Innovation & Commercialization: Strategies for Mr. Green Juice

This report provides a comprehensive analysis of innovation and commercialization, focusing on the importance of organizational vision, leadership, culture, and teamwork in shaping innovative ideas. It explores different sources of innovation and how organizations can foster an environment conducive to it. The report also examines the 4Ps of innovation and the innovation funnel, using the case study of Mr. Green’s healthy drinks to illustrate these concepts. Furthermore, it evaluates the role of frugal innovation and builds an innovation business case for Mr. Green’s organization, including funding strategies and effectiveness measurement techniques. Finally, it evaluates tools for developing, retaining, and protecting knowledge and intellectual property within the wider business environment. Desklib provides access to this and other solved assignments for students.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................2
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................3
M1 analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation........................................................................................4
LO2..................................................................................................................................................6
P3 explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................8
M2 analyse and apply the innovation funnel in organisational context of Mr Green’s healthy
drinks...........................................................................................................................................9
M3 evaluate the role of frugal innovation in organisational context of Mr Green’s healthy
drinks.........................................................................................................................................10
LO3................................................................................................................................................11
P5 Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation......................................11
P6 Build an innovation business case for an organisation, including ways to access funding
[M4]...........................................................................................................................................11
M4 Measure its overall effectiveness using appropriate techniques available to test, iterate and
improve......................................................................................................................................13
LO4................................................................................................................................................14

P7 Evaluate the different tools that Mr Green can use to develop, retain and protect knowledge
and intellectual property............................................................................................................14
M5 Evidence-based evaluation of these different tools in the context of the wider business
environment...............................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

LIST OF TABLES
Table 1: Seven sources of innovation..............................................................................................4
Table 2: Four Ps of innovation........................................................................................................6

LIST OF FIGURES
Figure 1: Innovation and invention..................................................................................................2
Figure 2: Seven sources of innovation.............................................................................................5
Figure 3: 4Ps of innovation..............................................................................................................6
Figure 4: Frugal innovation for sustainable development...............................................................8

Introduction
Innovation and commercialisation is the concept which is adopted by the organization who wants
to change the little bit of think in their existing product without moving towards any new product
and then commercialise the product in the market with proper marketing plan. The report will
cover the case study of Mr Green owner of the Healthy Juice who launched Milkshake in the UK
market at high rate but due to competition their sales get reduced. This problem can be resolved
with the help of the innovation idea which will be discussed in this report. This report will cover
the importance of innovation funnel and role frugal innovation in this organization and how they
can use these processes to bring the innovation in their drinks. This report will also create the
business case for the organization which helps them to conduct their plan in the market. Some of
the protective rights will also be discussed through which Mr Green can protect its innovation.
1

LO1
P1 Explain innovation and determine its importance to organisations in comparison with
invention
Innovation and invention are the two terms through which any organization or their owners plan
to bring any new product or services or some improvisation in their existing product. Owner of
Healthy Juice (Mr. Daniel Green) started Healthy Juice organization in which he launched one
drink which is a healthy milkshake but now he not getting huge profit so wants to bring some
improvisation in the drink but without changing the juice concept. This will show that the idea of
Mr. Daniel Green is related to the innovation not invention (Drucker, 2014).
Comparison between invention and innovation
The major difference between invention and innovation is that, invention is the introducing any
new process or creation of new product in the market for the very first time. But innovation is to
make some improvisation and changes in the existing product to bring some improvement. For
example: When Mr. Daniel Green create the Healthy Milkshake in the UK market for the first
time then it is invention but now he wants to bring some changes in their existing juice without
moving towards any other product them it is called innovation (West and Bogers, 2014).
Importance of innovation as compare to invention
Innovation concept is adopted by the owner so that they can reduce the cost of launching any
new product which saves their operational and other cost. On the other side, if they take
invention concept then this will require high investment because for this they require new chief
or new employees who make the new drink. This will show that considering the innovation
concept is effective as they can make changes in their existing product without changing their
whole business setup.
Figure 1: Innovation and invention
(Source: KS Yong, 2012)
2

P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Importance of organizational vision to shape the innovation and commercialisation
To bring the innovation in the Juice and to commercialise the Juice in the UK market, it is
important to have the clear and sorted vision of the Healthy Juice organization and its owner Mr.
Daniel Green. Clear vision help the owner and team members to make the effective strategies
against the short or long term innovation goal (Kesting et al, 2015).
Importance of leadership to shape the innovation and commercialisation
Leadership in innovation is the technique or philosophy which combines the various styles of
leadership so that leader can influence the employees for producing the innovative Juice and then
commercialise the product in the market with attractive marketing strategy.
Importance of organizational culture to shape the innovation and commercialisation
Motivation between the employees of Healthy Juice organization is important through which
individual allocate their efforts to implement the ideas of innovation. This is also concluded that
organizational culture motivates the new innovation and improvement in their Juice together and
prevents the losses which they are bearing in the UK market (Autio et al, 2014).
Importance of teamwork to shape the innovation and commercialisation
Teamwork is not only important to complete the innovation project but it also requires cover all
the essential steps of innovation strategy. Success of the innovation project depends upon the
working style of the team members and their understanding with each other. Working in one
team will help to share the ideas and suggestions which will complete the innovation and its
commercialisation in effective way.
3

M1 analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation
Table 1: Seven sources of innovation
Sources of innovation Detailed description
The Unexpected Identifying the market so that manager can look up to the
opportunity is the most important. It is all about particular type of
the product in the greater or lesser demand than the anticipated.
The effective way can exploit the unexpected success in business.
The Incongruity This is all about discrepancy among what is or what should be.
This source is the key for developing the wider success of the
business but with the effective trick. The best place to look for the
incongruity is the customers (Seven sources of innovation, 2018).
Process Need The process source include to identifying the process of the
organization required for this innovation which will be come from
the existing skills and capabilities.
Change in market structure Every time the structure of the market changes due to which
internal structure of the organization will also change. To get the
success in the market it is important to identify the market changes
and according to this make the changes in their own regulations
and policies.
Demographics This will depend upon the income level of customers, population,
age range and human education. With this they can conduct their
STP (segmentation, targeting and positioning) objectives.
Change in meaning, perception and
mood
With the changes in the customers taste and preferences it is
important to bring innovative products like flavoured Juices or
natural product Juices in the market (Drucker, 2014).
New Knowledge This source includes the use of technology to bring innovation and
promotion of the product in the market.
4

Seven sources help to foster and develop environment of innovation
Healthy Juice organization can foster or develop their culture and environment of innovation by
using these seven sources of innovation which bring opportunity to them for establishing their
position in the market again (Amankwah-Amoah, 2016). These seven sources cover all the
essential requirements of the owner when they decide to improvise their existing Juice. They
need to conduct market research in which they need to identify the changes in the market
structure and customers taste. According to this they can decide the innovation plan and
implement that in their existing process.
Figure 2: Seven sources of innovation
(Source: Self created, 2018)
5

LO2
P3 explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
Table 2: Four Ps of innovation
Four Ps of innovation Brief description
Paradigm This will include how do members can frame what they want to
do. This will depend upon the level of imagination team members
have to bring the innovation.
Product This element helps to identify what they want to offer in the
market. This will help to decide the improvement required in the
existing Juice (Four Ps of innovation, 2018).
Process This element help to evaluate how they create plan to offer the
innovative product. Through this organization can identify the
effective process for brining the innovation plan.
Position This is the last step which helps to identify the target and the
market where they need to commercialise their new innovative
drink.
Figure 3: 4Ps of innovation
6

(Source: http://blog.dataorange.de, 2018)
Use of innovation funnel to shape and examine the idea of innovation
Innovation funnel is the process which brings the new idea in the life. In the new drink
development process the innovative funnel is the most common model which is used to evaluate
the concept and ideas of drink products. The key parts of innovation funnel are related to the
opportunity assessment, insights ideation, conceptualisation, benchmarking, on go process and
launch (Vanhaverbeke and Cloodt, 2014). With the help of innovation funnel process, the owner
of Healthy Juice can identify the market opportunity then they can create the idea for juice
innovation. Process and concept to set the benchmark in the market with the innovation funnel
can help them to launch their new drink or Juice in the market.
7