Analyzing Innovation and Commercialization in Organizations

This report delves into the critical aspects of innovation and commercialization within organizations, using the Essence drink group as a case study. It compares innovation with invention, highlighting innovation's role in adding value to products and driving revenue. The report examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. It also analyzes the 4Ps of innovation, the innovation funnel, and frugal innovation, emphasizing their uses in organizational contexts. Furthermore, it explores the importance of the commercial funnel and new product development for successful commercialization. The report discusses creating an innovation business case and employing various tools to develop and protect knowledge and intellectual property, providing a comprehensive overview of how organizations can foster innovation for sustained growth and competitive advantage.

Innovation and
commercialisation

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation and determine its importance to organizations in comparison with invention..........3
Organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation........................................................................................................................5
4p's of innovation supports capability and management of innovation.......................................6
Uses of the innovation funnel to examine and shape innovative ideas........................................7
Developments in frugal innovation and its uses in organizational context.................................9
Importance of commercial funnel and new product for commercialization of innovation.......10
Innovation business case for the organization...........................................................................11
Different tools organization used to develop and to protect knowledge and intellectual
property .....................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is the execution of the ideas which can be used for adding additional values in
product it plays an important role for giving extra detail to the product. Innovation in the
organization adds additional quality and values in their product. Innovation includes practical
approach of the ideas in implementation of the product to earn the revenues for the organization.
Innovation is used for the purpose of enhancing values and details in existing product of the
organization (Lai, 2018). Commercialization is the process of promoting items for the
organization. It includes channels and medium through organization can promote their product in
the market. Commercialization gives wider options of the product to the customers it also allows
organizations to achieve their goals of success. Essence drink group UK based drink organization
started selling their product mango lassi, this product gains more success for the organization
company earned more revenues in their first two year but after completing successful two year
company started losing their revenues in their third year of marketing.
Report address the innovation and invention of new product for commercialization, also
include how organizational vision, leadership can shape innovation, 4Ps of innovation and funnel
and frugal innovation, report further describe about the commercial funnel and importance of
new product development innovation business case and different tools to protect intellectual
property.
MAIN BODY
Innovation and determine its importance to organizations in comparison with invention
Innovation is idea, creation, implementation, methods of new product development and it
is the major essential thing which require for the long term business growth and it useful for
improve company services in the competitive market (Cui, Dai and Zhang, 2021). Invention is
tool which gives or generate new idea and innovation is the solution of problem decision-making
so it's beneficial for problem solving. Development of technology advance improves the quality
of company performance. It is useful for the evaluation of new resources and gives knowledge
about customer requirement. Essence drink company wants to increase their business
performance, because they face multiple challenges when they not use new technology
advancement for customer preference. The major issue of this company is that they not focus on
new product development as well.

Essence drink company analyse their sales is decreases in third year, they analyse and
research about problem and after completion of research it's clear that they only sell single
product, so people getting bored from it. Then they decide that organization has to focuses on the
customer preference and implement some new technology advance in the marketing process.
And they apply invention and innovation for business are as follows,
Innovation:
Innovation is the process of making diversification in existing product. Application of
innovative tools and techniques increase the quality of business goods and services. It establishes
new opportunities and mainly beneficial for analysis of customer choice and preference. On the
basis of research business easily develop and implementation of new things for profit generate.
New opportunities beneficial for overall business growth and survives in the large market.
According to recent market trend people more connects with the different and unique goods and
services, and now so many individual focuses on healthy and organic product, on the basis of this
trend Essence drinks industry mainly consider and apply innovation like they produce organic
healthy mix fruit drinks product which provides benefits for long term business expansion.
Invention:
Invention is formation of new product development and company completely focuses on
the improving the quality of product with new idea (Smirnov and Willoughby, 2021). Essence
drinks organization sell healthy mango lassi, they not consider new juice, shakes invention that's
the reason this industry faces lots of issues. Its essential aspect that company consider and
develop invention in their activity. Because it improves and increase the organization
performance and expand new opportunities. Essence drink company focuses on the organic and
healthy drink so their owner and manager decides that they produce and launch organic mix fruit
juice with low sugar, so many people and children attracts with this concept. The company
develop services online as well.
On the basis of recent trend almost every individual uses multiple application in their
technology tools. Essence drink company prepares website and social media plate from, so they
supply new products on the website, and they provide online services to their customer. And they
expand their business plan with the utilization of innovation. This concept is beneficial for long
term and for increase profit as well. Essence drink company owner properly satisfy with the
application of innovation in their business activities.

Organizational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Business plan prepares by the combination of multiple things which gives more
effectiveness in organization process. Essence drinks company manager, owner decide plan for
new thing development, they firstly decide that according to recent market trend which thing is
beneficial for business expansion. On the basis of the research they develop their strategy plan,
set vision, which leadership require for effective product production process and how leader
manage team work for work culture management with utilization of innovation. Its clear that
Essence drinks company prepares strategy for their new product development and expansion of
new technology dance for multiple activity improvement.
Vision:
Organisation firstly decide vision is to produce new product for survives in competitive
market in long time. Thus, they set future plan that this product will defiantly improve the profit.
Essence drink company owner prepares vision like they only provide healthy mix fruit services
to the audience and set goals for long term growth.
Leadership:
Completion of vision manager set leadership development, almost every business has
develops multiple leadership quality in their individual. Leadership is beneficial for improvement
of individual work behaviour and it improves the quality of performance. Essence drink industry
develop plan for effectiveness development in their works, they prepare strategies like they
provide training for the application of new technology advancement, company leader also
focuses on the motivation for employee because it directly increases the overall business
performance (Sonmez Cakir, Adiguzel, 2020, Analysis of Leader Effectiveness in Organization
and Knowledge Sharing Behaviour on Employees and Organizations).
Work culture:
Work culture depends on the individual performance and their behaviour, and every
company considers the product production continue with proper manner, which means its
essential that business focuses on the individual motivation for effective work behaviour because
its beneficial for improvement in business productivity (Daneshjoovash, Jafari and Khamseh,
2021).. According to culture behaviour company manager decide that they focus on their health

that's the reason they create organic fruit juice with low sugar and reasonable price. Development
of multiple aspect increase the people job culture. And rewards, gifts, price is the best technique
to improves the individual work behaviour. Essence drinks company owner has to focuses on
this task for impressive productivity.
Teamwork:
Its beneficial for increasing organization productivity and maintain regularity in business
productivity. The company develop and implement team work for their long term growth and
effective work, so its essential aspect that their leader and manager consider and maintain team
work. They try to develop training and motivation about this work. It will directly fruitful for
future as well. All the aspects or factors Improve the quality of business and it will defiantly
beneficial for increasing sales (Schmitt, 2021). Bad team work directly reduces the overall
business performance.
4p's of innovation supports capability and management of innovation
As a business leader and owner takes a decision for innovation implementation, its
difficult task so that's the reason organization owner applies 4p's methods for effective expansion
of innovation in their business plan. It increases the organization performance with effective
manner and uses of proper strategy. Essence drink implement the innovation in organization with
utilization of innovation 4P's are as follows,
Product
Management of effective organization in the large market wants some innovative
product. So the essence drinks company decide that on the basis of research that mostly
individual focuses on the healthy and organic product (Ayiku and Grant, 2021). Analysis of this
factor business owner decide that the organic mix fruit juice product is beneficial for Essene
drinks business expansion of new opportunities. Decision of product is major factor for the
company.
Process
The company use process like they provide services via online, and implement
technology advancement in their activities. They develop machines in their production process
for making mix fruit organic juice. Development of new technology their business performance

and productivity is directly increases. So its essential aspect when any industry expands their and
launch new product in market they have to focuses on their process planning.
Position
Business wants innovation in their long term growth and expansion. Position is set of
specification about that which individual product like the most and how to develop the product
advertising according to age distribution (Sen, Y., 2021). Goods and services is totally depends
on the basis of age because children wants some cartoon design packaging because they connect
more with this product packet. So basically this thing will beneficial for marketing as well.
Paradigm
Set the design of product quantity, packaging, model and many more which require for
product attractiveness and selling improvement. Basically Essence drinks company use organic
drink, so they also use organic, and they recycle waste material for product packaging. This
strategy directly increases the sales because now people want that company prepares product
with eco-friendly environment.
Uses of the innovation funnel to examine and shape innovative ideas
Innovation funnel term is a set of continuous process which means business owner,
manager prepares plan is fruitful and realistic or not. Its very popular and innovative approach, it

provides right direction and right movement toward the new development plan (Susanti, Pradana
and Suprihatin, 2021). Essence drink company applies this method for the knowledge of realistic
things which means they want to know about realistic term that this product is suitable or not.
Essence drinks company develop innovation for new product expansion, application of new
techniques goods and services distribution, application of technology advancement in product
production, sales, marketing programmes. Its important aspect that company consider the
innovative changes because this is the only way of improvement in business performance for
long term. The major aspect of this industry because they face multiple task in their business
regulation. Innovation funnel develop proper process for effective product development in
market are as follows,
Opportunity assessment:
Analysis and knowledge of customer requirement is major aspect of any business new
product expansion, because it gives clarity about which product implementation is essential for
business growth. Thus, research of fruits which people like the most its also essential assessment
for new product innovation.
Insights-based ideation:
This step is based on that which opportunities beneficial for business strategy. Essential
aspect that company analyse that market demand which improves and develop new opportunities
for business expansion, also which the help of this step company analyse about more product
which offers the new achievement.
Conceptualization:
Completion of innovation product idea organization owner and team member finalize the
product packaging, develop new features, shape, size for product which makes the product
design more attractive and develop effective approach in market.
Evaluation and benchmarking:
Evaluation of product is essential for impressive product innovation development for
long term in market. This stage is basically provides clear idea that people like new product or
not with the help of feedback form, likes, comments on social media plate from and many more
(McGahan and et.al., 2021). So its beneficial for knowledge of product quality and develop
benchmarking of new launch product. Essence drink company provides samples for product
evaluation for the knowledge of people like or dislike the product.

GO/NO GO:
After completion of testing company decide that this innovation is fruitful or not. Thus,
innovation funnel process gives clarity about that more product manufacturing resuires and
which more thing add on the effective product launch.
Launch:
The company launch new product with the help of funnel innovation process. Completion
of research and with the help of innovation funnel they decide that organic healthy fruit drink is
the best option for the new opportunity. So overall activities of this funnel is very important
aspect for increase the sales and generate revenue with effective manner.
Developments in frugal innovation and its uses in organizational context
Frugal innovation is process for product cost decision, reducing complexity and removing
unnecessary things in product development. Usually this application applies for the overall new
product production cost decreasing. Development of this innovation increase the productivity
and develop new market and beneficial thing expansion (Wang and et.al., 2021). Essence drink
company develop this method for the effective cost implement. Set of product cost is major
essential aspect because when the price is low it affects the overall organization productivity and
profit improvement, and when the product prices is higher it will also affect the product sales.
The measurement of multiple things its essential that company should consider this aspect for
new product development. Almost every individual knows that organic fruit expansion is costly,
Sustainability in business performance requires the proper guidance, so the frugal
innovation important term for maintaining the multiple task for long term in organization. Its
essential that business strategy plan is develop for the long term with the help of this tool.
Essence drink company has to focuses on the development of sustainability in their goods and
services. On the basis on knowledge of social media tools its easier to expand product pricing.
Consideration and application of price fixing process will increase the overall business
productivity. Essence drink has to develop this concept for long term growth and their expansion
in global market level. The major sustainable components which requires of long term business
plan is that technology advancement, knowledge of customer choice preference, selection of
intelligent and expert human resources, maintain leadership skills and develop training programs
for effective learning, collaboration of multiple things which requires for product expansion.
They are essentials for the long term industry plan within great and effective manner.

Frugal innovation develop proper structure with the help of different aspect, its very
beneficial for essence drinks new product and innovation expansion (Yousaf and et.al., 2021).
The provides knowledge about step by step method and remove unnecessary things.
Importance of commercial funnel and new product for commercialization of innovation
Main purpose of the innovation is to add additional values and qualities in a product to
enhance the productivity of the company. Commercial funnel is an important marketing tools in
business to find and qualify their products to the consumers. It allows businesses to deliver their
product in the market to achieve their business goals. Main aim of commercial funnel is to give
more revenues to the organization by providing different marketing and sales activities.
Commercial funnel increases the success rate for the organization (Möller and Halinen, 2017).
Commercial funnel includes many phases so that company can utilize all its functions to increase
the productivity of their organization. To earn their previous position back essence group must
need to include commercial funnel in their new product development for their company's
productivity. For essence group as their existing product is mango lassi but it somehow losses its
popularity among the customers as there are a lot of drinks similar to this present in the market.
Therefore, essence group wants to innovate their product or develop a new product so that it can
grow their company's revenues. For essence group commercial funnel process is very important
as it is able to attract the customers towards their product. Company did a complete research on
the market so that it will help them to develop a product which satisfied customer's need and to
produce revenues for their organization (Audretsch and Link, 2018).
New product development process:
This process consists of different step through which product develop.
Idea generation: Idea generation is the process of generating worthy ideas for the organization.
It requires technical and logical skills to segregate all the factors which can be used to process
with idea generation. This process includes proper research on market and on customers. Essence
group decides to develop their new product which is different from their existing product they
decided to develop healthy drink which consists of organic mixed fruit flavour to attract the new
customers.
Idea screening: idea screening is the process in which useful information should be selected for
development process. It segregates the useful and better information from whole research report
done by organization. For their new product essence group researched their field of market, and

they segregate all the useful information for their new product development which is mixed fruit
drink.
Concept development and testing: this process enables organization to check all the values and
qualities in their information before implementing it, or to build a detailed and clear concept of
their information. To proceed with the new product development essence group needs to make
detailed and useful concept of their idea also test their ideas before proceeding with.
Market strategy: marketing strategy refers to the business plan to reach out the customers.
Marketing strategy for any organization plays an important role to connect customers with their
product. It includes factors and components which initiates marketing strategy. For essence
group their marketing strategy should be precise in product, process, position and promotion
process so that more customers attract towards their new mixed fruit product.
Product development: after screening all the ideas' product development process started with
product's prototype design as how it looks or agility of the product. For essence group product
prototype should be unique and different from their existing product so that it will appear as
different product to their potential customers.
Market testing: this process helps the organization to reduce all the uncertainties in their
product. It allows testing department of the essence group to check all the technical factors of the
product and if it does not pass their testing then other options need to be implemented.
Commercialization: commercialization is the process of bringing new product in the commerce
or market. It includes production, distribution, marketing, sales factor. Essence group need to
implement all the commercialization process for the selling of their new product.

Illustration 1: New product development
Source: Seven stages of product development, 2020
Innovation business case for the organization
Building an innovative business case consist of lots of techniques and critical analysis.
Business case helps to remove all the problems arriving in process of innovation. Business case
is the main part of the successful implementation of the product with higher level involvement.
STP approach is the familiar marketing approach which includes processes as segmentation,
targeting positioning.
Segmentation process: segmentation process is to identify the market segment. It includes
factors as behavioural, demographic, psycho graphic and geographical. For essence group to
launch their new product they need to decide first market segment so that they can sell their
product in their chosen market segment.
Targeting process: next target process describe how the chosen market segment can be useful
for the organization. Essence group choose demographic market segment which is big and large
for their product and it also offers better opportunity to expand their business in their targeted
market segment. This process allows organization to analyse which customer will buy their
product (Kusi-Sarpong, Gupta and Sarkis, 2019 ).

Positioning process: this is the last step of STP model through which organization set positions
of their product in the market to attract the number of customers towards their product in their
chosen market segment. Essence group needs to know why customer buy their product instead of
other company's product. For that they need to define unique positioning of their new product to
know how customer can see their brands and product in their chosen market segment.
Initial step: initial step is research and analysis which consists of all the information about
marketing and then second step is to make effective business case to develop the product.
Business case decides the investment and budget which is used for the product development
process. For an Essence drink organization their marketing department completes all the research
and implement with the report making about their new product process (Bril and et.al 2021).
Second step business case:Proper business case can help the organization in their funding
process also it helps to reduce the cost for the development project. Essence company is drink
based company of UK for developing an effective business case organization must need to
include pricing strategies, market analysis and consumer behavioural process to make innovation
in their product. This information can play an important role in innovation process of their
product so that company can earn more revenues. Effective business case allows the company to
reduce investment in their new product development process. Building an innovation business
can remove the uncertainties in the project. A better business case includes proper and clear
discussion about the project also includes useful information about the product. For that purpose
essence group needs to complete its market research so that they got to know about their
potential customers and their behaviour towards their product. This research can help them to
develop product which can definitely satisfied the needs of the customer in their product
(Schramm, 2017).
First step to be done by the essence drink organization is to design their product offering
by making innovation in their product. They need to make a product which can be affordable to
the customers which enables them to buy their product rather than other company's product.
Business case for essence group for their new product development must includes pricing
strategies which gives reasonable price to the customers and also applying product distinguish
strategies so that customer can distinguish their product from other company (Krasadakis, 2020).
Fund sources: fund sources are angels, venture capital, personal investment, business incubators
and government grants. Essence group take the support of angels fund as angels fund are the

executives of retired company who invest in small businesses therefore essence company take
fund from them for the production of their new product. Or they also take fund from the various
government project as grants and subsidies which helps the organisation by giving funds to them.
To make funding in their new product also took loans from the bank to invest in their new
product development so that company can enable to start process of development of their new
product and begins to sell in the market.
Risk factors: risk factors can be market risk, funding risk, liquid risk, credit risk, concentration
risk etc. for any organisation they first need to resolve all the challenges and risk revolving
around their product. For essence company to launch their new product they must need to make
proper research to avoid any kind of risk and challenge.
Therefore, better business case can be useful for the organization to reduce the cost
production as well as help to reach the organization to achieve their sales and marketing goals.
Promotional activity for the essence group plays an important role to promote their new product
in the market. Promotional activities not only target the native customer but also aware the global
customer about the product. In this way organization can be able to build their brand image in the
market to give competition in their field of market. Essence group needs to implement some
other promotional activities for their product so that more customer connected towards their
product. Their business plan includes all the marketing and promotional activities so that
company can get back their position in the market.
Different tools organization used to develop and to protect knowledge and intellectual property
It is very important for the organization to protect their intellectual property to avoid any
kind of misuse. As for the organization their information and techniques needs to be protected so
that other can't take advantage of it. For this purpose organization needs to include legal
activities to protect their information, also they need to apply trademark, patent, copyright in
their product so no other companies can copy their content. Essence group is a drink based
company of UK as their brand value decreased in their third year of marketing company initiate
with the innovation project to develop their product in a manner that can satisfy the customer's
requirement for their new product they need to include their company's trademark and legal
rights to protect their product for being copied (Kahn, 2018).

Trade secret tool: It is the tool used to protect organization's intellectual property which can be
a secret information about their product's idea and product formula. Trade secret tool I kind of
intellectual property which company can be seen as strategy which gives competence advantage
to their product. Essence group must need to apply trade secret to protect their ideas of new
product so that no other company of same field can copy their item.
Trademark tool: Trademark is an intellectual property which includes signs, images, expression
which allows customer to differentiate product of two companies. As essence company must
implement trademark for their new product as their new product is mixed fruit flavoured organic
drink so the trademark for their product should be unique and different so no other company can
copy their product's design. Essence drink group needs to introduce trademark for their new
product which can be logo, symbol so that in the market customers can easily distinguish their
product form other company.
Patent tool: patent is the legal right that is given to the organization, it abides other organization
to use their product. This technology enables the organizations to protect their information from
others by copying, making or selling the patent items (Markovic and et.al 2021). Therefore,
essence group needs to done all the legal activities before selling their product in the market. To
protect the data of their new product essence group should need to sign a licence for their
product so that it can avoid any illegal process.
Copyright tool: copyright tool is a set of right which related to the creator. It is a legal term
which describes the legal right of creator over their work. As for the product development
essence group must need to apply copyright on their organization's information so that no other
company can claim them. Essence group needs to sign a confidential disclosure agreement so
that their organizational information remains confidential.
Digital tools: digital tools also allows organization to protect their IP address so that there will
be no threat for attack as there are lot of people who try to hack the company for the information
therefore by using digital tools can prevent these type of threats. Some digital tools are encoding,
decoding, encryption, description to protect the intellectual property. Also implemented
verification and build strong password for their process so that no other can access their data.
Therefore, different digital tools can help the organization to protect their data or information
from any malicious activity. It also protects their intellectual right so no other company can

claim their product as their and also prevent other companies to copy or use their organizational
information (Boni, 2018).
CONCLUSION
From the above report it is concluded that innovation and commercialization played an
important role to increased the revenues of organization. Innovation in the product described
more details and values. Various source of innovation as process, paradigms, people and position
increased the efficiency of innovation process. Funnel innovation and development of frugal
innovation helped the organization to build such an informative report for the product
development process so that it definitely fulfilled the customer's needs and provide revenues and
success to the organization. Commercialization process also played an important role to promote
the product of the organization through various commercialization channel. Commercialization
process ensured the availability of the product in the market. Report further described about the
nature of innovation as innovation process enhanced the beauty of the product it required proper
tools and research to implement in the product development process. Therefore, innovation and
commercialization played as a key role for every organization to increase their revenues and to
achieve their goals of success.

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