Exploring Innovation and Commercialization for YOYO Drinks Business

This report provides a comprehensive analysis of innovation and commercialization strategies for YOYO Drinks. It begins by defining innovation and then explores various types, including process, technical, and administrative innovation, along with a detailed comparison of disruptive and incremental innovation, including their pros and cons. The report then examines the 4 P's of innovation (Paradigm, Product, Position, and Process) and how they support effective innovation management. The role of new product development and the innovation funnel in generating and refining ideas is discussed, along with the stages of the product life cycle. Finally, the report delves into frugal innovation, its criteria, benefits, and provides recommendations for YOYO Drinks to implement these strategies to achieve sustainable growth and competitive advantage in the market.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
3. Types of innovation and explore pros and cons of disruptive and incremental innovation....1
4. How 4 P's of innovation support capability and management of innovation..........................2
5. How New product development and innovation funnel can be used for innovation..............4
6. What is frugal innovation and recommendations ..................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Innovation is considered as most essential element that helps business unit in attracting
potential buyers and gaining competitive advantage. It is the process of implementing new ideas
so that firm can increase its market share (Dincer, 2017). Present study is based on YOYO
Drinks, it was started before 3 years, initially entity has introduced only one drink in the UK
market but now it is planning to offer healthy snacks and flavoured drinks to the consumers so
that profitability of the organisation can be increased. Current assignment will describe
disruptive and incremental innovation. It will explain 4 P's of innovation alone with frugal
innovation and its application.
PART A
3. Types of innovation and explore pros and cons of disruptive and incremental innovation
Innovation:
Innovation is a process of implementing new ideas which improve product and services,
new process, new organisational structure and marketing strategy in business. Innovation can be
said as identifying new opportunities, generation of ideas, developing invention and then produce
products that leads commercialisation (Mazzarol and Reboud, 2017 ). Yoyo company wants to
produce environment friendly products and diversify its flavours. There are various types of
innovation:
Process innovation: It refers to the innovation of new process, ideas, strategies and
distribution process of existing products and services. It is a process of improving production
method and delivery methods through change in techniques and equipments. Yoyo company
need to change or improve its production process which increases the capabilities of
manufacturing system which in-turn increases productivity. It is a process of introducing new
technology which is beneficial for company to compete and meet customer demands. For e.g.
online banking and E-commerce (Chun, Chung and Bang, 2015).
Technical innovation: It is a process of implementing new technology and practical
knowledge in the production process to produce new products and services. It reduces production
cost and add value to company. Yoyo company need to implement new technologies which helps
in innovating new products. Technological innovation helps in smooth working of business and
create value by being updated by new process, this create competitive advantage for company.
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As Yoyo company produces drinks, to adapt technologies reduces cost and time of production or
create a new product line (Polzin, von Flotow and Klerkx, 2016).
Administrative innovation: It is a process of combination and coordination of human
resources to achieve a common goal. Innovating administration of a company helps in reaching
the goal fast and may lead to commercialisation. Yoyo company need to innovate its
organisational structure which leads changes in the production and selling of products and
services. Company need to divide task in groups which will help employees in better
coordination and will increase employee engagement.
Other important types of innovations are:
Incremental innovation: It is a process of making small improvement or changes in the
production system or company which improves performance of products (Alonso, 2017). It is
generally small upgradation made by company in existing products. Yoyo company can bring
incremental innovation in its products to gain a competitive advantage and create a brand image.
Pros of incremental innovation:
 Small changes in the production system reduces the cost
 It takes less time
Cons of incremental innovation:
 Change in the process reduces efficiency of workers
 Small change in the product can make its life short
Disruptive innovation: It is process where big changes are made, disruptive innovation
happens when a new product, technology, strategy or ideas is introduced in the market which
destroy the existing technology or products. It is better for Yoyo company to do disruptive
innovation which impacts its competitor (Pynnönen, Hallikas and Immonen, 2019.).
Pros of incremental innovation:
 It incurs huge cost as new technology is implemented
 Company gain a competitive advantage
Cons of disruptive innovation:
 It takes long time to implement
 Workers find difficult in adapting technology
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4. How 4 P's of innovation support capability and management of innovation
There are 4 P's of innovation which gives company capability to manage innovation
effectively and efficiently.
Paradigm:
It refers to implement innovation to improve the way business is done. It is a process of
shifting to completely different technology or idea. It can be also called radial innovation where
new technology is used to create a different product. Yoyo company can diversify its products
such as producing healthy snacks (Amponsah and Adams, 2017). It will be beneficial for the
company to enter into new markets. Company need to target children for its product. Company
can advertise its healthy products in schools and shops which increases productivity (4 P's of
innovation, 2005).
Product:
Product innovation can be beneficial for company to increase its market share and create
a brand image. It can be done by using new ingredients and new packaging styles. As Yoyo
company is selling drinks, for product innovation company need to produce flavoured drinks and
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Illustration 1: 4 P's of Innovation

make it available in different quantities. Company need to produce fresh fruit juice according to
the season which will increase its customer base. Company need to improve or change the
packaging design to attract customers and compete with the competitors. This can be termed as
incremental innovation which means a small change in the product (Tsai, 2015).
Position:
Position of a product means positioning a product in such a way that it creates brand
awareness. It is a way that how company's product is communicated in the market? It is a process
that how company's brand is perceived ? What customers think about the product? For e.g.
Tropicana is also a drink company and its strategy is to position its product as 100% healthy and
pure. They have made websites just to inform customers about one's health.
Process:
It is a process of producing a products and services. It also includes recruiting right
people, training, supplying etc. It is necessary for Yoyo company to recruit right candidate with
required skills to make production process run smoothly. Training is required for employees so
that they can use technology (Vaghjiani and et.al., 2017). It will increase the profitability of
company as the production process will be fast and will reduce cost and time. Reduction in
production process cost will also reduce cost of products which will increase in customer base.
The Latest trends to improve the process is by implementing new technologies and resources
which protects environment.
Yoyo company should engage in product and process innovation, as it can be beneficial if
company produces flavoured drinks and change the packing design of the products to attracts
new customers. By managing the waste during production of products and use materials which
are environmental friendly. This changes will benefit company to create value in society and
enter into new markets and create brand awareness.
5. How New product development and innovation funnel can be used for innovation
New product development:
New product development is a process of introducing new products in the market.
Company engages in developing new products because of change in the preference of customers,
change in technology and increasing competition (Lopes and et.al., 2018).
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Innovation funnel:
It is a mechanism which generates idea on constant basis. It is a popular method of
innovation used by companies to create new products from innovation. It is a process of
generating too many ideas, then refine and covert into development plan (Innovation funnel,
2019).
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Illustration 2: New product development
process
Illustration 3: innovation funnel

New product development and innovation funnel is beneficial for Yoyo company to
generate ideas by doing market and competitor analysis to find out the needs of customer and
what competitors are providing better. Company can use innovative funnel that enables large
amount of ideas which can be used to produce new product (Dincer, 2017). Company then
screen the ideas and find out the best ideas which is necessary for the new product, evaluate
market to sell the product and also makes sure that whether existing machines is used to produce
new product or not. Further, company do business analysis whether the product is profitable or
not? Is there demand of product? What is the cost of product? Is there any competitor? Whether
the demand of product will be seasonal or regular. After all the analysis Yoyo company need to
develop products according to the information gathered. Now company will test the product in
market and see whether product is been liked by customers or not, what is the perception of
customers after trying it. If the product fails, company need to change the product before
introducing it again. Lastly company need to introduce its product after making all the changes
and review the performance (Mazzarol and Reboud, 2017 ).
Yoyo company wants to introduce new product i.e. flavoured drinks. Company need to
check the life of the new product in the market. It is necessary to check the life of product before
developing it. Stages of product life cycle includes:
 Introduction stage: It is expensive for company to introduce a new product because it
needs huge cost of research and development. Yoyo company is a drink company and has
competitors so if a product fails company will face huge loss.
 Growth stage: This stage defines that how much a new product will grow in the market
and make company profitable. Company can get idea of how much money to invest more
in expansion.
 Maturity stage: Company has developed product to reach a particular aim and built the
market share. Now the product has reached all its goals, company will further evaluate
that is there a need to modify product?
 Decline stage: Finally the demand of product will start decreasing and the product will
decline (Chun, Chung and Bang, 2015). Products decline due to change in the preference
of a product or competitors bring innovation in the product upto an extent that the old
product is eliminated from the economy.
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6. What is frugal innovation and recommendations
Frugal Innovation:
In recent time literature of innovation management has witnessed a dramatic rise in
interest in the term frugal innovation. This term first analysis in context of promising market.
When there is reduction in the cost and complexity of a good and its production this is known as
frugal innovation. Frugal innovation is also known as frugal engineering. Frugal innovation has
three criteria — cost reduction of product, optimizing the performance and concentration on the
core functions of the product which can be used by Yoyo drinks. Mostly it is done in developing
countries where the company remove not so necessary feature from its products, such as soft
drink companies in order to increase their sales (Polzin, von Flotow and Klerkx, 2016).
Modifying goods for those countries may also increase the durability of the product but the price
of the product remains low in comparison of developing countries. This may boost the sales in
developing country but it has very little profit margin. In such types conditions the company sells
their product with a little profit margin but the quality of the modified product is inferior. The
benefits of frugal innovation to the company is to increase their market share international
market. The revenue of the company may increase rapidly. It helps the company to rethink on the
development and modification the product, which attract new customers and maintain an interest
factor in the existing consumer. It makes the system of the company to think to macro level, so
they can improve/ modified their product in the best possible way. For e.g. Renault is using
frugal innovation in India in designing no-frills cars at lower cost for countries such as Romania.
TATA motors has also used frugal innovation and launched Nano cars.
Yoyo company also need to use frugal innovation to sustain and grow in the market. It is
beneficial for the company to solve environmental issues, gain competitive advantage and
produce products at lower cost (Alonso, 2017).
CONCLUSION
From the above report it can be concluded that companies have to pay attention on new ideas so
that it can perform well and can attract wide range of consumers towards the brand. New
product development must be done carefully, firm has to select the best idea and have to
implement it properly so that it can gain the best outcome through product innovation. 4 P's of
innovation aid business unit in analysing capabilities of firm so that it can gain success in the
market.
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REFERENCES
BOOKS AND JOURNALS
Alonso, A. D., 2017. Innovation and entrepreneurial orientation: the case of a global family wine
firm. International Journal of Research, Innovation and Commercialisation.1(2).pp.125-
142.
Amponsah, C. T. and Adams, S., 2017. Open Innovation: Systematisation Of Knowledge
Exploration And Exploitation For Commercialisation. International Journal of Innovation
Management.21(03).p.1750027.
Chun, D., Chung, Y. and Bang, S., 2015. Impact of firm size and industry type on R&D
efficiency throughout innovation and commercialisation stages: evidence from Korean
manufacturing firms. Technology Analysis & Strategic Management.27(8).pp.895-909.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation.1(1).pp.8-
22.
Lopes, J. N. and et.al., 2018. Peeking beyond the wall: analysing university technology transfer
and commercialisation processes. International Journal of Technology Management.78(1-
2).pp.107-132.
Mazzarol, T. W. and Reboud, S., 2017. Entrepreneurship and innovation. Tilde Publishing and
Distribution.
Polzin, F., von Flotow, P. and Klerkx, L., 2016. Addressing barriers to eco-innovation: Exploring
the finance mobilisation functions of institutional innovation intermediaries. Technological
Forecasting and Social Change.103.pp.34-46.
Pynnönen, M., Hallikas, J. and Immonen, M., 2019. Innovation Commercialisation: Processes,
Tools and Implications. In Advances in Systematic Creativity.(pp. 341-366). Palgrave
Macmillan, Cham.
Tsai, S. P., 2015. Dynamic marketing capabilities and radical innovation commercialisation.
International journal of technology management.67(2-4).pp.174-195.
Vaghjiani, K. and et.al., 2017, April. A Case Study of Lean Data Driven Innovation in
Government. In ICIE 2017-Proceedings of the 5th International Conference on Innovation
and Entrepreneurship(p. 170). Academic Conferences and publishing limited.
Online
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4 P's of innovation.2005.[online].available through<http://www.innovation-portal.info/wp-
content/uploads/4Ps-explanation.pdf>
Innovation funnel.2019.[online].available through
<https://www.toolshero.com/innovation/innovation-funnel/>
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