Innovation and Commercialization Strategies for Business Growth

This report provides a detailed analysis of innovation and commercialization within organizations, focusing on the case study of Essence Drinks. It explains the importance of innovation compared to invention, highlighting how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. The report also delves into the 4Ps of innovation (Paradigm, Product, Process, and Position) and the application of the innovation funnel for examining and shaping innovative ideas. Furthermore, it explores developments in frugal innovation, provides examples of its use, and emphasizes the significance of the commercial funnel and New Product Development (NPD) processes for commercializing innovation. The report also covers building an innovation business case, including ways to access funding, and evaluates tools organizations can use to develop, retain, and protect knowledge and intellectual property.

Innovation
and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
P2: Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................5
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................5
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation: - ................................10
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
...................................................................................................................................................13
P7 Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property.........................................................................................15
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Basically innovation refers to something unique or new. It can occur in any sector from
grocery stores to healthcare industries. On the other hand, commercialization is mainly process
of introducing something in market for revenue. It cane either be related to an product or
services. In this report, it is discussed briefly about the innovation and commercialisation and
their effects in context of the case study of Essence drinks(Astiti, Sakapurnama and Huseini,
2020).In this case, owner of Essence drinks, Akshay Kumar started his company with a new
product which is a healthy mango lassi. With his product. his business has grown tremendously
in first year due to his new product and his capacity to supply the product in UK market. With
the passage of time, new players entered in the market and captured market share of the akshay's
company. In the starting of third year, company noticed significant decrease in sales. Due to this
Akshay thought to introduce new range of drinks but he do not want to leave lassi.
MAIN BODY
P1: Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation means a thought or idea which is further implemented in the real world in respect to
financial gain. For business it can be a product, service or a new method or a process. It is an
outcome of creating something new, which is also useful for people in practical world.
Innovation gives a business first mover advantage which is very beneficial for a business and
gives that organisation an advantage over their competitors (Baikhozhayeva and Azhimgereeva,
2020). A perfect example of a innovation is that Michael Aldrich innovated online shopping in
1979 which is now very useful and used by almost every product or service based company. On
the other hand people mixes innovation with invention which is not correct. Invention is about
creating something new. Generally, invention is a thing whereas innovation is a process or
change. Introduction of television is an perfect example of invention. As growth in technology is
a main factor in today's life, it also gives companies many opportunities to expand or grow. In
case of Essence drink, Akshay innovated a drink with fusion of mango and lassi mixed with
health benefits. It gave company a massive growth in initial years. The fusion of lassi, a milk
based product mixed with mango and also with health benefits is considered as an innovation.

This product gives a excellent and balanced sweet taste as well as health benefits(Bong, Shin and
Park, 2020) . A one stop solution for health lovers and also for fitness freaks.
Importance of Innovation :
 Promotes growth – In today's highly competitive world, innovation is very useful for the
economic growth as well as organizational goals which ultimately helps in increasing
profits.
 Keeps business one step ahead – It is important to stay ahead of the competitors as
market is changing quickly and innovative thinking helps an individual to keep up with
customer's need and also in predicting market.
 Having a USP – USP stands for Unique Selling Point which means what differentiates a
product from other products or similar products (Distanont, Sooksmarn and Khongmalai,
2019).Generally new start ups have a USP which gives a business an identity in the
industry.
 Continuous improvement – Innovative thinking helps a business in improve and grow
continuously. Creative innovations attracts customers and also helps to retain customers.
For example dairy milk improves their packaging rapidly and also introduces new
flavours or fusions in their dairy milk segment.
 Innovation boosts creativity – Creativity is an important aspect of innovation and helps
to create something unique and useful. Creativity may results to failure but it is still
worth it as eventually it leads to success.
Invention Innovation
It refers to the creation of new products which
has never been made before.
It refers to modifying or adding value to an
existing thing.
An invention needs proper scientific skills to
invent something.
An innovation needs set of different skills
like marketing, scientific and strategic skills.
It refers to just creation of a product. It is creation of something which is
introduced in market to sell.
It concerns with a single product or process. It concerns with combination of different
products or processes.

P2: Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
Vision – It refers to what a organisation wants to accomplish in a certain time period. Generally
time period is of five to ten years or more than that (Dziallas and Blind). It is the first step in
making of future strategic plans. Akshay's company's vision is “To be every person's first choice
in healthy and tasty drinks”. Vision sets the path or way to think innovative ideas to achieve the
goal. Similarly it also helps in managing the business operation as these operations are done to
achieve future goals.
Leadership – It refers to the ability and skills of an individual or a group to influence or guide
other members in a similar organisation. Innovative thinking drives to process new ideas to an
individual (leader) which bring more efficiency in the organisation. In respect to
commercialization, leaders get to know about the different ways to handle and manage distinct
business operations as well as staff of organisation.
Culture – It refers to the behaviour within the organisation. It is the common beliefs, attitude,
communication patterns among the staff developed by the leaders of the organisation. These
beliefs are implicated through various methods and ways. Essence drinks promotes healthy
culture and have ability to quick response to changes happened internally or externally which
helps the Essence drink company in increase of their innovative thoughts and process.
Teamwork – It is the most common and important essence within organisation. It basically refers
to the collective work of a group in respect to perform a task. Teamwork leads to different
creative ideas by different persons related to a common goal. It leads to different innovative
ideas to be implemented in favour of the organisation(Kelly and Kim, 2018) . Teamwork is also
very useful in introducing a product or service in the market as it will decrease burden and
employees can efficiently and successfully do their work with the expertise of individual person.

P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
The 4p's of the marketing that contains the features that helps company to identify that how
corporation's runs and bring innovation from which the company can enjoy competitive benefits
over the company's challenges and also to make the firm;s position more good in the arena of
target market (Stojčić, 2021). The 4P's of innovation will be discussed beneath:
 Paradigm Innovation: - Paradigm is fully connected to the changes into managing
techniques, process and the concept in order to make innovative and new potential for
the company's buyers (Tutaev, 2018).. The paradigm innovation has been considered the
change that are accountable to fundamental the mental models with this all along, via
this innovation company also frame how its doing and what is been done. The consumers
of the respective firm thinks that this can be a beverage organisation but the firm
innovate their products by adding many goods which are healthy that also complete the
change thinking way of the targetted costumers.
 Product innovation:-. In the way of Essence Drinks, a new finished goods is been
launched by the organisation with all the modified and best quality according to the
required of the target costumers. In the finished good innovation that change which will

be done by the corporation in services and goods (Naim, 2021).The respective
organisation has been trying to diversify the products of the firm Lassi by innovation or
additional few new flavours.
 Process Innovation:- if the firm's management has the desire to bring new innovating
goods in the target field of the market place then this process should be trendy and
innovating in order to develop the services and goods. The Essence Drinks exclude and
include few good which can change the taste and flavours and also has capability to
attracts the costumers.
 Position innovation:- position innovation has can be also called as evaluation. The
Essence Drinks of management will be providing the high quality into the finished goods
to the company's costumers which will help to develop the good will and image of the
brand and also position of the competitive target market(FLinder, 2021). As respective
the firm will not going to select the method of innovation which focuses on the whole
population.
This above discussion concludes that 4 ps, that will be analysing that the option will be overall
dependent on the organisation. Which type of innovation is required within the business of the
company. This is also very crucial for the Essence Drinks to also understand the importance of
funnel of innovation. This can also help them to implement the different ideas into the reality.
Use of Innovation funnel in shaping and examining ideas:-
The innovation funnel can be used by the company if after sometime they want somewhat new
from the firm's commercial. In the way of the Essence Drinks, this can be mechanism which will
be efficiently discussed beneath:
Conceptualisation and Ideas
This is the initial stage of innovation funnel the Essence Drinks will be developing around new
innovating ideas and the purpose will be innovation. In this stage company will invite the various
different members of the corporation(Vora, Thangaraja and et,al., 2020). In this stage the
company will be inviting the various dissimilar members of the organisation in order to give
innovative new ideas. For the main purpose of the idea generation the element suggesting is
much needed.
Feasibility analysis

In this stage of the process for Essence Drinks will be checking the feasibility and flexibility for
the ideas collected. This will be checked the idea whether it is matched from the set goals and
objectives of the firm. The ideas which will not be matching that eventually will be eliminated.
Development of new raw materials
More likely the appropriate ideas will be selected in this step of the process. The selection
process is not very easy initially but they has to be analysed by the chosen best way from the
pool and all the data will be collected(Venesz, Raišienė and et,al., 2022). For developing new
material and the selected new idea that will be needed in converting into reality.
Customer approval & Trade

In this step, the approval can be taken by the costumer through the company about company's
innovative goods. This will be approved by receiving from the organisation that can start the
trade within the specific product.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
 Frugal Innovation- Frugal innovation this can be elaborated as the kind of innovation
that helps company which reduce unreliable cost in an efficient way. The innovation is
directly related to the valuable products and the production(Hald and Nordio, 2020). With
the help from this procedure the company is able to less the complexities within the
methods of innovation. Frugal innovation is the procedure which helps the company in
efficiently reducing the production's cost with this firm can increase the margin of sales
and profit. The various important points needed that are considered are discussed
beneath:
 Use of Frugal Innovation:
The procedure of the company helps to increase the firm's sales and profit that improves the
sustainability of the firm in the target market. The frugal innovation procedure will help to
reduce the costing which will be incurred by the company. Through which the profit increases
for the company that to reduce the cost and wastage. Frugal innovation works from the lower to
top and this can be considered as the most crucial feature of the frugal innovation. More
reliability towards the goods is been given through which innovation can be applied to this
procedure. The company gain more costumers than before by utilizing the less resources in
amount.
The most important motive of the Essence Drinks is behind implementation the innovation is to
earn more profits. The performance of the organisation will help the firm to improve and they
also effectively satisfy the consumers with the company's product.
Examples of frugal innovations used in the company: -
 The organisation purchases the raw material from the suppliers who are local. These
raw material which is more likely used by the Essence Drinks organisation in direction
to develop the new good which also declines the production cost.

 For example like chosen organisation finds the sustainability within the marketplace.
They innovates in very real way that is economically and also environmental friendly.
This innovation can be very beneficial in nature and also for the organisation.
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation: -
The procedure of commercial funnel is similarly called as sales funnel. This is model of
marketing which will attenttative on the journey of targetted costumer who buy the good from
the organisation. This procedure is divided into three stages top,middle and lower stages(Bocken
and Geradts, 2020). By using this model the company efficiently which understands the through
process of costumers taste and preferences. The following are the sales fund beneath:
 This funnel will help the company which will be able to pick and develop the effective
strategy of marketing.
 In a way to increase the company's sales this procedure is very vital and also go along
with all the objectives of the company which has been achieved.
 The organisation enjoys all the competitive advantages over the competitors and
efficiently execute the strategies of marketing.
Steps mode of commercial Funnel is been discussed beneath :-

 Attract :- This can be considered as the initial stage in which Essence Drinks has to find
out the new manner to attract the costumers which increases the sales via innovative
goods of Lassi with various flavours. Costumers obviously has no knowledge about the
goods of the organisation. So, the company needs to give the introduction of the
company's product. This is done through the any of the selected marketing method like
word of mouth, advertisement and TV etc. This method which is chosen for the firm must
be very cost effective.
 Convert :- in this step, the person who is outsider to the firm will be changed into
visitors. Now the costumers of the Essence Drinks has nearly selective knowledge about
the good of the company(Chanias, Hess and et,al., 2019). Some efficient methods can be
regular touch and interaction with the costumer which needs to adapt by the chosen
organisation. While doing this the company can covert the person who is stranger into the
regular visitors. This can be complete through with the benefit of emails, phone calls etc.
 Close :- The company is least needed which increase the profit and sales of the Essence
Drinks organisation. In this step the firm will give invitation and ask visitors to visit and
they will also purchase the good within their stores. This will be done via providing the
product's quality with efficient strategy of pricing. Afterwards there is arise of the
pandemic where people started focusing on their immune system and health system. So
this can be acted as the opportunity for the organisation which will help them to covert
the regular visitors into future mains.
 Delight :-In this company starts the exchange with the costumers and this also start
generate the profit and revenue. The costumers of the Essence Drinks that feel happy and
useful for their drinks.
After discussing on commercial funnel, this has been resulted that this very vital for the
organisation to appreciate the crucial of funnel. This will not only effect but also help to increase
the customer base through also helps in increase the profit and revenue of the organisation.
New product development process:
This procedure supports the company to come up in target market with the exceptional quality of
the goods and costumer direction. This also helps the company in performing the action plan in
very effective way. The procedure of NPD in the relation to Essence Drinks has been discussed
beneath:

 Idea generation :- This will be measured as the Initial stage of this model this is
connected to the idea generation. The idea will be composed from personnel of the
company, so that finished goods can be invented.
 Idea evaluation:- In this stage, the different of options are available or the option of the
pool with various different ideas with only one option is been selected.
 Concept definition:- In this stage, the concentration is on the payment on the target
market, technical feasibility and product design etc.
 Marketing strategy development :- This is very vital for the Essence Drinks which
develops the strategy of marketing. This stage also has to focus on the vital parts like to
develop the marketing strategy(Boudreau, Miric and et,al., 2022). In this stage they have
to focus on important parts like planned profit goals, target market, marketing mix
strategy and price.
 Business analysis:- In this step, the respective organisation needs to evaluate the
attractiveness of business. The Cost, profits and sales has been comprised in this. The
Essence Drinks needs to analyse the company's occupational activities and functions.
 Product development: New goods is been developed by the organisation in diverse
various of flavours of Lassi, that are been offered to the costumers. In this step the idea
will be converted into the reality.