Innovation and Commercialisation Report: Essence Drinks Business

This report provides an in-depth analysis of innovation and commercialization within the context of Essence Drinks, a small business. The report begins by defining innovation and invention, highlighting the importance of these concepts and differentiating between them. It explores how organizational vision, leadership, culture, and teamwork shape innovation within a business. The report then delves into various sources of innovation, including employee creativity and the implementation of effective teams. It further examines the 4Ps of innovation (product, price, place, and promotion) and their application to Essence Drinks. The innovation funnel and frugal innovation are also discussed, including their roles in product development and cost reduction. Additionally, the report covers the importance of the commercialization funnel and the application of product development processes, along with an innovation business case. The report concludes by considering tools for developing and protecting intellectual property and addressing challenges associated with innovation.

Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name ID
Unit Number and Title 08:Innovation and Commercialisation
Academic Year 2019-20 Cohort Sept 18 Block 2
Unit Leader Assessor
Assignment Title Innovation in a small business context
Issue Date 25.03.2019
Submission Date
(Formative)
29.04.2019
IV Name
Deadline for assignment
submission
13.05.2019 (Summative Feedback)
Learners Declaration:
I certify that the work submitted for this unit is my own and the research sources are
fully acknowledged.
Date: 30.04.2019

Table of Contents
INTRODUCTION..........................................................................................................................2
LO 1.................................................................................................................................................2
Explaining the importance of innovation and explaining the comparison between innovation
and invention...............................................................................................................................2
Explaining that how organisation vision, leadership and culture and teamwork building a
shape of innovation.....................................................................................................................3
Analysing the different sources of innovation that helps to foster and develop an environment
culture..........................................................................................................................................4
LO2..................................................................................................................................................5
4P's of innovation........................................................................................................................5
Innovation Funnel.......................................................................................................................5
Frugal innovation and examples of it .........................................................................................1
Role of frugal innovation............................................................................................................1
LO3..................................................................................................................................................2
Importance of commercial funnel and application of product development processing ...........2
Innovation Business Case...........................................................................................................4
Detailed Innovation Business Case.............................................................................................4
LO4..................................................................................................................................................5
Different tools use can use to develop, protect knowledge and
intellectual property...................................................................................................................5
Nature of innovation and overcoming occurring challenges......................................................5
CONCLUSION...............................................................................................................................6
REFERENCES ...............................................................................................................................7
1

INTRODUCTION
Innovation and commercialisation is the process which distinguish new practices in the
business for further development. Innovation is the process of translating an idea or invention
into a good or service that creates value for the customers. In other words, innovation is the
evolutionary innovations that are brought about many incremental advances in technology
development. Present study based on innovation and commercialization based on the case study
of Essence Drinks which itself created a health drink which is Mango Lassi. The study will
present the importance of innovation and invention to determine the comparison between
invention and innovation. Furthermore, study also described about how vision, mission,
leadership and teamwork enhance the innovation within the organisation. Overall study
explained the deep understanding of innovation and new product development.
LO 1
Explaining the importance of innovation and explaining the comparison between
innovation and invention.
Innovation is the processing to implement the new idea or concept within the
organisation. It involves multiple activities to disclose the new ways to do things. Innovation
create opportunity for the company to maintain its business sustainability growth in the
competitive market (Bag and Anand, 2016). Innovation is a kind of fuel that generate new
profitability for the company and enhance their market value in long range. The concept of
innovation is the new equipment in an organisation that makes the good and enlarging idea
process to measure the effective learning outcomes and goals in order to sustain the better
advance facilities.
Invention is a unique or novel devise or method which composition or process which is
based on the fresh process. In other words, company create new product or launch new service in
the market for the very first time is called invention (Bell and et.al. 2018). Essence Drink also
create an innovative product which is Mango health Drink to all kind of age customers this is an
invention that company create and start their business for very first time.
In other words, innovation and invention are sometimes used for interchangeably,
although the concepts are readily distinguished. All past inventions are very beneficial and
effective for the company.
2

Difference between innovation and inventions
Basis Innovation Invention
Strength Innovation is stronger and
stable than invention in terms
of acceptance.
Invention strong element is
that it is based on new fresh
process instead of existing
product services.
Weaknesses Innovation involves
uncertainties to get success.
Invention required high cost
which sometimes not
affordable by the company.
Advantages Invention provide (Cardon,
McHenry and Cline, 2016).
Disadvantage Occurred high cost range. Need specialist and productive
employees.
Effectiveness It is the new disciplined
process by handling in unique
manner.
Effectiveness of invention is
they symbolised with new
name and features created by
the company.
Ineffectiveness Innovation requires high
market research which
required different sources.
Invention requires huge
investment new product
development growth.
3

Explaining that how organisation vision, leadership and culture and teamwork building a
shape of innovation.
Vision: Vision or mission is the starting point for strategic plan and objectives and
metrics. Vision develop ways of performing the task in order to accomplish company aims and
objectives. Vision settings the new positive and directions for the company success. This helps to
inspire people, to support employees to adapt to change and to seek out. Essence Drinks set their
vision to create more value to customer by launching new drinks with different flavours. This is
the vision for which company set further task and activities. It also helps the organisation to stay
focused on its goals in order to achieve set growth and development.
Leadership: To build a new creative and innovative idea into implementation, leaders
play a very important role to guide employees into the correct manner (Ciabuschi, Dellestrand
and Martín, 2015). Leadership styles helps team leaders to understand the new concept or task
that will going to perform within the organisation. To make more interesting goals. Innovative
and motivated leaders have always creates positive change that helps the organisation to improve
and be innovative in the business environment. That helps to build creative and motivated work
culture that brings new ideas and innovation growth. Leadership is one of the major challenges
and growth that affect the business growth and long lasting channel which makes the things more
effective and leading. Essence drinks has democratic and situational leadership styles to embed
innovation.
Culture: To acknowledge innovative idea, there must have that kind of environment
within the business. To create innovative culture, Essence Drinks should need to invest towards
the positive culture growth. Such as be intentional with the innovative intent, also company
needs to create a structure for unstructured time, and also need to develop enthusiasm among
employees so it makes positive and productive cultural environmental growth. Positive culture
helps to build positive and creative culture that indirectly influence better growth. Promoting
innovation and ideas should on every leader scoreboard (Grosser, Venkataramani and Labianca,
2017). Inject creativity with acquisition among employees helps employees to learn something
new and innovative. Culture innovation which makes the best and developing new results for the
new betterment growth.
Teamwork: This is the fact that an organisation cannot achieve and accomplish the target
without having the effective learning goals. In other words, it brings long term goals and helps to
4

define the working goals. Without having the support of team members company could not
perform their work productively. Teamwork helps each other and support in the critical situation.
Also, they bring new ideas and discussion on that topic in detailed manner. This process helps to
build the innovation within organisation.
Innovative teams working for ED
 Functional innovative team working in Essence Drinks that are very well performed for
the company functional task. In other words, cross functional team where people from
different function work together for a common goal.
 Self directed team members working for ED who manage their work by own and also
introduced new creative ideas for the organisation and goals. In other words, self directed
team comes under together on their own. These kinds of team members also required less
inputs that helps ED to focus on the other development area.
Analysing the different sources of innovation that helps to foster and develop an
environment culture.
Employee creativity and innovation are essential for the success of business. To foster
innovation in company, it requires some sources and techniques to build the innovative culture
such sources are employees should always been on purpose (Miozzo and et.al., 2016). In other
words, people should know their work and responsibility for better focus on the innovation.
Other sources is to develop the innovative culture. Build effective teams is the greatest tool or
technique that helps to create a innovation culture within the company culture.
LO2
4P's of innovation
This 4 p of innovation include the product, price, place and promotion. This used to help
the marketing and innovation of Essence drinks in the UK market by the company (Fan, Lau and
Zhao, 2015). Akshay who is the founder of the Essence drinks can use this 4p of innovation
strategy to launch its new product in the market. These 4 p of innovation are:
 Product – As a essence is the Mango lassi which is developed to give satisfaction to the
customers in the summer. Akshay can launch the other flavour of essence drinks in the
UK market that attract the customer demand in the UK market. As this mango essence
drink have unique mango flavour, that attract the customers and give them satisfaction
and energy as well, that the other competitors are not provided to the market. It is original
5

and organic not added any chemical and extra ingredient that make it unique from other
essence drinks in the market.
 Price - Price is the amount which customer willingly pay and it is very important
component of the 4 p that determine the demand of the product in the market. Customers
also prefer to purchase those products which give the good quality in minimum amount.
This essence drink price is low it not very high as compared to the other drinks in the
market provided by the competitors, which attract the customers.
 Place -Place is also important part of the innovation. Company should have the deep
understanding of the target market (Fan, Lau and Zhao, 2015). For increase the sale by
Innovation Company should also change the target market to sell the essence drink.
Where clients look for this kind of products more, where potential clients go. Promotion – for promoting the Essence drinks company can use different promotional
activity to increase the sale in market and to attract. Essence drinks has new attractive
packaging and label that attract the customers and to promote can use TV, radio,
newspapers and print media.
Innovation Funnel
The aim of funnel is to provide the graphical structure to think about the product
generation and screening any other development process and combine them to produce a new
product. This founder of the Essence can also use this funnel for investigation. This funnel
involves three different tasks. First widen the mouth of the product in this organisation expand
its knowledge and access information to increase the new product and process idea. Second is to
narrow the funnel neck in this generated ideas must be screened and only focused on most
attractive opportunity (Yun, 2017). And the third challenge is to ensure that the selected
product like essence drink deliver to the right market.
6

There are two dominant models of the development funnel
Model 1: This model is used in large firms. In this model research and development
group generate various ideas for the technology, process and product. These ideas will be applied
and then screened at various stages.
7
Illustration 1: Innovation Funnel
(Source:Innovation Funnel)
Illustration 2: Model 1
(source: innovation funnel)

Model 2: This model is used by the small, entrepreneurial start-ups on single product
project (Innovation Funnel,2016). In these circles represent the new product, shaded indicate the
process of development and at last screen, scale and size of the product.
Application of innovation funnel at Essence Drinks:
Innovation funnel is beneficial for new product development in the market.
Therefore, Essence Drinks will apply the innovation funnel for introduce new product in
the marketplace.
Frugal innovation
Frugal innovation refers to as a process which helps in reducing the cost of goods,
reducing the complexity and its production. It refers to the removal of the non-essential and
irrelevant features from the product or the services provided by the company (Radjou and
Prabhu, 2015). It is also known as frugal engineering. It is a concept which encourages
businesses to respond and react to the limitations of the resources and to convert these limitations
and restrictions into a business opportunity to profits and popularity. It is a very new, latest and
popular form of innovation. The essence drink also uses frugal innovation by combining the use
of the latest technology with the cost of production which ultimately results in lowering the cost.
As a result of lowered cost the revenues and the profits will increase.
Different examples of the frugal innovation are as follows- Fold-scope - it is an origami microscope which is made from the use of sheet of paper
and lens. It is designed to cost not more than a dollar.
 Solar light bulbs - it is a system developed in some Philippine slums where solar
skylights which is made from one litre of soda bottle which is filled with bleach and
water provides light to the place. The light produces by this set up is equivalent to light
produced by a 55 watt bulb and it may reduce electricity bills.
Examples:
 GE US$800 ECG machine
 US$100 One Laptop Per Child
 1-cent-per-minute phone calls
 mobile banking
 off-grid electricity
8

Role of frugal innovation at Essence Drinks
The fragile innovation refers to a type of innovation process through which the needs and
problems of the people are developed as a business opportunity in order to cater and fulfil the
needs and requirements of the people at the same time the company will grow and earn revenue
and profits. The frugal innovation plays a very important and crucial role. The role of frugal
innovation at Essence Drinks is discussed below -
 It combines all the low costs with the latest technology to create a good product and to
survive in the tough cut throat competitive market.
 It helps the company in assessing their potential and to increase the capability of the
organisation to grow and prosper.
 Here the aim is to increase the customer base by innovating in the products and
increasing the production and accordingly increase the sales which will lead to cost
reduction.
 It leads to know the customer needs because frugal innovation leads to knowing the
customer needs and produce the products accordingly.
 This practices mainly focuses on the core functionalities which are required for doing
specific purpose and activity (Weyrauch and Herstatt, 2017).
 It includes designing the products to meet the needs of the customers by using low cost
technologies, leveraging them in different ways and minimising the wastages and use of
the resources.
 The use of frugal innovation dramatically results in the production of the goods and
services at a lower cost of production.
 It involves rethinking the production processes according to the latest developments in
the technology and the business and macro environment.
9

LO3
commercial funnel
Commercial funnel is also called as sales and revenue funnel. It is the very essential for the
company improving the sales process which is beginning from the action. This funnel is
depicting the different thoughts regrading to the starting of sale where large dimension of
consumers are regarded and tend to get smaller during time of buy (Busch, Dauth, Fischer
and Souza, 2018). Commercial funnel means to the purchase procedure which firms led
consumers through when buying product. It is divided into many stages which differ
depending on the particular sales model.
 Sales or commercial funnel is important for any business whether they operate online or
offline.
 It is bringing possible consumers into fold on consistent basis which they can market and
promote products and services to over time.
 Without process in place, which is constantly being optimized and tested to increase
value from each consumers (Prabhu, 2017).
 It leads to more engagement of customers with the Essence drink in the type of info and
techniques.
 Company has been able to follow this funnel concept to enhance the efficiency of
employees further delivering better quality goods at the lower costs.
New Product Development :
Selected drinks introduce new good which is Guava Lassi in the UK. Thus, Essence drink
requires following all the application of the new product development processing which includes
different steps such as:
Idea Generation:
It is first stage of new product development procedure in which company generate the
thought which is introduced the new goods which is Guava Lassi. In which, company is utilized
10

SWOT analysis of firm, current marketing trends etc. This can help to raise the sales and profits
of firm (Hyvärinen, Keskinen and Varis, 2016).
Idea Screening:
It is the next stage of new product development procedure in which company screening
the idea in which company requires identification of market and consumers, detail of consumers
behaviour and preferences, technical feasibility of thoughts, determine the competition and their
existing goods within the market. This can help to firm in relation to introduce the new goods
which is Guava Lassi.
Strategic Analysis:
It is next stage of new product development process in which company needs to strategic
analysis for introducing the new product which is Guava Lassi. In which. Organization ensuring
the thoughts fit into their business strategic plans and determining the demand and profits margin
(Kim, 2019). This can help to raise the sales and profits of firm.
Product development and testing concept:
It is next stage of new product development process in which company needs test the
concept and developing product which is Guava Lassi. Developing concept involving the quality
functionalities, price and execution. This can help to raise the sales and profits of firm.
Commercialization:
It is next stage of new product development process in which company needs changing
the goods and services as per consumers demand, support and feedback towards firm. This can
help to firm in relation to introduce the new goods which is Guava Lassi. This can help to raise
the sales and profits of firm (Kim, 2019).
New product range at Essence drinks:
Create an innovative new range of drinks, but does not want to move away from
lassis
Image
11