Analysis of Innovation and Commercialization for YOYO Drinks

This report delves into the core concepts of innovation and commercialization, focusing on how YOYO Drinks can enhance its business strategies. It differentiates between innovation and invention, emphasizing the significance of innovation in organizational growth and competitiveness. The report explores various types of innovation, including disruptive and incremental approaches, and analyzes the 4Ps of innovation (Paradigm, Product, Process, and Position) to provide a comprehensive framework. It offers specific recommendations for YOYO Drinks, particularly focusing on the NPD process, innovation funnel, and frugal innovation. The report provides a detailed analysis of how the company can improve its innovation and commercialization strategies to achieve sustainable growth.

Running Head: Innovation and Commercialization
Innovation and Commercializatin
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Innovation and Commercialization 1
Contents
Difference between Innovation and Invention................................................................................2
Importance of Innovation in Organization......................................................................................2
Ways to Turn YOYO Drinks into Innovative Company.............................................................2
Types of Innovation.........................................................................................................................3
Disruptive Innovation..................................................................................................................4
Incremental Innovation................................................................................................................4
4Ps of Innovation.............................................................................................................................5
Advice to YOYO Drinks.............................................................................................................6
NPD Process and Innovation Funnel...............................................................................................6
Frugal Innovation.............................................................................................................................7
Recommendation.........................................................................................................................7

Innovation and Commercialization 2
Difference between Innovation and Invention
Innovation refers to the process of making new changes in the environment or the existing
products by introducing new ways and changing them. While, invention refers to the process of
creating a brand new product or device in the external environment. In the process of innovation,
the organization aims to implement the idea of making changes in the existing product or process
for the very first time. The process of innovation drives different benefits to the organization by
creating new and innovative changes in the business environment (Asheim, Grillitsch, and Trippl
2017). On the other hand, invention refers to occurrence of a new idea for a product or a process
that is never applied in the business. In the process of invention, the business comes up with a
new technique or product that has never been made before by any person in the external
environment. Invention is related to a single product in the environment while innovation is a
combination of several products and process that combine to innovate the structure in the
environment.
Importance of Innovation in Organization
Innovation is connected with the process of using new technology and creating new ways to add
value to an existing idea in the business environment. The process of innovation creates a
substantial change in the environment and increases the productivity of the business functions.
Innovation is important in business because it creates value in the normal business by developing
the structure. Innovation also helps the business in continuous improvement and becoming
competitive in the external environment. Basically innovation helps the business process in
growing and increasing the level of creativity in the environment. Innovation process also
provides unique selling proposition to the business by adding value in the normal business
structure. Innovation helps in promoting the business in a significant way by introducing new
and innovative features in the business. Lastly, it should be noted that innovation in a business is
a major factor that initiates strategic planning and create wealth for business in external
environment (Caputo, Marzi, and Pellegrini 2016).

Innovation and Commercialization 3
Ways to Turn YOYO Drinks into Innovative Company
Mr. Bond can convert the YOYO Drinks company into an innovative company by making
implementing following ways:
 The company should initially communicative with the employees to attain brainstorming
ideas. The brainstorming process will help the organization to attain innovative ideas on
which they can work in the business environment. In this way, they would be able to train
the employee to search for innovation and use it in the business for its success (Wallin,
Parida, and Isaksson 2015).
 Secondly, YOYO Drinks can be converted in an innovative company by successfully
making use of innovation in the environment. As the CEO of the company does not want
to leave the ‘lassi’ product segment in the environment, thus they should aim to innovate
the product in a way that no other organization has utilized in the business environment.
They should combine the product lassi with various other flavours and should aim to
create a product that has not been innovated in the target environment. Thus, in this way
the organization would be able to become an innovative organization successfully
(Wunsch-Vincent, Lanvin, and Dutta 2015).
 Thirdly, it should be noted that an innovative organization is an organization that make
use of all the available resources and induce them in the activity of the business. Inducing
the available resources in YOYO Drinks Company will help the organization to gain
success without investing high value in the business. Thus, it should be noted that the
organization should focus on procuring all the available resources and using them in such
a way that advantage is achieved in the external market (Rubera, Chandrasekaran, and
Ordanini 2016).
Types of Innovation
There are four types of innovation present in the environment that architectural innovation,
radical innovation, incremental innovation and disruptive innovation. The architectural
innovation makes use of lessons, technology and skills and applies them within a different
environment. This innovation helps in increasing the level of target segment in the market.
Radical innovation refers to the innovation that is what people think of mostly while considering

Innovation and Commercialization 4
innovation in the business. This type of innovation creates revolutionary changes and gives birth
to new industries. Incremental innovation refers to innovation that is most common form of
innovation (Biemans 2018). This type of innovation makes use of existing technology to increase
the advantage of customers through the product or services in the environment. Lastly,
Disruptive innovation refers to the innovation that makes use of new technology present in the
business environment to help the business to grow.
Disruptive Innovation
The disruptive innovation process helps the organization to gain foothold in the external market
by creating disruptions in the environment. With the help of this type of process, the
organizations get the advantage to create a new market by providing different values in the
market. Thus, under this process, the organization gains the advantage to change the environment
for good and innovate a new product or function that will provide benefit to the organization in
long run (Chang, and Taylor 2016).
The process of disruptive innovation makes use of efficient technology in the environment to
proceed. The innovation used according to this process is hard to adopt and expensive as well.
This technology used under this process is innovative and difficult to adopt as well. This type of
innovation is usually used by the organizations that are start-up who believe to grow out of the
box. Electric car innovated by Tesla is one such example of disruptive innovation as the
organization utilized the hi-tech technology present in the business environment to innovate the
cars. The technology used by the organization was present in the environment. This type of
innovation tapped the issue present in the environment and recovered it using the disruption
present in the environment (França, et. al., 2017). Thus, in this way disruptive innovation solves
the problems present in industry using technology.
Incremental Innovation
Incremental innovation is the most common form of innovation that makes use of technology
already present in the business environment to increase the value of customers. Under this
process, the business utilizes the already existing technology to change the features or design of
the product in such a way that greater level of satisfaction is received to the people in the
business environment. This type of innovation activity is initiated by almost all organizations

Innovation and Commercialization 5
present in the business environment. Like adding a new feature in the existing product, using
existing resources will be regarded as incremental innovation. Using this innovation, increment
is made in the existing products by using available resources (Bianchi, et. al., 2016).
Further, any little update that adds value in the existing product or service is incremental
innovation as it increases the value received from that product. An example of incremental
innovation can be development or upgrade in the existing software, as the new software will
increase the efficiency of the product or service. As according to this innovation, small updates
and improvement are also a part of innovation, thus update in the software is an example of
incremental innovation. The incremental software increases the competence of the business but
not create it. A business can maintain its level of competitiveness using this type of innovation
but it cannot create it in the business environment (Cantamessa, and Montagna 2016).
4Ps of Innovation
Paradigm: This is the initial step under which the business frames the innovation to implement it
in the internal structure. This process includes changing the business model, so the YOYO
Drinks should initially focus of analysing what type of innovation they want to implement for the
grow prospect. The YOYO Company analyses that the business needs to change its structure in
order to implement innovation in the environment. The organization focuses on implementing
incremental innovation to maintain the competence in the business environment (Chuang,
Morgan, and Robson 2015). So, under this process, the business focus on change how they
should be framed in the internal environment.
Product: Under this step, the business YOYO Drinks should ask questions with the team and
conduct meetings to attain brainstorming ideas so as to innovate the product and services in the
environment. The product segment will answer the ‘what will you offer’ question for the YOYO
Drinks. It will help in analysing the features that are missing in the product and recreating them
to increase the effectiveness of the product. Further, under this segment the YOYO Drinks aim to
analyse the features that they want to offer from a product to the customers in the environment.
The company should aim to develop the features of lassi by adding new flavours in it like
mango, guava, strawberry etc. The organization then decides what they want to offer to the
customers in the environment (Storey, et. al., 2016).

Innovation and Commercialization 6
Process: The third step ‘process’ will help the business YOYO drinks to manage the flow of
work to implement such innovation in the business environment. Under this case, the business
will focus on managing the supply chain, efficiency of employees etc. in increase the profits
through innovation. This process will aim that no hindrance is created during the innovation
process. This process comes up to the segment of how do they want to create that type of
differentiation in the business. Thus, under this process, the organization initiates the process so
as to maintain competence and grow as well. The business aims to procure resources to develop
flavours for the lassi and introduce it to the public (Cui, and Wu 2017).
Position: This aspect covers the process of changing the context in which the product or service
is framed. This aspect analyses that where the business is going to target the offering. It analyse
the target customers to provide the innovative solution in the business environment. Lastly,
under this segment, the organization YOYO Drinks analyse the people whom they want to offer
the product in the business environment. Under this segment, the business needs to analyse that
whether they need to change the target segment or they should add more people in customer base
(Mazzola, Bruccoleri, and Perrone 2015).
Advice to YOYO Drinks
It is advised to the YOYO Drinks that they should make use incremental approach of innovation
in the external environment so as to maintain the competence of its products. The business does
not need to create new unique selling proposition in the environment but they want to maintain
the existing one, thus this type of business will help the organization to maintain the level of
competence and increase it as well.
NPD Process and Innovation Funnel
New product development refers to the process of bringing a new product in the external market.
The main aspect of NPD is product design coupled with various other considerations as well.
The NPD process can be used by the organization in following ways:
 NDP: the management need to define a clear goal
 Idea Generation: develop brainstorming ideas with the help of team and employees of
YOYO Drinks.

Innovation and Commercialization 7
 Screening: collect the relevant brainstorming ideas
 Concept Testing: create a detailed process of the introducing flavour in lassi
 Business Analysis: evaluating costing of new product and analyse if they meet
company’s objective
 Product Development: development of the product
 Market Testing: use of marketing to check the demand of product in the environment
 Commercialization: introducing the flavoured lassi to the target customers in the
environment
Innovation funnel is a process that creates a constant stream of ideas that can be screened by the
management to check its viability. According to this process, the management of YOYO drinks
should perform meetings will the employees to find innovative ideas for the growth objective of
the business. Further, after selecting one specific objective, the management should then
implement an innovative action plan in the external environment (Holler, et. al., 2017).
Frugal Innovation
It refers to the process of eliminating the complexity along with cost of goods and its production
in the business environment. This process eliminates the non-essential features to increase the
durability of a project in a diverse environment. Reliance Jio’s Jio phone is one such example of
this innovation. The organization can use this process by supplying products at low cost in a
pack of two under which one would be flavoured while other would be plain lassi product
(Knorringa, et. al., 2016).
Recommendation
Lastly, it is recommended to the organization that they innovate the product by changing its
packaging and making the product online. In this way, the company would be able to attract
more customer range in a better way.

Innovation and Commercialization 8
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