Innovation and Commercialisation Strategies: Essence Drinks Report

This report analyzes the concepts of innovation and commercialisation within the context of the fictional company, Essence Drinks. It begins by differentiating between invention and innovation, emphasizing the value of the latter to organizations. The report explores how organizational goals, leadership, culture, and teamwork influence innovation. It delves into various sources of innovation, strategies for fostering an innovative environment, and methods for measuring innovation within an organizational context. The report also examines the 4Ps of innovation (Paradigm, Product, Process, and Position), the innovation funnel, and the role of frugal innovation. Furthermore, it explores the importance of the commercial funnel, New Product Development (NPD) processes, and the development of an innovative business case, including funding alternatives. The report also discusses strategies for managing and protecting intellectual property and data. The report is based on the case study of Essence Drinks, a UK-based company, and provides an in-depth analysis of its innovation and commercialization journey, covering aspects from product development to market positioning. Finally, the report concludes by summarizing the key findings and recommendations for the company to improve its innovation and commercialization strategies, ensuring its competitiveness and success in the market.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 The value of innovation to organisations is greater than the value of invention........................3
P2 The organization's goal, leadership, culture and teamwork may all have an impact on
innovation and commercialization...................................................................................................4
M1 Analyse different sources of innovation and how organisations can foster and develop an
environment and culture of innovation...................................................................................5
D1 Critically analyse how innovation is developed, embedded and measured in an
organisational context.............................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.....................................................................................................................6
P4 Latest advancement in frugal innovation and also examples of its use......................................8
M2 The innovation funnel......................................................................................................8
M3 The role of frugal innovation...........................................................................................9
D2 Financial reports that correctly apply and analyze data for a range of corporate
responsibilities........................................................................................................................9
P5 The commercial funnel's importance and the usage of New Product Development (NPD)
processes........................................................................................................................................10
P6 The innovative business case and funding alternatives of a company.....................................12
M4 Business case for innovation that includes assessments of overall efficacy and the use of
appropriate techniques to test, iterate and enhance..............................................................13
P7 Organizations could use a number of strategies to produce, manage and safeguard intellectual
property and data............................................................................................................................13
M5 Assessment of such numerous technologies relying on evidence.................................14
D2 The nature of innovation and the environment in which it occurs and also evidence-based
judgements on how organisations may overcome obstacles in order to generate successful
innovations...........................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................16

INTRODUCTION
Innovation is an ongoing activity of combining consumer requirements and goals with
technical capabilities in order to fill skills gap in product conceptualization, development,
promotion and a variety of other operations. Commercialisation is the process of turning ideas,
knowledge and inventions into more revenue for individuals, businesses and community as a
whole. The commercialization approach is a subdivision of the wider phase of innovation. It is
motivated by commercial and financial motivations, which include corporations and others
seeking a beneficial return on investment in research, licensing, product design and development
and promotion as well as the establishment of competing market sectors. Essence Drinks is taken
as the base company. In the case study, Mr. Akshay Kumar's firm, Essence Drinks, was launched
two years ago in the United Kingdom with the introduction of mango lassi, a nutritious drink.
This report outlines the difference between invention and innovation and the several types of
innovation. Furthermore, the process of commercialising an innovation is addressed. There is
also discussion of various techniques for safeguarding ideas and recognising their advantages
and disadvantages.
P1 The value of innovation to organisations is greater than the value of
invention
The development of an idea into a realization is referred to as innovation. In its simplest
innovation is associated with changes that significantly improve products or services while
fulfilling consumer demands. It happens when a new, innovative and effective product or
service hits the industry and outperforms consumers' hopes by providing greater products and
services. Thus, innovation may be defined as the launch or creation of a new product, method,
technology or service as well as the augmentation or modification of current items in order to
meet market and consumer needs (Sebastian, 2021). The methods involved in the creation of
ideas and its development into customer-demanded products are covered in the concept of
innovation.
Invention is defined as the practice of creating, developing or finding a previously unknown
item, strategy or method. And in more exact terms, it is a new logical idea which is created from
investigation and verification and results in the creation of a physical item. This might be a new

method of manufacturing a product, an upgrade on an established good or service or a entirely
new product. Invention is the development of a new product or service with the capability to
develop income, whereas innovation is the alteration of current products or services to improve
customer pleasure and therefore obtain larger advantages (van Geenhuizen, Holbrook and
Taheri, 2018).
As per the case study, Essence drinks had quite a large profits with their first year owing to
the creative mixing, however the firm saw a substantial decline in sales just after second year
because to strong competitiveness. The firm must place a greater emphasis on innovation. To
obtain a competitive edge in the industry, organization must considerably boost the production of
the goods. Further emphasis could be made on reinventing the beverages in terms of advertising
or packaging. Innovative actions are carried out and the results are being used to produce more
profits.
P2 The organization's goal, leadership, culture and teamwork may all have an
impact on innovation and commercialization
The capacity of a company to innovate successfully determines its success or failure. When
the business grows more competitive that becomes highly essential for each firm to develop new
goods and services and also add new and distinctive characteristics to current items, in order to
increase its customer marketplace. Innovation is important to the achievement of any business
since it supports and contributes to the organisation's ongoing progress (Bandarian, 2020).
Businesses that are innovative or always offering things new to the industry in order to retain
present customers are usually greater inclined to prosper. Businesses can also differentiate
themselves in their particular industry through innovation. Product and service innovation or the
development of innovative characteristics into already existing products and services, assists
companies in differentiating themselves in a competitive environment.
Company's vision: A vision statement is a textual declaration that describes what the
company wants to achieve in the future years. It usually defines a time frame of five to six years
in which the company plans to attain the given goals and ambitions. In the instance of the chosen
firm, the firm's goal is to supply clients with nutritious drinks while still earning money. A
company's sales must be boosted with a significant emphasis on innovation (Symeonidis, 2019).
A company might create a new product or improve an established one by introducing some

originality to it. The vision of the company may greatly influence its commitment to continuous
improvement.
Leadership: Leadership is the action of encouraging and persuading a person or a society in
a corporation to engage in attaining objectives and aims. Leaders play an essential role in
inspiring workers to focus on coming up with new ideas for new products and services.
Leadership has a significant effect on the organisation's innovation approach (Ou-Yang and et.
al., 2018). In the case of Essence drinks, the leader must inspire its staff to develop new products
and work efficiently to achieve the given objective. In addition, the leader must motivate its
followers to be innovative and unique.
Company's culture: The beliefs, habits, attitude and traits of the business’s personnel form
the corporate culture. Every company has its unique culture, which influences how workers
operate as well as their inventive attitude. The selected firm has an efficient cultural framework
that would support in the development of an outstanding innovation strategy.
Team work: The ideas, behaviours, attitude and traits of the firm’s personnel make up its
corporate culture. Every firm has its unique culture, which influences how workers operate as
well as their inventive attitude. The selected company has an efficient cultural backdrop, which
might contribute to the development of an efficient innovation strategy. Teamwork is required
for the efficient invention and execution of new goods and services as well as the transformation
of new ideas to existence (Hogan and Thompson, 2020).
M1 Analyse different sources of innovation and how organisations can foster and develop an
environment and culture of innovation.
Peter Drucker's seven sources of innovation offer a systematic approach to identifying
possibilities and controlling risk. The first four sources of innovation are almost certainly signs
something which has previously happened or which might be quickly deployed with minimal
effort. They include data that help to make them trustworthy indications that there is plenty of
space for innovation (Jiang and et. al., 2018). The following three sources of innovation are not
even as distinctive or as constrained as the first four. As a result, they carry a higher risk of
failure despite providing bigger benefits.

The unexpected: The company is the best location to seek for new prospects and wise
management may keep a close eye on market activity and involve its staff in aspects of
innovation and progress.
The Incongruity: There is a significant disparity amongst all those existing in the industry
and all those that could be desired in the industry. These have proved to be useful to the
development of the organisation, but it also has the potential to be damaging.
Process need: Recognizing Mr. Kumar's company procedures as well as its weak spots and
how to solve them, is a component of the approach. It is an approach that concentrates on a
certain task (Eshraqi and Eshraqi, 2019).
Demographics: Demographics such as population, revenue and other factors, are always
changing and it is critical to emphasize such demographics.
D1 Critically analyse how innovation is developed, embedded and measured in an organisational
context
Healthy drinks demand innovation as of the company, which is in its third year, necessitates
innovation through its own established beverage supply chain and also drink type alteration.
Therefore, the initial invention is applied to drinks and beverages and it is then examined
throughout the commercialization phase to ensure that the business profits the most from it.
Modifications to pre-existing procedures on the other hand, generated significant concerns as
they were implemented in accordance to market requirements and with an eye on the long term
consequences (Taylor, 2020). Also, without analysing or even considering patterns, the company
develops a variety of beverages in such a way that customers are inspired by the company's
inventiveness and become connected with new goods.
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel
to examine and shape innovative ideas.
The process of continually creating and deploying new items and services in a corporation to
help in the country's success is characterised as innovation. The four P's of innovation in relation
to the selected firm are mentioned below:

Paradigm: The very first aspect of the innovation process is defined as a well-planned
methodology which supports businesses in coping with alterations that may happen as a
consequence of the innovative method or process in the company and also how businesses
require all of their operations management to run smoothly and efficiently (Benhayoun, Le-Dain
and Dominguez-Péry, 2021). Within the context of the selected company, the firm must
adequately manage its advancements that may be beneficial or damaging.
Product: The item is the most important thing which any organisation provides to it's own
consumers, providing value added products to clients aims to promote the organisation's
authority and usefulness. To boost efficiency, the organisation requires to create innovative
products. In the context of the firm, incremental modifications towards its products might well be
implemented to boost sales.
Process: It encompasses all of the corporation's tactics for efficiently advertising its products
and services to prospective consumers. Scheduling, hiring and selecting qualified personnel and
training staff are all aspects of an efficient system for supplying goods and services to
consumers.
Position: The aspect is positioning, which is the step in developing a significant and
valuable corporate identity for commodities through effective advertising. In the case of Essence
drinks, it may be possible to guarantee that appropriate and effective competitive positioning for
its goods and services is developed (Närvänen and et. al., 2019).
The following types of inventions are available which are mentioned below:
Incremental innovation: The method of constantly enhancing an organization's
goods and services is referred to as incremental innovation.
Disruptive innovation: Other form of innovation is disruptive innovation, which
is described as the extension and creation of new valuation in a business by the use of
goods and services.
Sustaining innovation: Sustaining innovation is described as the activity of
continuously enhancing a firm's goods and services in order to maintain a respectable and
innovative position in the market.
Radical innovation: It is a radical type of innovation which comprises new
technological innovation or improvement which contribute to enhanced revenue (Santoro,
Ferraris and Winteler, 2019). In the case of the Essence drinks firm, sustaining

innovations can assist them in improving its goods and services, resulting in a much more
sustainable market presence and more profitable earnings.
Innovation funnel
The innovation funnel is the first phase in the development of an innovative concept,
product or service. It is a continual procedure that is provided with creative ideas that must be
carefully evaluated in order to show exceptional ideas. The innovation funnel's main objective is
to perform many creative training sessions in addition to assessing if or not a specific concept
will be helpful. The use of an innovation funnel enables the management to receive a continual
flow of new ideas through brainstorming sessions as well as its optimal utilisation benefits in the
sustainable provision of products and services (Loya and Rawani, 2017). In the case of Essence
drinks, effective funnel development could assist a firm in coming up with creative ideas to
enhance sales and profits.
P4 Latest advancement in frugal innovation and also examples of its use
Frugal innovation is described as the practice of generating and providing greater value to
customers at a reduced cost. It comprises reducing an item's complexity and expense and also
generating and processed at much reduced pricing. The primary goal of frugal innovation is to
design and create goods and services at a reduced cost for people who cannot purchase costly
items (AlQershi, Abas and Mokhtar, 2019). The creation of frugal innovations is vital in the firm
and some of the significant elements of frugal innovations are discussed below:
Advance technology: The usage of specialised technology helps to reduce the price of new
ideas, giving frugal innovators additional opportunity to advance more effectively and creatively
in company.
Growing market: It contributes to a more efficient increase in demand for low-cost items.
Environmental factors: The development of diverse environmental situations will increase
company desire for low items and services.
M2 The innovation funnel
In the situation of Essence drinks, frugal innovation can possibly enable the business to
generate a big number of customers by providing the greatest value at a significantly lower price.

It might help the company to introduce buyers who cannot afford expensive goods that will then
contribute significantly to improving the corporation's offering and efficiently improving its total
market performance. As previously mentioned, it's achievable by the utilization of improvements
in technologies or perhaps the ability for low-cost products will be greater when the firm
operates in a specified market (Rowe, Turner and Waterton, 2018). Applying frugal innovation
will help a firm increase their prospective consumer base while also increasing output and
profits.
M3 The role of frugal innovation
Mr. Kumar's achievement of frugal innovation in the establishing of a company in the
nutritious drinks industry might be extremely beneficial if used in it. The business department
would easily organize surveys and collect consumer input as well as collect information on the
items and decide where they might decrease expenses (Chaston, 2017). The data gathered by the
company may be used to devise methods for decreasing the price of its items at different stages.
Mr. Kumar could be capable to supply a variety of items at the company if the company is
established through the use of a variety of channels.
D2 Financial reports that correctly apply and analyze data for a range of corporate
responsibilities
Inventory is a term used to describe a product supply. Such goods are stored on-site at or
nearby a corporation's location in allowing for the firm to fulfil requests and fulfil its reason for
being. In order to keep the company running, the selected company must keep certain inventory
of raw and work-in-process materials. Moreover, in order to achieve the desired result, it must
keep a specific supply of manufactured products on hand. Processed Items inventory is
frequently managed by wholesalers or warehouses for the firm. So when finished goods are not
accessible in the framework of the selected company, it is hard to manufacture for multiple
vendors (Gengenbach, 2020). Enterprise Resource Planning platforms are used to completely
control all commodities, particularly all those undergoing transformation from raw to
manufactured, in addition to properly analyze earnings and permit the growth of marketing raw-
material expenditures. It contributes for around 5% to 20% of the inventory and is neglected

since its inventory cannot be examined. Being on an aeroplane, truck or boat does not eliminate
it from the inventory and in-transit inventory is important for maintaining good controls.
P5 The commercial funnel's importance and the usage of New Product
Development (NPD) processes
The commercial funnel, often known as a sales funnel, is a visual illustration of an
organization associated with the use of multiple methodologies for selling products and services.
There are several aspects of a commercial funnel that are discussed here as well as several
benefits producers receive in handling market demands. Using the New Product Development
approach to commercialise innovation would have a large influence on a large part of the
consumer base. There are several promotional methods available and it is important to use these
channels to grow a variety of products and services. Essence Drink should focus on extending its
product and service offerings in order to capture a big volume of consumers. Essence Drink was
enabled to capture prospects, interact consumers, produce leads and establish a client base by
utilising a commercial funnel. The proper use of frugal innovation would assist a corporation in
providing better value towards its consumers at a lesser cost, allowing the company to focus on
consumers who cannot manage to pay high rates. As rising market rivalry, each business's
demand for innovation is expanding (Bourke, Roper and Love, 2020). The development of new
drinks may assist the corporation in gaining a competitive edge and increasing business
revenues, allowing the firm to instantly fulfil the requirements of the customers by fulfilling its
expectations. Essence beverages that tries to create a new sort of drink, would assist the firm
grow market sales and customer base in this respect. In context to the Essence drinks, the new
product planning to innovative new range of drinks into the market is mentioned below:
Idea generation: It includes developing fresh new product and service ideas. For instance,
the company may desire to introduce a new line of beverages to the industry.
Idea screening: When an idea is developed, it is analyzed to check if it is appropriate.
Companies should evaluate the viability of their ideas.
Testing: The next stage is to examine the marketability of the innovations by testing them on
consumers. The Essence drinks firm could gather user feedback on the effectiveness of the
concept.

Market strategy: Following the verification of the idea, the following phase is the marketing
strategy, which requires the company to design several marketing techniques to identify their
clients including its particular selection of beverages (Supapawawisit, Chandrachai and
Thawesaengskulthai, 2018).
Feasibility study: The Essence drinks firm must analyse the item's sustainability by
analysing consumer wants as well as the amount of money the concept might produce in the UK
industry.
Product development: The next phase is product development where if the firm receives
good feedback through multiple of the prior phases, the organization could explore converting
the concept into a needed marketing approach.
Test marketing: At this step, the goods are sent to a range of consumers as a specimen for
review in order to determine market effectiveness.
Commercialization: The final phase is commercialization, in which the item is finally
launched to the market and become accessible to the intended audience.
The creation of new commodities allows for the introduction of a diverse variety of new
products and services into the industry, significantly increasing job possibilities. The adoption of
new product development and commercialisation funnel processes would assist firms with
efficiently releasing their goods into the market. This could enable the company to assess and
analyse the industry when releasing a new commodity, resulting in a profitable product portfolio
(Harel, Schwartz and Kaufmann, 2020). It can help Essence Drink to more quickly introduce its
products and services into the marketplace resulting in increased production and revenue. In the
instance of Essence Drinks, the firm must guarantee that its goods are of the highest grade in
addition to expand their market share. The firm can utilise different digital channels to
successfully conduct the promotional and distributional operation, which supports in the optimal
utilize of the available funds and competencies, thus adding to the efficient commercialization of
the entire technique. As previously indicated, the several new product development methods all
contribute to the effective generation of ideas and marketing campaigns. The creation of a
product and an efficient organisational analysis allow a firm to be evaluated by their employees
before entering the market.

P6 The innovative business case and funding alternatives of a company
A business case for innovation is a structured report that outlines the significance of a
corporation’s long terms aims and objectives such as its mission and vision statements.
Executive summary: The Essence drinks aim to create a new taste variation in addition to
enhancing sales and an innovative business case is also being developed in the company's
industry.
Mission: The business's mission statement is to maintain and provide quality and nutritious
drinks towards its targeted consumers.
The creative business case for Essence drinks that intends to bring a new range of beverages into
the market in order to enhance sales is mentioned below:
Vision: The business's vision statement aims to retain its position in the market while
increasing earnings.
STP strategy: Business analysts utilise the STP technique to analyze how segmentation
categories are separated and future markets are established. The STP in context to the Essence
drinks company is mentioned below:
Segmentation: The practice of dividing a huge corporation in smaller marketing
units is known as segmentation. When the selected company wishes to provide a variety
of nutritious beverages, it would attract those who are more health-conscious (Flavin,
2020).
Targeting: Considering targeting is the action of dividing a huge group into little
segments, the organization must precisely identify their intended audience.
Positioning: The use of strong marketing aims to establish a distinct position for
items in the eyes of buyers. To develop a certain position in the minds of their consumers,
a firm might use a number of marketing tactics.
Product innovation: Product innovation is the process of developing or bringing a fresh
and creative concept to existence. In the instance of Essence drinks, the business plans to
develop a new line of beverages in order to boost income.
Source of funding: The three major sources of funding are retained earnings, borrowing
assets and equity funding. In the instance of Essence Drinks, the company could well use
reserved revenues as a funding source because the company makes profits by selling products for
substantially more than their market worth (Van Lill and Agolla, 2017).