Innovation and Commercialization Report: Essence Drinks UK

This report analyzes the concepts of innovation and commercialization, focusing on the case of Essence Drinks, a UK-based beverage company. It explores the significance of innovation compared to invention, emphasizing the role of vision, leadership, culture, and teamwork in shaping innovation within an organization. The report delves into the 4 Ps of innovation (product, process, position, and paradigm) and their application in an innovation funnel, examining the development and screening of ideas. It assesses the developments in frugal innovation and its benefits to the company, and provides the importance of commercial funnel and new product development process, including building an innovation business case. The report also covers techniques for developing, retaining, and protecting intellectual property, offering a comprehensive overview of innovation strategies to enhance business growth and competitiveness.

Innovation and
Commercialization

Table of Contents
INTRODUCTION........................................................................................................................1
TASK 1.........................................................................................................................................1
P1 Describe innovation
and its
importance to
organisations in
comparison with
invention..................................................................................................................................1
P2 Explain how vision, leadership, culture and teamwork can shape innovation ...................2
TASK 2.........................................................................................................................................4
P3 Describe 4 Ps of innovation and their use in innovation funnel to examine ideas .............4
P4 Assess developments in frugal
innovation and provide
example their
use in organisation ...................................................................................................................5
Task 3 ...........................................................................................................................................6
P5 Importance of commercial funnel and new product development process.........................6
P6 Build an innovation business case for an organisation.......................................................7
Task 4 ...........................................................................................................................................8
P7 Techniques to develop, retain, protect intellectual property...............................................8
CONCLUSION.............................................................................................................................9
REFERENCES............................................................................................................................10

INTRODUCTION
Innovation is the process which helps business organisation in attaining goals and
objectives. It includes translating a idea and invention into goods or services to increase their
value. This involves application of information, imagination and initiative in getting greater
output from resources. It is very important concept in achieving business growth by
introducing new range of products and services. This report is about Essence Drinks which is a
company incorporated before 2 years in UK. Currently, they are facing decrease in sales of
their drink and as innovation consultant recommendation will be given to bring innovation in
product line so as to increase sales. This study will consist explanation of importance of
inventions and ways in which it can be adopted in company. Various approaches to develop
innovative ideas would be discussed. This report includes steps this company can take to
introduce new and innovative products in market in order to enhance sales.
TASK 1
P1 Describe innovation
and its
importance to
organisations in
comparison with
invention.
Innovation refers to process of applying new ideas on business operations. It includes
all practices by which creativity can be generated and it is converted into useful products
(Cunningham, and Porter, 2011). This concept is very essential in order to satisfy needs and
expectations of customers which directly leads to increase in sales of company. It helps in
creating new methods to develop a particular product so that purchasing power of buyer can be
created. As this company ' Essence Drinks' is facing decline in its sales due to increase in
number of competitors, so it is required to adopt innovation in order to launch new variety of
drinks. This will help in grabbing more attention of consumers. There are various significance
of developing new ideas. These are as follows-

Creates competitive advantages- In today's competitive environment, it is very
essential to develop best ideas and capabilities to achieve competitive advantages. It is required
to identify most valuable methods to implement creative strategies and techniques in business.
This will help Essence Drinks in adding more value to its products by introducing fresh and
unique range of drinks. This will assist it in fighting with competition and become better then
rival companies.
Develop best methods for business- It will also help this organisation in establishing
best and innovative ways to perform operations. This facilitates in understanding unique
priorities, issues related with specific sector and objectives of business. It enables company in
recognising current resources available and opportunities for growth. Innovation helps in
responding effectively to needs and preferences of customers by providing them products as
per latest trends (Walsh, 2012). It is important in selecting best methods, processes to
determine most flexible range of products which may assist in achieving business goals.
Invention refers to act of creating, designing, and discovering methods and processes
which are not existed before. This concept is quite different from innovation. So, there are
some points that reflects the difference between both the concepts. These are as follows-
Basis Invention Innovation
Meaning It refers to developing new
idea for a product that is
totally new.
It is implementation of idea
for product and process for
first time.
Concept This is original idea that
works on theory.
Here, practical
implementation of new idea
takes place.
Required skills Scientific skills are required in
this concept.
Marketing, technical and
strategic skills are needed in
this activity.
Occurrence New ideas are developed. Methods to improve existing
products occurs here.
Activities Its activities are limited to
research and development.
Its activities are spread across
the business.

Essence Drinks can introduce new products in market that can meet demands and
preferences of customers. This can be done through adopting innovation in product line and
production process. This will enhance its sale in market and help in achieving competitive
advantages.
P2 Explain how vision, leadership, culture and teamwork can shape innovation
Every organisation can bring innovation in their business to attain growth in long run. It
helps in increasing sales and more financial gains for company. This includes adopting changes
in products to satisfy needs and preferences of customers (Xiao, and et.al. 2016). Various
business firms are adopting innovative techniques in order to achieve competitive advantages.
Mission, vision, leadership, culture, and teamwork are main elements that can facilitate
innovation in a company.
Vision- It refers to to long term goals of an organisation for which it has been
established. Objectives are set for accomplishing these targets effectively. As per vision
statement of Essence Drinks, they wants to become leading company in beverage sector by
providing best quality drinks to its customers. It will help by providing appropriate directions
to management in order to achieve innovation.
Mission- These are short term goals related with the business operations. Mission
statement of this firm states that they want to bring efficiency and effectiveness in working so
as to achieve highest number of customers and huge financial gains. It is main factor that helps
in shaping innovation in an organisation.
Leadership- It includes ability to influence others in order to achieve collective
objectives. It is very important factor that motivates innovation in firm. If leader will be
innovative then they can adopt best techniques to introduce new products effectively. They can
suggest adequate ways to develop innovation by ensuring development of best ideas for
producing unique products. If leader will be creative then outcomes will be profitable.
Culture- It consists structure of organisation in which its operations takes place. This
helps in providing values and behaviours to maintain positive and healthy environment. This
culture represents beliefs, values and principles set for employees. It plays important role in
motivating innovation as staff members will adopt methods for innovation positively and they
will give their best for development of company.

Teamwork- This concept ensures effective coordination amongst the team in order to
attain desired targets and goals in effective manner. If teamwork will be there in this
organisation then innovation process can be completed in most effective manner.
Hence, it can be analysed from these points that all these elements helps in motivating
innovation in Essence Drinks as this is helpful in attaining objectives.
TASK 2
P3 Describe 4 Ps of innovation and their use in innovation funnel to examine ideas
Innovation is important for every organisation. It helps in developing new products
which are based on totally new ideas. 4 Ps model is very powerful tool in this scenario. It helps
in identifying the success of innovation and positive changes occurred due to this.
Innovation funnel-It is used to describe steps involved in developing process and
product. This funnel provides graphic structure for thinking regarding generation and
screening of alternative development options (Thore, ed., 2012). Various ideas are investigated
but few becomes part of development project. It includes three tasks-
 It is widen mouth of funnel in which organisation can expand their knowledge base and
information to increase new ideas.
 This challenge is narrow funnel neck in which ideas are screened and resources are
focussed towards attractive opportunities.
 Third challenge includes ensuring selected projects.
4 Ps of innovation are useful in shaping innovation funnel and examining new ideas.
This helps in taking an idea from concept to reality by identifying specific innovation that can
meet market needs in economical and productive manner. Innovation mix is essential choosing
best alternative of development in product or process. These P includes following-
Product innovation- This consists an product to be developed through innovation.
Organisation produces various products to satisfy needs and wants of its customers. Innovation
helps in providing them with trendy and unique products in order to increase sales and build
consumer loyalty. This also facilitates in achieving goals of organisation more effectively.
Essence Drinks need to modify its product that is mango lassi. This company should launch
new variety of drinks which are as per demands, tastes and preferences of users. It will
facilitate in long term growth and survival of this firm.

Process innovation- It includes process of producing goods from input of raw material
till final product. Process plays major role in quality of product, so it should be designed in
proper and efficient manner. Innovation in process can increase the productivity and reduce
wastage. This is also essential in attaining economies of scale. This company can change its
manufacturing process through innovation. This will result in better and quality drinks that can
attract more consumers.
Position innovation- Another main focus of innovation is re- positioning the
representation of an existing product(Jagoda, and et.al. 2011). It includes bringing changes in
presentation of specific goods and services so that it can help in attaining company's objectives.
This firm can use better ways to present its drinks so that consumers will buy it more rather
than switching with rival firms.
Paradigm innovation- This P of innovation model defines dominant paradigms of an
company. It helps in understanding expected approaches of business concern. This element is
helpful in adopting innovation in organisational process in systematic manner.
Therefore, these Ps are plays essential role in making innovation process more effective
and in favour of this company.
P4 Assess developments in frugal
innovation and provide
example their
use in organisation
Frugal innovation is an concept of knowing how things are attained rather than what is
attained. It includes minor innovation that occurs outside R&D department of an company.
This is informal settings that are quite inclusive in nature. It provides ways in which company
can minimize their costs and complexities in production of goods. This helps in discovering
new business models, redesigns products to satisfy more consumers. Frugal innovation
provides functional solutions with few resources in effective manner. Main objective of this
concept is to maintain good relation with consumers and attract them more (Kim, and et.al.
2011). This is very significant in improving quality of products and processes by reducing
barriers. It is focussed towards removing risks and problem of an organisation. Essence Drinks

can attain social and economic outcomes by using frugal innovation. It is very useful in
development of this organisation in following ways-
Better consumer insights- It is very important to understand consumers to identify
their priorities. This approach provides ways in which these needs are fulfilled at lower cost.
Frugal innovation will help this company in having better consumer insights by adopting new
ideas in products and process.
Cost reduction- This concept includes various alternatives in which changes can be
adopted in product line and overall designing of production process. It includes removing
unnecessary barriers. Frugal innovation is helpful in bringing market driven and lower cost
strategies in order to achieve economies of scale.
Develops ideas- This concept can also be used to develop new ideas as per current
market trends. It is very helpful for this company to adopt changes to deal with competition
with low cost innovations and lower cost structures. This provides new ways in which money
can be saved and methods to use it towards value innovation .
Adds value to products- Through frugal innovation company can add more value to
its products by developing more features in it and improving its quality and presentation.
Essence Drinks can introduce different flavours of beverages with attractive presentation. This
will help in enhancing their sales and they can achieve competitive advantages.
Simplifies structures- Frugal innovation is also useful in meeting customer needs in
faster and better manner. This can be done by simplifying organisational structures by
empowering employees through skill development. It will result in improves performance of all
the departments which may help in innovating products in effective way.
Adopt new technologies- This company can also identify reasonable technologies
through this technique. New and advanced technologies can make production process more
effective and also improves quality standards of products. Consumers gets more attracted
towards healthy products. This company can improve quality of its drinks by adding new plant
and machinery.

Task 3
P5 Importance of commercial funnel and new product development process
Commercial funnel refers to business conception which is helpful in identifying
behaviour of consumers regarding purchasing. This is an concept through which this company
can know its buyers and their income status. It includes four elements that are activity,
curiosity, want and awareness. Commercial funnel provides information to users regarding
different products and services. It is useful for this organisation in changing existing products
and process which leads to grab more attention of users. Importance of this concept are as
follows-
Reduction in cost- If this organisation will adopt changes in strategies and policies to
develop production process. Improved manufacturing scenario can reduce costs of operations
as wastage can be reduced by scheduling the process in proper steps.
Quality improvement- It is also useful in identifying better ways to enhance quality of
products. By doing this , customers can be satisfied in most effective and systematic manner.
Increased profitability- Essence Drinks can also increase its profitability by achieving
high level of productivity in its business (Inauen, and Schenker-Wicki, 2012). This will help in
long term growth and development of their business and they can become market leader in
beverage industry.
Strong brand image- Innovation in product will result in satisfying customers by
providing them unique and wide range of products. This will help him satisfying them and
maintaining better relations with them. It facilitates in building strong image of company and
consumers will become more loyal towards this brand.

P6 Build an innovation business case for an organisation
All business concerns requires appropriate innovation business case to understand
various activities and processes. Planning under this scenario includes-
Identifying company's objectives- To adopt innovative ideas in business it is required
to identify goals and objectives of firm so that implementation of new ideas can be done in
effective manner. This will also help in aligning these changes with overall targets of
organisation.
Market survey- Before bringing any change in products and process, it is essential to
conduct market survey (Griffin, 2010.). This will help in analysing adequate needs, wants and
demands of consumers.
Evaluation- At this stage of innovation plan manager evaluates appropriate activities
and processes to carry out particular task. This helps in getting best possible outcome from this
innovation.
Essence Drinks can adopt these planning structure to develop new innovation strategies
in most effective and profitable manner (Kilelu, Klerkx, and Leeuwis, 2014). Appropriate
funds are also required to adopt changes in firm. Investors are the one who provides finance for
this purpose . Various types of investors are as follows-
Illustration 1: Steps in commercial funnel, 2017

Angel investors- These are persons having huge source of financial resources. They
provides funds to start ups. They follows instincts and invests in business that are not able to
attract other investors. In various cases they only demands return on their investments and in
other cases they wants partial ownership in company and in management decisions.
Peer to peer lending- These are arranged by websites that brings investors and
business firms together. Company need to create a profile and post a business plan on this
website. Owner ans lender negotiates interest rates for investment and lender provides funds to
business. '
Venture capital funds- These type of investors are not very much interested in taking
risks. They asks company to have partial ownership in company in which their money is
invested. Along with that, they also participates in management decisions.
Banks- Loan is almost similar to business investments. Organisation need to provide
them their innovation plan and then banks decides whether they have to invest in it or not.
Essence Drinks can raise money from any of these mediums which they feels most
appropriate as per their innovation plan. It is significant for business in various ways.
Developing
Task 4
P7 Techniques to develop, retain, protect intellectual property
When a business enterprises start with new ideas and concepts in market through their
products, they take a legal right and authority by government. They helps them to protect their
company from external person and companies. This is usually done, when organisation restrict
their exchange and sharing among various business entity in a complexity to produce same
thing in market by the use of same techniques and ideas. In it government grant permission to a
particular organisation to a make product for commercial use and provide them legal authority
that nobody can use its name for substitute products. Some protection provided by legal
authorities are-
Copyrights- This method is mostly uses in the terms of provide protection by law of
the country. In them, protections are provide only on tangible thinks like on painting, books,
nobles, movies, software, photographs and biopics weather its published or unpublished. On
this things the right of copyright is only 9of their owner or registered person.