Innovation and Commercialisation Report - Essence Drinks Analysis

This report delves into the critical concepts of innovation and commercialisation, focusing on their application within the context of the Essence drink company in the UK. It begins by differentiating between innovation and invention, emphasizing the importance of innovation for organizational success, particularly in enhancing product features and achieving competitive advantages. The report explores the contributions of organizational vision, leadership, culture, and teamwork to foster innovation and commercialization. It then examines the 4Ps of innovation (process, product, position, and paradigm) and the use of the innovation funnel to develop new ideas. The report also discusses frugal innovation and its uses, along with the commercial funnel, the application of New Product Development (NPD) for commercialization, and the development of an innovation business case. Finally, it addresses tools organizations can use to develop, retain, and protect knowledge and intellectual property rights, providing a comprehensive overview of the topic.

Innovation and Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Difference between innovation and invention and importance of innovation to organisation
.....................................................................................................................................................4
P2 Contribution of organisational vision, leadership, culture and teamwork in innovation and
commercialisation.......................................................................................................................5
TASK 2............................................................................................................................................7
P3 4P's of innovation and use of innovation funnel to develop innovative ideas......................7
P4 Development in frugal innovation and its uses......................................................................8
TASK 3............................................................................................................................................9
P5 Importance of commercial funnel and application of NPD for commercialisation and
innovation ...................................................................................................................................9
P6 Innovation business case......................................................................................................11
TASK 4..........................................................................................................................................12
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property rights........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation includes about the application of better solutions and ideas which helps in
understand the preference of customers and satisfy their needs. This provides the opportunity to
company to meet out new requirements and needs of market. The management of company uses
new technologies and processes which helps in increases the skills and knowledge of employees
which contribute in accomplishment of organisational targets effectively and efficiently. Essence
drink company is established his business in UK which provides healthy drinks to the individuals
of country (Baraldi and Waluszewski, 2011). The aim of the company is to provide innovative
drinks to capture the market.
In this present explain about, difference between invention and innovation and
importance of innovation to organisational activities, contribution of organisational vision,
culture, leadership and team work in innovation and commercialisation, 4P's of innovation which

is used by the management of company. Here also explain about, importance of commercial
funnel and application of NPD for commercialisation of innovation and different tools which are
used by organisation to develop, retain and protect knowledge and intellectual property rights.
TASK 1
P1 Difference between innovation and invention and importance of innovation to organisation
Innovation and invention both are different aspects and have their own importance on the
operations of organisation. Both the concepts provides the opportunity to management of
company to increase the effectiveness and efficiency of activities of company which contributes
to accomplish the organisational goals. Essence drink company which provides healthy drink in
UK market does not have good sales of their product (Bianchi, Campodall'Orto, Frattini and
Vercesi, 2010). The management of company wants to provide innovative drink in market
which helps the company to increase their sales and market share. Innovation and invention
provides the opportunity to cited company to increase their sales figure and profitability by
satisfying the needs of their customers. Difference between innovation ans invention is described
below:
Innovation Invention
Innovation includes about the process of
improving the existing products and services of
company. For this purpose management of
company uses various technologies, processes
which helps to increase the existing features of
their product which contributes in attainment
of competitive advantage in market. Innovation
helps the company to improve the features of
their products and increase the profitability of
company.
Invention is the process which includes about
creation of product, process or technology for
first time. It contributes to company to
completes their tasks more effectively and
efficiently by use of these new technologies
and processes.

Innovation is the process of providing better
solutions to the problems of organisation. This
helps the management of company to compete
their tasks in stipulated time.
Invention is the process of identification of
new idea which helps the company to
accomplish the targets effectively.
Importance of innovation to organisation
Innovation is the process of improving the features of their existing products and
provides the solutions regarding problems faced by organisation during operation of the
activities. This helps the company to achieve the organisational targets on stipulated time. So,
there is large importance of innovation on organisational activities. Essence drink company is
provides various drinks in UK market (Bradley, Hayter and Link, 2013). But the sales of their
products of company are not good. So, the management of company thinks about to provide the
innovative drinks which attracts large number of customers and increase their sales and
profitability. Some more importance of innovation to Essence drink is described below:
 To develop innovative drink: The main purpose of innovation is to change the existing
features of product to make it more better. The main purpose of Essence drink behind
application of innovative is also that to produce such innovative drink which attract large
number of customers. This helps then company to attain competitive advantage and
capture large market share (Caniëls and van den Bosch, 2011).
 Competitive advantage: Innovation helps the company to add new features to their
product and services. This also includes about the use of new technologies and process
which contributes to reduce the operational cost of transactions of company and achieve
the organisational targets effectively and efficiently. This helps the company to provide
the goods which are better in quality from the products of their competitors and provides
the opportunity to attain competitive advantage.
P2 Contribution of organisational vision, leadership, culture and teamwork in innovation and
commercialisation
There is huge contribution of the organisational vision, culture, leadership and teamwork
to build innovation and commercialisation in company. If the vision and objectives of company
clear to the management of company then it is easy for them to guide the employees effectively
to achieve organisational targets (Cooper, Seiford and Zhu, 2011). Similarly the culture

differences affects the performance of employees which reduces the ability of company to
complete their tasks on time. So, it is important to maintain culture because it motivate the
employees to develop new ideas to complete their tasks on time. Leadership and teamwork helps
to motivate the employees to perform the functions effectively by use of new technologies and
ideas. This provides the opportunity to the management of Essence drink to effectively follows
all these points which address above because it helps the company to promote innovation and
commercialisation. This helps the company to produce the effective products as per the needs of
customers. This will provides the opportunity to company to attain competitive advantage by
producing quality products. These points are described below:
 Vision: It includes about the objectives and plans of company which they want to achieve
in future. This helps the management of company to effectively describe the roles and
responsibilities to employees. This helps the company to achieve their desired results in
stipulated time. The vision of Essence drink is to increase the sales of their product and
capture more market share. For this purpose management of company make the plans to
use the innovative ideas to add new features to their products and use of new
technologies to produce them which saves the cost of operations. Vision of company
builds the innovation among the management and employees of company to increase the
sales of their products (Crossan and Apaydin, 2010).
 Culture: This is the important aspect which affects the performance of the employees of
company . It is the duty of the management of company to remove the cultural
differences to achieve organisational targets effectively. Essence drink is UK based
company so, the culture of company is based on such norms. Various number of
employees are working in company to transact the business which comes from different
culture. Culture includes about the norms, values, morals, rules and regulations. All the
employees of company are required to follow all these regulations. This brings the
equality among all employees and removes the difference among them (Dries, Pascucci,
Török and Tóth, 2014).
 Leadership: This includes about the quality of the employees to lead their teams and
motivates them to develop new ideas and technologies which helps the team to complete
their tasks in more effective manner. Essence drink company wants to produce new
innovative drink in market which is possible if the team leader has leadership quality to

motivate the employees to use their new ideas to add some additional feature in drink
which contributes to increase the sales and attain competitive advantage.
 Teamwork: Teamwork helps to make the coordination among the employees and creates
the positive atmosphere at workplace. This helps to build the passion among the
employees of company towards their work. So, teamwork among the employees of
Essence drink motivates them to develop new products and use of new process which
helps the company to save time and cost.
TASK 2
P3 4P's of innovation and use of innovation funnel to develop innovative ideas
This includes about product, process, position and paradigm. All these points of
innovation helps to improve the quality of product. This motivates the employees to work with
more passion to accomplish the organisational objectives. Such 4P's of innovation is described
below:
 Process innovation: This includes about the innovation of technologies and the process
which are used by the management of company to producer the products of company.
Essence drink wants to increase the sales of their products and increase the profitability.
This will be possible if company reduces the cost of operations. Process innovation helps
the management of company to adopt new technologies of production which reduces the
cost of operation.
 Product innovation: This includes about the process of adding some new features to the
existing product of company and make it better. This helps the company to attain
competitive advantage and increase their sales. Management of Essence drink also thinks
about the launch of new drink in UK market which helps them to attract large number of
customers and capture more market share.
 Position innovation: This includes about the position of the outlets of company because
it has major effect on the sales of their products. It is the duty of the management of
Essence drink is to establish the outlets of company near to colleges and school areas.
This helps to attract large number of students.
 Paradigm innovation: This include about the shape of company. This motivate the
employees of company if the shape of company is good. Essence drink company is also

required to change in the structure of company which provides the chance to employees
use their own ideas to develop products and new technologies (Edquist, 2010).
Innovation funnel: This includes about the development of new techniques, methods to perform
the work. The main purpose of company is to identify the different needs of customers and
satisfy them. This includes three steps:
 Wide of mouth: This includes about collection of information and ideas from the market.
This helps the employees of company to increase their skills. Essence drink company
collects the data from the market about the view of customer for their products. This
helps the management of company to make the changes in their products which satisfy
their different needs (Gray, 2011).
 Selection of idea: This include about the selection of best ideas which helps the company
to improve the quality of their product and reduces the cost of operations.
 Implementation of idea: This process includes about the implementation of such idea
which select above. This provides the opportunity to company get competitive advantage.
P4 Development in frugal innovation and its uses
Frugal innovation: Such innovation helps to reduce the complexity from the operation
of company and also helps in reduction of cost of production and goods. This can be achieved by
removal of non-essential features from the product which are not much important and only
increases the cost of product. This helps the management of company to provide more quality
products to their customers at affordable price. The overall contribution of frugal innovation is
that it helps to improve the quality of product and increase the sales of company. The main aim
of the Essence drink company is to provide the innovative drink which increases the sales of
company and helps to capture large market share. Frugal innovation helps to produce economic
products with improved quality which satisfies different needs of customers. This will contribute
in changing the whole scenario of sales of company by attain competitive advantage. Some
other things which adopt by Essence drink which indicates the development of frugal innovation
is described below:
 Reduce production cost: The management of Essence drinks makes different strategies
and use of new technologies for the production of drinks of company. This helps to
remove the non-essential features and resources which are used in product. This provides

the opportunity to save the cost of production and provide the quality drinks at affordable
price.
 Adding new feature: The main feature of frugal innovation is to remove the
complexities from production process and adding up the new feature which helps to
increase their sales. The management of Essence drink wants to capture the market by
launch of new drink. This indicates that company uses frugal innovation to increase the
sales and profitability (Guan and Chen, 2010).
 Use of new technologies: This include about the use of new technology by the
management of Essence drink for the production of their products. This helps to make the
production process more simple and improve the quality of their products. Use of new
technologies contributes in providence of solution of different problems which are faced
by employees during production process. This helps to improve their skills and achieve
organisation targets in stipulated time.
TASK 3
P5 Importance of commercial funnel and application of NPD for commercialisation and
innovation
Commercial funnel: This funnel includes the process about manipulation of the mind of
customers at the time of purchasing the products and services of company. This helps the
company to retain their customers for longer period of time by providing them quality products
at affordable price. This provides the opportunity to company to understand about the actual
sales figure for their product. For the purpose of change the mind of customers company is need
to change the features of their product and make it attractive for them. To attract the large
number of customers Essence drink company has to launch the new drink in UK market which
satisfy their different needs. Some other importance of commercial funnel to Essence drink
company is described below:
 Research: This includes about the research of market and customer preferences. It
provides the useful information to the management of company. Essence drink company
requires to conduct the research about the market to know about the competitors, their
strategies and the variety of drinks which are provide by them, so make their plans

according to that. Understand about the customer preferences helps them to produce the
drinks as per their requirements (Huang and et. al., 2012).
 Improved quality of product: Commercial funnel contributes to increase the quality of
the carious drinks of company.
 Reduce cost: Commercial funnel increases the use of new technology which decreases
the operating cost and increases the profitability.
 Increase goodwill: Commercial funnel helps Essence drink company to provide quality
products and satisfy the needs of customers which increases the goodwill of company in
market.
New product development is the process of providing new products and services in market.
Essence drink company also provides new drink in UK market to capture large market share.
New product development creates the innovation among the employees of company and
increases their performance. The process of NPD is described below:
 Generate idea: In this step includes about the generation of new idea and processes
which uses by company to develop new product. Essence drink company while
formulating new idea have to take care about the preferences of customers and market
forces which affect development of products.
 Idea screening: This step includes about the selection of best idea from the various
alternative choices. The management of Essence drink has to consider all things which
affects the sales of company while selecting the new idea about development of product.
 Define concept: This step includes about testing of the methods and techniques of new
idea before production of goods. This helps in identification of the viability of new idea.
 Marketing strategy: This the last which is implement by the company after the
production of new products. This covers about the distribution channels and all marketing
strategies use by company for ultimate sale of the product.
This includes about making of plans about cost of goods, budget and distribution channels. Some
of other important points are described below:
 Business analysis: Identification of effectiveness of new drink of company.
 Product development: Link the sales of new drink with the sales of old drink, which
provides about the actual development of new drink.

 Test marketing: It includes about the testing of the marketing strategies of company
which are used in respect of new drink. This provides the actual data about the
effectiveness of the strategies adopt by them (Joshi, Chi, Datta, and Han, 2010).
 Commercialisation: It includes about the launching of new drink of company in market.
To commercialise their drink company uses various promotional tools which helps to
increase the sales.
P6 Innovation business case
Essence drink company is establish is UK and provides the various kinds of drinks. Due
to large competition in market the sales of the products of company is not satisfactory. To
increase the sales and profitability of company, management decided to provide new innovative
drink which attracts the large number of customers. This provides the opportunity to company to
capture large market share and attain competitive advantage. New innovative product helps the
company to increase their image between the customers and retain them for longer period of
time. Such new innovation business case of Essence drink is not only include about the
development of new product but it also includes about the use of new technologies and processes
which reduces the operation cost and improves the performance of employees. So, the innovation
business case of Essence drink company is described below:
 Executive summary: Essence drink company provides the various kinds of drinks in UK
market. Initially the sales of the drinks of company is not satisfactory, but after the launch
of new mango lassi the sales of company becomes better. The main purpose of the
management of company to provide the new innovative drinks which attracts the large
numbers of customers. So, unique taste and quality drinks are the aim of company to
achieve desired success in market (Ke, Fang and et. al., 2015).
 Need: It includes about the identification of competitors, strategies, products and services
provide by them, price and the preferences of customers. This helps the management of
Essence drink to make the good business plan which covers strategies about the
development of new product as per the specification of customers.
 Solution: This includes about the various methods and techniques which are provide by
the management of company as solution. This contributes in determination of the
effective pricing policy by company for their drinks. To provide the drinks at affordable
price to customers attains the confidence of them.

 Research on customers: This includes about the research by Essence drink company
about the preferences of customers and the views of them regarding the quality and price
of drink. This feedback is important for company to understand about drawbacks in their
drink and remove them to make their drink more effective. Determination of the
customers preferences helps to understand about the taste which is most famous among
them (Lin, 2010).
 Design and development plan: After knowing about the market , customer preferences
and their feedback about the drinks, now management of company has to design the
development plan of new drink as per the requirements of customers. This includes about
the making of plan for each and every department and defining the roles for every
employees of company. The proper procedure is define by the management of company
regrading implementation of different strategies which helps in development of products
effectively.
 Investment required: This process includes about the determination of the requirements
of funds by company for producing the new drink. The management of company has to
identify the different sources from where they can raise the funds for developing new
drink (McCoy and et. al., 2010).
TASK 4
P7 Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property rights
It is the duty of the management of every company to protect and retain the knowledge
and innovation made by them. This helps them to secure their innovation from the outside users
to copy them. It is important because if the company is not enable to secure their innovation then
these are misuse by other companies. This reduces the advantage of company because of suvh
innovation. This also affects the actual performance of company and demotivate the employees
as they are not able to secure their intellectual property rights. This image of company in
between the customers is decreased. So, the management of Essence drink uses various tools to
secure the innovation of company. This helps them to protect and retain the knowledge and
innovations. Such tools which are used by Essence drink company is described below:

 Patent: This saves the innovation of company from not being used by any other person
or companies. To attain the patent, company has to apply to government regarding
entitlement of patent for their innovation.
 Trademark: This is used to safeguard registration of company, symbol, work or tag line.
This can provide the protection to the company about 10 years. After that management of
company has to renew it for further protection.
 Copyright: This includes about the right given by the creator of innovation to some
specific person to use their innovation. Not any other person is entitle to use such
innovation without such copyright (Micheli and et. al., 2012).
CONCLUSION
It has been concluded from the above report that, there is huge contribution of innovation
in achievement of organisational objectives effectively and efficiently. This will provides the
new techniques, methods and process of operation of the activities of company which contributes
in reduction of operation cost. 4P's of innovation has there own effectiveness in development of
innovative product and process in company. Commercial funnel provides the ability to the
management of company to understand the preferences of customers and provide the products of
optimum quality which satisfy their needs.

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Online
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