Analyzing Innovation and Commercialisation at Essence Drinks

This report provides a comprehensive analysis of innovation and commercialisation strategies, focusing on Essence Drinks. It begins by differentiating between invention and innovation, highlighting the importance of innovation for modern organisations. The report explores various sources of innovation and assesses the role of organisational vision, leadership, culture, and teamwork in fostering innovation and commercialisation within Essence Drinks. It examines different types of innovation, the 4Ps of innovation, and the innovation funnel concept, applying these frameworks to Essence Drinks' context. Further, the developments in frugal innovation and its potential use at Essence Drinks are evaluated. The report also discusses how commercial funnels and new product development processes can benefit Essence Drinks in commercialising innovative drinks. Finally, it explores available funding options for Essence Drinks and methods for measuring the effectiveness of their business case, providing a thorough overview of their innovation and commercialisation efforts.

INNOVATION AND COMMERCIALISATION

Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1- REPORT...............................................................................................................................3
1. EXPLANATION OF THE DIFFERENCE BETWEEN INVENTION AND INNOVATION AND WHY
INNOVATION IS IMPORTANT FOR ORGANISATIONS TODAY.......................................................3
2. ANALYSE DIFFERENT SOURCES OF INNOVATION AND EXPLAIN THE CONTRIBUTION OF
ORGANISATIONAL VISION, LEADERSHIP, CULTURE AND TEAMWORK IN DEVELOPING AND
EMBEDDING INNOVATION AND COMMERCIALISATION AT ESSENCE DRINKS...........................4
3. EXPLAIN THE DIFFERENT TYPES OF INNOVATION AND THE CONCEPT OF 4PS OF
INNOVATION. APPLY THE CONCEPT OF INNOVATION FUNNEL AND ANALYSE ITS USE IN
EXAMINING AND SHAPING INNOVATIVE IDEAS IN THE CONTEXT OF ESSENCE DRINKS............6
4. DISCUSS THE DEVELOPMENTS IN FRUGAL INNOVATION AND EVALUATE ITS USE AT
ESSENCE DRINKS TO PROCESS INNOVATIVE IDEAS AND DERIVE A NEW AND INNOVATIVE
DRINK...........................................................................................................................................9
5. DISCUSS HOW COMMERCIAL FUNNEL AND NEW PRODUCT DEVELOPMENT CAN BE
ADVANTAGEOUS FOR ESSENCE DRINKS IN THE COMMERCIALIZATION OF INNOVATIVE DRINK
...................................................................................................................................................10
6. IN ORDER TO COMMERCIALIZE ITS INNOVATIVE DRINK, DISCUSS SOME OF THE AVAILABLE
WAYS FOR ESSENCE DRINKS TO ACCESS FUNDING AND ALSO DISCUSS HOW YOU CAN
MEASURE THE EFFECTIVENESS OF YOUR BUSINESS CASE USING APPROPRIATE TECHNIQUES
...................................................................................................................................................11
CONCLUSION.................................................................................................................................13
REFERENCES...................................................................................................................................14
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INTRODUCTION
The term ‘innovation and commercialization’ can be defined as the procedure of developing
new products and innovate the things in order to further development and growth of the
organization. In this assignment, the major focus is on the continuous development within the
marketplace that leads to competitive advantages. It is a more critical aspect for an
organization to continually innovate the things towards ensuring the competitive edge and
commercialization accordingly. The given case scenario for this assignment is about the essence
drinks; which was started by the Akshay Kumar that rapidly grown in the marketplace and rises
in the market by making an idea to launch Mango Lassi within the UK market. The significance
of innovation terms with the invention tactics will be reviewed with the different organizational
vision and leadership traits. Further, 4P's of innovation will be described in a manner that helps
in examine and shape the ideas of innovative terms or ideas of the organization accordingly.
New product development concepts and the commercial funnel will also cover the area that
gives the insight to build the innovation business administration towards accomplishing goals
and leading in the marketplace accordingly.
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TASK 1- REPORT
INTRODUCTION-
This task covers the aspects of invention and innovation techniques within the market in order
to develop new things and launches the new products or services; for gaining success. The
overall contribution of leadership, organizational culture, vision and the team working criteria
will be analyzed. Concepts of innovation funnel for identifying and shaping the new ideas for
the development will be also discussed.
1. EXPLANATION OF THE DIFFERENCE BETWEEN INVENTION AND
INNOVATION AND WHY INNOVATION IS IMPORTANT FOR ORGANISATIONS
TODAY
INNOVATION-
It is the most crucial part for the continual success of an industry. Innovation simply defined as
the new ideas or method that gives the solution to the organization for meeting with the new
requirements and developing their marketplace in more efficient manner.
INVENTION-
It is the procedure or an action for inventing new things or products. It transforms the
innovative ideas into valuable products that lead to success and helps in the enhancement of
competitive edge within the marketplace.
The term innovation has been categorized into two major parts such as process innovation and
the product innovation. With the higher competitive edge within the marketplace; all the
organizations have to launch new products as per the demands and needs of the customer
(Acklin, 2010). There are several kinds of people and all they have their own different needs; so
it is important to make the people aware and provide them with such services or goods.
Innovation becomes more essential part for any business administration in order to achieve
success. In order to penetrate the market; it is crucial to transforming the innovative ideas into
valuable services as per the increasing demands and current trends (Acklin, 2010). On the other
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hand, commercialization is the term that ensures success rate and growth of the company. It
also manages the business administration effectively.
According to the given case study, when Akshay Kumar has been launched new essence drink
called ‘Mango Lassi’ within the UK market; then he had achieved the success and rise in the
sales in the first year of launching. This innovative formula has been worked so far and
enhanced profit rate (Casadesus Masanell and Zhu, 2013). He launched healthy drinks within‐
the marketplace that helps in expanding his business. An innovative idea also maintains
sustainability within the organization and builds a healthy culture as well.
Difference between innovation and invention-
INNOVATION INVENTION
It is the activity or process that spread
across the company.
It is the activities that restricted to the R&D
centres.
Brings drastic changes within the market. Brings few changes (Charles, et al. 2017).
Innovation= invention + commercial
exploitation
Invention= innovation – commercial
exploitation
The significance of innovation as compared to the invention-
Innovation is most crucial and essential part for the development of an organization that
directly involves commercialization of existing products or services. While invention needs
some funding and ample amount of time for gaining the desired outcome as well. Innovation
resulted in continuous changes and maintains the healthy organizational culture accordingly.
2. ANALYSE DIFFERENT SOURCES OF INNOVATION AND EXPLAIN THE
CONTRIBUTION OF ORGANISATIONAL VISION, LEADERSHIP, CULTURE AND
TEAMWORK IN DEVELOPING AND EMBEDDING INNOVATION AND
COMMERCIALISATION AT ESSENCE DRINKS
There are seven major sources of innovation that give an insight into the appropriate ways of
searching for new opportunities in order to mitigate the risks factors. The first four sources of
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innovation can be easily implemented, which provide new opportunities to bring changes.
While last three sources are not that much clearer because they pose risks of failure.
These seven sources of innovation are –
 The unexpected
 Incongruities
 Process change
 Industry and market structure
 Demographics
 Change in perception
 New knowledge
ORGANIZATIONAL VISION-
The vision of the company called essence drink is to launch new healthy drinks for the people
so that they can also refresh themselves as well as get healthful products (Chesbrough, 2010).
The vision of the company helps in making new ideas or strategic decisions that lead to changes
and brings success as well. In order to the further development and growth; it is important to
have clear vision and goals that will be helpful to the commercialization.
LEADERSHIP-
It is the ability to guide other and encouraging team members for gaining success. Effective
leadership traits help in establishing new ideas with the directive path for the employees; so
that they can works accordingly towards achieving goals. It maintains the positive structure of
the company as well (Chesbrough, et al. 2014).
ORGANIZATIONAL CULTURE-
Positive working culture, strong relationship and effective communication among the people
help to motivate them. It gives potential to the workers to transform the ideas into valuable
things or services towards development and growth.
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TEAMWORK-
Teamwork helps in breeds the innovation terms if it is well integrated with the efforts of
people. It creates a positive work environment and turns the new ideas into valuable products
or services (Dodgson, et al. 2013). Effective team working criteria helps in gaining success and
with the full efforts or opinions of the people; it will be easier to acquire the predetermined
goals.
These abovementioned factors are majorly important, which contributes to the establishment
of innovative ideas of the company. These terms significantly help the Essence Drinks for
increasing their sales rate and profitability within the marketplace.
3. EXPLAIN THE DIFFERENT TYPES OF INNOVATION AND THE CONCEPT OF
4PS OF INNOVATION. APPLY THE CONCEPT OF INNOVATION FUNNEL AND
ANALYSE ITS USE IN EXAMINING AND SHAPING INNOVATIVE IDEAS IN THE
CONTEXT OF ESSENCE DRINKS
TYPES OF INNOVATION-
There are majorly four types of innovation has been categorized that breaks out into the two
dimensions i.e. Technology and Market.
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Figure: Types of Innovation
[Source: http://techblog.constantcontact.com/software-development/types-of-innovation/]
 Incremental innovation- it is the most common type of innovation that helps in
increases the value to the customers related to the features, design and changes within
the existing market.
 Disruptive innovation- it is also known as the stealth innovation that helps in applying
new technologies for the development of existing market (Drucker, 2014).
 Architectural innovation- this type of innovation is amazing increases the customer
base but most of the time; the risk is involved in this criteria.
 Radical innovation- it brings revolution to the industry and allows to the
commercialization process.
4P’S OF INNOVATION-
Figure: 4P’s of Innovation
[Source: David, 2016]
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 Product- it is the first thing of the innovation process that conveys the changes with the
organizational efforts. It helps in modifying the services or products that can fulfil the
gaps in existing marketing products. The Mango Lassi within the UK market; is the new
or fresh idea of Essence drinks.
 Process- it majorly refers to the changes in products or services that can develop the
market and fulfil the desire of customers accordingly (Ernst, 2015).
 Position- in this innovation term; market position is to take place that can be helpful for
increasing the sales rate of the services and products accordingly. Essence Drinks initially
identifies the market demands and position and then launches the new drink for the
public.
 Paradigm- it majorly comprises the different use of models and approaches for building
a team and making efforts to innovate things and developing marketing.
INNOVATION FUNNEL-
Innovation funnel is used for defining the development process that aims to meet the needs of
marketplace according to the trends on the basis of economic or manufacturing terms.
Figure: Innovation Funnel
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[Source: https://innovativedutch.freshdesk.com/support/solutions/articles/23000000406-
innovation-funnel]
It helps in describing the overall steps that are involved in converting ideas into the valuable
products. It comprises of three phases of development. In the first phase, the idea is generated
and relevant information on the market is collected (Ernst, 2015). Once data is collected then
screening or implementation of the ideas is taking place and the last step is the
commercialization of products. The essence Drinks have been utilized these concepts for
choosing the best appropriate way to accomplish goals and objectives by providing healthy
drinks to the people.
4. DISCUSS THE DEVELOPMENTS IN FRUGAL INNOVATION AND EVALUATE ITS
USE AT ESSENCE DRINKS TO PROCESS INNOVATIVE IDEAS AND DERIVE A NEW
AND INNOVATIVE DRINK
FRUGAL INNOVATION-
Frugal innovation can be defined as the process that can reduce the complexities within the
marketplace as well as the cost of manufacturing operations. It majorly refers to the removing
of non-essential features from the goods and services (Bhatti, 2012). This approach generally
used by the managers of the company for reducing the manufacturing cost and makes their
organization more profitable as well.
ROLE OF THE FRUGAL INNOVATION WITHIN ORGANIZATION-
Within the marketplace and in this competitive era, the frugal innovation technique is more
helpful and essential approach; by which it will be easier for the managers to reduce the cost of
the operation. It truly works even in the low sales that eventually benefitted the Essence Drinks.
As the founder has been utilized the economic innovation term that helps in maintaining
sustainability and develops the market rate (Goffin and Mitchell, 2016). By launching the
product; initially increases the sale rate that enhances profitability and gives the high customer
satisfaction also.
The frugal innovation within the Essence Drinks can be developed in several ways, such as-
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 By implementing new ideas and methods for developing the services or products might
be helpful to gain profit.
 By identifying the needs and demands of the customers and then providing them with
such required services like healthy drinks that can also maintain their life healthier. It
helps in enhancing the customer satisfaction also (Grunert and Traill, 2012).
 By collaborating with others and using different approaches in order to execute the new
ideas is helpful for improving the logistics or market share of the Essence Drinks.
5. DISCUSS HOW COMMERCIAL FUNNEL AND NEW PRODUCT DEVELOPMENT
CAN BE ADVANTAGEOUS FOR ESSENCE DRINKS IN THE COMMERCIALIZATION
OF INNOVATIVE DRINK
There are some of the following steps are to be considered that helps in converting the
innovative ideas into valuable products or services, are described below-
 Formation of strategies and ideas
 Analysis of the marketplace
 Clarifying the vision, mission and objectives
 Preparation of goods and services
 Developing products
 Commercialization
These aspects have been utilized by the Essence Drinks in order to convert their innovative
ideas into valuable goods or services accordingly.
CONCEPTS OF NEW PRODUCT DEVELOPMENT-
Different steps are involved in the overall process of NDP, that is described below-
Generating ideas- it is the first step, in which idea is generated for developing new products or
services within the marketplace according to the requirement of people (Helen, 2016).
Screening of idea- after generating ideas, screening of the planning is taking place in which
most appropriate planning has been chosen that will be helpful for the development and
growth.
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Development of concepts- when the idea has screened, then vision or mission is clarified to the
other team members so that they can also make their plans and works accordingly.
Business strategy development- in this process, strategies are to be formulated for enhancing
the profitability rate of the company. Promotional activities, branding, testing and evaluation of
the overall performances are lying under this category (Song and Oh, 2015).
Marketing test- after developing strategies, the evaluation of overall process has been taking
place in order to test the position of the marketplace.
Commercialization- it is the last step, in which product commercialization take place; where the
final decision is to be made towards accomplishing goals and providing required services to the
people as well.
The company called essence Drinks should utilize the commercial funnel and new product
development concepts in order to make things innovative and enhancing the profit rate. The
company provides healthy drinks to the general public that helps in increasing the customer
base and the brand value. By identifying the market position and the actual requirement of the
people; it is easier to make strategic plans and decision towards gaining competitive advantages
(Lee, et al. 2010). Feedbacks of the customers also play an important role in further
development that increases the quality of products. The commercial funnel allows the company
to explore the wider market scenario, which provides an easier segment of the marketplace
and increases the potential customer base accordingly.
6. IN ORDER TO COMMERCIALIZE ITS INNOVATIVE DRINK, DISCUSS SOME OF
THE AVAILABLE WAYS FOR ESSENCE DRINKS TO ACCESS FUNDING AND ALSO
DISCUSS HOW YOU CAN MEASURE THE EFFECTIVENESS OF YOUR BUSINESS
CASE USING APPROPRIATE TECHNIQUES
According to the case study of Essence Drinks that launches new healthier drinks for the
customers continually make plans for expanding their market. Within the first year of launching
the drink called Mango Lassi in the UK market; initially benefitted the organization and
increases the sales rate as well. After some time; the sales rate has been started decreases
because of the high competition within the marketplace and lower market cost (Leiponen and
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