Icon College: Innovation and Commercialization Report - Business HND

This report delves into the concepts of innovation and commercialization, exploring their significance within organizations, particularly using the case study of Essence Drinks. It examines the differences between innovation and invention, highlighting the importance of competitive advantage, customer satisfaction, stakeholder involvement, and increased productivity. The report further investigates various sources of innovation and how organizations can foster an innovative environment. It analyzes the influence of organizational vision, leadership, culture, and teamwork in shaping innovation and commercialization. The 4 Ps of Innovation (Product, Process, Place, and Paradigm) are discussed, along with frugal innovation and the new product development process. The report also covers building an innovation case, accessing funds, and evaluating tools for knowledge and intellectual property protection within the Essence Drinks context. The report concludes by summarizing key findings and providing a comprehensive overview of the subject matter.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION................................................................................................................................3
Task 1....................................................................................................................................................3
P 1- Innovation and its importance in the organisations in comparison with invention..................3
M 1- Different sources of innovation and how an organisation can foster and develop an
environment and culture of innovation............................................................................................4
P 2- Importance of organisational vision, leadership, culture and teamwork in shaping innovation
and commercialization.....................................................................................................................5
Task 2....................................................................................................................................................6
P3: The 4 P's of Innovation as well use of Innovation procedure for examining and shaping the
innovative ideas of the employees of the Essence Drinks...............................................................6
P 4: Ways to Develop Frugal Innovation with suitable examples...................................................7
Task 3....................................................................................................................................................7
P5: Importance of Commercial funnel and Utilization of the New Product Development
procedure for the Commercialisation of Innovation........................................................................7
P6: Building an innovation case for The Essence Drinks including various ways of accessing
funds.................................................................................................................................................9
Task 4..................................................................................................................................................10
P7: Evaluating various tools that the Essence Drink uses to develop, protect and retain
knowledge as well as intellectual property with suitable examples..............................................10
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................13

INTRODUCTION
In this report we will learn about Innovation and Commercialization and how they these
elements are important in the business world. The procedure of converting an thought of creation
into a product or service that makes value for which customers can pay. A thoughts must be
applicable at an economic value and must full fill a particular demand or want. This report will help
us to understand that creation includes intentional application of visions, data and enterprise in
deriving various value from roots and includes all the procedures by which fresh thoughts are
created and reborn as useful goods and services.
This report will also determine Commercialization or Invention procedure and strategy helps
an organisation to introduce a new product or service in the market. The procedure of Development
is divided into stages, from the first presentation of the product in the market. The organisation that
is considered as provided in the case study includes the Essence Drinks.
TASK 1
P 1- Innovation and its importance in the organisations in comparison with invention
Innovation is that procedure which is brought in the organisations for their further
development in market. This procedure make them have some competitive advantage among their
competitors which also help the company to increase their market share. Innovation includes using
creative mind to make things better and attract more and more customers towards the organisations
(Kolychev and Prokhorov, 2015). Innovation enhances the quality of products and services which
are provided by Essence Drinks. On the other hand invention is making new product and services
and launching them in the market.
Importance of innovation in an organisation.
 Competitive advantage- Innovation made in the organisation help them to gain competitive
advantages among their competitors. Innovation in the Essence Drinks will help them to
increase their market share. Having some competitive advantages is necessary to grow in the
market. Innovation makes quality changes in the products which gains competitive
advantages. These advantages are important for the cited company to gain in the market. On
the other hand invention of new products take time to attract the customers and have some
stand in the market. They will take some time to make their place and then can give
competitive advantages to the company.
 Customer satisfaction- Innovation in the products and services will make the customers
satisfied. This will also attract new customers towards them. Making customer satisfied is
the most important part for company because it increases their revenue. This will help in
increasing their market share. Essence Drinks will be able to satisfy all of their customers by

following the procedure of innovation (Mahr, Lievens and Blazevic, 2014). Innovation
brings that changes in the products and services that are desired by their customers. On the
other hand invention brings new products. It is not necessary that customers will like the
new product. It can take time for customers to understand the quality of the product.
 Involvement of stakeholders- Innovation procedure to be followed in the organisation will
involve their stakeholders in the business operations. Involving stakeholders is necessary to
effectively and efficiently implement the innovation in the products and services of the
company. Stakeholders are the person who are directly or indirectly related with the
workings of company. Involving stakeholders will make Essence Drinks understand their
perceptions about the innovation. This will also help the company by gaining some creative
suggestions from the stakeholders for innovation. Invention can bring resistance from the
stakeholders because they can feel insecure by the invention. Invention can bring positive
change as well as negative change in the current situations of the company.
 Increasing productivity- Productivity of the company can be increased by the procedure of
innovation. Innovation brings the suitable changes in the business operation which increases
productivity of organisation (Hallstedt, Thompson and Lindahl, 2013). Productivity of
Essence Drinks can be increased by using innovative technologies in their working style.
Productivity enhancement will also increase the profits of the company. On the other hand
invention takes time to be implemented and this is not sure that it will increase the
productivity of the company.
This states that there is the difference between innovation and invention. Innovation is
procedure of making creative changes in the existing products or business operations of company.
On the other hand invention is the procedure of making whole new products and services in the
market. Innovation involves less amount of risk in its implementation while invention involves high
level of risks. Procedure of innovation gives quick results but invention take time to give results to
the company.
M 1- Different sources of innovation and how an organisation can foster and develop an
environment and culture of innovation.
There are many sources by which innovation can be implemented in the company.
 New technologies- New technologies which comes in the market can be used Essence
Drinks to make innovation in the company.
 Preferences of customers- preferences of customers changes with time. This crates the
need for organisation to bring innovation. Essence Drinks should understand the needs of
customer to implement innovation in their business.
 New competitions- This brings the extreme need to bring innovation in business operations

of the company. Innovation in Essence Drinks can gain some competitive advantages for
them.
Essence Drinks can forward and create an environment and culture of revolution by using
various methods. The cited company can new and innovative technologies in their operational
management. They can do research to understand the needs of their customers by which they can
bring innovation in their products in accordance with the customers (Wellner, 2015). Bringing
innovation will enhance the quality and positivity in the business environment of the company.
There are many competitors for Essence Drinks because of which they need to make some
innovation in their product or in their working styles.
P 2- Importance of organisational vision, leadership, culture and teamwork in shaping innovation
and commercialization.
Organisational imagination, position, society and cooperation have their own importance in
shaping innovation and commercialization in the company.
 Organisational vision- Vision of the organisation sets the direction in which the company
have to work (Raasch and Von Hippel, 2013). So by having the innovative vision shape
further innovation and commercialisation in the organisation. Essence Drinks have vision
make some innovative changes in their product and increase their sales.
 Leadership- Leaders are the person who can lead the employees at the time of innovation in
the company. Their leadership ship skills helps them to manage the whole procedure of
innovation.
 Culture- Culture is the special knowledge or procedure which is followed by all the
members. Good culture maintained in the company will give better innovation. Essence
Drinks should maintain professional culture to effectively implement the innovation in their
workings. For example culture directs the organisation to focus on results and innovation is
generated by this.
 Teamwork- It is very important for the better procedure innovation. Company should take
help of skilled employees who can efficiently work in the teams at the time of innovation in
the business.
Working together with all these points will shape the innovation and commercialization of
Essence Drinks. These will make the innovation procedure easier. Organisational vision will give
direction to work, leadership will lead and manage the innovation procedure efficiently, better
culture will make safe environment for implementation of innovation and teamwork will effectively
achieve the reason for innovation (Kolychev and Prokhorov, 2015). These all will efficiently shape
innovation and commercialization. Essence Drinks wants to innovate their existing products to
increase their sales and profitability which can be achieved through the organisational vision,

leadership, culture and teamwork.
TASK 2
P3: The 4 P's of Innovation as well use of Innovation process for examining and shaping the
innovative ideas of the employees of the Essence Drinks
In the Essence drinks the process of innovation is the most important element which help the
company to increase their business in the market place. The 4 P's in the Innovation process
stimulates the organisational processs and functionality which helps the business to introduce fresh
and specific process in the whole process of administration. By relaying with the people within as
well the external organisation The Essence Drinks can attract the customers and it helps the
company to know the preference of the customers (Yin,Shi and Yan,2014). Innovation management
is multi-disciplinary process which helps to cover all the areas of the organisational operations. In
organisation like the Essence Drinks the 4 P's of Innovation have an important impact. The 4 P's
considers Product, process, place and inflection. The Essence Drinks is taking consideration of the
service rating so that customers gets attracted and helps in making the customer relations stronger
which leads to financial growth of the company. (Kaur, Sharma and Sharma2014). Furthermore,
The Essence Drinks is going progressive to shuffle the products more advanced with the pricing
strategies effectively.
 Product – Every organisation wants to modify in a specific and advanced mode. The
organisation needs to make goods and services in an innovative and unique way so that they
can compete with the brans in the market. Innovation leads to uniqueness which helps in
attracting customer and driving attention in the market. The Product of the Essence Drinks
are Mango lassi, Energy drinks etc. and this company is incorporating real creation to make
the products best among the rivals in the market.
 process innovation – The process innovation is a key to attain the product innovation. If the
process of producing a product is innovative or unique than as a result the output or the
produced product will be obviously unique and innovative. The organisation should change
their production process in innovative way with a period. The second element is process
and the context of Essence drinks, the company is fetching up the advanced statement for
selling of the products, The process element is very much crucial as it is instantly connected
with the functional plans and strategies of an organisation. Considering the operational
structure of the Essence Drinks, it can be clearly determined that there process is entirely in
their favour.
 Position Innovation – The organisations can launch new products in innovative way to gain

a position in the market. If the organisation holds good position in the market, It can also
sell the existing products of the firm. This can be done with re-launching the products, re-
packaging etc. The use of position should be innovative to achieve customer attention. The
Essence Drinks has developed a good position in the UK market and in order maintain that
market place the company needs to plan new and innovative strategies.
 Paradigm Innovation – This innovation refers to the changing the thinking or perceptions
of the people both internal and external of the organisation. This element important for the
organisation to build a healthy relationship or bond with people inside the organisation as
well as outside the organisation. The last P of Creation is Inflection and it is very much
unique in the creation concept, The drastic change within the Essence drinks need to be
considered for getting more customer attention and the expansion of the range of products
that can help the company to maintain a good position in the market
P 4: Ways to Develop Frugal Innovation with suitable examples.
Frugal innovation is the process of reducing the cost and increasing productivity of the
company. Innovation in an organisation appear under status of resource scarcity where the common
answer are hold too expensive or out of stock, The Essence Drinks is pursuing the frugal innovation
area. In this condition the employees and the organisation use such methods which help to
understand various contents and problems faced by the organisation and this kind of creation can be
defined as frugal innovation for the organisations. The main objective of frugal innovation is to
achieve the goals and objectives of an organisation effectively and efficiently (Hora and Dutta,
2013). The Essence Drinks plans and operates their business functions considering the frugal
innovation procedure. The Essence Drinks focuses on the products and services with effective
pricing and promotions so that the customers gets attracted towards the organisation and leads to
profit maximisation and brand build up in the market. The Essence Drinks adopt the frugal
innovation to meet the organisational changes and the competition in the global market and develop
a good position with a great market share. In simple words frugal innovation can be explained as the
procedure of cut down the complexity and value of the products and its production. This states the
removal of the non-essential features from a durable product.
The Essence Drinks keeps on introducing innovative and new products in the market to
maintain their position and give a good competition to the other similar brands in the UK market.
The launching of products like the Chicken soup or Mango Lassi in the UK market help the
company to increase customer attention and also a major growth in the market share. Therefore, The
Frugal Innovation practices can help an organisation to maintain and develop a good position in a
market.

TASK 3
P5: Importance of Commercial funnel and Utilization of the New Product Development procedure
for the Commercialisation of Innovation
The main objective of the procedure of New Product Developing project is to take ideas from
the concept content through converging to any particular product which is capable to meet market
demands and wants in both economical and manufacturing forms. The whole procedure of
development within the Essence Drinks begins with a broad concept considering the input and
gradually selecting the best among many development projects, which can be practices and pushed
towards rapid introduction and completion. The innovation funnel of the Essence Drinks provides a
graphic make up for the advanced and unique ideas about showing and creating various unique and
secondary choices and plans of improvement and also mixing the subject of content and ideas into
bearing idea(Libaers,2014) The various varieties of services and products with different procedure
ideas and thoughts are expected to enter into the funnel shape for a relentless enquiry but only a
definite part of it becomes a portion of the full strategy in the project of development for the
Essence Drinks. The first objective of innovation funnel used by the Essence Drinks lies in
expanding the mouth of cone so that the organisation can improve its basic knowledge and
experience thereby increasing the availability new products and innovative ideas of procedurees.
The second one includes tapering of the cone neck so that the thoughts created must be centred on
the resources and screened on most of the fetching possibilities. The third objective of the creation
cone refers to ensure the transportation of the project over the objectives which are determined
when the development project has been authorized. For an organisation such as Essence Drinks
establishment of commercial funnel is required to improve the marketing and sales of products in
the market.
The New product development is the procedure which is often regarded as the phase level
creation procedure which has been improved by Dr. Robert Cooper, due to a conclusive enquiry and
research on the reason how a product receives success or failure. When two or more reams
cooperate for improving the innovation, they need to apply the eight distinct states for obtaining
their objectives which is practised by the Essence Drinks in sustainable innovation, ideas and
experiences. The steps that are important to be followed by the Essence Drinks are Creation,
Demonstration of ideas, research thoughts, business calculus, Beta tests or marketability,
technicalities, product making procedure, commercialisation and post launching review with the
complete valuation. Making state should consider internal as well external SWOT studies along
with the present marketing tendencies and preferences through which anyone could spacing them
own from market contest and generate thoughts that take capability, far-flung distribution value and
into appreciable accounts. Significance of thoughts would ask some particular area to be determined

for each of the ideas that has been generated and should be either continued or dropped (Ashcraft
and Cohoon, 2017). The Testing concepts needs proper, investigation and plan due
conscientiousness along with any other issues which include in the fresh product improvement
program intentional about the running marketing results which is frequently reasoned to be one of
the largest factor in examine various thoughts. These types of business rankings consider building
up of a measure scheme for measuring progress where the matrix would be the common time set in
every level and metric outputs would be capable of measuring the cost of the launched products
percentages of fresh products as well as other figures which should supply precious responses and
response. Marketability or Important test reach private testing groups by launching the important
variant and forming test sheet after have been laxly proven which supplies with important content
that accepts last minutes improvements and tweaks. Work improvement and technicalities should
consider condition of technical feature which are complete without any modification or changes to
the post important products and easily head towards the following measure which is imminent.
Commercialisation should include new product development that can attract customers to buy the
services and products from the company. The last element is the cost launcher review or the clear
valuation with the betterment which aspect for the continuity of the development and introduction
of new and innovative products with continuous improvement (Westland, 2016).
The company can use many methods which will reduce their cost.
 New technologies- New technologies used by the company will increase their productivity.
This will eventually reduce their cost.
 Proper strategies- New startegies can be made which will only focus on hoe to decrease the
cost.
 Training- Efficient training can be provided to employees which will make them give better
performance.
P6: Building an innovation case for The Essence Drinks including various ways of accessing funds
The business case for the Essence Drinks is described below -
When the case of bringing innovation arises in the company it is known as business case.
The Essence Drinks went through decrease in their sales. It can be effectively solved by bringing
innovation which will needs efficient finanacial condition of the company. It has and especial
composition and characteristics that could full fill the demands and wants of the customers in every
possibilities. A proper extended marketing mix of 7 P's is to be followed up by the Essence Drinks
for gathering their objectives and targets. The potential customers are mainly the people who
consumes the ready made drinks and products. Technology and production procedure within the
organisation is much progressed and independent in conditions of modern-day that may help the

company to achieve a global recognition (Liu, 2016). By understanding the customers range will the
help the company to increase their sales.
In order to bring innovation on the organisation, they need to have efficient funds so that they
can implement innovative techniques. There are various ways by which an organisation can
generate or raise funds. For example – Bank loans, personal saving, sharing capital etc. If a
company do not have efficient funds in their hand, they cannot access to innovation procedure.
Thus, the company focuses on different sources of funds from which they can raise or generate
funds and can practice innovation and commercialisation. At times when the firm require a huge
amount of capital or investment in the innovation procedure, they generate the fund from bank as
loans. The higher management like CEO of the company needs to decide the best source of funds
by analysing and comparing the source providing the best interest rate (Sotarauta and
Mustikkamäki,2015).
TASK 4
P7: Evaluating various tools that the Essence Drink uses to develop, protect and retain knowledge
as well as intellectual property with suitable examples
There are many tools which the cited company can use for developing, protecting and
retaining their knowledge. Intellectual property rights also helps them in this process.
 Trade mark- It is the sign or design which makes the product different from others. It will
help the company to makes their customers understand about their product in the market.
 Copyright- It is the right which gives the company to protect their exclusive collection of
product which only they make. It is for the limited time.
 Trade secrets- The cited organisation can use process of maintaining trade secrets. This will
effectively protect and retain their important knowledge and informations.
 Trade dress- This is the method which makes the products different from its outer looking. It
makes product differ from other by the outer appearance.
 Patents – It refers to the rights provided to the person for his invention and it is given for a
specific period. In this case where The Essence Drink is an innovative organisation need to
take patent for their products so that their innovation cannot be copied by any other
company or rivals in the market.
 Property rights – It is the authority or right given to a person or individual for the purpose
of securing their property cannot be stolen by any other individual or organisational body.
This right has been provided by the government to the organisation in order to protect the
resources and assets owned by them. It is viewed as the attribute of an economic good or

security.
 Branding – The Branding procedure of various products is highly required by the
companies as in the Essence Drinks for the smooth execution of their business operations or
functions in each and every aspects. These operations or functions might include protecting
the copyrights and patents along with the development and protection of knowledge about
innovation. As per the knowledge of Samson and Gloet (2014), the branding of the
Innovative content should help the company to gain specific confidence in launching up new
products or services. It also helps in estimating its revenues and sales. Branding of products
would eventually require investments which could be refunded through extreme sales
revenues and profits. Branding helps to create an authorised product or service which make
them feasible, reliable and valid in the eyes of customers as they get an impression for
brands at the time of purchasing products and items.
 CSR Guidelines - The following up of the CSR guidelines is predominant for the Essence
Drinks. By developing and maintaining discipline within the organisation through
incorporation of CSR rules and guidelines, The Essence Drinks maintains and regulates the
work culture in the organisation. Maintenance of CSR rules and policies would strictly
instructor guide the organisation the different ways of retaining knowledge. For example
companies like Apple or British airways are often observed to follow the CSR rules and
policies in maintaining a proper and effecting work environment. It encourages the shaping
and framing of the business transactions by following the CSR guidelines and policies.
 Corporate Image – Developing and maintaining the corporate image is quite necessary for
every organisation. The building up of the corporate image is highly acknowledgeable in
order to retain and secure the intellectual properties such as Patents and trademarks. With a
corporate image the organisation would gain power and strength to take the best and
sustainable actions for developing, securing and retaining the knowledge and intellectual
properties. The development of corporate image sets up a trend for the business firms and
the stakeholders or shareholders gets far more dependable on the manufacturing and
execution of the innovative products and services. Therefore, The Corporate image or
reputation is very important and effective for any organisation or company to achieve
success in the market(Datta,Mukherjee and Jessup,2015)
The cited company uses tool of maintaining trade secrets to develop, potect and retain their
knowledge.
CONCLUSION
From the above report we learn that the Innovation and Commercialisation are two of the most

important elements in every business organisation. The study includes the involvement of the two
procedurees, Innovation and Commercialisation in the Essence Drinks Company. It explains the
importance and benefits of Innovation practices to the Employees and also concluded that to shape
up the commercialisation to organisational leadership, Vision teamwork and culture Innovation may
be useful. Various types of innovation of the Essence Drinks are being analysed in the above report.
Various types or forms of Innovation along with the broad concept of the 4 P'S concerning
Innovation as well as the use of innovation funnel for shaping up and Examining innovative ideas
has been briefly discussed. Various procedurees of Commercialisation and Innovation in the
Essence Drinks Company have been discussed with suitable examples. The value of Commercial
funnel as well as the importance of new product development procedure needed for development is
eventually required. A case of an innovative organisation has been also built in the above report in
respect to the selected organisation which includes different and effective ways of accessing the
funding for the Essence Drinks Company.

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