Innovation and Commercialisation: A Business Report for YOYO Drinks

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Innovation and commercialisation

Table of Contents
1. Introduction..............................................................................................................3
2. Task 1: Business report..........................................................................................4
3. Explanation of the innovation and how it is different from invention................4
4. Discuss the value and importance of innovation to organizations and explain
how Sameer can turn YOYO Drinks into an innovative company.............................5
5. Provide an overview of the different types of innovation with a focus on
disruptive and incremental innovation, and explore the pros and cons of each
approach.........................................................................................................................6
6. Explain the 4Ps of innovation and how this supports capability and
management of innovation. Advise YOYO Drinks which form of innovation they
should engage in............................................................................................................7
7. New Product development (NPD) processes, innovation funnel and frugal
innovation....................................................................................................................... 8
8. Task 2..................................................................................................................... 10
9. Reflective statement..............................................................................................12
10. Conclusion.............................................................................................................13
11. Reference List........................................................................................................14

1. Introduction
Innovation and commercialization have been an important aspect in the modern day
world and it helps to transform the product offering and processes to remain competitive
in the market and use a commercially driven approach so that the return on investment
is maximized (Abu Daabes et al. 2018). This study will help to focus on the cutting edge
knowledge and the practical application of innovation and commercialization in different
organisations so that they can become innovative and deal with the competition in the
market. The study will be focusing on the context of innovation and will also derive a
difference between invention and innovation. Moreover, the study will also be focusing
on the different types of innovation that can exist within the midst of the modern day
industries and will discuss the process through which the different organisations can
commercialize and innovate the products and services to strive in the market and
increase its operations. Different methods will also be provided for idea protection and
for understanding the advantages and disadvantages of innovation and
commercialization.

2. Task 1: Business report
According to the scenario, it has been seen that a company named Yoyo drink has
faced a significant decrease in sales recently due to a large number of competitors that
have entered in the market and it is important for this company to innovate and
commercialise in the modern-day market to strive and deal with the competition. This
business report will focus on helping the company to evaluate the situation and present
recommendations so that the company can move forward and bring back itself into the
market of the United Kingdom (Driskill 2018). Yoyo Drinks was started 3 years ago and
it had only a single product that was launched into the market of the United Kingdom.
The sales of the healthy mango lassi were gradually increasing within the first three
years but it came down significantly when several competitors entered the market.
Therefore, it can be said that this company is the food and beverage company and it is
important for this company to innovate its products and services to deal with the
competition.
3. Explanation of the innovation and how it is different from invention
Innovation is associated with the involvement of the utilisation of information, the
ambition in procuring formative values from the numerous resources and incorporating
complex ideas to transform the commodities according to the prevailing demands of the
market. Innovation, in the language of management, can be described as the
modification or the development of the existing products, and when the company is able
to bring of these products from ‘Dog Position’ to the ‘Star Position’ in the BCG matrix
(Webb et al. 2018). This kind of transformation can be brought in the prevailing market
by the application and the updating of modern technologies and bringing on new
strategies in every department of the organisation so that they can play an efficient role
in the process and work with proper alignment towards the primary goal of the company
and the short term objectives. The invention is a slightly different topic and it can be
defined as the process of acquiring new and updated technologies or strategies that can
help an organisation or the working ambience to alter the way in which it used to work
before (Antonakis and Day 2017). The invention can be defined as the occurrence of a
new idea against a product or service or a new process that has never been made
before. It is much more like the creation of a new product.
Basis of
comparison
Invention Innovation
Meaning The invention can be defined
as the process in which there
is an occurrence of a new
idea product or process and
Innovation can be defined as the
implementation of an idea on particular
strategies upon the processes and the
commodities of the company so that

in this factor, a new product is
always made that has never
been made before
they can be changed but the product
may have been prepared by any other
people or companies before
What is it The invention can be defined
as the process of the creation
of a new idea or product
Innovation is much more concerned
with adding value to the existing
processes or products
Concept The concept of innovation is
always an original idea which
is working in theory
The concept of innovation is the
practical implementation of a new idea
or modifications of old processes
Skills Invention skills are generally
seen among scientists
The skills of innovation are seen among
people who have strategic, technical
and marketing skills
Concerned
with
Single processes Various processes
Activities R & D of a company All departments
4. Discuss the value and importance of innovation to organizations and explain
how Sameer can turn YOYO Drinks into an innovative company
Innovation is important as it allows every organisation that there is a development in the
processes and the commodities of the company which can help the organisation to deal
with the problems in the market and the competition in the current industry. The process
of innovation also helps the organisations to help in the growth of the company and to
understand the demands of the ever-changing markets (Dincer 2017). Innovation is
necessary for every organisation to keep up with the hopes of the customers as well as
satisfy their needs and demands which can only be attained through continuous
modifications of the products and services. It is likely that innovation can also maximize
the productivity of the companies which can also affect the annual turnover positively.
Innovation includes several procedures which have to be taken by the organisation like
the updating of the technologies, the changes in the strategies and recruitment of new
members which can also help the companies to reduce the cost of the products and
services and to deal with increased competitiveness in the market (Ernst et al. 2017).
When there is a positive change in the company, it can also help the organisations to
increase brand value and recognition and allow the organisation to increase turnover
and focus on the improvement of profitability. The utilisation of innovative procedures
can help the companies in the problem-solving process and can also allow the

organisations to gather insight and knowledge about several aspects in the market
(Kirkpatrick 2017).
It is important for Sameer to introduce innovation inside the company and therefore the
person will have to take care of several aspects during the process. One of the major
change that can be done by Sameer is that he can copy the ideas of some other
companies so that the changes can be brought into the product and services and even
costs can be reduced in the assembly lines (Kucuk 2017). This was done by Henry
Ford when the person was watching a meat packing plant and the same idea can be
taken by Sameer to develop the products and services. The second way that can help
Sameer is to carry on a survey or ask the customers for feedback on how to improve
the products and services. This is one of the best options used by multiple organisations
as these people can provide with plenty of ideas for incremental innovation which can
make the activities of the companies much faster, cheaper, easy to use and bring on
new ideas and styles into the commodities.
Sameer has to take care that the activities of the customers are observed properly as
these can help Sameer to find new ways just like what happened to Levis Strauss. The
customers started to reap the jeans and soon the company started to bring on pre-
ripped jeans into the market, which was a huge success for the company. It is also
important to allow the customers to provide the feedback about the difficulties and
complaints so that Sameer can make the required changes, innovate the products and
services so that the current inconveniences can be eradicated and the improvements
can be made (Liu et al. 2017). Sameer will also have to talk with employees of the
company so that their ideas can be used for the innovation and a proper plan will have
to be created so that innovations can be made properly. Brainstorming meetings can
also help to generate a large number of product ideas and sometimes it is important for
the company to outsource some of its activities so that they can focus more on the
innovation of the products. Use of open innovation will also help in the process. The
use of social media platforms can be used to Innovate the products and services as
well.
5. Provide an overview of the different types of innovation with a focus on
disruptive and incremental innovation, and explore the pros and cons of each
approach.
Incremental innovation can be defined as the process in which the company utilizes the
existing technology so that value can be increased among the customer’s existing in the
market. This is the most common type of innovation and most of the companies use it.
In this process, the company adds new features to the existing product or sometimes
even remove some features so that the values are much more focused and the
experiences of the users can be improved. This kind of innovation is useful as it is cost-
effective and can also help the customers to have a better experience of the
commodities. Another form of innovation is the disruptive innovation which is also
known as the stealth innovation (Mohajan 2017). In this process, the companies apply
new technology and processes to the company's current market. In this process, new
technologies are used and several iterations are made so that the existing product can

be changed totally and new product can be brought to the market with extensive
features. One of the major disadvantages of disruptive innovation is that the products
are generally laughable and sometimes the ideas fail to relate to the current market.
These types of innovations are very hard to complete and there are continuous changes
in the approach to make the products more effective.
Incremental innovation is important for staying competitive and the ideas introduced are
easy to sell. The developments of the activities are affordable however most of the
innovations have already been achieved and it becomes tough for the company to
differentiate the products from other companies and improve the offering to the
customers (Nagle and Müller 2017). Another type of innovation is the architectural
innovation in which the lessons, skills and technology are used to apply within a
different market. Radical innovation is another form of innovation which gives birth to
new industries and involves the creation of revolutionary technologies. Radical
innovation is not easy however if implemented, it can result in bigger wins. Architectural
innovation is very rare and one of the major disadvantages is that it is not open to new
players and it is not affordable as well.
6. Explain the 4Ps of innovation and how this supports capability and
management of innovation. Advise YOYO Drinks which form of innovation
they should engage in
The 4 P’s of innovation are as follows:
Product: To carry on with sustainable development, it is important for Sameer to
develop new and innovative products which can help in understanding the needs of the
customers and in adding value to the products used by them. In this stage, the
companies generally develop new products and services to cater to the refurbished
needs of the customers and most of the company focus on the creation of new products
so that the competition can also be dealt with (Park 2017). This is a factor that has to be
checked by Sameer as the company has only one product in the market and therefore
that product have to be launched to get the attention of the customers. Sameer will have
to focus on grabbing the attention of the customers and sustain in the dynamic market
of the United Kingdom by introducing new products.
Process: It is important for most of the companies to change the processes in which it
used to work before so that the modifications in the products and services can be put
into effect and the working ambience can be changed to develop the products in a
fruitful manner. It is important for Sameer to make some changes in the processes so
that the changes in the products and services can be made possible in the current
market and the use of these effective processes can help the person to acquire a new
product with minimum cost and maximum output in the market (Salmon et al. 2017).
Paradigm: This process is concerned with the way in which a change, especially a
radical change can be brought to the organisation and for the case of Sameer, it can be
the use of social media platforms for advertisements and online marketing. This is an
approach that can help the innovation to be much more profitable and shifting the

paradigm can help the organisation to have a better position and better products in the
market (Stim 2017).
Position: Sometimes organisations try to target different customers and introduce the
products and services offered by the company in an entirely new market or sometimes
launch a newly developed product in the existing market (Wang 2017). This element of
innovation is important and can help to acquire and satisfy new customers and retain
the existing ones. This can help to increase the turnover of the company and eradicate
the issues of targeting, positioning and segmentation.
7. New Product development (NPD) processes, innovation funnel and frugal
innovation
Innovation funnel can be used by the companies to monitor business innovation and
help them to bring on new ideas and concepts so that the product and services can be
rebuilt in the dynamic market. This can help to penetrate into the market and offer the
commodities to the prevailing customers. The use of the innovation funnel is as follows:
Investigation in the market
 Analyse the current market condition
 Considered various techniques and methods
 Develop relevant strategies
 Develop the working environment to sustain in the dynamic market
 Focus on the requirement of the customers in the UK to launch the new product
 Design the products in an effective manner
 Align the customer needs with the products created (Tukker and Tischner 2017)
Products and Service Development
 Detailed market research
 Understand the demand of the customers and indeed
 Making the changes in the products and services
 Cater to the different needs of the customers
Delivery of Innovative products
 Reach out to the customers
 Use of promotional techniques
 Social media marketing
 Proper execution can increase revenue (Weyrauch and Herstatt 2017)
Frugal Innovation
Frugal innovation can be defined as the process in which an organisation can ensure
the inclusion of new features in the already available product or an enhancement of the
path of business operation.
 This provides the organisation with a competitive advantage over competitors
 The company will have to ensure that available resources are utilised properly
 It is important for the company to earn sustainable development
 Frugal innovation can help the organisation to acquire advanced Technologies
 The new implementation has to be carried out as per the plan and the demands
of the market
Frugal Innovation and YOYO drinks

Sameer will have to introduce different business strategies so that the products and
services are unique in the market and are much more efficient. It is also important for
Sameer to acquire new technologies so that the individual can build an advanced and
extrusive working environment. It is important for the person to motivate employees and
make them feel comfortable with the new process for the development of the product
and service (Yun 2017). It is important for the individual to introduce training and
development sessions so that the employees can be adapted to the situation and the
process can be continued hassle-free.

8. Task 2
Yoyo drinks is a food and beverage company based on the United Kingdom and it has
only one product which is the mango lassi. The company has been operating in the
market for the last 3 years but it was facing significant decrease in the sales as there
has been an increase in the number of competitors in the market of the United Kingdom
and it is important for this country to introduce a new range of drinks and innovate the
products and services to capture the market again.
The innovation funnel was used by the company to innovate the products and services,
to deal with the competition in the market and to fulfil the demands of the customers.
First, it is used by the company to generate ideas and to help in the process of decision
making and in approaching new ideas to generate a better construction of the products
and services (Drahos 2016). Then it helps in idea evaluation and in this stage, the
company evaluates the relativity of the different markets and various ideas related to the
customers and their expectations. Whenever the idea is appropriate there is a approval
for the product which leads to the next stage of concept definition and it helps the
organisation to come up with better products. In this process, the company considers
several considerations like the technical practicability, the market potential and the
design of the product (Godin 2016). The next step is strategic analysis in which the
company will have to understand the feasibility of the idea and the company analysed
the demand in the market so that the product can be developed and the expenses can
be reduced so that the profit margin can be maintained. The company then focused on
the concept development and was able to understand the news of the users. The
company started to introduce various features which increased the handiness, usability
and performance of the products. Then the product was tested in the market and the
customers are asked for feedback. After the testing process, the company started to
commercialize the product and decide the pricing process so that the marketing and can
be started and the competition can be dealt with.
Some of the other drinks that are proposed by the company include the Litchi drink and
the Apple juice. The Litchi drink will be provided to the customers at a low price and will
consist of added vitamins and minerals for the benefits of the customers. The Apple
juice will be a carbonated drink and it will be created artificially using artificial flavours
however it will be sugar-free and free of any types of cholesterol. The products will be
created in such a way that it will be healthy for all kind of consumers and they will be
provided to the customers at lowest prices so that the company can penetrate into the
market and focus on increased sales (Jin et al. 2016).
Due to the rise in a large number of flavours, it has been important for the company to
introduce new flavours into the market and deal with the competition. With flavours like
coke and orange juice, it can be very hard for the company to attract more customers as
several large companies already have a lot of customers based on this flavours and
therefore it is important for this company to attract people who like different other
flavours (Knorringa et al. 2016). This would be likely to increase the sales of the

company in the future and also help the investors and the shareholders to make their
money within a short period of time.
The food and beverage industry of the United Kingdom is very much saturated and it
becomes very hard for the companies to strive in such a market. The competition in the
market of the United Kingdom is very high and therefore the company will have to deal
with innovative tactics to deal with the competition. Some of the major competitors
include brands like Coca-Cola and Pepsico which one of the largest players around the
world.
Particulars Amount (£)
Resources required 120000
Market research 125420
Desk research 125875
Product development 1245211
Promotion 210121
Expected sales and profits 4254212
Expected profits: 2427585
Methods of funding:
 Loan from bank
 Investment from investors
 Plough back returns
 Accumulated capital
Particulars Amount (£)
Loans 234500

Investors investment 254122
Plough backs 625125
Capital 675415
The operational team will have to be competent enough so that they can provide
significant experience to help in the creation of the drinks and the employees of the
company will have to be motivated towards the achievement of high target sales and
performing in different scenarios.
Some of the tools used by the company include the follows:
One of the major tools used by the organisation is a government patent in which the
government provides the rights to the organisation to have a certain innovative product,
of which the idea and service that cannot be copied or used by other companies at all.
This kind of equipment provides the organisation with a certain set of rights and with the
help of this; the company can carry on business without any fear of losing the products
originally created by them (Resnick et al. 2016). The company can also invest in
copyrights so that it can get extensive and comprehensive rights for a particular
creation. The advantage can be used by the company if any other companies use it and
the defaulters will have to pay damages along with the added profits to the company for
copying the creation. The company can also use a trademark and this can be an
advantage for the company as this is concerned with the lifetime of the company. This
generally increases the demand for the product and services and can also make the
customers understand that the company is unique in the market (Lei and Moon 2015).
9. Reflective statement
It was very hard for me to carry on the branch strategic innovation as I could not
understand the current condition of the market and the actual demands of the
customers. During the course of the study, I could understand about different problems
for which the company was facing a loss and the reason for which the company was not
able to make up the sales while other new entrants could do that. I was facing a
problem with understanding the concept of the commercial funnel. I was also facing a
problem to understand how this concept be used to provide a solution to the problem. It
was also hard for me to devise different innovative drinks so that the company can find
a solution to the problem and use this product to increase the customer base. It was
evident that the competition in the market was strong and it was important for the
company to develop an innovative product that could attract more customers especially
the ones who also prefer healthy drinks for a healthy life. It was hard for me and the
company to gather funds so that the company can carry on with the project and I