Innovation and Commercialisation: YOYO Drinks Case Study Report

This report provides an in-depth analysis of innovation and commercialisation strategies, focusing on the case of YOYO Drinks. The report begins by defining innovation and differentiating it from invention, emphasizing the importance of innovation for business growth. It explores the values that support innovation, such as quality, individuality, trust, creativity, leadership, and accountability. The report then analyzes different types of innovation, including process, technical, administrative, incremental, and disruptive innovation, outlining their pros and cons. The 4Ps of innovation (Paradigm, Product, Process, and Position) are examined, highlighting how they support the management of innovation. The report also covers new product development processes and frugal innovation, offering recommendations for YOYO Drinks to revitalize its market position. The analysis includes practical applications and strategic insights, making it a valuable resource for understanding and implementing effective innovation and commercialisation strategies. The report concludes with recommendations for YOYO Drinks to innovate its product line and regain its market share by adding flavors to lassi and analyzing competitors' strategies.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Innovation and difference between innovation and invention................................................1
2. Value and Importance of Innovation Values and Importance that support innovation are:-. .2
3. Types on Innovation and their pros & cons............................................................................4
4. 4P's of innovation and how this supports capability and management of innovation............5
5. New product development processes and involution funnel used in innovative....................7
6.What meant of frugal innovation with example and recommendations for company.............8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In today's competitive world if an organization has to be different and competing they have to be
innovative. For the survival, growth and success an organization should produce such products
that have unique identification, quality that satisfy the customers need. With the new prevailing
opportunities in the market, the product should also meet the same standards. Innovation needs
new idea generation, creative thoughts, strong imagination power that can thinks in such manner
that attracts customers and fulfil their demands. Commercialization means establishing a new
product and making it available for the new market.
YOYO Drinks was established in 2016. Mr. Bond, is the founder and CEO of the
company. In the initial 3 years the company grow at a fast pace(Walsh, Lee and Nagaoka, 2016).
The company started with one drink (Mango Lassi) in UK market and was successful in
achieving high sales in its initial years as the concept of lassi was new to the UK market and due
to the high production and distribution capacity of the company.
TASK
1. Innovation and difference between innovation and invention
Innovation in this modern market is a basic requirement of a business. Innovation means
discovering a new concept or idea that produce such goods and services that are not only
acceptable by consumers but satisfy their needs in a way that is different from others. Innovation
involves initiation and imagination by which ideas are converted into new and useful products.
Innovation involves multiple ways to do a particular thing. In order to invent something
outstanding people need to think in exceptionally different way. With technological advancement
and increasing globalization, customers are more demanding and their expectation has risen to
another level. Changing trends has made organizations to think differently, generate new ideas,
apply different theories for management at all levels of organization. Innovation needs open-
minded leaders who are ready to face uncertainty and can bear risk and can handle changes as
these are the outcomes of innovation(Shakeel, Takala and Zhu, 2017). Innovative leaders are
positive minded as they dare to handle risk as the person has no idea about where innovation will
lead them. Innovation means anything new, new means progress, and only progress will help
organization to grow further. By attracting and retaining best talent an organization has a upper
hand over other organizations.
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DIFFERENCE BETWEEN INNOVATION AND INVENTION
1. Invention means producing a new product for the first time that means the product is
newly launched and initially try on capturing the market on the other hand innovation
means making improvement in the existing product which simply means the product was
already into market but now some changes are made in them.
2. Invention means developing a new product and innovation means adding value to the
existing product.
3. Invention is an original idea and working on it and innovation means practical execution
of new idea. Original idea is implemented and is brought to the market for the very first
time and executing a idea is a different concept it only includes adding changes to the
existing product.
4. Invention occurs when a new concept strike and innovation occurs when it is needful to
improve the quality of a existing product. New idea can strike when you see the
surroundings, study them and innovation comes due to technological changes and when
you know improving this product will make life easier(Datta, Mukherjee and Jessup,
2015).
5. Invention is concerned with single product whereas innovation is concerned with
multiple products.
6. Invention activities are limited to Research and Development Department and innovation
is spread in whole organization. As the new product basically need research about it,
what purpose it holds, whom to target and improving a product is the task of the whole
organization.
2. Value and Importance of Innovation Values and Importance that support innovation are:-
QUALITY
For the growth and development of any organization employees try to produce quality product.
As customer's nowadays are very conscious about their health as well living so they want quality
products and innovation is based on improving the quality of the product that satisfy customers
need(Rasmussen and Eliason, 2017).
INDIVIDUALITY
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The company respects every individuals skills, capabilities and new thoughts. Leaders analyze
every employees strengths and weaknesses. Employees work for their own development with
supporting their team members as well.
TRUST
Nowadays working environment is flexible and open. Employees trust their superior that their
ideas will be appreciated. Subordinate trust their superior that they will get support in work that
they do. Employees do not put each other down or take others appreciation.
CREATIVITY
Employees are the creator of new ideas. The company wants working environment to be friendly
and happening for employees so that they can feel comfortable and can be stress free.
Organization conduct brainstorming sessions that help employees think out of the box.
Employees don't work on themselves or have confident about themselves so organization has to
foster their talents that drive innovation(Polzin, von Flotow and Klerkx, 2016).
LEADERSHIP
Employees follow company's vision with their passion. They want to be leaders so they focus on
guiding the team and accomplishing company's goals. They know about their positive and
negative points. They believe in teamwork so depend on others for support because they know
working in a team will have much benefit then working alone.
ACCOUNTABILITY
Dedicated employees hold full responsibility of what they do. They analyse and then take
decisions that lead change for the right thing.
Mr. Bond, the founder and CEO of YOYO drinks can make a come back only when he brings
innovation in his product(lassi) as now he has too many competitors dealing in the same line.
And he also doesn't want to produce any other drink except lassi so he should probably innovate
the existing drink by adding different flavours. The company should first analyse the customers
preferences, what other flavours except mango they would prefer and then analyse their
competitors marketing strategy and what product they are offering. Then target the age group
which spent more on such drinks and what they prefer(Gosens and et.al, 2018). Adding flavours
like rose, blueberry and chocolates to their lassi and serving their old mango lassi can be
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innovated by adding some dry nuts so it can better its taste. The company should study about the
pricing strategy as well, what their competitors are following. According to the past once the
company should charge nominal price and when once again it captures the market and attain its
left position then should increase the price(). Company should also look about after sale services
or home delivery to increase sales.
3. Types on Innovation and their pros & cons
Process Innovation
When innovation occurs in the process, techniques, ideas and distribution procedure of the
existing products. It means establishing a new or improved method of production. Small changes
like increase in production capacity by adding new means in manufacturing. Production and
delivering techniques are improved. YOYO company should improve its production system
which maximizes the capacity of manufacturing system which will eventually maximize
productivity(Marx, M. and Hsu, D.H., 2015). Process Innovation means introducing new
technology which will be useful for the company, help in competing with the competitors and
fulfil customer demand. Online banking is one of the famous process innovation.
Technical Innovation
It includes applying new technology in producing new products and services that will minimize
production cost and add profits for the company. YOYO company should bring the technological
advancement in their production process that will help in making quality product (lassi).
Technological change will ease the working and will create value. This will provide with
competitive advantage.
Administrative Innovation
It refers to combination of human resources that help company achieve its goals. Making
changes in the administration of the organization will help them succeed and achieving their
goals fast. YOYO company will bring change in their organizational structure which will lead
them towards growth and development and will give them a competitive advantage from other
companies. Company should divide the work in small groups which will lead to teamwork and
better understanding of each other and this increase employee engagement(Schmitz and et.al,
2017).
Incremental Innovation
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Incremental innovation is the process of implementing small changes or bringing small
improvements in the production process of the company which improves the quality of products.
Simply making up gradation in the existing products of the company. For having an upper hand
over other competitive firms YOYO company can choose incremental innovation that will help
them gain market.
Pros of incremental innovation:
 Cost effective due to the new production system
 Time saving
Cons of incremental innovation:
 Less efficient worker due to new process
 Short life span of products
Disruptive innovation
When a company introduces bigger changes, when a new product, technology and ideas and
techniques are introduced that will ruin the existing technology. Disruptive innovation will help
YOYO company to grow further and have a competitive advantage above other firms(Polzin,
von Flotow and Klerkx, 2016).
Pros of disruptive innovation:
 Costly as investment is made in new technology
 Company has a advantage over other firms.
Cons of disruptive innovation:
 Take time to implement
 Difficult for workers to adopt new technology.
4. 4P's of innovation and how this supports capability and management of innovation
There are the 4P's of the innovation which gives company capability to manage
innovation effectively and efficiently and discover the innovation process which can improve the
business.
Paradigm: it is known as the implement innovation to generate more revenue from the business.
It is known as the radial innovation where new technique used for the different kind of product.
It is a process for the completely change the technology and idea for the new product. YOYO
company can provide different choices-on its product such as the Rose lassi which will be good
for the company to enter in the market with the new product. YOYO Compnay need to focus on
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the children for its product Which help the company to grow fast with the new product and
increases productivity.
Product: Product innovating can be beneficial for the company to increase the market of the
product and create a brand image. They can be done by adding the new flavour in the product
and also change and apply attractive packaging style(Bashmakov And et.al, 2015). As the
YOYO company selling the Drinks. For the product innovation Company need to add new
flavour in the lassi product and also provide it to the different-different packaging and quantity.
Company needs to provide the fresh product according the season which help them to increase
the customer towards the product also the company needs to change the packaging according the
customer which help them to attract the costumer.
Process: it is a technique of producing a product and the service. This also includes the
recruiting right people, provide training and supply the product etc. it is most important for the
YOYO company to recruit the best candidate with the required skill to improve the production of
the company and work smoothly for the company(Clayton, Feldman and Lowe, 2018). Craning
is required for the new employee so they can work with proper use for the technology. It will
increase the profit of the company as well as the production of the product and it reduces the cost
and time. Company will reduce the production price will also reduce the price of the product and
help the company to grow fast the new product(Datta, Mukherjee and Jessup, 2015).
Position: position is known as the positioning a product in such way that create the brand
awareness. It is the technique in which is used by the company to check the performance of the
product in the market. It is a process that make how company's brand is become aware in the
market and what the consumer thing about the new product. Like the company to position its
product with their slogan. They promote their product with this slogan.
YOYO company should engage in the product and process innovation which is beneficial
for the company. If company provide different flavours and attractive packaging then it attracts
the new costumer and managing the waste during the production and use martial which is
environmental friendly. This kind of change help the company to create the good image in the
society which help them in the brand awareness in the market(Gosens and et.al, 2018).
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5. New product development processes and involution funnel used in innovative
New Product development: it is process to introduced the new product in the market company
try to developing the new product because the change in the preference of the customer and
change in the technology and increasing competition.
Innovation funnel:in this model it will take the ideas on the basis of the context. It is most
common method which is used by the company. In this innovation it generates the idea for the
new product.
New product development and the innovation funnel is good for the YOYO company for
generating the new ideas for market and competitor analysis to find the need of the consumer and
also find that what competitor are providing the better than the YOYO company. Company can
use innovation fu fennel for the generate the large amount of ideas which can help in producing
the new product. After that Company will find out the best idea and use the idea for the new
product then evaluate market to sell the product(Henttonen and Lehtimäki, 2017). Company also
makes sure that the existing technology are able to produce the new product or not. After that
company will do analysis to check that this product will grow in the market or not. After the all
analysis the YOYO company need to develop product according to the report of the analysis then
company test the product in the market and check that the Costumers reaction and interest on the
product costumer liked by the product or not. If product are not attracting the consumer then
company need to change the thing which are not like by consumer and then reintroduce the
product in the market after making the all change according the reviews.
YOYO company wants to introduce the new product like Rose flavour lassi. Company
needs to check the life cycle of the product before developing the product(Kuratko and
Hoskinson, 2016). These are the Stages of product life cycle.
Introduction stage: at the starting of the new product. It is very difficult for the company
because in this process they need lot of money.YOYO Company makes the Drinks and in the
market they have lot of competition. If they fail in the new product they will face the loss of the
money and also the costumers.
Growth stage: in this stage company will take decision about the growth of the product
and make the decision about the investment on this product. YOYO Company take the decision
after the checking of their growth of the product in the market. Which help them in making plans
and strategies about the new product.
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Maturity stage: Company has developed product to achieve the particular target and
built the market share. In this stage the product has reached all its goals then company will take
decision about further changes that is needed in the product.
Decline stage: in this stage Finally the demand of product will start decreasing and the
product will decline after the particulate time period(Marx, M. and Hsu, D.H., 2015). Product
will not work in the market and this will affect the company and the end product are not work in
the market and it will disapear from the market.
6.What meant of frugal innovation with example and recommendations for company
Frugal Innovation:- in this innovationthe first stage it will analysis in reducing the cost of the
product and the production in the promising market. Frugal innovation also called the frugal
engineering. The frugal innovation works in the three phases cost reduction of product,
optimization the performance, concentration on the core functions of the product. Frugal
innovation can be used by the YOYO Drinks(Mollick and Robb, 2016). This innovation
technique used by the most of the developed companies. When the companies removes the not
necessary feature from the product to reduce the cost of the product like drinks used to improve
and increase there sales of the productwith the help of low pricing. Changing in the product also
increase the durability of the product and also the price will remain the low like the other
growing companies. This will increase the sales for the company but it has very small profit
margin. In this condition's the company will sell there product with the low margin of profit but
it is help for the company in future prospective. The benefits of the frugal innovation for the
company to increase the growth of the company in international market(Schmitz and et.al, 2017).
The market value of company will increase with the certain time. It helps the company for the
development and the modification in the product which attract the new customer and help to
maintain the existing customer. For example Jaguar is using frugal innovation in UK for
designing no-frills cars at lower cost for countries such as namibia .
YOYO company also need to use the frugal innovation at the time of launching the new
product in the market to get fat grow in the market. It provides the benefits to produce the
product at the low cost.
CONCLUSION
From the above study it can be summarized that the types of the innovation and values of the
innovation for the organization and also the importance of the innovation to the organization. It
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also summarized that pros and cons of the disruptive and incrementing innovation and the 4P's of
innovation in analysing capabilities of firm so that it can gain success in the market. It also
summarized that how Companies has to apply the new kind of things to attract the customer base
and also focus on the new product which help the company to grow the business and the new
product with the innovation.
REFERENCES
Books and Journals
Bashmakov, A.I. And et.al, 2015. Generic Heurorithm of Innovation Management from
Generating Ideas to Commercialization. European Research Studies, 18(4). p.47.
Clayton, P., Feldman, M. and Lowe, N., 2018. Behind the scenes: Intermediary organizations
that facilitate science commercialization through entrepreneurship. Academy of
Management Perspectives, 32(1). pp.104-124.
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Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&d Management,45(3).
pp.215-249.
Gosens, J. and et.al, 2018. The limits of academic entrepreneurship: Conflicting expectations
about commercialization and innovation in China’s nascent sector for advanced bio-
energy technologies. Energy Research & Social Science, 37. pp.1-11.
Henttonen, K. and Lehtimäki, H., 2017. Open innovation in SMEs: Collaboration modes and
strategies for commercialization in technology-intensive companies in forestry industry.
European Journal of Innovation Management, 20(2). pp.329-347.
Kuratko, D.F. and Hoskinson, S., 2016. Technological innovation: Generating economic results.
Emerald Group Publishing.
Marx, M. and Hsu, D.H., 2015. Strategic switchbacks: Dynamic commercialization strategies for
technology entrepreneurs. Research Policy, 44(10). pp.1815-1826.
Mollick, E. and Robb, A., 2016. Democratizing innovation and capital access: The role of
crowdfunding. California management review. 58(2). pp.72-87.
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.
Rasmussen, T.E. and Eliason, J.L., 2017. Military-civilian partnership in device innovation:
Development, commercialization and application of resuscitative endovascular balloon
occlusion of the aorta. Journal of Trauma and Acute Care Surgery, 83(4). pp.732-735.
Schmitz, A. and et.al, 2017. Innovation and entrepreneurship in the academic setting: a
systematic literature review. International Entrepreneurship and Management Journal,
13(2). pp.369-395.
Shakeel, S.R., Takala, J. and Zhu, L.D., 2017. Commercialization of renewable energy
technologies: A ladder building approach. Renewable and Sustainable Energy Reviews,
78. pp.855-867.
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