Innovation and Commercialisation Report: Essence Drinks Strategy

This report delves into the critical aspects of innovation and commercialization, using Essence Drinks as a case study to illustrate key concepts. It begins by defining innovation and differentiating it from invention, emphasizing the importance of innovation within an organization. The report examines the roles of organizational vision, leadership, culture, and teamwork in fostering innovation and successful commercialization. It explores the 4Ps of innovation (Product, Process, Positioning, and Paradigm) and the application of the innovation funnel. The report also covers frugal innovation and its relevance in the organizational context, along with the significance of the commercialization funnel and the application of New Product Development (NPD). A business innovation case is presented, and the report concludes with an evaluation of tools used to preserve intellectual property. The report provides a comprehensive overview of the strategies and factors essential for entrepreneurial success.

Innovation and
Commercialisation

INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Explaining importance of Innovation in an organisation along with comparison with
invention......................................................................................................................................2
P2 Role of organisational vision, leadership, culture and teamwork in innovation and
commercialisation........................................................................................................................4
TASK 2............................................................................................................................................5
P4 Concept of frugal innovation and its use in organisational context.......................................6
TASK 3............................................................................................................................................7
P5 Importance of commercial funnel and application of NPD....................................................7
P6 Business innovation case........................................................................................................8
TASK 4..........................................................................................................................................10
P7 Evaluation of different tools which are utilised by business in preserving intellectual
property......................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
In order to succeed in entrepreneurial enterprises, the factors of creativity are advantageous. The
fundamental principle of innovation is the development of new products that serve the same
function as existing products. It is primarily focused on the production of new products and
services that are useful in current market applications. The philosophy of commercialization, on
the other hand, focused on introducing new goods in market areas. The project is focused on
Essence Drinks, a company that operates on a smaller scale and sells consumer drink goods. The
study includes a discussion of the idea of creativity and how it differs from invention. In this
article, the chosen organisation is Essence Drink, which was founded by Mr. Akshay Kumar two
years ago. The company intends to introduce a new drink in the UK market, such as a balanced
mango lassi, in order to increase domestic sales by introducing an innovative recipe and
successful distribution capabilities. The concepts of creativity and invention, as well as the
differences between them, are explored in this article. This project report also covers the 4Ps of
innovation, the value of the commercialisation funnel, new product life growth, and creative
business cases.
TASK 1
P1 Explaining importance of Innovation in an organisation along with comparison with invention
Innovation is described as the process of putting a new creative concept, new products,
and services into practise and improving them in order to sell them in a specific market. It has to
do with bringing additional value to goods in order to meet all of the needs and demands of
consumers and to serve a large market area. According to consumer demand in the United
Kingdom, Essence Drinks is launching a new product called a balanced mango lassi, which is
made from fresh fruits and dairy products..
Innovation is linked to the creation of new business concepts in order to create new
goods, which aids in the growth and development of businesses. In order to achieve successful
results, it is often referred to as designing new systems and maximising the value of products that
are already available. This is the most important principle since it aids in the avoidance of non-
usable resources, allowing for improvements to be made in order to enhance an organization's
efficiency. Teamwork, competitor tactics, and market areas are some of the various sources of
creativity that aid in the long-term operation of business activities. The advantages which are
adopted by business with the help of innovation are evaluated below as:
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The primary values that emerge from the innovation process result in the elevation of an entity's
status, allowing business operations to be carried out in the most efficient and well-planned
manner possible. In a company, creativity and invention play a critical role in ensuring that all
business functions are carried out efficiently and that various sustainable competitive advantages
are gained. The term "innovation" refers to the process of developing new products and business
concepts. To draw new consumers and keep existing ones, the Essence drink company is
introducing a nutritious mango drink in a potential target market. It assists the respective
organisation in resolving all issues that arise during the launch of a product.
As a result of their innovation, they gain a competitive advantage over their industry
competitors who engage in similar business practises. The most important aspect for a company
is to analyse consumer patterns and produce products in accordance with those trends, resulting
in financial benefits and the achievement of goals.
The factors associated with creativity are useful in determining the best management strategy for
business capital. Innovation is the process of effectively and strategically using capital in order to
create new opportunities relevant to the efficient and well-planned execution of all business
activities. Since the mango drink is made with fresh mangoes and dairy products, it attracts
consumers and increases the efficiency and profitability of the Essence drink company. New
creative innovations assist businesses in effectively competing with established industry rivals
and gaining numerous competitive advantages.
On the other hand, while invention is classified as the design of products or the
production of certain new features, innovation is defined as the part of a product that involves the
enhancement or update of some of these features as well as their substantial changes. There are
some distinctions between creativity and invention, such as the fact that inventing entails coming
up with a new concept, while innovating entails effectively upgrading that concept. There are
some criteria, such as scientific expertise at the time of invention, and technological and best
techniques in product strategy.
In terms of dealing with the adverse variations that occur in the market place, the approaches
produced by innovation are useful.
Difference between Invention and Innovation
Basis Innovation Invention
Meaning This term refers to the changes Invention is described as the process
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made to the product or the
alternatives that are available.
of developing a previously
undiscovered product.
Invention is the process of
developing new products that have
not yet been discovered on the
market.
Concerned
department
The factors of creativity are applied
to all aspects of a market.
Invention considerations are linked
to research and development
activities in order to utilise the
knowledge that the business team
evaluates.
Skills required Product creativity does not
necessitate the acquisition of any
specific skills. Marketing operations
and strategies expertise is valuable
in the formulation of a successful
business plan.
Scientific skills and capabilities are
required in order to develop new
product development and, as a result,
business enterprise development.
P2 Role of organisational vision, leadership, culture and teamwork in innovation
and commercialisation
Commercialisation and creativity can be affected in a variety of ways in the workplace.
For example, mission and vision statements that are reviewed by senior officials are useful in
defining workplace innovation activities. There is a constant need to understand the leadership
qualities that workers use to carry out their business operations. Essence drinks organisers must
ensure that various creative approaches are stressed at working environments so that activities
can be maintained over long periods of time in business areas. The following factors have an
effect on innovation products:
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Vision: The company's vision is related to the results they expect from their overall
business activities. Essence Drink main goal is to create high-quality goods that help clients meet
their needs in the most efficient and prepared way possible. The vision has a direct bearing on
the degree to which creative approaches are implemented in business organisations. In the sense
of the organisation, the mission statement refers to the use of modern and creative approaches to
meet the needs of all consumers in the most efficient and productive manner possible.
Leadership: The most critical factor that results in in-cooperating economic and creative
ideas at business organisations is leadership. Steve Jobs, the father of innovation, is taking the
initiative to make changes to goods so that their needs can be met in a more efficient and
prepared manner. Leadership ability aids in the development of plans, policies, and a code of
ethics that aids in the development of creative activities, resulting in a variety of beneficial
outcomes. There are reinforcement components that have been incorporated into the thinking
process, resulting in the advancement of new practises in relation to the chosen bus.
Teamwork: The word "teamwork" applies to all members of a company working together
to achieve predetermined business goals and objectives in the most efficient way possible. In
order to accomplish goals in the time allotted, the team is formed by assembling a group of
people with varying specialisations. Plans should be made and an effective working climate
established in order to foster the development of new ideas and ensure that services are provided
in the most efficient manner possible.
Culture: The most important element in a business organization's culture is that it
encourages people to create more new ideas by encouraging them. The company must ensure
that its corporate culture is based solely on experimentation and discovery so that new and
creative practises can be readily embraced. People who create new ideas and methods for
companies to achieve successful results and business growth are part of the innovative
community. People's opinions are taken into account so that improvements can be made to the
goods, increasing revenue and profit margins.
TASK 2
P3 Explaining 4P's of innovation and use of innovative funnel
The 4P's of creativity model is a unique method that marketing managers use to produce new
ideas. It was written by John Bessant and Joe Tidd to analyse the need for creativity as well as
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the entire process. Furthermore, the current model aids in deciding what types of modifications
are needed. As a result, it entails the following steps:
Product Innovation: In this phase, a business must either develop a new product or find a
new way to sell existing goods in a different market. Furthermore, organisations must produce
highly innovative products in response to consumer demand. As a result, the managers of
Essence Drinks offer their services in a special way. This will help in attracting more people's
attention. They develop a proper marketing strategy for their services by analysing how rivals
sell their products.
PROCESS INNOVATION – This aspect depicts the entire process of creating a new
product from conception to delivery in the market. This would aid in the reduction of
manufacturing errors, especially for companies that deal in software, such as Essence Drinks.
This company's management needs to pay more attention to and every operation related to
developing technologies. They must also think about the next steps in the manufacturing process
and organisational activities.
POSITIONIONG INNOVATION - When a new product is released into the market, this
step depicts how the product will perform. Managers may assess the success of new products in
this manner if the business achieves a favourable market position. Furthermore, in order to
maintain such a status, the management of Essence Drinks must continue to develop on a regular
basis.
PARADIGM INNOVATION – This is the most critical stage of innovation, during
which a company must devise a sound strategy. It covers how to change or add value to goods as
well as how to bring a product into a market in a structured way.
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Innovation Funnel: This funnel is used as a refinery method after learning the
entire procedure of the 4P's of innovation model. In general, an organisation generates a variety
of ideas in order to expand its business and provide high-quality services.
As a result, an invention funnel is used to refine all concepts and choose the best ones. It consists
of three stages for modifying development, such as
1st phase: It is the first step, during which Essence Drinks entrepreneurs must conduct thorough
research in order to assess the market situation. It would aid in gathering comprehensive
data from which various ideas could be produced.
The second step reflects that if managers have obtained information from the consumer in
relation to their goods, their operations would be successful.
The third face shows that the managers of Essence Drinks are optimistic in their new ideas and
that they can meet their goals within the time frame set for them.
P4 Concept of frugal innovation and its use in organisational context
Frugal innovation is one of the most significant contemporary factors that results in the
productive use of all available resources in the economy in relation to factors such as human
resources, finance, and material requirements. The services and products created with this idea
use fewer resources and effectively complete their assigned duties in terms of selling customised
products to customers. The methods have gained traction as a result of the creative tools;
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otherwise, consumers would not be able to buy them. The initiative for product innovation is
accomplished by momentum; otherwise, it is beyond the capabilities of tradition. Innovation
methods are developed in order to meet all of a company's social obligations to its consumers,
and they can be used to produce products more efficiently. The term originated in the healthcare
and transportation sectors, and it has since spread to the technical market. The idea is very
common among businesses that operate on a smaller scale and do not have a separate department
and therefore can probably leave out their operations with the least amount of resources.
It focuses on delivering products that are delivered at a lower cost and offering value to their
loyal customers. Essence Drinks is best known for creating various forms of software resolutions
that operate on larger scales. Firms have begun to deliver all of their offerings to new companies
or organisations that are operating at a reduced cost through implementing frugal innovation. The
main explanation for this is that it allows small businesses to establish a presence on the basis of
digital tools, allowing them to quickly capture market share. The software designed for small
businesses has a lot of the same features as the larger software. The idea of frugal innovation is
extremely important to business organisations because it allows them to meet the needs and
desires of consumers by providing products that are tailored to their requirements. All tasks that
aren't necessary and don't add value to the services are eliminated in order to achieve greater
efficiencies in business operations. This is a crucial element in building a positive business
reputation so that they can provide effective services to all of their customers. For management,
there is less disruption, and they can quickly adjust their decisions and practises that are critical
to achieving business goals and objectives.
TASK 3
P5 Importance of commercial funnel and application of NPD
A commercial funnel is an advertising technique that helps businesses identify, evaluate,
and sell their products to customers. It deconstructs the buyer's path from knowledge to sale. It's
a step-by-step method of drawing customers to business goods and persuading them to buy. The
commercial funnel considers the clients' purchasing process when they purchase business items.
Offering new goods in large quantities is related to commercialisation. In order to deliver the
finished product to the consumer, various processes are used. If a company wishes to succeed in
its activities, it must establish a business strategy. The sales funnel demonstrates that the buyer is
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aware of the goods and is influenced to purchase them. The key advantage of a commercial
funnel is that it alerts consumers to new product deals. If businesses wish to produce new goods,
they must take the measures outlined below:
Idea generation: The Company is just getting started by providing consulting services to people
who want to be a part of it.
Idea screening: The first step is to determine which company can achieve higher growth and
income from its business activities over a longer period of time.
Concept testing: There is a pilot of the latest product concept with a current customer to see what
the results are.
Business analytical: This consideration has to do with doing an evaluation in order to learn about
the positive outcomes of new goods.
Commercialise: If the company determines that its activities are profitable, it will commercially
launch them on the market.
Product development: When consumers react appropriately, it allows for the identification of
weak points in the goods, allowing for changes to be made.
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P6 Business innovation case
Executive Summary The Essence Drinks is dealing in manufacturing their new product
mango lassi and is also a drinks product company and they are
performing their business operations in UK. The enterprise has
developed an environment in which customers demands can be easily
fulfilled in most effective manner.
Need
Essence Drinks have made various innovations in their products and this
results in analysing the changing demands of their potential customers.
The innovation made in drinking products are valuable in achieving
competitive advantages and gaining different outcomes.
Solution
The implementation of new drinking goods is beneficial in conducting
assessments in order to analyse client desires and demands. Product
innovation is beneficial in bringing about improvements in the services
provided.
.Consumer Analysis Potential consumers were pleased with the product innovation
implemented by the companies. The organisation would benefit from
the latest creative ideas generated in order to produce successful results
from their operations.
Creation and
Improvement
Innovative ideas have been captured using modern communication
methods, allowing ideas to be quickly captured in both an unstructured
and organised format. The agency will choose ideas from a variety of
filters available in the economy based on their reachability, making it
easier to evaluate new and creative approaches.
Acquisition of funds Since the company activities are carried out on a smaller scale, it is
necessary to raise funds from a variety of sources in order to finance
their operations. Banks are one of the most popular ways to raise
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money, and they can quickly meet your financial needs in exchange for
a security deposit. On the other hand, another solution might be to share
company ownership in exchange for financial assistance.
Benefits availed The benefits that businesses can obtain from introducing creative
approaches are beneficial in developing innovative work cultures, which
leads to increased customer loyalty and increased profitability for
businesses.
TASK 4
P7 Evaluation of different tools which are utilised by business in preserving
intellectual property
Intellectual property is the most important aspect for businesses because it allows them to
achieve a competitive advantage in the marketplace. Intellectual property protection is important
because it prevents unlicensed property rights from being used. It improves overall business
efficiency because they are able to sell innovative goods to their clients, which can be used for
the purpose of safety and protection when taking out bank loans.
Advantages of Intellectual property are mentioned below:
 IP has no costs involved with it.
 Ability to get a market edge over other enterprises in the same industry
 IP adds to the value for the business.
 IP aids in the marketing of any company's goods and services.
 Organization has an easier time getting funding for your company.
 Expanded export possibilities
Disadvantages of intellectual property are mentioned below:
 Additional costs
 Pirating
 Reduced quality
The following are the main elements that must be considered when drafting an IPR:
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Trademarks: Trademarks are described as the logo or brand name that a company uses in
its operations, as well as tag lines and catchphrases. Any company should apply for trademark
registration so that their valuable assets can be easily promoted. The registration of products is
beneficial to businesses in order to shield them from unlawful use of similar logos and
trademarks as the corporate entity.
Patent: Patents are characterized as the rights granted to inventors in connection with the
sale or use of their new and innovative goods. Patents are divided into three categories: concept,
plant, and utility patents.
Copyrights: Copyrights are described as the security and care provided by the UK
government. Its primary goal is to avoid authorship from being associated with both unfinished
and published versions of the original work. The primary motivation for enacting copyright laws
is to protect innovation, authors, and the time and effort expended during operations. The owner
of the copyright on the items has complete control over how they use their creations.
CONCLUSION
From the above report it can be concluded that creativity and invention are distinct from one
another, and small businesses can easily achieve success in their operations by using all available
resources in the economy in the most efficient and well-planned manner. New processes can be
used to carry out innovation, and these can be promoted through commercialization at market
places.
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