Innovation and Commercialisation: Essence Drinks Case Study

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INNOVATION AND
COMMERCIALISATION

Table of Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION........................................................................................................................4
TASK 1...................................................................................................................................... 5
1. INNOVATION AND ITS SIGNIFICANCE TO ORGANIZATION BY COMPARING TO
INVENTION........................................................................................................................... 5
2. HOW LEADERSHIP, VISION, CULTURE AND TEAMWORK OF ESSENCE DRINKS CAN
SHAPE INNOVATION AND COMMERCIALISATION................................................................7
3. SOURCES OF INNOVATION AND HOW ESSENCE DRINKS CAN DEVELOP AND FOSTER
AN ENVIRONMENT AND INNOVATION CULTURE.................................................................8
4. EXPLAIN 4PS OF INNOVATION WITH USE OF FUNNEL FOR EXAMINING AND SHAPING
INNOVATIVE IDEAS.............................................................................................................10
5. EXPLAIN DEVELOPMENTS IN FRUGAL INNOVATION AND HOW IT GET USED IN
ORGANIZATION.................................................................................................................. 13
6. RESEARCHING AND EXPLAINING THE SIGNIFICANCE OF COMMERCIAL FUNNEL AND
THE APPLICATION OF NPD PROCESS FOR INNOVATION COMMERCIALISATION................14
7. BUILDING INNOVATIVE BUSINESS CASE FOR ESSENCE DRINKS ACCESS TO FUNDING 16
8. TOOLS FOR RETAINING, DEVELOPING AND PROTECTING INTELLECTUAL PROPERTY
AND KNOWLEDGE OF AN ORGANIZATION.........................................................................18
CONCLUSION.......................................................................................................................... 19
REFERENCES........................................................................................................................... 20

LIST OF FIGURES
Figure 1 Sources of innovation.................................................................................................8
Figure 2 Four Ps of Innovation................................................................................................10
Figure 3 Innovation Funnel.....................................................................................................11
Figure 4 Innovation Funnel.....................................................................................................14

INTRODUCTION
This report relay on a case study of Essence Drinks which was established by Akshay Kumar
2 years before which he felt that growth was very slow, after this he launched a company in
the UK with a drink named mango lassi which helped him rise in the sales within a year as he
applied formula of innovation and the capability of distribution. Innovation is the capability
of converting ideas into the production of goods and providing services by adding value to
the company and the customers. It is the process of transferring ideas into goods and
provides higher values to the customers by satisfying their needs.
This report will describe innovation and invention by comparing them and explain the use of
vision, culture, leadership and teamwork which can shape the commercialization and
innovation in the organization. This report includes the study of innovation and its types by
using 4Ps and will also explain with example the frugal development in innovation. This will
also include the significance of commercial funnel and the application of NPD and building
an innovation case related to business for an organization by accessing funding. Late it will
evaluate the methods for giving protection to innovative ideas by understanding their pros
and cons.

TASK 1
As a junior brand strategy innovation consultant at Essence Drinks, this report has been
under-covered by me and the report includes innovation and invention of the new goods
and the evaluation of the present situation and proving the recommendations for them.
1. INNOVATION AND ITS SIGNIFICANCE TO ORGANIZATION BY
COMPARING TO INVENTION
Innovation
Innovation is the capability of converting thoughts into the production of products and
providing services by adding value to the company and the customers (Drucker, 2015). It
includes the function of thoughts and information for derive higher values from the present
resources. Innovation is the method of transferring ideas keening on goods and provides
higher values to the customers by satisfying their needs. Likewise, Akshay Kumar the
founder of Essence Drinks seeks and strives for bringing the innovation by innovative ideas
within the organization (Drucker, 2015).
Invention
Invention is the action and process of developing and creating something new which have
not been created and invented before (Cowen and Shenton, 2017). The invention includes
creativity and innovation which can be defined as the new ideas of science and technology.
Inventing new things should increase customer preference and satisfaction towards that
invention and should have an economical cost (Cowen and Shenton, 2017).
Importance of innovation
Innovation helps in presenting new and different ideas which must bring by ant business for
the growth and development of an organization to bit the ruthless competition (Drucker,
2015). Likewise, Akshay Kumar the founder of Essence Drinks seeks and strives and invented
new product mango lassi and offers into the market of the UK and serves best for increasing
the base of the customers (Drucker, 2015).

Difference between invention and innovation
Innovation Invention
It is a process of converting new ideas into
developed products (Drucker, 2015)
It is the process of introducing the product
development for the first time
It uses the skills of marketing, strategic and
mechanical skills
It needs particular skills like scientific skills
and technical skills (Cowen and Shenton,
2017)
It comprises the practical implementation of
innovative ideas in the current process
The invention of new ideas helps in creating
a new theory
The innovation of new ideas and procedure
can get implemented on the entire
organization (Drucker, 2015)
The invention cannot be applied to an entire
organization as it only relates to the research
and development department
Innovation involves the ability to create new
things (Drucker, 2015)
The invention only needs technical capability
(Cowen and Shenton, 2017)
It helps in contributing extensive
improvement on the existing process,
services and products
The invention needs innovations as if there is
no innovation so there will be no invention
(Cowen and Shenton, 2017)
The best example of innovation is Apple's
iPhone (Drucker, 2015)
For example, Japan has innovated many
things but not invent any car or television
According to Datta (2015), commercialization is the method of introducing a new production
or product method into trade and building it available in the marketplace. It connotes
particularly entrance into the bunch of market and opposite to entry into previous niche
markets. It also involves a shift from the laboratory into limited trade.

2. HOW LEADERSHIP, VISION, CULTURE AND TEAMWORK OF ESSENCE
DRINKS CAN SHAPE INNOVATION AND COMMERCIALISATION
As a junior brand strategy innovation consultant at Essence Drinks, this carries that, the
employees of the company of Akshay Kumar follows the culture of the organization and
work in accordance to its vision, works in a team and under the leadership. The culture and
leadership affect the individual in the company (Dodge et al., 2017).
Vision: The Essence Drinks vision is to increase the demand of the products and increase the
satisfaction level in the consumers so that the company can achieve its definite objectives
by commencing new ideas and implement the innovation and commercialization. This
focuses on the enhancement of the services providing to customers and helps in shaping the
commercialization and innovation (Dodge et al., 2017).
Leadership: It is the process and style which gets adopted by the team leader and managers
of the Essence Drinks for supervising the personnel within the organisation (Dodge et al.,
2017). The leadership styles allow the company to follow it for the development and
enhancement of the worker's participation which can shape the innovation and
commercialization by commencing new ideas (Dodge et al., 2017).
Culture: The Essence Drinks be morally keen on shaping and deriving the improvement in
the business organization. The Essence Drinks culture inspires the employees for working
well in an innovative way for increasing the chances of achieving the best results and
enhancement in the performance of the employees (Rubin and Abramson, 2018).
Teamwork: The Essence Drinks also tries that the employees should engage and participate
in working as a team so that it can help in the development of their mutual understanding
and results in increasing of the performance and productivity of the organizational products
(Rubin and Abramson, 2018). Working in a team helps in increasing the knowledge also
helps in improving the skills for the development of the employees and enhance the profit
of the business and form the innovation and commercialization (Rubin and Abramson,
2018).

3. SOURCES OF INNOVATION AND HOW ESSENCE DRINKS CAN DEVELOP
AND FOSTER AN ENVIRONMENT AND INNOVATION CULTURE
Further down, there are various innovation sources which help Essence Drinks to develop
and foster the surroundings and innovation culture (Cowen and Shenton, 2017).
Figure 1 Sources of innovation
(Source Schweisfurth, 2017)
The unexpected: The marketplace has various numbers of opportunities and the manager of
Essence Drinks should continuously study the market for striking the ideas for innovation
(Schweisfurth, 2017).
Change in perception: The change in persons and culture affects the change in perceptions
of an individual upon any particular product, services or brands as the changes happen fast
as the technology is moving fast (Schweisfurth, 2017).
Demographics: Change in demographics influences the Essence Drinks Company, as well as
the market as the company, determines the demands of the product in the way of
purchasing of products and its quantities (Schweisfurth, 2017).
Process need:It is said that the Innovation sources are focusing on tasks rather than a
situation and this is an opportunity for the company which is to be grabbed for the process
of a company by identifying the weak points which can get improved (Schweisfurth, 2017).
SOURCESOFINNOVATIONTheUnexpectedIncongruitiesProcessneedChangesinIndustryandMarketStructuresChangesinPerceptionNewknowledgeDemographics

New knowledge: Increase in technology has increased the number of opportunities. The
new technology helps in fostering the innovation and environment by getting new
knowledge for doing better and improving the process (Schweisfurth, 2017).
The incongruities: This is the key to success for the company as it offers the amount by
which the company can think away from the expectations which help in attracting the
customers and increasing their satisfaction (Schweisfurth, 2017).
Change in industry and market structures: The market and industry are in frequent change
which affects the Essence Drinks by changing products lines. The technology development
helps in stabling these changes and the leaders must keep their eyes on these frequent
changes (Schweisfurth, 2017).
The ways for developing and fostering innovation in Essence Drinks:
There are following ways which a leader and managers should adopt for fostering and
developing innovation in the Essence Drinks:
 Innovation includes creativity, unity and distinctiveness which needs to be in focus
by the departments of the Essence Drinks (Cowen and Shenton, 2017)
 The leaders and supervisors must encourage the employees for participating and
engaging in the process of innovation (Cowen and Shenton, 2017)
 Leaders of the company are eligible for proving high performance by taking help of
the team members (Cowen and Shenton, 2017)
 Managers and leaders should provide brainstorming activities to the employees
which helps them in thinking above the level an in an innovative manner (Cowen and
Shenton, 2017)
 The managers and leaders of Essence Drinks must involve the workers in the
decision-making process for their development and this will also help in
encouragement and developing the innovation of the new product or service of the
company (Cowen and Shenton, 2017)

4. EXPLAIN 4PS OF INNOVATION WITH USE OF FUNNEL FOR EXAMINING
AND SHAPING INNOVATIVE IDEAS
Here are Four Ps of innovation and the funnel which helps in investigative and determining
the innovative ideas.
4PS OF INNOVATION:
The model includes the innovation mix which allows discovering the process of innovation
which can advance the Essence Drinks. The innovation models are:
Figure 2 Four Ps of Innovation
(Source Akgun et al., 2017)
Product: It means what the company is offering and the essence Drinks offers the mango
lassi at the marketplace of the UK. This includes the process of making the services,
procedures, products and innovative practices (Akgun et al., 2017). The innovative goods
and services include the features of resolution, novelty, synthesis and collaboration. The
main aim of this is to make innovative goods and services in kind (Akgun et al., 2017).
Press: Press is the climate, environment and culture that get small under the force of
operation of the process, product and people. The process of the external and internal
environment gets inside and outside of the business (Akgun et al., 2017). The climate,
cultural surveys, analysis of gap and the improvement of innovative plans are the measures
for evaluating press (Akgun et al., 2017).

People: It includes addressing the problems and issues of the individual or people of the
organization as well as addressing the aspects like individual differences and teamwork
(Akgun et al., 2017). This includes the types of sights of the diverse people who seek
towards and provides an innovative path so the types are clarifier, developer and
implementer (Akgun et al., 2017).
Process: It is called as the procedure and mechanism which results in innovating the
products and services (Akgun et al., 2017). This also called the procedure which is used by
the person for bud a highly innovative product (Akgun et al., 2017).
USE OF INNOVATIVE FUNNEL:
Figure 3 Innovation Funnel
(Source Wang, 2017)
This funnel is needed for relating the steps for development of a product or a process.
Creating a product or processes which meets the requirements of the marketplace in
economic and comparable form is the aim of the innovation (Wang, 2017). The innovation
funnel includes 3 main steps for shaping the innovative ideas are:
Focus on funnel huge mouth: This includes the increasing the base of information and
awareness of the business. It aims to collect more ideas which help the Essence Drinks in
superior the quantity of goods which the business can improve (Wang, 2017). At this stage,

the company has a obvious perception of the goals and thoughtful abilities and intent to
able to actualizing the ideas (Wang, 2017).
The narrowing segment: The ideas generated by the company in the 1st step via screening.
This procedure comprises the harmonizing of ideas with the goals by observing they match
or not. This helps the company in gathering many opportunities and positioning of the
company by carrying out future projects (Wang, 2017).
A contracted section of the funnel: At this phase, the Essence Drinks ensures that the
selected ideas are delivering on the objectives of the company which were expected at the
time of company begun. This model prefers safe ideas rather than making creative ideas
(Wang, 2017).