Innovation and Commercialization Strategies for London Essence Company

Desklib provides past papers and solved assignments. This report analyzes innovation and commercialization strategies.

INNOVATION AND
COMMERCIALIZATION
1

Table of Contents
INTRODUCTION............................................................................................................................. 5
LO1............................................................................................................................................... 6
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE IN COMPARISON
WITH THE INVENTION IN CONTEXT WITH THE LONDON ESSENCE COMPANY. 6
P2 EXPLAIN ORGANIZATIONAL VISION, LEADERSHIP, CULTURE AND
TEAMWORK FOR SHAPING THE INNOVATION AND COMMERCIALIZATION........7
M1 TO ANALYZE THE DIFFERENT SOURCES OF INNOVATION, AND HOW
ESSENCE DRINK CAN FOSTER AND DEVELOP AN ENVIRONMENT AND
CULTURE OF INNOVATION................................................................................................9
LO2............................................................................................................................................. 11
P3 EXPLAIN 4Ps OF INNOVATION AND THE USE OF INN0OVATION FUNNEL
FOR EXAMINING AND SHAPING THE INNOVATIVE IDEAS......................................11
M2 TO ANALYSE THE INNOVATION FUNNEL IN CONTEXT WITH THE ESSENCE
DRINK COMPANY................................................................................................................13
P4 TO DEMONSTRATE THE UNDERSTANDING OF FRUGAL INNOVATION WITH
RELEVANT EXAMPLES IN CONTEXT WITH THE COMPANY....................................13
M3 EVALUATE THE ROLE OF FRUGAL INNOVATION IN CONTEXT WITH THE
LONDON ESSENCE COMPANY.......................................................................................14
D1 CRITICALLY ANALYSE HOW INNOVATION IS DEVELOPED, EMBEDDED AND
MEASURED IN CONTEXT WITH THE LONDON ESSENCE COMPANY...................15
LO3............................................................................................................................................. 16
P5 EXPLAIN THE IMPORTANCE OF THE COMMERCIAL FUNNEL AND
APPLICATION OF NEW PRODUCT DEVELOPMENT PROCESSING FOR
COMMERCIALIZATION OF INNOVATION.......................................................................16
P6 BUILD AN INNOVATION BUSINESS CASE FOR AN ORGANISATION,
INCLUDING WAYS TO ACCESS FUNDING....................................................................16
M4 TO BUILD A DETAILED INNOVATION BUSINESS CASE WHICH INCLUDES
HOW TO MEASURE ITS OVERALL EFFECTIVENESS USING APPROPRIATE
TECHNIQUES AVAILABLE TO TEST, ITERATE AND IMPROVE................................17
LO4............................................................................................................................................. 19
2

P7 EVALUATE THE DIFFERENT TOOLS THAT LONDON ESSENCE COMPANY
CAN USE TO DEVELOP, RETAIN AND PROTECT KNOWLEDGE AND
INTELLECTUAL PROPERTY.............................................................................................19
M5 PRESENT SUPPORTED EVIDENCE-BASED EVALUATION OF THESE
DIFFERENT TOOLS IN THE CONTEXT OF THE WIDER BUSINESS
ENVIRONMENT....................................................................................................................19
D2 CRITICALLY EVALUATE THE NATURE OF INNOVATION AND THE CONTEXT
IN WHICH IT IS DEVELOPED, PROVIDING EVIDENCE-BASED JUDGEMENTS ON
HOW ORGANISATIONS CAN OVERCOME CHALLENGES TO DEVELOP
SUCCESSFUL INNOVATIONS..........................................................................................20
CONCLUSION...........................................................................................................................21
REFERENCES.......................................................................................................................... 22
3

INTRODUCTION
The report will lay down the emphasis on the growth and development of the
organization in context with innovation and commercialization. As there is a huge
competition increasing on a regular basis and to meet such challenges there is the
requirement of introducing the new products in the market. With the help of this, the
organizations are able to sustain in the market and become successful in the constantly
changing business environment. In this report, the case scenario of Essence Drink will
be explained. It is a UK based company which sells drinks prepared from natural fruits
that are low in calories. Now due to the huge demand of the products the innovation
manager of the company is planning to introduce the new drink products. The difference
between the invention and innovation will be explained and how the leadership and
culture of the organization affect innovation. The appropriate form of innovation will be
suggested to the company and will identify the methods that are to be utilized for
processing the innovative ideas. The necessary steps are to be involved in developing
innovative products in the company. In the context with the organization, the report will
also include the innovation funnel and frugal and will commercialize the process of
innovation.
4

LO1
P1 EXPLAIN INNOVATION AND DETERMINE ITS IMPORTANCE IN
COMPARISON WITH THE INVENTION IN CONTEXT WITH THE LONDON
ESSENCE COMPANY
Generally, innovation and invention are not having much difference as both refer to
launch the new products in the market. But in this segment, the differences between the
two will be explained and the application of the same in the context with Essence
Company will be discussed (Datta et al., 2015).
Innovation: The term innovation defines the transformation of ideas into the physical
form of products and services which create the value to the customers and also satisfy
their needs of the customers by providing the innovative products. Innovation also
includes the process of imagination, ideas and there is the effective utilization of
resources. London Essence Company is planning to provide innovative drinks to the
customers by enhancing its customers base by selling low-calorie drinks in the UK
market (Mollick and Robb, 2016).
Importance of innovation:
Innovation is important in any organization because to compete in the market with the
dynamic business environment and it will be done by introducing the quality products
and making the changes in the existing products (Datta et al., 2015). Innovation also
enhances the profitability of the company as the customers will get more innovative
products. Thus essence drinks have adopted the innovation factor in the manufacturing
process of drinks which will satisfy the customers at6 the best level with the best quality
(Mollick and Robb, 2016).
Invention:
Invention means to introduce the whole new product with the new idea and also
involves the intellectual rights on the property of the inventor which can be registered
through the patent of law. The inventions made are generally unique from that of the
competitors in various forms.
Comparison between Innovation and Invention:
Basis for difference Invention Innovation
Meaning Invention means to
introduce a unique product
through different idea,
concept and convert such
idea into physical products
and services (Coccia,
2018).
Innovation means to
improve the existing
products and services by
new ideas for achieving
success in the competitive
market (Coccia, 2018).
5

Associated with The invention is
associated with generating
new products (Coccia,
2018).
While innovation is related
to changing existing
products with creative
ideas (Coccia, 2018).
Features There is the requirement
of skills and competencies
and sound financial
support.
There is the requirement
of knowing the changes in
the business environment
and the changing needs of
the customers and thus
requires the same features
as the invention.
Idea It includes both the theory
and the application of
theory in business
operations (Coccia, 2018).
It includes the execution of
the ideas in the existing
business operations
(Coccia, 2018).
Concern Generally, it is concerned
with introducing a single
product and service.
It is concerned with
associating the different
products and services.
Activities Invention activity is part of
the research and
development department
of the organization
(Coccia, 2018).
Innovation activity is part
of every department of the
organization (Coccia,
2018).
Therefore, for Essence Drinks Company, to introduce the new products and to bring
changes in the existing products, the company is required to focus on both the invention
and innovation process (Coccia, 2018).
P2 EXPLAIN ORGANIZATIONAL VISION, LEADERSHIP, CULTURE AND
TEAMWORK FOR SHAPING THE INNOVATION AND COMMERCIALIZATION
The employees of the organization are required to work as per the defined vision,
mission and goals of the company. To encourage the employees in an organization, the
organizational aspects of culture and leadership are very significant.
Vision: there is always a vision behind the success of an organization. The vision of
London Essence Company states that its people, portfolio, partners, profit and
productivity serves as the background and accomplish with the company’s objective in
order to achieve the sustainable growth (Kim and Yoon, 2015).
Leadership: London Essence Company has adopted the leadership strategy which
enables the leaders and managers to administer the workforce. The leaders of the
company follow the participative style leadership in which they emphasize on
developing and enhancing the employees by taking their decisions into consideration. In
6

this way, the manager provides the motivation to the staff so that the innovative ideas
are formulated by cooperation and also gives the suggestion to their queries (Kim and
Yoon, 2015).
Culture: Another factor that affects the organization to bring the changes in the
company is culture. London Essence Company has a culture that emphasizes on
influencing and developing the innovative changes. It will also help the company in
inspiring the employees so that they can work innovatively and in an effective manner
which will enhance the productivity of the organization with best possible solutions (Kim
and Yoon, 2015).
Teamwork: the teamwork of the employees is very important to work for formulating
new ideas at the workplace. There are cooperation and coordination among the
employees which leads an organization to the way of success. The teamwork in
Essence Company works on defined objectives and effectively copes up with the
challenges that are faced by the organization in the ongoing business environment (Kim
and Yoon, 2015).
7

M1 TO ANALYZE THE DIFFERENT SOURCES OF INNOVATION, AND HOW
ESSENCE DRINK CAN FOSTER AND DEVELOP AN ENVIRONMENT AND
CULTURE OF INNOVATION
There are various forms of innovation which will be used by Essence Drinks Company
to improve and increase the growth of the organization and ensures that the
organization reach a new level. Following is the explanation of the given various forms
of innovation introduced by Peter Drucker (Arfi et al., 2018):
Figure 1: Sources of Innovation
(Source: Arfi et al., 2018)
The unexpected: There are different types of opportunities that are provided by the
market to the organization. The managers of London Essence Company always try to
identify the opportunities by conducting a continuous market survey. It will also evaluate
the demand for drink products in the market (Arfi et al., 2018).
The incongruity: Incongruity means inconsistency. There is always an inconsistency
between the acts that are to be performed or not. It is the fundamental key behind the
success of the business in a complicated manner. It influences the innovation within the
organization and makes a successful organization (Damanpour et al., 2018).
Process Needs: in this process, the weakness of the organization is identified and the
necessary step is taken to overcome the situation. Thus it is the activity oriented
process which evaluates the sources of innovation and the respective methods to
conduct the business (Damanpour et al., 2018).
8
The
unexpec
ted
Demogra
phics
Sources of
Innovation
incongru
ities
process
need
channgesz
inn
consumer
perceptionn
new
knowledge
Changes in
industry
annd market
structure

Changes in the industry and structure of the market: The changes that are
associated with technological advancement. Thus at London Essence Company, the
managers are required to be updated with the ongoing trends so that the necessary
steps are taken to bring the innovative change in the organization (Damanpour et al.,
2018).
Changes in opinions/perception: As the time spends, the perception of the customer
towards the products also changes. So the company is required to focus on the needs
that are developed from the customers (Damanpour et al., 2018).
Demographical changes: There are various demographical changes that affect the
company to take innovative actions such as changes in the level of income, different
age groups, level of education, and customer preference. Thus it is the responsibility of
the company to consider the continuous changes in the demographics (Damanpour et
al., 2018).
New Knowledge: There are various opportunities that are associated with
technological advancement. Thus the London Essence Company is required to
enhance the process by formulating the innovative planning and technology
(Damanpour et al., 2018).
9

LO2
P3 EXPLAIN 4Ps OF INNOVATION AND THE USE OF INN0OVATION
FUNNEL FOR EXAMINING AND SHAPING THE INNOVATIVE IDEAS
With the help of the innovation mix, the business organization is able to generate profits
and describes the process of innovation which will improve organizational improvement
(Akgun et al.,2017):
Following are the given models that describe the innovation mix:
Press: it involves the environmental culture and climate which enables the organization
at the level of innovation. In this aspect, it includes the process, the people that work in
the organization and the products are generated. Press is being analyzed by the gap
evaluation, conducting surveys and developing innovative ideas (Akgun et al.,2017).
People: it depicts the issues which link with the individual that works in the organization
and identifies every dimension such as difference among the employees and the
teamwork. There are different types of people that contribute to the organizational
innovation such as the developer, the educator, the implementer and the clarifier
(Akgun et al.,2017).
Product: it is the most efficient and important innovation mix which includes the
methods of the process that generates innovative products and services. It includes
characteristics such as uniqueness, creativeness and relationship (Akgun et al.,2017).
Process: in this innovation mix, it generates the products through some process which
includes the introduction of innovative products and services by executing the ideas
(Akgun et al.,2017).
Innovation Funnel:
Figure 2 Innovation Funnel
(Source: Rubin and Abramson, 2018)
10

In the innovation funnel, the innovation process is analyzed and the organization uses
such process of innovation for innovating the quality products. Such innovative products
are developed which helps the organization in meeting the needs of the customers. The
idea should be measured for verifying the feasibleness of the idea generated which will
help an organization to reach the defined goals. The possibility of the idea is verified by
passing over the various stages and then screening the unwanted part and reaching the
outcomes. The filtering of the idea is done which removes the undesired part of the
idea. There are three steps involved in the innovation funnel such as development,
product delivery and investigation. The investigation stage includes the process of
filtering the idea and which selects the best alternative and thus moves to the stage of
development and finally delivers the product (Rubin and Abramson, 2018).
11

M2 TO ANALYSE THE INNOVATION FUNNEL IN CONTEXT WITH THE
ESSENCE DRINK COMPANY
London Essence Company has utilized the innovation funnel as given below and which
is described as under:
Figure 3 Innovation Funnel
(Source: Rubin and Abramson, 2018)
Engage and Inform: this is the 1st stage which transforms the conceived idea into the
formulation and implements it in developing the products at the London Essence
Company. It also includes data collection and collects the data and detailed information
from different sources (van den Ende et al., 2015).
Admit: In this stage, after the data collection, the screening of the idea is done which
identifies the best alternative and selects the best idea which will help in generating the
business of London Essence Company and will ensure that the business is able to
achieve the desired objectives. Identifying the best idea will result in best possible
outcomes (van den Ende et al., 2015).
Selection: In the selection stage the innovation funnel is applied i.e the most suitable
idea which is selected in the 2nd stage is being executed for developing and growing the
business of Essence Co (van den Ende et al., 2015).
P4 TO DEMONSTRATE THE UNDERSTANDING OF FRUGAL INNOVATION
WITH RELEVANT EXAMPLES IN CONTEXT WITH THE COMPANY
Frugal Innovation: In the frugal innovation, the various business environmental factors
are identified which affects the industry. Through this, the business organizations are
12