Business Development: Innovation and Commercialisation Report Analysis

This report delves into the critical aspects of innovation and commercialisation within a business context, using Essence Drinks as a case study. It defines innovation, contrasting it with invention, and emphasizes its significance for organizational success. The report explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialisation. It examines the 4Ps of innovation (Product, Process, Position, Paradigm) and the innovation funnel, illustrating how these tools shape and refine innovative ideas. The report then discusses frugal innovation, providing real-world examples of its application, and highlights the importance of the commercial funnel and new product development (NPD) processes for commercializing innovations. Furthermore, it builds an innovation business case for Essence Drinks, including funding access strategies, and evaluates tools for developing, retaining, and protecting knowledge and intellectual property. The report concludes with a summary of the key findings and recommendations for fostering a culture of innovation and driving successful commercialization.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1.Defining innovation and determine its importance to organisations in comparison with
invention. ....................................................................................................................................3
P2.Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................5
P3.4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas...........................................................................................................................6
P4.Developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................8
P5.The importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation.............................................................9
P.6Build an Innovation Business Case for Essence Drinks, including ways to access funding.
...................................................................................................................................................10
P7.Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation and commercialisation is an key element in the business. It comprises of
creation of new ideas and also involves creation of new products in the market. Innovation is an
process of identification of new ideas or thoughts which can be in the form of different methods
or devices. On the other hand commercialisation involve launch of new goods and services to be
produced in the market and it also involve making them available in the to the target audience.
Organisation undertaken under this is Essence drinks which is an UK based company. It started
business with selling one drink a healthy mango lassi in the market. But the company is facing
significant decrease in sales in it' third year so it is going to launch new and innovative product.
This report will also enlighten 4p's of innovation and will also explain the use of innovation
funnel in order to shape the ideas (Chun, Chung and Bang, 2015). Later part of the report deals
with different tools that are being used by organisation in order to develop, retain and protect
knowledge and intellectual property.
P1.Defining innovation and determine its importance to organisations in comparison with
invention.
Innovation can be expressed as process which comprise of translating an idea or
invention into a good or services which is focussed on creating value . An idea in order to be
innovative should be replicable at economical cost and must be focussed on satisfying consumers
specific needs. It is complex process which involves deliberate application of collected
information and imagination and initiative focussed on driving higher amount of value from
customers. Essence drink is providing healthy mango lassi to the market in UK for a period of
two years and now due to certain factors such as change in market demand, customers preference
and other factors (Hemphill, 2014). In order to better facilitate market and attract larger number
of audience businesses should launch different variants in lassi drink such as Orange pineapple
strawberry and plain. By launching innovative variants business will be benefited in following
ways-
Helps in competing in the market- As there are number of competitors comprising in
the market with offering a new range of products the organization will be able to give
competition to it's competitors and innovative product will help the business I attract of more
customer thus increasing the sales and market share of the company (Ismail and et. al., 2015).

Able to attract larger audience- As the business have been only selling a single product
and is being involved in selling the same for a longer period of time. Customer tent to loose their
interest as they always for innovative ideas or products to attract them. By adoption of
innovation the businesses will be able to attract them and retain them as loyal customers the
organisation.
Help in increasing sales- By adopting innovative processes or products the businesses
are able to attract larger audience and with the use of promotional tools they can create interest
among the customers so that they add the new product range in their purchase list and thus it
helps in increasing the sale of the organisations (Abdul Razak, Murray, and Roberts, 2014).
Thus, Innovation plays an important role in the organisation it helps in attracting more
number of customers and also helps in retaining the market position of the businesses. The
process of innovation involves making change or improving the current range of products.
Which is being done by Essence drinks by launching new flavours in the current flavour of lassi.
On the other hand invention involves creation of new product or new process that is being
introduced for the first time by the businesses. Further difference between innovation and
invention can be expressed below-
Difference between innovation and inventions:
Bases of comparison Innovation Invention
Meaning It comprises with new
development in the existing
product.
Involves inventing new
process or product.
Required skills It requires a range of skills
such as technical, marketing
and strategic.
It requires only scientific
skills.
Concept It involves practical
implementation of new ideas.
It involves working with
original ideas.
Activities Spread across entire business. It only involves research and
development department.
Consideration It is focussed on a mixture of
various products and
It focusses only on a single

processes. product or process.
P2.Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
A business vision involves an insight about their goals. These goals tent to encourage
the individuals which are associated with the businesses to work with more efficiency and
effectiveness in order to complete their job responsibilities in the business in the given time
period. In respect of Essence drink they should clear their vision which is focused on providing
healthy drinks and attracting larger number of audience. Along with the businesses the leaders
should focus on finding ways to face different challenges in the market and understanding the
organisation culture and treating the employees in accordance with it (Mohannak and Samtani,
2014). They should also focus on encouraging employees to work in teams and these aspects can
be further detailed below-
Organizational vision: These involves setting an clear image of the business gaols and
objectives in the mind of individuals working for the same. The vision of the Essence drink is to
provide healthy drinks to the market and increase it's sales by it's innovative formula and
distributive capacity. By launching different flavour such as pineapple, strawberry, orange and
Salted lassi the businesses is focused on addressing the different demand of customers and
encoring their main aim of business which is promoting health drinks. It will help them to cater
market more effectively and also will help them to retain it's position in market as the
competition in the market is increasing (Fuertes-Callen and Cuéllar-Fernández, 2014).
Leadership: It comprises of certain activities such as assisting in establishment of vision
and then providing the related information to member of organisation in order to realize the
vision. Leadership involves setting coordination and handling the conflicts among the different
members of the business. Positive leadership will provide regular support and counselling to the
employees so that they can carry different process easily and effectively. In Essence drink
Culture: The culture of the organisation comprises of policies, rules and different
procedure that a organisation is following. Business should focus on enabling an positive work
environment which does not discriminate and also it assist in creating a positive work culture
among employees as thy are bing treated equally in the work place. By facilitating environment

which foster team work it will help in development of creative ideas that will emerge while
working together.
Teamwork: They are the key element in the businesses as they encourage people
working together and achieving the overall organisational goals. In order to come up new ideas
the employees can be teamed in teams which will help them to collectively come up ideas and
their results can facilitates in development of innovative ideas as well as in invention of new
product and processes (Pustovrh and et. al., 2017).
In order to create innovation the innovative consultant can develop an environment which
will comprise of adoption of different methods such as brainstorming in order to develop
innovative ideas. It includes staff members exploring the customer demands and the working in
teams in order to achieve the organisational objectives. Along with it advices from employees
will be taken in relation with changes in the work place situation which will help the innovative
consultant to gain more knowledge and thus creative new and innovate ideas
P3.4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.
I llustration 1: 4PS- EXPLORING THE INNOVATION SPACE
(Source: 4PS- EXPLORING THE INNOVATION SPACE, 2015)
Product- It involves the product that are being offered by organisation. The innovation in
theses is being of great importance so that company can attract customer by offering certain new
product along with new features. Customers tent to get more attracted if they are provided with

an opportunity of exploring new features or if are provided with new products. It is also
important to create innovation in product in order to satisfy the changing demands of customers.
The launch of different variants in health drink will help the business to attract large number of
individuals (Swart, 2015).
Process- It involves activities that are being used in creation of product and also in it's
delivery. The Innovative consultant will have to plan out the entire process as the launch of new
variants would require them to change the process associated with creation of products. Along
with it the entire process of promotion needs to planned so that they can different medium for
promotion of their product such a using social media platforms.
Position- It involves setting a specific place in the mind of consumers about the products
. The businesses can focus on enlightening the new features of their products that have influence
on more number of people. As people in United Kingdom are more attracted towards flavoured
drinks and also on healthy drinks. By offering a range of new range of lassis they will be able to
addresses the demand of customer thus, securing a more strong position in the mind of
customers.
Paradigm- In the entire process of introducing changes in the business model the
business should focus on creating a positive environment and must address it's employees that
changes are positive and they result in enhancing the bushiness performance. It should also
focus on involving their employees in the entire process so that they feel more associated and
also assist the process more efficiently (Kutvonen, Savitskaya and Salmi, 2014).
Innovation funnel: It involves several steps that are focussed on development of product
The aim objective of this funnel is to convert ideas into product and services which is done in
order to satisfy the neds and wants of consumers. The process involves collection of ideas in the
beginning and taking few of them into consideration in the later part. The ideas are then used for
further development of concepts. In order to introduce new idea Essence drink needs to establish
innovation funnel. Which comprises of following steps-
Investigation: The first stage involves collection of information and gaining knowledge
about the market. Then collecting a range of ideas based on the information with large number of
ideas businesses will be able to develop innovative products. In order to gain information
Essence drink needs to collect information from a number of sources such as external and
internal source. It will involve getting information from a number of factors such as employees,

establishing research from different institutions and analysing rivalry. So, the process includes
analysing market information in relation to find different opportunities that can be taped by
businesses for launching new products or new range of product in the market. For this the
innovative consultant should posses both ability and knowledge to convert ideas into realities .
Development: In the initial stage the business collects data from different source such as
external and internal source then the collected data is being screened which involves comparison
of range of selected data with the organisations goals and objectives in order to find out the
whether it is relevant or not. It comprises of assessment of risk and return both along with
organisations goals and objectives. In these step organisation tests different ideas in the target
market so that their effectiveness can be measured in the actual market. In this process
businesses also allocate the required resource so that the market opportunity can be capture with
ease (Marion and et. al., 2015).
Shipping products: This step involves election of appropriate ideas which can fulfil the
organisations goals. It also involves introduction of new ideas which are being introduced by
organisation in order to satisfy the customers demand. It is an an concept which help the
organisation by helping them in testing their product in the market place before launching on a
larger scale in the market. It gives businesses an opportunity to reduce the level of risk which is
involves with launching new products in the market.
P4.Developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation process comprises with minimising the cost complexity which is being
associated with a product. This concept helps the organisation in responding to the issue of
limited resources which can be either financial, institutional or material and It helps using theses
constraints in creation of new ideas or ways to solve issues. Thus, it assists businesses in
development and making product and services available to customers. It also involves removing
the non value adding features in the production process so that the cost associated with it can be
reduced. The practices involved in frugal innovation are associated with the rising markets. That
is because of the reason that this innovative procedure focus on producing output that is
focussed on fulfilling the special needs and wants of the market. It also focusses on producing
products and services that can be affordable by each section of the society in order to make it
affordable the business will eliminate the use of plastic cups while serving the lassi and instead

of it they will use eco friendly cups while will help them in decreasing their overall production
cost (Cooper, 2016).
As the Essence drink is situated in the United Kingdom and the competitors in the market
are offering flavoured drinks which is actively attracting a large number of customers. In order to
asses these needs of people which comprises of different flavours in the health drink the essence
drink will launch variants in their business model so that theses special needs of customer can be
fulfilled. The organisation will also focus on producing their products at an affordable prices so
that they can provide their products to every section of people and thus can cater to bigger
segment of consumers.
P5.The importance of the commercial funnel and the application of new product development
(NPD) processing for commercialisation of innovation
Commercial funnel is also known as purchase funnel. It depicts the journey of an
consumer in relation with purchase of a particular product or service. It starts with awareness and
end with the purchase of product or services. It plays the roles of an revenue funnel thus, it
depicts different ideas which are related with initial stage of sale. In this step there are Hugh
number of customers are associated and they tent to get reduced in numbers during the
purchasing stage. It involves generating awareness among customers and also involve
identification of problems. Further they tent to find solution to these problems that can be done
with the use of social platform for promotion (Stark, 2015).
It further involves adoption of various other steps in order to create interest in the minds
of customers abut their new product variants. It results in greater number of customer
engagement. The Essence drinks provide only one specific product which mango lassi to the
market it helped them in their first year of business as there product was innovative but in the
later years there sales tent to get reduced. On the other hand the competitors are offering
different flavoured health drinks to customers which is attracting them by fulfilling their need. In
order to deal with the market needs and to increase their sales they are offering new variants in
the current lassi product. In the commercial funnel the main motive of organisation is to create
awareness among customers about their offering so that they can create their interest which will
make the customer consider the product in their purchasing process (Heeks, Foster and
Nugroho, 2014).

In the new product development process of a business they faces different types of risks
and difficulties. The initial stage of NPD process will comprise of difficulties such as the
difficulty of increase cost which will be require to invest in the development of innovative
product. The NPD process elements includes generation and screening of ideas in order to
generate ideas business will examine different sources such as internal and external source so
that can a range of innovative ideas to choose from. The further steps part of the NPD process
involves concept testing testing the innovative idea in the context of market so that it's relevance
can be tested as per the market. The next steps in NPD process is business analysis and product
development which comprises of reviewing the different cost associated with the new product
then can be done by reviewing sales, cost and profits where as the product development involves
with developing the product physically in order to ensure that the selected idea can be converted
market offering. The later part of the NPD process involves test marketing which involves
testing the new product or range of product in actual market setting in order to test their
efficiency in the market. The last stage involves commercialisation which is launching the
product in the market.
P.6Build an Innovation Business Case for Essence Drinks, including ways to access funding.
The market in the current economy comprises of customer who prefers different flavour
and are focused on drinking healthy drinks. Essence drinks have been serving the market for two
years and have been selling single product which is mango lassi. In the initial stage they were
able to increase their sales with the use of innovative and distributive capacity. But after two
years their product have not been able to attract the same number of customer and their sales tent
to decrease. The market analysis have shown that people are getting more attracted towards
competitors as they are offering different flavours in the market which is resulting in loss of
customers. In order to cope with such issues and satisfy the needs and wants of customers on a
higher level the organisation is introducing different flavours such as strawberry, pineapple,
orange and salted. With offering a variety of flavour the business will be able to attract
customers with different taste preferences and will also be able to attract them as they are
offering healthy drinks and people are more attracted towards having healthy drinks (Zeschky,
Winterhalter and Gassmann, 2014).
By offering variety of flavour they will be able to retain their market place in the business
and will be able to actively compete with their competitors. In order to launch new products

flavours the business will require a investment of £2000 and in order to fulfil the finance need
the business will acquire it from different sources such as loan from bank and self funding. It will
acquire £1000 from bank as loan and will invest their remaining amount in the business as self
funding. In order to promote the new range of variants it will use digital platform such as
Facebook and twitter which will help them to reach to larger amount of audience.
P7.Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.
In order to retain and protect intellectual property an organisation requires to
established itself in legal context. The tool is marked for developing , retaining along with
protecting knowledge and intellectual property essence drink require to use this following
Patents : This is help fill for essence drink in this company protect its new innovation
and its interventions. This is effective in improve to the existing inventions. In this ther are
different type patents. Design patent is the patent in which anyone who crate new design for
example new packaging. Plant patents this includes grafting and crating new hybrid plant apply
for plant patent. Utility patent this what in which invent any new idea and useful ll process and
machine.
Advantages of patents:
 In this a patent gives the right to stop others from copying, manufucturing importing
intervention without the permission.
 With this organisation get protection for a pre-determined period and allowing allwing
competitor-at bay.
Disadvantage of this:
 In this it is necessary to remenver to pay annual fee or patent will lapse.
 This is considered as the more time consuming.
Trademark: in essence drink, trademark define as the source of recognizant being
marked among its potential customer. In trade mark there are a word, names , symbol , images
that are applied to product or somewhere connection with services and good. This is very useful
for the customer to identify its product within the same industry.
Advantage:
 This is effective in help the owner to protect their mark from being used by competitor.

 This is effective in take legal agaist the party and claim charges depending on the
situation.
Disadvantage:
 In this owner should need to show proof to use at regular interval.
 This only protect the marketing concept not always product itself.
Copyrights : This is define as the marked which protect the ideas , expression in literary ,
artistic and musical work. Patent is when applied within the organisation help the firm to stay
protected from there innovation. Essence drink is expected to design their services through legal
patent. The primary objective of this is to induce and reward through the provision of property
right. This is the law which is intended to serve the purpose of enriching the general public
through access to creative work. In this there is some limitations on the owner of copy right.
Advantage :
 This give the right to the owner to reproduce their work.
 This is effective in prevent work from being stolen or misused.
Disadvantage :
 In this there is inability to share the work.
 In this there is the term of that copyright to be able to exercise the right that is grants.
This very important to protect then in essence drink organisation. Essence drink save or
protect its knowledge of this organisation by using data protection policy . This company can
protect its data by many different steps. This steps are explain below:
 In this this can be ensure the data which is collected is collected in lawful manner and in
a fair manner.
 For collecting the data there is mention preservation time period for personal data is to be
establish.
 Data which is collected ensure that data of the company is used to meet the legal fulfil
and operations of essence drink.
For collecting data employee of organisation should provide the adequate training for personal
data.
CONCLUSION
From the above report it is concluded that innovation and commercialisation both play a
key role in the businesses. This report highlights the importance of innovation in organisation