Innovation and Commercialization Strategy and Business Case Report

This report analyzes innovation and commercialization strategies for a business, specifically using Essence Drinks as a case study. It begins by differentiating between invention and innovation, highlighting the importance of innovation for business growth and competitive advantage. The report then explores how leadership, teamwork, culture, and organizational vision shape commercialization and innovation. It delves into various sources of innovation, the 4Ps of innovation (Paradigm, Product, Process, and Position), and the use of the innovation funnel. Furthermore, the report examines frugal innovation and its application within an organizational context, along with the New Product Development (NPD) process. A key component is the development of an innovation business case, including funding options and methods to measure overall effectiveness. Finally, the report assesses tools for developing, retaining, and protecting knowledge and intellectual property, concluding with an evidence-based evaluation of these tools within the broader business environment.

Innovation and
commercialization

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Explain difference between invention and innovation. Also mention importance of
innovation.................................................................................................................................3
P2 Explain how leadership, teamwork, culture and organizational vision can shape
Commercialization and innovation...........................................................................................5
M1 Analyse different sources of innovation, and how organization can foster and develop an
environment and culture of innovation.....................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine
and shape innovative ideas........................................................................................................7
P4 Explain developments in frugal innovation and provide how it is used in an
organizational context...............................................................................................................8
M2 Analyse and apply the innovation funnel in an organisational context..............................8
M3 Appraise the role of frugal innovation in an organisational context..................................9
P5 New Product Development (NPD) processing for commercialization of innovation.........9
P6 Develop an innovation business case for the company including funding options...........11
M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness............................................................................................................................12
P7 Assess the different tools that company can use to develop, retain, and protect knowledge
and intellectual property.........................................................................................................13
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment....................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation and commercialization is a set of activities that help the company in improving their
products and services and will also help in providing better satisfaction to the customers. The
improvement in the products and services of the company is made according to the preferences
of the customers so that the product and services can fulfil the requirements of the customers. In
case of essence drinks, it is the brand established by Mr. Akshay kumar and was established in
UK. The company was established two years before mango lassi which is a healthy drink. The
aim of the company is to provide nutritious drinks to the customers. In the given report, the
difference between innovation and invention is given. It also described the importance of
innovation. The report also includes processes that are required to commercialization of the
innovation that the company has adopted. The given report will also describe amount innovation
funnel and innovation frugal which is essential for the management of the company. It also
includes innovation business case which includes ways of funding and different tools that the
organization can use in order to protect their intellectual property is also given.
MAIN BODY
P1 Explain difference between invention and innovation. Also mention importance of innovation
Invention refers to creation or development of a completely new product that has not been made
before. On the other hand innovation refers to modifications in existing products in order to
make them somewhat different from the existing product (Bolli and et. al., 2018.)
.
Difference between innovation and invention
Basis for comparison Invention Innovation
End product New product Changes in existing product
Skills required scientific skills Technical, marketing and
strategic skills
Occurs when New idea invented by scientist Their is need for improvement
in current products.
concept Original idea with a working
theory
Practical implementation of
idea
Activities done by Research and development Anyone across the

department organization
Inventions refers to generation of a new idea, concept, design, discovery, method, creation that
has not been generated before. It refers to a conversion of a mere idea into actual and useful
products that has not been used by anyone before. The inventions made by the inventors can be
patented and protected under intellectual property law.
Innovation refers to change of an idea for improvement into actual improved product. Innovation
adds value to the product and services in term of efficiency as well as monetary value (Cao and
et. al., 2018.). It will help the company in providing products and services to the customers
according to their demands and will also help the company in providing satisfaction to the
consumers.
Importance of innovation.
Innovation helps company grow as innovation is a idea that is generated in order to increase the
efficiency and effectiveness of any product or services and modify them according to the needs
and demands of the consumer. It will help the company to provide better satisfaction to its
consumers and help company in retaining their customers.
Innovation helps the company to differentiate themselves from their competitors as innovation
process involves the whole organizations ideas and it will also help in creating some changes that
can benefit the company in the market and help them in gaining competitors advantage
(Daneshjoovash and et. al., 2021.).
In context to Essence drinks, the company was doing great in the first year of its business but in
the second year the business of the company started declining because of high level of
competition. At this level the company needs to understand that their is a need of innovation as
the customers are expecting something new apart from their competitors which can make the
drinks of the company unique. The company should detect the need for innovation and make
changes according to the consumer preferences and increase their sales and profits and can also
gain competitors advantage in the market.
P2 Explain how leadership, teamwork, culture and organizational vision can shape
Commercialization and innovation
Innovation helps the company in staying ahead of the competition in the market as the innovative
company always has better solutions for the management of the company as well as for the
processes of the product and services of the company. It is important for the company to

understand that innovative companies have better chances of survival as compared to non
innovative companies. The primary goal of any organization in adopting innovation is be be
ahead of competition and to improve existing products and services that can increase the
efficiency and productivity of the company and its offerings (Eckhardt and et. al., 2018.).
Commercialization entails the promotion of the innovation and creativity of the company to
consumers.
Company’s vision: The vision statement is a declaration by the company that outlines the future
goals of the organization that the company wants to achieve. It takes some time and is a
continuous working process for the company that enables the company to reach its goals and
objective usually within the time frame of five to six years. In context to essence drinks, the
company’s vision is to provide good quality nutritious drinks to its consumers by fulfilling the
profit goals of the company.
Leadership: This refers to the practise of encouraging a group of people generally refers to as
teams within an organization to make them collaborate with the company in order to achieve the
goals and objectives of the company with utmost efficiency and productivity. The leaders give
instructions to the followers in order to make them work according to the need of the company
and also helps them whenever they need. In case of essence drinks, the company’s leaders has a
motive to encourage innovation in the management of the company and also to increase the
efficiency and creativity of the staff of the company (Fisher, G.J. and Qualls, W.J., 2018.). The
leaders of the company helps in collaborating the management of the company to move ahead
with a common goal of achieving the objectives of the company.
Company’s culture: The culture of the company is determined with the beliefs, customs and
attitude and character of the organization and the workplace of the company. The culture of the
company refers to the norms that the staff and management of the company have to follow in
order to operate systematically and according to the rules of the company. In context to Essence
drinks, the company has to it has a culture that encourages innovation and helps the staff of the
company to become more and more creative and help in the development of the product and
services of the company.
Team work: The company must have the culture that promote team work for better efficiency
and effectiveness that can help the company in achieving the goals and objectives of the
company(Gbadegeshin, S.A., 2018, November.). The team work is basically collection of

individuals who work together in order to achieve common goals and objectives that align with
the objectives of the employees as well. In case of essence drinks, the teams of the company are
encouraged to work with optimum productivity in order to increase the efficiency of the team as
well that will help the company to achieve its goals and objectives. The company tries to align
the objectives of the company as well as of the employees so that they can work with a common
goal.
M1 Analyse different sources of innovation, and how organization can foster and develop an
environment and culture of innovation.
The unexpected: It states that the market is the best place to find ideas regarding innovation in
products and services of the company. The market will help the company to make changes in
their products and services that are according to the needs and wants of the customers.
The incongruity: It states that their is a difference between what the company is offering to the
market and what the market actually wants (Hahn and et. al., 2019.). The company needs to
understand the difference between the two but it can also be harmful sometimes for the company.
Process needs: It can be defined as task oriented process and will help the company in anlysing
business’s processes, weak and problematic areas and also in providing solutions for them.
Demographics: The wealth of the consumer and the population of the market is constantly
changing and it is essential for the company to understand these factors and make changes
according to these factors so that the company can align their products and services with the
requirements of the customers and their preferences.
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
The consistently changes and developments that the company makes in order to improve the
performance of products and services is known as innovation. The 4P’s of innovation are given
below:
Paradigm: It refers to the first step in the innovation process that helps the company in adopting
a framework that can help the company in getting known to the consequences that can arse in the
concept of the innovation (Ho, S.C. and Chuah, K.B., 2018.). It refers to the planned approach
towards the consequences that can arise and will also provide solutions for them as well. In
context to essence drinks, the company must make sure that they have proper management
framework that can help the company in development process of the innovation.

Product: It is the focus point of any innovation as innovation takes place in the products of the
company and the company makes innovation in the products in order to improve them according
to the needs and demands of the customers. It will also help the company in capturing market
share and in attracting more potential customers that can increase the sales of the company.
Process: It refers to the process that the company have to go through in order to make innovation
successful in the organization and in the products. It includes the methods that the company
adopts in order to efficiently market its products and services in the market and to attract
potential buyers of the products and services (Jarchow, S. and Röhm, A., 2019.). This process
helps the company in working systematically and with proper planning of the innovation.
Position: It refers to successfully establishing a brand in the market where they are giving tough
competition to its competitors. It is the position that the company has in the market along with its
products and services.
Incremental innovation: The continuous process of innovation in the products and services of
the company is known as incremental innovation. The company continuously move towards the
innovation and towards the improvement of their products and services.
Disruptive innovation: It refers to the growth and introduction of new valuation in the product
and services of the company. It is another form of innovation that the company can adopt.
Sustaining innovation: In order to create sustainable environment in the workplace, the
company can adopt sustainable innovation in their products and services. It will help the
company in creating a healthy environment in the workplace (Kazemi Azar, S., 2019.).
Radical innovation: It is the innovation that is on the basis of upgraded technology and result in
improvement of the workings of the company as well as in the products and services of the
company that can help the company in attaining competitors advantage.
Innovation funnel
The primary objectives of the company is to start giving training to the management in order to
gather creative and innovative ideas from the management of the company. It will help the
company in getting creative ideas that can enable the company in involving creative and
promising innovative ideas in the product and services of the company. It will also help in
promoting sales and profitability of the company.

P4 Explain developments in frugal innovation and provide how it is used in an organizational
context.
Advanced technology: The company has lots of type of innovation and the most common
innovation that the company has is of technological innovation. It helps the company in
achieving competitors advantage and will also help in attaining more efficiency and effectiveness
in the management in he workings of the company that helps the company in achieving their
goals and objectives with optimum productivity.
Growing market: The development and the innovation in the product and services of the
company helps the company in capturing the increased market share (Laurell, H., 2018.). It will
help the company in getting competitors advantage in the market which makes the company
better in the competition. Growing market share will help the company in achieving their
ultimate goals and objectives of profit maximization.
Environmental factors: These are the factors that helps the company in attaining sustainability
in the workings of the company. These factors helps the company to make sure that they are
working on the optimum productivity and efficiency. These are the factors that are related to the
environment and came into light when their is an increase in the scarcity of material, increase in
pollution, etc. It will also help the company in creating brand awareness and brand image as
people nowadays are more conscious about environment and are likely to support sustainable
companies.
M2 Analyse and apply the innovation funnel in an organisational context.
In case of essence drinks, using frugal innovation can be very beneficial for the company as it
will help the company in generating huge amount of customers and will also help in managing
their expenses (Liyanage and et. al., 2019.). It will enable the company to know about the
opinions of general people and allow them to make changes according to the taste and
preferences of the company. It will help the company in reducing their expenses and in setting
the correct price for the products of the company which is very beneficial for the company and
will also hep in increasing the sales of the company. It will attract more and more customers
towards the products of the company and will help in increasing brand awareness as well.
M3 Appraise the role of frugal innovation in an organisational context.
Frugal innovation method can benefit the company as it will help the company to identify
whether they need to make their expenses low and whether they have to keep their prices

according to the consumers or not. As the company is providing healthy drinks to the consumers
it can be very beneficial for the company to adopt survey method or use customers opinions in
order to make their products more suitable for the customers (Lopes and et. al., 2018.). It will
help the company in gathering information about why the company should reduce their expenses
and will also help the company in making changes. It is possible that the firm is established with
the help of various channel which allow them to offer variety of commodities to the consumers.
P5 New Product Development (NPD) processing for commercialization of innovation.
Idea generation: It refers to the stage where the company accepts ideas from the management
and sources of the company. They collect all the ideas that can help the company in innovation
and commercialization of the products and services of the company.
Idea screening: It refers to the stage where the company starts to scrutiny of the ideas according
to the benefits that the company wants from the particular idea (Maghsoudi-Ganjeh and et. al.,
2021.). It also choose idea on the basis of possibility that whether the idea is able to convert in to
reality or not.
Testing: It refers to the stage where the company starts to take development actions on the idea
in order to covert it in to an effective products innovation. At this stage the company starts its
initial workings on the idea and starts taking measures that are required.
Market strategy: It refers to the strategy that the company take in order to market the products.
It refers to the marketing strategy that the company find suitable for the product and services that
they are going to launch in the market. The strategy must be opted by the company with utmost
care as it is going to be an important part in the success of the products and the services.

Feasibility study: It refers to the study of the expectations that the company have from the new
product and services that is going to be launched in the market (Mat Jalaluddin and et. al.,
2019.). The company needs to make sure that the innovation in the product or the service is
according to the market and its requirements.
Product development: It refers to the stage where the product is actually ready to be launched
in the market for the customers to use. This is the first step where the company introduce their
first batch of products in the market so that they can see the reaction of the customers towards
the product and can make changes in the product according to the market.
Test marketing: It refers to the starting stage of the marketing where the company starts their
marketing strategy. This marketing is for the test in the market and has a scope of changes.
Commercialization: It refers to full fledged marketing and commercialization of the product
and services according to consumer preferences and according to the market (Min and et. al.,
2019.). The company starts to do marketing campaigns in order to increase the brand awareness
and to increase the knowledge about the products
P6 Develop an innovation business case for the company including funding options
Vision- The company aims that their common place must be sustainable and according to the
owner of the business this is the right way by which they can achieve the long term growth. The
sustainable living place will include to provide the positive social impact and creating awareness
to them and with that reduce the harmful impact on the environment.
Mission-The main mission of essence drinks is to add value in the life of people by producing
those goods which are of good quality and are useful in the daily life of the people. Their main

focus and mission is to provide the hygiene, nutrition products which will provide great and
excellent life to people.
Leadership- The leaders are the main asset for every company as they are responsible for
providing the right direction to people and on the other hand they also motivate the employees in
achieving the objectives. The leaders are the one who helps in achieving the success of the
business and are committed towards their work (Muizniece, I. and Blumberga, D., 2018.). The
leaders in essence drinks always support and give the motivation to employees to work in a right
manner and how they have to do the work with the feeling of motivation. Strong leadership and
leaders are important for the business as they aims to implement the values and the mission
which the company aims in providing the quality products for the better living of the people.
Culture- The company is the consumer good producing company and the success of the
company is directly linked with the culture of the company. Culture means the values, beliefs,
ideology, flexibility which is present in the workplace and which motivates the employees to
work harder. The leaders plays the important role for achieving the good work environment in
the workplace and if any changes has to be made then the change will be needed in other areas of
the company (Novikov, S.V., 2018.). The culture of the company is positive and there is
flexibility in the work place without having any restrictions and the employee of one department
can easily contact or communicate with the employee of other department.

M4 Build a detailed Innovation Business Case which includes how to measure its overall
effectiveness

P7 Assess the different tools that company can use to develop, retain, and protect knowledge and
intellectual property
M5 Present supported evidence-based evaluation of these different tools in the context of the
wider business environment.

CONCLUSION
From the above report it is concluded that innovation and invention is very important in any
business organization. It will help the company in improving the products and services of the
company. The products and services of the company must be changed continuously in order to
make the products of the company according to the taste and preferences of the customers. It will
help the company in understanding the behaviour of the customers more efficiently and will also
help in providing better satisfaction to the customers of the company. It will help the company in
retaining the customers and create a loyal customer base for the company. The company can also
get competitors advantage in the market will the help of innovation as technological innovation
can make the company more efficient and productive. The increased effectiveness and
productivity in the management of the company will help them in increasing their sales and in
increasing the profits of the company which is one of the goals and objectives of the company.
The involvement of innovation and improvement in the management of the company can provide
great benefits to the company.

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