Innovation and Commercialisation Report: Leeds Brewery Analysis

This report comprehensively examines innovation and commercialization strategies for Leeds Brewery. It begins by defining innovation and its value, differentiating it from invention, and analyzing the significance of innovation through a PESTEL analysis. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It delves into the 4Ps of innovation, the innovation funnel, and frugal innovation, providing examples within an organizational context. The report also explains the commercial funnel and the application of New Product Development (NPD) for commercialization. A detailed innovation business case is created for Leeds Brewery, considering funding approaches. Finally, it assesses various instruments Leeds Brewery can use to create, hold, and protect knowledge and intellectual property, concluding with key findings and recommendations.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
P1 State innovation and find out its value to Leeds Brewery in relation with invention............1
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation................................................................................................................4
Organisational vision..................................................................................................................4
Task 2...............................................................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas. ...............................................................................................................6
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.................................................................................................................9
Task 3.............................................................................................................................................10
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation. ...................................10
P6 create an Innovation Business Case for Leeds Brewery, consider structure to approach
funding......................................................................................................................................15
Task 4 .........................................................................................................................18
P7 Measure the various instrument that Leeds Brewery can use to create, hold and protect
knowledge and intellectual property.........................................................................................18
CONCLUSION .............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In the present market scenario, there is a over throat cut competition in the market and
every organisation are trying to put competitor under their neck. To face market competition,
organisations must focus on innovation. Innovation in a business is considered to be as the main
engine for economic growth. Innovation is considered to be a process of matching the
expectations of the client through a change in business process, thus innovation is considered to
be a process of change. Commercialisation in a business is a practice for maximisation of Return
on Investment (Awni and et. al., 2019). This paper highlights the innovation and
commercialisation via undertaking Leeds Brewery, a known name in the British Brewery market.
The report is based on two-segment, first part outlines the innovation and its importance in Leeds
Brewery and concept of frugal innovation approach. The second part revolves around the nature
of innovation in implication to commercialisation and new product development funnel. The main
aim of this report is throwing light on the cutting edge knowledge of how an organisation can
drive innovation while remaining commercially driven.
Task 1
P1 State innovation and find out its value to Leeds Brewery in relation with invention
Innovation
Innovation is a need for the present market. Innovation is dramatically linked with
creativity; thus, innovation and creativity process are interlinked. There is a need for creativity in
finding a solution regarding the innovation process. Thus, creativity feeds innovation process.
Innovation is a novelty and change for solving a technical problem or to improve the productivity
of the firm. It has been found that innovation is both process and outcomes of the innovation
approach (Altaf, Hassan and Batool, 2019). Innovation activities are the valuable result of the
research & Development department efforts.
Invention
There is a fine line between innovation and invention, the only difference between the two
is nature of their potential results. Invention is the result of new action and outcome by the
process of actualising a new idea or thought. Invention is all about the occurrence of a concept
that has never been done before. The invented product can be patent, thus it provides security to
an inventor for intellectual rights.

Importance and value of innovation for Leeds Brewery
Leeds Brewery is an independent brewed company in UK who is selling both cask-
conditioned and bottled. In its recent business operations, Leeds Brewery has witnessed that
consumer lifestyle choices continue to drive innovation in the global beverage alcohol industry.
They have implemented thoughtful innovation in their strategic planning for being ahead in the
market competition (Li, 2019). Significances of innovation for Leeds Brewery in comparison to
invention are as follows: -
Importance Innovation Invention
Waste
minimisation
Innovation results from the
modification or change in the
existing product, thus innovation
add values to something that has
been already invented (Liu, and et.
Al., 2020). Most innovation process
in a brewing process is crafted for
efficiency and waste reduction.
When Leeds Brewery adopts an
innovative method in the production
of its beer, it supports them to cut
out unnecessary waste by redefining
beer recipes.
Furthermore, as per the concept of
invention, it helps in creation of new
things by using scientific knowledge
and research work. Leeds Brewery can
invent a technology that helps them to
minimise the waste of water in process
of preparation of beers. However, water
is crucial and valuable resource on the
earth, and minimising waste of water
enables Leeds Brewery to promote
CSR and business sustainability.
Abreast with
Brewing
technology
It has been evaluated that the nature
of beer production itself promotes
technological innovation.
Advancement in technology brings
many changes in the manufacturing
process to deliver quality of a
product. Technological product
innovation is helping Leeds Brewery
Technology empowers Leeds Brewery
to grow faster and provide customer a
an impressive service. Invention in
technology not only helps Leeds
Brewery to use most exciting
technology in beer production, but it
allows them to use the technology
which enables them to take competitive

to improve its performance and
redefine the product to deliver a
commercially successful product.
advantageous sword in their hand.
Need of modern
business
when people get bored with existing
things and they want something
new, this problem knock the door of
innovation, Hence, this problem
statement of consumer can be
opportunity for Leeds Brewery to
skim the market cream by
introducing a product that is unique,
attractive and exciting
Innovation is an outcome of invention,
when there is a need for improvement,
Leeds Brewery have R&D department
who are responsible to develop
scientific approach to fill the gap in the
process of innovation.
PESTEL analysis of Leeds Brewery
Political In UK approx, 15% people due to drinking beer that has more yeast and
bacteria, therefore many business shut and other are ban and tight guidelines
implementation for distributing beer. Therefore, to sidestep ban or disrupt of
business operations, Leeds Brewery should focus on the innovation practice
to gain support of the political party and remain sustainable.
Economy Globalisation and shared economy has deliverer enormous opportunities to
many organisation, so in order to stake the globalisation opportunities Leeds
Brewery to adopt innovation practices because many existing organisation
are stronger and has wider scope in compare to the it.
Social People are getting more health conscious and there lifestyle is changing as
many beer-addict wants to have some new lovely taste. Therefore to meet
society need and requirement innovation of the product and service is more
crucial because innovation meet the current society need and made product
more healthier and good (Hohenberg and Homburg, C., 2019).
Technology Technology revolution and market competition has turn the modern business
era into a contemporary market where it become hard for many marketer to
dependent on the traditional or outdated technology. It has been evaluated

that the nature of beer production itself promotes technological innovation.
Hence, Innovation is necessary in this technology revolution era.
Environmental Government and public argues many company to look after the
environmental concern as environmental condition are getting worse day by
day, therefore, to put best use of available scare and natural resources,
Innovation is practice best to advice sustainability in their business and
performance.
Legal There are certain laws enforced in brewery industry which act as the business
guidelines. However, certain earlier process of manufacturing are prohibited
or banned because these are hazardous not only for the drinker but also for
the worker too. This is because many machineries are old and they would not
give proper quality or it will be danger for worker to use outdated
technology. Hence, to avoid any lawful suit, Leeds Brewery need to
introduce innovation in its manufacturing and beer recipe.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation.
Crafting and generation of a new idea are the main purposes of innovation, innovation is a
business change model for improving operational productivity. The ultimate goal of innovation is
to draft commercialisation in the product and services. Commercialisation is a process of
introducing a new product and production method into commerce that is making it available into
the market (Cui, and et. al., 2020). It has been found that it is not that much easy to
commercialise a product in the market, a business has observed various factors that affect the
process of innovation and commercialisation. These factors are explained below:
Organisational vision
The company has their vision to provide its beer to all form of consumer no matter
whether they are classic session beer addict or premium kegged lager. Organizational vision is an
accumulation of organization's values. It establishes an outline for operational courses of action
and potential ways to subdue a threat. If organizational vision is clear then so will be the courses

of action and therefore it will be easier for the management to introduce change and focus on
innovation. In terms of commercialisation, the unique filtered product enables them to earn brand
value by taking an initiative to take concern about others life (Jafarizadeh-Malmiri and et.
al.,2019). Moreover, Leeds Brewery has a vision to be at top in the UK Brewery, thus they are not
afraid to take every initiative that drive innovation and commercialisation in the company.
Leadership:
Leadership is a process of leading and influencing people working in a company to
achieve business goals. Leaders at Leeds Brewery are accountable for directing and controlling
the work of people and diverting their actions to achieve set goals. In transformation of business
process, it is found that people are the main obstacle in the introduction of change. This is because
they are afraid that these changes would impact their performances and they may lose their jobs.
Leaders have strong contact with the people working at the organisation. Thus, it is the
responsibility of a leader for creating an environment where innovation thrives and provides the
resources and policies that feed the process of innovation ( (Parveen and et. al., 2019). An
innovative style of leadership elaborate that a leader is always seeking for new ways to solve a
business problem. On the other side, leadership also shapes commercialisation by motivating and
influencing people and developing skills to take that product into the market.
Teamwork
Innovation itself is a process that require unique skills and a team to fuel up the process of
innovation. A team is a dynamic concept in an organisation whose role is to complete a specific
task according to planning. To complete every type of job, Leeds Brewery has some team who
has a responsibility to drive innovation practices. If these teams work according to the
organisational goals and are also providing new idea and best services to the customer, Leeds
Brewery can able to achieve its objective easily and efficiently. Hence, team work quality is
significant when completing a innovative task. This is because there are frequent change and
unforeseen consequences when building innovation. In terms of commercialisation, team with
strong bonding and sharing knowledge and challenges can introduce product more effectively by
project tracking (Min, Vonortas and Kim, 2019)
Organisation culture
Organisation culture is defined as the sum of the values, norms and attitude of the
employees working at Leeds Brewery and the process of doing work in the company. It has found

that the culture which rewards creativity and motivates its employees to achieve personal growth
tends to achieve a better result from the innovation process. Commercially minded people are the
result of innovative organisation culture, thus an organisation promotes and develop commercial
skills also promotes commercialisation along with innovation (Stojčić, 2020)
Hence it has been concluded that a thoughtful innovative vision can thrive innovation
practices. If Leeds Brewery wants a culture of innovation, leadership must take the first step by
showing their intention and commitment. Communication to the team about innovation process
helps others to adopt innovation in their daily operations and only an effective team can drive
commercialisation along with innovation (Mat Jalaluddin and et. al.,2019)
Task 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
Innovation is a process that deals with crafting new ideas and thinking about new product
and service. There are 4Ps in the innovation mix which is much used by the Leeds Brewery. The
4PS of innovation mix model has been given by the John Bessant and Joy Tidd. Radical
innovation is has significant influences on the market and economic practices of the Leeds
Brewery,this is because radical innovation also known as the disruptive innovation. Radical
innovation concept centred on the effect of innovation as conflicting to its originality. Radical
innovation develop a dramatic changes because there are high uncertainty in radical innovation.
On the other hand incremental innovation exploits existing technology so there are low
uncertainty The 4Ps of innovation mix are product, process, position and paradigm.

(Source: 4Ps of innovation mix, 2020)
Product
A product is the main element of innovation mix because it is the item that is offered to
people. A product adds value to a firm when it sells it to a customer. Product innovation relates to
change in the origin and feature of the product to make it more valuable to a customer (Kazemi
Azar, 2019). Leeds Brewery introduces filtered beer which allowed them to remove yeast or
sediment from the raw beer and gives more bright clarity. However, in product innovation radical
innovation is high in compare to Leeds Brewery this is because Leeds Brewery does not make
filtered beer for only selling purpose but to introduce world a new product category in the brewey
industry that is health focused, hence incremental innovation is low in this product innovation in
context to Leeds Brewery.
Process
Process innovation deals with the change in the way things are created and delivered.
Innovation in crafting process brings changes in manufacturing pattern of the product. Leeds
Brewery adopts process innovation to reduce their labour costs and to thrive more innovation in
product. Incremental innovation is high in Leeds Brewery to provide filtered beer, changes in
their manufacturing process, they are using pasteurisation to heat the beer for removing any
micro-organism which survives in filtering to increase beer's lifespan. So under the process
innovation incremental level is high as Leeds Brewery modify their existing beer production
method by adding additional feature of pasteurisation to kill harmful bacterial. Moreover, this

approach help in cutting down the cost in beer production. Radical innovation can be applied in
process innovation
Position
Position innovation is adopted to bring change in the products to satisfy all types of
customer. An innovation in position lead Leeds Brewery to a new market segment with the
filtered beer product that has not been thinking been before and delivered yet by its competitor, so
under the position process of innovation both radical and incremental process are equally
contributor this is because through radical innovation firm stund their existing market supply of
beer and incremental innovation helps to get new customer which would act as the mouth
publisher for the firm.
Paradigm
Paradigm innovation affects the business this is because it changes the underlying product
portfolio and process that an organisation is doing earlier. With introducing filtered beer, Leeds
Beer also offers ketchup and fries along with a glass of beer this is because, in filtering and
pasteurisation, flavour and freshness has changed, so to avoid chances of losing customer due to
change in flavour , Leeds Brewery are offering fries with ketchup. Moreover, In surroundings of
radical innovation the current product is looking infective due to acceptance by the sophisticated
buyer, therefore incremental innovation is relied in paradigm process of innovation in context to
Leeds Brewery (Hsieh 2019).
Use of innovation Funnel of Leeds Brewery
Innovation funnel is a process of crafting new ideas by explaining steps through which an
idea can be best suitable for providing better services to customer. An innovation funnel is an
approach used by the Leeds Brewery for creating an innovative and realistic action plan. An
innovation funnel is used to develop as many ideas as possible, a major portion of these ideas will
be refined and transform into a concrete development plan (Niroumand, 2020). A funnel-like
shape is created because of synchronisation of the large idea into few.

( Source : commercial funnel mode, 2019)
The first step in innovation funnel in case of Leeds Brewery is to collect as many ideas as
possible. In performing this step, organisation expends its knowledge about how much this idea of
introducing filtered beer to a customer who has been addicted to unfiltered beer is effective. After
this, a different idea is screened to identify which are best supportable alternatives to subdue
threats associated with this action and to identification and acquisition of opportunities. After
selecting the best idea, resources are allocated to these opportunities, but resources are scarce, so
careful recognition of the yields is very crucial. The last step or last mouth or funnel execute that
Leeds Brewery ensures that the chosen ideas are tuned to be the organisation's objective and
finally execute the idea to actualise an idea into real action (Bolli, Seliger and Woerter, 2020).
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal innovation is an approach used to develop set of measures for reducing
unnecessary cost associated with cost of goods and its production to achieve more profits.
Through frugal innovation, Leeds Brewery can decrease the cost of crafting and fascinate
organisation to reach profitability via eliminating voids from the limited resources. Fugal
innovation is useful for Leeds Brewery by removing non-essential feature from the product
achieving quality that meet customer needs. Although it has found that frugal innovation operates
from the ground down instead to the bottom up strategy followed in the traditional innovation
approaches.
Illustration 2: commercial funnel mode, 2019

5 basic principles of Frugal Innovation.
 Engage and iterate- Iterate is all about repeating the task, under this appraoch in frugal
innovation it comment that a Leeds Brewery should make repeat and reparat use of the
technology until it stop from giving output.
 Find opportunities in adversity- Many time an idea is drop due to lack of avialabilty of
resource, but in frugal innovation organisation find opportunities in the adversity of the
resources.
 Making innovative friends- innovative ideas often comes with innovative surroundings,
so in frugal innovation it is better to make innovative friends that support maximum use of
scare resources.
 Keep it simple: while driving frugal innovation, it should be simple not so complex that
many sophisticated person can avoid this idea.
 Do more with less: Frugal innovation is all about doing more with limited avaiable
resources to obtain expected outcomes.(Min, Kim and Sawng, 2020).
Frugal innovation is also valuable to beer product and for brewery services by moving to
the lower level of buyer. However, Frugal innovation is not good for sophisticated buyer this is
because they may be not happy with the complex process that Leeds adopts in manufacturing of
filtered beer as consumer have to compromise with the flavour and freshness of the beer.
In case of Leeds Brewery, the aim behind adoption of frugal innovation is to manufacture
large number of Leeds Flittered Beer. These filtered beer is not limited to individual beer-addict
but to cover large group of consumer with the lowest money. The primary goal behind frugal
innovation is to reduce unnecessary use of limited resources available in manufacturing large
volume of filtered beer, but they should focus that they are not compromising with the quality of
beer. To commercialise its filtered beer in other backward region of UK and Europe, Leeds
Brewery develop frugal innovation to sell its filtered beer and services at a low price through
manufacturing filtered beer with less complex function. Thus, people living in poor economic
region of Europe can become their customer. Furthermore, development of frugal innovation
allows Leeds Brewery to cut down their R&D expenditure cost (Wang and et. al., 2020).