Innovation in Business: Report 1

Innovation and Commercialization: Essence Drinks

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 Innovation in Business: Report 2

Table of Contents

1. Introduction------------------------------------------------------------------------------------------4

2. About Company-------------------------------------------------------------------------------------4

3. Difference between Invention and Innovation---------------------------------------------------5

4. Organizational vision, leadership, culture and teamwork through Innovation--------------6

5. Forms of Innovation and the Four Directions of Change in an Organisation---------------6

5.1 Incremental Innovation---------------------------------------------------------------------------7

5.2 Disruptive Innovation-----------------------------------------------------------------------------7

5.3 Architectural Innovation--------------------------------------------------------------------------7

5.4 Radical innovation---------------------------------------------------------------------------------8

6. 4 P’s of Innovation and their Support in Management of Innovation in Business----------8

6.1 Product innovation---------------------------------------------------------------------------------8

6.2 Process innovation---------------------------------------------------------------------------------9

6.3 Position innovation--------------------------------------------------------------------------------9

6.4 Paradigm innovation------------------------------------------------------------------------------9

7. Recommendation to Adopt Radical and Incremental Form of Innovation------------------9

8. Importance of the Commercial Funnel----------------------------------------------------------10

9. Models of Innovation Funnels-------------------------------------------------------------------10

10. The Role of Frugal Innovation in an Organisational Context-----------------------------11

11. Development and Use of Frugal Innovation in Organisational Context-----------------11

11.1 Get Social----------------------------------------------------------------------------------------11

11.2 Sponsor Community Events-------------------------------------------------------------------12

11.3 Become a Resource-----------------------------------------------------------------------------12

12. Steps Involved Deriving New and Innovative Drinks in the Business----------------------12

13. Conclusion---------------------------------------------------------------------------------------13

14. References----------------------------------------------------------------------------------------14
 Innovation in Business: Report 4

Innovation and Commercialization: Essence Drinks

1. Introduction

In today's increasingly competitive business market, everyone can develop

new ideas. To be innovative, one must come up with fresh concepts or methods of

operation. Thus, incorporating innovation into any company may help owners and

entrepreneurs save time and money while also giving them a competitive edge to

grow and adapt their firm in the marketplace. In addition, the goal of innovation is to

generate profit for the organization as a whole. Commercialization occurs when a

business seeks to make a new product, service, or concept available to the broader

public. In order to achieve commercial success, a variety of factors must be taken into

account, including manufacturing, advertising, and revenue, transportation, and

customer service.

This study will provide an in-depth look at the referenced organization's

present position and significant operations. The value of innovation to a company's

workers will be discussed, and the difference between innovation and invention.

Mission, management, and environment drive innovation, and employees of the

chosen firm will learn about it. An invention funnel and 4Ps of innovation will be

explained in more detail later in this report. After that, the paper will discuss the

significance of the commercial funnel and the use of frugal innovation in creating new

products for commercialization.

2. About Company

This report examines the strategy for safeguarding ideas and explains the

benefits and drawbacks of Essence Drink's innovations. The Essence Drink is

operating in the UK and is specialized in selling solely healthy mango Lassi. In order
 Innovation in Business: Report 5

to generate more revenue, the firm plans to create a new drink that is both unique and

appealing. The firm should understand the various types of innovations and to

implement them to launch any new product (Rasmussen, 2010). The company wants

to create a new product, but they do not want to restrain Lassis because it is the

primary product of the business to earn revenue. As a result, Essence Drink seeks to

set itself apart from the competition by offering a variety of Lassi flavors in addition

to mango.

3. Difference between Invention and Innovation

'Innovation' is a Latin term that signifies 'new ideas' in their original form. As

a synonym, "new methods of doing things" may also be used. Creating new methods

of doing things is one of the key reasons companies today seek to innovate. It is a

critical step in every company's life cycle, and it has a direct influence on its success

in the marketplace (Ortiz-Villajos & Sotoca, 2018). Any aspect of a company may

benefit from introducing innovation, whether via the use of new ideas, inventions, or

technological advancements.

New concepts and ideas are often misunderstood as innovations. Innovations,

on the other hand, are the result of successful inventions. Invented products and

services are new products and services that have never been seen in the marketplace

and are not yet accessible. Electricity, for example, or even wireless communications

are examples of new technologies that have yet to enter the mainstream. On the other

side, innovation refers to the process of enhancing existing items to work more

effectively and efficiently (Kahn, 2018).

An invention is typically regarded as a service or product that has been

produced and evaluated by a business. A product or service that has never been seen

or used before is always considered an innovation (Kahn, 2018).

4. Organizational vision, leadership, culture and teamwork through Innovation

Essence Drink, a business subject to this report, necessitates that innovation

is a fundamental capability for competitiveness and that environments that encourage

new ways to do things and transform those ideas into possibilities be present. Leaders

must foster an innovative culture inside an organization through influence methods

that foster individual and group growth and development via the adoption of

behaviors, practices, procedures, and tools that serve as the cultural basis of the

Essence Drink. (Pathiranage, n.d.).

The characteristics of Essence Drink need to include effectiveness and how it

performs, which are embedded in its culture. Leaders should be held responsible for

cultivating a sense of innovation in their organizations. Essential Drink managers

must demonstrate their commitment and motivation to the strategies that support

innovation and cultivate a corporate culture that supports it at every level

(Pathiranage, n.d.). Essence Drink's strategic challenge is to keep coming up with new

and innovative goods and services that succeed in their markets. If Essence Drink

wants to keep innovating, they need to move their unique ideas out of the labs and

promote them across the company (Pathiranage, n.d.).

5. Forms of Innovation and the Four Directions of Change in an Organisation

Business innovation refers to a company's efforts to enhance the quality of its

products and services. For the products and services of businesses to attract

customers, they must use innovative approaches (Azar & Ciabuschi, 2017). Here, we
 Innovation in Business: Report 7

briefly outline four ways in which an organisation might transform. They are as

follows:

1. Incremental

2. Disruptive

3. Architectural

4. Radical

5.1 Incremental Innovation

When it comes to innovation, incremental development is the most prevalent

approach. It utilizes your present technology and provides value to your clients (in

addition to new products and design upgrades, for example) in your current economy

niche. Every company uses some type of incremental innovation at some point.

Current goods and services might have new features added, or they can have existing

ones removed are the attributes of this approach (Aldieri et al., 2019).

5.2 Disruptive Innovation

Disruptive innovation, often called stealth innovation, entails introducing new

technologies or methods to a business in the present market. Since newer technology

is generally inferior to that already on the market, it is considered a stealth strategy.

Many newer technologies are more costly, have a smaller feature set, and are more

difficult to operate (Aldieri et al., 2019). Apple's iPhone is a good example when it

comes to disrupting the mobile phone business. Before the iPhone, several prominent

phones depended on human input through buttons, keypads, or scroll wheels.

5.3 Architectural Innovation

Architectural innovation operates by taking lessons, skills, and technology

from one market and applying them in a new one. When applied to a new receptive
 Innovation in Business: Report 8

market, this invention may significantly increase the number of clients. However,

most of the time, architectural innovation entails a degree of risk since new markets

need changes in design (Aldieri et al., 2019). As an example, NASA's Ames Research

Centre made an effort to increase the protection of aircraft cushions in 1966. They

were able to do this by inventing a latest type of foam that, when compressed, returns

to its former shape. It was a huge success. Initially, it was promoted as a medical

product, prior to becoming a more popular option for mattresses. This "slow spring

back foam" technique comes under architectural development. Memory foam is the

name given to this kind of mattress (Aldieri et al., 2019).

5.4 Radical innovation

When we talk about radical innovation, we often mean "radical change." It

creates new industries (or eats up current ones), and it entails the development of new

and groundbreaking technologies. Even though airplanes were not the first means of

transportation, they have been revolutionary since they have enabled commercialized

air travel to flourish (Aldieri et al., 2019).

6. 4 P’s of Innovation and their Support in Management of Innovation in Business

Tidd and Bessant define the four P's of innovation: product, process, position, and

paradigm. They are explained as given below,

6.1 Product innovation

When discussing innovation, product innovation becomes the very initial concept

that comes to mind and represents the modifications in an organization's goods and

services (Arena et al., n.d.). To recycle some of the components that made up the grip on

their ball pens, BIC began manufacturing disposable lighters and razors.
 Innovation in Business: Report 9

6.2 Process innovation

Changes to how goods are made and distributed are considered part of

"process innovation." For example, with the introduction of a new product line in BIC

company while revolutionizing manufacturing and distribution methods.

6.3 Position innovation 

Innovation in positioning involves a shift in how products or services will be

presented to customers and a modification in the narrative being told about them

(Arena et al., n.d.). Some examples are female and male razors and pocket lighters to

burn cigarettes and the BIC Mega lighter, which can be used in the kitchen or on a

barbecue.

6.4 Paradigm innovation

Adopting a new way of thinking about how a company conducts its work and

sets its goals is known as "paradigm innovations" (Arena et al., n.d.). Ballpoint pens,

for example, were BIC's first focus when the company was created. Over time, the

corporation was able to gain a significant amount of ground on its competitors by

making several innovations and strong marketing initiatives. 

Because of this new perspective, executives at BIC realized that they might

also be considered an organization that makes throwaway plastic items.

7. Recommendation to Adopt Radical and Incremental Form of Innovation

However, Essence Drinks Company can do this in the given scenario by

introducing different and unique flavors to mango lassi like orange Lassi, pineapple

Lassi, litchi Lassi. The company needs to follow the radical and incremental form of

innovation in its business management. By applying a radical and incremental form of

innovation, the company does not need to change its nature of business. Instead, it only
 Innovation in Business: Report 10

needs to make minor but innovative changes in its drinks to sustain business in the

marketplace and develop new competition in the market.

8. Importance of the Commercial Funnel

The purchase funnel is another term often used for commercial funnel. When a

customer is considering purchasing a service or product, the commercial funnel depicts

the process they go through to get there. There are five stages in the commercial funnel:

awareness, opinion, consideration, preference, and finally, purchase (Vanhaverbeke et al.,

2017).

In order to bring a notion to fulfillment, a method and a product must come

together to produce a certain result. To satisfy a market need, the product must be readily

producible and cost-effective (Vanhaverbeke et al., 2017).

Managing the development funnel entails three distinct difficulties (Vanhaverbeke

et al., 2017). As a preliminary step, it is necessary to restrict the funnel neck so that only

the most promising possibilities are funneled through. After that, the tunnel has to be

widened to raise the volume of new business services and inventions and grow an

organization's expertise.

9. Models of Innovation Funnels

Models for the innovation funnel are available in two models. They are as given

below,

Model 1: Here, the company puts all of its eggs in one basket. Entrepreneurial and

small businesses often use this top-down strategy.

Model 2: This model is more technologically advanced and bigger in scale. The

corporation will depend on its research and development team to develop new

products and technology concepts (Wang, 2015).

10. The Role of Frugal Innovation in an Organisational Context

Frugal innovation is the process of reducing a product's cost and complexity. It

is the fundamental objective of frugal innovation to remove unnecessary items.

Product redesign for the benefit of customers, value chain reorganization, and the

development of new business models are all important ingredients of frugal innovation

(Leliveld & Knorringa, 2017). A more inclusive market may be created by tapping into or

overcoming organizational resources.

New applications are developed for this innovation in an expense- and resource-

constrained context. Product-focused descriptions of frugal innovation are likely to leave

out the reality that companies are frugal in the way they structure their operations

(Leliveld & Knorringa, 2017).

11. Development and Use of Frugal Innovation in Organisational Context

For a business to thrive, it must generate revenue from the sales. There are certain

unique and latest ideas that Essence Drink can execute. They are as given below,

11.1 Get Social: If the company wants to build a strong relationship with its

customers, it should use social media. The associate with a well-known internet

marketing business will be in charge of the business's social media profile (Hossain,

2020).
 Innovation in Business: Report 12

11.2 Sponsor Community Events: The Company should take advantage of the

marketing possibilities that will benefit its partners (Hossain, 2020). With this

partnership, the firm will increase its brand awareness in the primary market.

11.3 Become a Resource: To succeed, it must be a go-to resource for its most

important client. As a result, the firm will sell more products in the future. As a result,

the business must assist customers with advice, data, and other resources (Hossain,

2020).

12. Steps Involved Deriving New and Innovative Drinks in the Business

To introduce a new product, the business may introduce a drinking line with a variety

of flavours. Health drinks that come in various flavours may appeal to consumers looking to

expand their flavour profiles. One of Essence Drink's unique ideas might help the brand

increase revenue. The company may customize the healthy beverage and supply it directly to

the buyer's at their door-step. Advertising the goods may also be done digitally by the

business (Bouwman et al., 2019). If customers can order the products at home and deliver

them right to their door, they will be more likely to purchase them. A company in the United

Kingdom will deliver health drinks right to consumers' doors under the name Essence drink.

In terms of product promotion, advertising is a powerful instrument that cannot be

overlooked. There are several types of advertisements, and they all fall under one umbrella:

Mission, budget, message, medium, and measurement are the five advertising decision-

making factors (Bouwman et al., 2019). A product's features and benefits may be made

known to a wider audience using advertising.

It is also possible for the Essence Drink Company to do environmental testing on the

new product (Bouwman et al., 2019). In order to come up with an innovative business plan,

the corporation needs first to evaluate the total cost of the business in three phases include,

 Costs incurred by the business as a whole

 Estimated overall revenue for the business

 Estimated overall profit for the business (Revenue – Expenses).

13. Conclusion

In the United Kingdom, Essence Drink solely offers wholesome mango Lassi.

However, to escalate the revenue, the company is looking to improve a new and unique drink.

As an innovation consultant I would like to suggest that the corporation should be conscious

of the various kinds of innovations and how to implement them to launch innovative food

product. The innovation funnel and frugal innovations may assist when it comes to taking in

new ideas. Because of this, new product development addressed in the topic of Essence Drink

should be used for commercialization and innovation. Lastly, the Company should not

change the nature of its product instead it should add diversity in its flavours within same

nature of product.
 Innovation in Business: Report 14

14. References

Aldieri, L, Barra, C, Paolo Vinci, C & Zotti, R 2019, ‘The joint impact of different

types of innovation on firm’s productivity: evidence from Italy’, Economics of

Innovation and New Technology, pp. 1–32.

Arena, M, Cross, R, Sims, J & Uhl-Bien, M n.d., ‘How to Catalyze Innovation in

Your Organization’, vol. 58, no. 4.

Azar, G & Ciabuschi, F 2017, ‘Organizational innovation, technological innovation,

and export performance: The effects of innovation radicalness and

extensiveness’, International Business Review, vol. 26, no. 2, pp. 324–336.

Bouwman, H, Nikou, S & de Reuver, M 2019, ‘Digitalization, business models, and

SMEs: How do business model innovation practices improve performance of

digitalizing SMEs?’, Telecommunications Policy, vol. 43, no. 9, p. 101828.

Hossain, M 2020, ‘Frugal innovation: Conception, development, diffusion, and

outcome’, Journal of Cleaner Production, vol. 262, p. 121456.

Kahn, KB 2018, ‘Understanding innovation’, Business Horizons, vol. 61, no. 3, pp.

453–460.

Leliveld, A & Knorringa, P 2017, ‘Frugal Innovation and Development Research’,

The European Journal of Development Research, vol. 30, no. 1, pp. 1–16.

Ortiz-Villajos, JM & Sotoca, S 2018, ‘Innovation and business survival: A long-term

approach’, Research Policy, vol. 47, no. 8, pp. 1418–1436.

Pathiranage, YL n.d., Organizational Culture and Business Performance: An

Empirical Study, scholar.googleusercontent.com, viewed 23 February 2022,

<https://scholar.googleusercontent.com/scholar?q=cache:sjFKi2NNK-
 Innovation in Business: Report 15

UJ:scholar.google.com/+4.%09Organizational+vision>.

Skyword 2020, How the Marketing Funnel Works From Top to Bottom, Skyword.

Vanhaverbeke, W, Roijakkers, N, Lorenz, A & Chesbrough, H 2017, ‘The

Importance of Connecting Open Innovation to Strategy’, Strategy and

Communication for Innovation, pp. 3–15.

Wang, J 2015, ‘Structuring innovation funnels for R&D projects under uncertainty’,

R&D Management, vol. 47, no. 1, pp. 127–140.