique and creative in the market for their customers.
Innovation will help an organisation by adding more values to organisation or customers. It was
divided into four important parts which are discussed below:
Architectural innovation- This type of innovation will require a lot of skills, technology
and lessons which all are apply within an organisation and help in increasing & attracting
customers towards the new market. It is related with the innovation about architecture of any
product which further modify with the way in which various elements of systems link & related
with each other. For example- The flexible manufacturing & networking computer system are
the main components of a products are consider as same but the relationship between these
components will change.
Radical innovation- Under this, existing business model is destroyed. It modifies the
way in which different components interact with each other & consolidate them in order to
prepare entirely new solution. It will include the new products, services, process and involve
significant change & innovation. It was analysis that its impact is also grater as because it will
create a new market. In other words it is also known as transformational model as because it will
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provide a complete new industry to organisation. In this type of innovation, it will design
invention of existing company & create something new. For example- iPhone is consider as a
best example of this type of innovation (Wang and Xu, 2018).
Incremental innovation- It is related with small improvements in existing products or
services. This is a low- cost improvement technique which further helps in differentiating a
company from its competitors. It refers to the optimization and further development in an
existing product, service or any other process of business. Main benefit of this type of innovation
is that it will help in optimization of customers benefit such as, reduction in cost, repositioning,
adaptation for introduction into new markets such as new law and regulations. In other words it
is related to small improvement in the existing products of company. This type of innovation will
help an organisation to achieve competitive advantage in market and effectively face the
competition. For example- Coca-Cola is the best example of incremental innovation. As because
it will include an brand line extension like cherry Coke, lime coke and so on will provide
something unique and new to their customers.
Disruptive innovation- This technique of innovation is used to make expensive as well
as sophisticated products affordable so that these products or services can avail by each & every
segment of customers. This type of innovation is stand for replacing and describe innovation
which will shape a new market. Disruptive innovations is mostly originate in the low-end
segment and in a less attractive segments. It was analysis that with the maturity of technology
and products will increase organisation will gradually attacking the mass market and thus
replacing the existing products. For example- Netflix is the best example of disruptive innovation
because it will use a new business model & technology for changing the existing market
(Takahashi, Indulska and Steen, 2018).
4Ps of innovation
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It was analysis that innovation will play an essential role in the growth and development
of company. It will assist an organisation in creating a unique and new product for their customer
which will help company to achieve competitive advantage in market. 4Ps of innovation will
include product, process, position & paradigm. The concept of 4Ps are developed by John
Bessant & Joe Tidd. In relevance of selected company in the case study, various Ps are mention
below for better understanding.
Paradigm- This is the very first stage of innovation model which is related with
development of appropriate mental model via analyzing changes coming in market place. It was
consider as the first stage or planning stage which will assist an organisation to effectively
analysis the various problems which are attach with the new idea of innovation. It will assist an
organisation in effectively forecasting the various challenges and issues which are occur at the
time of implementation of new idea into market. For example- Henry Ford and motorcar are the
best example of paradigm innovation.
Product- It is the most common form of innovation. While thinking about innovation,
most of the people imagine product based innovation. It signifies development which is based on
product or service. Another important P of innovation is the product or the actual item which is
developed by the organisation for its customers. It was analysis that innovative products will
help an organisation to achieve competitive advantage in market and also achieve higher
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customer’s satisfaction. For example- In 2007 Apple will launch the first iPhone in the market
which will replace the normal key pad cell phone (Wu and et. al. 2019).
Process- It signifies changes in operational process which is related wit internal
environment of company. It puts great impact over current level of efficiency & profitability of
business. It will define the way through which an organisation will transfer its products to their
customers. It is analysis that this P of innovation will not only define the process of transfer
goods and services but also it will define the process from the starting that is from production to
hiring employees, training etc. In context of selected company, it was analysis that they are
require to adopt an effective process strategy so that they will achieve the competitive advantage
in market. For example- For this P of innovation Flow chart is the best example, because it will
assist in redevelop the way a business handle for supporting tickets to improve their customer
service.
Position- Here, position of product is changed by getting enter into new market. It is
about repositioning which is based on offering the product or service in new market. This P of
innovation will define that an organisation will need to create a good brand image in the mind of
their customers (Desmarchelier, Djellal and Gallouj, 2019). In context of selected company, by
providing a delicious and unique taste to their customers company will able to differentiate its
products from their competitors and also create a good image in customers. For example-
Innovation in mobile phones will make their customers to transfer money from their mobile
phones.
With above information, it is analyzed that incremental innovation is the most suitable
form of innovation for Essence drink company. By applying this approach, organization can
improve its existing products. It is based on constant evaluation of current process in order to
identify scope of improvement. For this purpose, respective company is required to analyze the
current production process for brining necessary improvements in product for further betterment.
This innovation technique will help Essence drink in improving the taste & quality of their drink
which is important to stay in competition for longer period of time.
It is monitored that product innovation out of 4 P’ s of innovation is the best possible
approach which can be implied by respective business entity. Here, they are required to analyze
the features, performance of their product & then some additional elements for further
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enhancement. It is suggested that they can add new flavours in their drink which will help in
gaining attention of more number of buyers.
Innovation funnel- Innovation funnel comprises a lot of steps which are used in
development of such products & services which meet with requirements of buyer in best possible
way. It refers to an approach of innovation which will assist an organisation in effectively
creating an innovation plan. This kind of approach is also called as funnel management process.
It is a kind of mechanism that will assist an organisation in continuous streams of innovation. Its
main objective is to generate various innovative ideas & then select the best one from the
available ideas, & in last convert it into an effective development plan. In relevance of selected
company, their innovation funnel management will work for effectively and constantly screened
the ideas & compare it to various rules & filters related to each idea. Innovation funnel will assist
selected company to select the best innovative idea for their company which will add higher
value for company. In Essence drinks, they use innovation funnel in order to analyze each &
every stage of product decelopment. This funnel enables the management of organization to
constantly evaluate the production process so that they can eliminate barriers in order to produce
quality products. For this purpose, they use four step of Innovation funnel which are mentioned
below:
Idea: In context of Essence drinks, they collect necessary information from market place in
order to generate suitable business idea
Concept: It is the second step of innovation funned wherein extensive analysis is done for
getting effective solution.
Solution: Here, management of Essence drink test the solution to develop effective final
product.
Market: It is the last step where Essene drink focus on meeting with requirement of customers
by adopting effective practices of procurement, marketing & sales .
P4 Explain the development of frugal innovation with the help of appropriate example.
Frugal innovation is a process which will assist an organisation in removing the available
barriers that will assist in reducing the cost of products and services. This concept is also called
as frugal innovation. Main purpose of frugal innovation is to remove the non-essential features
from the durable goods so that the cost of products will reduce. It is analysis that by adopting
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frugal innovation as a strategy many organisation will produce products and services at low cost
without scarifying the quality of their products. It is analysis that this type of innovation is
consider as a growing trend in the industry. It will include different factors like social,
environmental and economical which will derive this type of innovation in organisation. In
context of selected company, It will assist them in add more values in less cost to their
customers. It is analysis that it will help company in removing various unnecessary cost and
Assist Company to maximise their profitability by producing valuable goods. Toyota group is
consider as the best example of frugal innovation as it is a company of car manufacture &
automobile company which will produce many cars in the country by adopting this type of
innovation (Dressler and Paunovic, 2020).
TASK 3
P5 Discuss the importance of commercial funnel and explain various applications of new product
development.
It is a marketing tool which allows a company to understand the journey of customers from
awareness of product & services to end purchase. It is a process by which organizations attract
customers & convenience them to buy product. It is also known as the sales funnel. In context of
Essence drink, the commercial funnel used by organization is mentioned below:
Stage of commercial funnel
Awareness- In this stage chosen company will require to gain the attention of their target
customers towards their business or products. For this company will use effective advertisement
tool.
Interest- After catch the attention selected company will start creating the interest of
customer in their products. It is analysis that they will easily generate interest in their customers
because of their innovative and delicious product.
Decision- This is the real stage where company will provide effective offers to their
customers so that they will decide to purchase the product (Lin, Sun and Wang, 2019).
Action- It is the final stage of commercial funnel in which finally customer will buy the
product and company will offer them better service so that they will increase the repeated sales
and generate profit.
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Importance of commercial funnel
 It will assist an organisation to effectively break down the journey from creating
awareness to action.
 It will assist in creating desire of their customers related to a particular product which
will help in enhancing sales of company products and gain higher profitability.
NDP process
 Idea generation- This step will define that first of all selected company will require to
generate ideas after conducting a proper market research on the need and requirements of
their customers. Selected company will analysis the customer’s requirement and generate
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