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Introduction of Innovation and Commercialization Assignment

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As the world is growing rapidly, innovation in every aspect has become the most important and inevitable part of business organizations. As per Kahn, (2018), Innovation creates a new dimension in the existing genre and gives a glossy finish to the development and growth of the commercial fields. Invention and innovation are equally important for the growth and development of any organization. Innovation helps in the modification and improvement of the existing products or services with the help of innovative and new ideas. Innovation and invention are important and these two have become the most integral part of any business because without these two no business organization can maintain its sustainability. As stated by Watson, (2017), Invention refers to discovering, designing, and creating a new product, device, or service that has been newly brought and there was no such product before. Invention comes from the development of any unique product that can draw the attention of the public. Innovation interprets the process of bringing new changes and up-gradation of an idea. In simple language, innovation refers to the transformation of an idea or plan into reality by using the skills. As the changes in the taste, trends, demands, and requirements of the customer are increasing day by day, innovation and invention can only help the business organization help in its evolvement.

In this study, the difference between invention and innovation will be discussed. Various types and ventures of innovation will also be discussed with proper explanation and clarification to build a clear idea of innovation. The advantages and disadvantages of innovation have also been shown. The different approaches of innovation, exclusive and multitude of innovative tools and techniques that are used by Essence Drinks to enhance customer satisfaction and market demand will also be explained in the context.

Differences between invention and innovation

Factors

Invention

Innovation

Definition

The invention refers to the process of creating, designing, and producing new and unique products and services that can attract the attention of the customers.

Innovation refers to bringing new changes and transformations in the existing product, device, or services by implementing new ideas. Transforming the ideas into reality is innovation.

Meaning

Creation of a new product that has not been discovered yet.

Addition of new features with the help of new and innovative ideas.

concept

This is basically an original idea that works in terms of theory.

Innovation is a practical concept that has to be implemented practically.

Required skills

Scientific skills are required

Marketing, strategic or technical skills are necessary for innovation

When it occurs?

It occurs when an idea comes to a scientist

Innovation occurs when the innovator feels the importance of bringing some new change in the existing plan or product.

Deals with

Invention deals with the single service or product

Innovation deals with the multitude of products and services based on the requirement

Categorization of Innovation

The demands of the customers are increasing at a rapid pace as well as the competitiveness in the market is also increasing which has made it very important to bring innovation in the business organizations. Business organizations are focusing on implementing different innovative strategies and ideas to compete with the rising competitors and meet the customer’s satisfaction. Innovative ideas are implemented to maintain customer retention. At the same time, different organizations are also being established providing similar products or services. It has also pushed business organizations to bring innovative and unique changes to their products and services. As per Zhang et al., (2019), innovation helps in maintaining the longevity and sustainability of business organizations. Different innovative ideas can bring a wide range of opportunities and possibilities to the company that can boost competitiveness and development. Above all, innovative ideas have a huge contribution to the reduction of additional and unnecessary costs, saves time and effort, and also lessens the unnecessary hazards related to the various functional activities in an organization. Innovation prospers the way of the traditional model of operations bringing new changes and up-gradation. Innovation can be classified into various other categories but the most transformed categorization is based on the two aspects, first market, and the second one is technology. 

Innovation matrix:

The innovation matrix highlights four different classifications of innovation under the dimensions of market and technology. These include Radical innovation, Architectural innovation, Incremental Innovation, and Disruptive Innovation. 

Radical innovation: 

Radical innovation at the time of the organization needs to destroy or replace the existing business plan or model. This type of innovation wholly supplants existing processes and designs to bring new changes and make some unique creations. It brings changes not only to the components of the existing model but also to the process of working of the components and how these interact. These changes are made by putting them in alignment for the creation of a unique solution to the business model. When there is a need for the application of new technology in the market, a radical innovation strategy is applied. It is a very useful innovation strategy that develops services and products by creating revolutionary technological factors and features. By doing so the business organizations try to increase the demand from the customers (Colombo et al., 2017).

Architectural innovation

Architectural innovation works best for enhancing the number of customers and maintaining customer retention and also for capturing new markets. Architectural innovation refers to the process of accepting different skills, lessons, and technological advancements and the application of these features within various ventures of the market to get the desired result. This type of innovation process is less risky because the technology used or applied in the scenery strategy is proven and has reliability. Business organizations try to configure the innovation strategy by implementing different components and features in the existing model. This Innovation strategy is very crucial for the business organizations to meet the satisfaction of the existing customers and increase their demands and capture new markets and customers (Park et al., 2018). 

Incremental innovation

As per Coccia, (2017), the most widely used and common form of innovation strategy is incremental innovation strategy. Incremental innovation strategy helps in utilizing the existing technology of the organization. It tries to enhance the importance and value of the existing technology to the customers within the existing market and business model. It indulges in the incessant improvement of the existing technology, products, and services to make them better and innovative. It thereby helps in improving the existing business model and captures the market easily. In this innovation form, the main focus is to enhance the design, form, shape, size, and other features that can attract customers and can also compete with the products and services of the rival companies. By changing the outlook of the products the organizations try to capture the customer’s demand. It focuses on renovating and redesign the product and services without hanging its functionality that can help attain the satisfaction and desire of the customers. The only shortcomings associate with this kind of innovation strategy is that the innovation process is used in the short term as there is no scope for developing new products or services (Han et al., 2020). The only focus is on the renovation process. Apart from that, there are also very low technical advancements in this innovation process which might be obsolete and not suitable for the changing nature of the market.

Disruptive innovation:

Disruptive innovation is also known as stealthy innovation. It refers to the application of the new technology in the existing market. It is stealthy because it involves the application of the new technology which seems to be inferior to the existing technology. The new technology occupies new and few features are expensive and are tough to operate in the existing technology. This is the only trouble related to this form of innovation. Business organizations need to reiterate the application of the technology and also need to convince the customers for using this technology (Si and Chen, 2020). 

Requisite Processes for Commercializing innovation

Many processes can be used in the commercialization of innovation. These methods include:

First, identification of the issue in the system:

Innovation is applied to bring new changes to the existing products. Therefore, before implementing a solution, it is mandatory to figure out the area of the issue, what and where the problem lies. After understanding the noise in the system, it can be easy to find a better solution. It is also important to whom and why the company is targeting to make innovation, be it consumers, distributors, or the entire market (Wang et al., 2021).

Second, operation of different innovation sessions:

In this type of commercialization process, the business organization tries to target several people from different segments including design, sales, engineering fields, etc. thus, they try to point out the main issue to solve the problem.

Third, the Development of a look-like product

The designer types to create an attractive visual and stylish representation of the products that can attract a lot of customers. The representation of the services and product is a very significant role in engaging customers and developing their interests.

Fourth, the Development of a work-like prototype

The operational and functional capability of the project is discussed in this case. the main focus is on identifying the possibility and get the right solution. 

Fifth, Full prototype

The look-like type and work-like prototype are combined to form a full prototype. The focus group tries to improve the form of the prototype by empowering with various other resources and features. 

Sixth, soft launching

This is the final stage of commercialization. Is to be operated intellectually for launching the creative production services to the targeted customer for extracting and month and satisfaction level of the customers and capturing the market. In this stage, the business organization can get a large number of opportunities and possibilities to check the effectiveness and durability of the products and can think of modifications if needed (Sharp et al., 2017).

Analysis of the variety of Methods for safeguarding innovative ideas

Safeguarding innovative ideas is the most crucial factor for any business organization because. It helps in removing all the unnecessary external conflicts and problems related. Safeguarding the ideas can help the unique products and services stand out to be extraordinary and safe among the other crowd of ideas. The safeguarding can be described in various forms:

Patents:

The importance of patents in safeguarding the products and services of an organization is huge. Patents help the products and services of a particular business organization remain safe and secure and legally authorized. It thereby prohibits any other organization to steal and make illegal use of the products without the concern of the authorized owner. Patented items do not allow any company to copyright the products (Schatz, 2017). 

Trademark:

Another important tool used to provide protection is a trademark. Trademark refers to a particular word or phrase that can be used for distinguishing the products and services of a particular company from the products of the rival company. Business organizations try to use the trademark by registering it as a specific trademark for preventing it to be used by other organizations (Simon, 2020).

Copyright

Copyright is also important for safeguarding the product and services to be stolen. Copyright prevents authors from stealing the artistic works of other authors. It does not protect the ideas or procedures. Instead, it only secures the way various things are designed. 

Trade secret:

Trade Secret illustrates the safeguarding and protection that can be provided in various internal aspects for example on documentation systems and function of the organization that has some secrets and privacy. Trade secrets help in preventing other business organizations and secret information and documents of the competitor arrival organizations. The trade secret laws help in securing confidential and important information and data of an organization is that the company needs to share with its employees and clients. Trade secret helps in providing legal obligation to the organization to maintain secrecy and confidentiality (Santiago, 2017).

Pros and Cons of idea protecting methods

Pros of patents

· It helps in providing a legal right to the organization that enables ideas or products to prevent other organizations from copywriting using the original without the permission of the innovator (Schatz, 2017).

· Patenting also helps in the business organizations and the products and services from the external threat of the rival companies.

· It also provides the right to the innovator to make decisions on the appropriate utilization and use of the products and services.

· It gives licenses to other companies to use the products and services.

Cons of parent

· There are the disadvantages of the patent for example acquiring a pattern right seems to be very expensive. Completing the right and the application process of registering a patent take a lot of money

· It is also a time-consuming process because it takes a lot of time in completing the application process.

Pros of trademarks

· Trademark provides a right and legal application to only the owner of the author and thus it helps in preventing unauthorized use and stealing of the literary works of the author or the innovator (Simon, 2020).

· It also provides recognition of the brand of the innovator that can help the customer identify the brand and distinguish them among the crowd.

Cons of trademark

· The main disadvantage of a trademark is that it be validated within ten years. Without the renewal of the trademark, a business organization cannot get the right to use the trademark.

Pros of copyright

· It helps in allowing the innovator to sue the unauthorized user.

· Registering copyright within 3 months can provide allowance to the owner claim that only fees and statutory damages in case of additional destruction.

· Copyright also enables the holder in selling and permitting others to use the services and products.

Cons of copyright

· It does not secure the idea or system rather it only secure and the things associated with it (Nurhayatiet al, 2017)

· It also does not allow ownership. Apart from that, it does not allow others to display the copyrighted product in public

Conclusion

The entire study has critically highlighted many facets of innovation. In today's environment, innovation is crucial for every company to retain a sustained market presence. Innovation enables the industry to identify pain spots and provide methods to enhance and address the problem via the implementation of new ideas. The first section of this essay discussed the background and distinctions between innovation and invention. The next section discusses different types of inventions and how to commercialize them. The next section evaluates the benefits and drawbacks of the stated technique of commercialization in depth. The last section of the essay addressed the procedures for protecting creative ideas, outlining the benefits and drawbacks of each approach.

 

Part – 2

1. Introduction

In today's global business environment, constant development and evolution have indeed been critical components of establishing a strong foundation for companies in the market (Esslinger, 2011). Businesses have prioritized innovation and new product development strategies by spending much on lengthy research and development processes. It helps businesses to flourish and seek out new possibilities in an expanded market. These businesses may establish a viable market presence via new product development and creative concepts (Kahle et al., 2020). Businesses have recognized the significance of their consumers and strive to ensure their satisfaction with the firm's services and goods. Increased competition has also prompted companies to consider sustainable business methods that include a varied product offering and creative marketing techniques.

Thus, continuous integration of new ideas and effective execution techniques is crucial for survival in a competitive global market, even more so when competitors are continuously threatening market prospects with standardized goods and services (Kahle et al., 2020). Not only does launching innovative goods increase market value, but it also increases revenue creation if plans are implemented nationally. The next study will discuss ways in which Essence Drinks may increase its product line to maintain its reputation and create revenue collection.

2. Company Background and Problem

2.1 Background of the company

Essence drinks is a beverages business based in the United Kingdom that was started in 2019 by Mr. Akshay Kumar. The founder began the business with a unique concoction of nutritious mango lassi. The drink quickly gained popularity among the British public as the tastes of Indian beverages quickly took over the market during its initial phase. However, rivalry grew over time, and competitor businesses introduced a slew of new goods, eroding the brand's fundamental distinctiveness.

2.2 Problem statement

The business has been fighting the market's present competitive supremacy and was unable to offer any unique goods so far. This has had a major impact on the company's success. The present paper will discuss the importance of brand image formation and innovation in product development via the perspective of the Essence Drinks case study.

3. Assessing the significance of Using the Commercial Funnel to offer a Solution to This Problem and signify the Strategic Capability for the Solution Proposed

A sales funnel is a business term that refers to the potential journey of consumers on their way to buying a particular product on the market. The sales funnel is often split into three sections: the top, middle, and bottom. Each section takes a unique phase of the client purchasing process, although these stages may vary or be adjusted depending on the firm's sales strategy (Massa and Tucci, 2021). A sales funnel allows business owners to comprehend how potential customers perceive and behave at each stage. These statistics enable the business to allocate resources to the most successful marketing activities and channels, create the most effective content for every stage and establish effective investment strategies to cater to consumers with more options.

The sales funnel would enable Essence Drinks' authorities to make informed marketing choices based on prior knowledge of customer buying expectations (Priya, 2020). Through this approach, owners are going to determine the optimal method of engaging with consumers and providing them with the service they anticipate. In the situation of Essence Drinks, the business has been striving to retain the competitiveness of their previous most popular product, mango lassi. The reason for this abrupt decline in their rate of success is the industry's continuous increase in competition (Esslinger, 2011). Numerous businesses have launched innovative beverages with a novel variety of flavors, significantly reducing the demand for mango lassi. Before developing the new product, the business will need to do market research and, in particular, customer behavior to act appropriately.

Stage 1: Awareness

The sales funnel's initial stage is the "awareness" stage, in which customers learn about just the service or product for the first time. They could become aware of this via advertising, social media, and interactions with other individuals (Priya, 2020). Of course, why and how consumers move through the sales funnel is dependent on the ability to sell and promote. The driving factors in the middle and lower stages of the sales funnel are those that are relevant to the owner since they have progressed beyond the level of awareness. It is an advantageous phase to focus on for the proprietor of Essene Drinks since it will enable the company to discover the finest methods for increasing brand recognition and reaching potential consumers easily.

Stage 2: Interest

Once consumers become aware of the brand, they would evaluate it according to their level of interest. Relying on this, the business will evaluate the situation and do market research to guarantee that the product provided by the business meets international standards (Massa and Tucci, 2021). At this tier, Essence Drinks will assess market dynamics and trends in order to gain a holistic knowledge of market demands and the types of products that are popular. It enables them to customize the optimal offering based on the customer's preferences.

Stage 3: Decision

Armed with essential and fundamental business knowledge, consumers will investigate pricing and packaging options (Massa and Tucci, 2021). Sales websites, seminars, and phone conversations are all effective tools for influencing buyers' views during this period. The Essence Drinks would have the opportunity to learn about the types of pricing strategies that can be used and how packaging methods can be improved to increase consumer preference for their goods.

Stage 4: Taking Action

The whole effort concludes at this point: whether the consumer purchases the product. Otherwise, no chance is ever squandered (Priya, 2020). To maintain it at a high level, the business can conduct various influence operations. The purpose of the organization is to persuade customers to choose their products, and they constantly seek new ways of influencing them in the correct direction. The authorities of Essence Drinks will also need to use methods to ensure that even if consumers do not immediately like their goods, they can still be influenced into making certain choices.

Matching goals to resources and capability:

Financial resources: Essence Drinks should correctly assess its financial resources to achieve the intended goal. The authorities must determine the financial resources available to carried out the actions necessary for a successful product launch (Kahle et al., 2020). It is essential to establish a distinct budget for operational needs in order to ensure the procedures adhere to the highest standards. The commercial funnel demonstrates the crucial significance of sophisticated advertising and promotional techniques. To carry out such activities, Essence Drinks must ensure that economic allocation is done correctly, guaranteeing that no loops exist in the process.

Human resources: Human resources are among the most critical components of any business since they enable the organization to carry out major operations and convert its goals into reality (Hkansson and Waluszewski, 2007). Essence Drinks would need to retrain current consumers and hire new, highly trained personnel to bolster its operational operations.

Material resources: To introduce a new product, businesses need a variety of raw materials and equipment (Hkansson and Waluszewski, 2007). The continuous flow of supply is necessary to keep the desired level of product quality. The business will need to maintain relationships with vendors in order to ensure a steady supply flow.

Assessment of risk:

  1. Identify the risk: Again, for Essence Drinks, it is critical to identify potential hazards. The business should pool its insights and expertise in order to assess potential hazards (Dasso and Funes, 2021). It is advisable to take this step to ensure that the project runs smoothly. For Essence Drinks, the primary difficulties are competitiveness and marketing failures.
  2. Risk analysis: the following step is to determine the probability of specific hazards occurring, such as economic, social, or time-related losses (Dasso and Funes, 2021). (Massa and Tucci, 2021). Each danger will then be assessed to determine which is the most likely. All members will be required to evaluate risks in respect to Essence Drink's competitive and marketing strategy environment.

III. Risk prioritization: During this phase, employees and the authorities will assess risks based on their likelihood and effect on the project (Niroumandetal., 2021). For example, developing marketing tactics to compete in the market may be a major problem for the business that must be prioritized.

  1. Manage risk: once the most important risks have been identified, the business must plan the whole process of resolving and mitigating the problems while using resources in an efficient manner and without jeopardizing the project's continuity (Niroumandetal., 2021).
  2. Risk monitoring: after the risk mitigation strategy is in place, the business must ensure that appropriate communication is maintained amongst shareholders in order to keep a sufficient eye on things.

“Value analysis applying frugal innovation”:

For Essence Drinks, increasing the value of the new product is critical to gaining a competitive advantage (Frigo and Anderson, 2011). It may enhance the brand's worth by being absolutely opportunistic in terms of releasing the product in relatively untapped markets in order to appeal to neglected consumers. This will not only enhance brand awareness but may also contribute to the product's durability. The Essence Drinks may target the UK's outskirts area in order to ensure that, in addition to urban clients, suburban consumers are exposed to the unique product line, thus increasing brand recognition in suburban areas in which other comparable goods have a limited reach (Hossain, 2021).

Essence Drinks would have the opportunity to extend their product line at a low cost and with little risk. This low-cost strategy is possible to execute via the use of technical advances. It will save money on extra marketing since the regional proportions are constrained and product diversity is limited in comparison to the metropolitan area. The business may spend in increasing product preservation to increase the product's shelf life and therefore increase acceptability in rural and poor regions.

4. Summary of The New Idea for A New Drinks Product and in which way it caters to stakeholder needs

The main objective of the Essence Drink is to make a product that is well-accepted by consumers and distinguishes itself from other companies' current products inability to accomplish more competitively as market competition intensifies and continues to threaten to disrupt the achievement of Essence Drinks' healthy mango lassi concept. The company's objective was to infiltrate the UK's suburban regions and offer a new flavored lassi with a longer shelf - life. The business has developed a crushed dry-fruit flavor lassi that will contain high-quality ingredients and will benefit from the added health benefits of dry fruits. It will assist stakeholders in investing about the same amount of financial resources.

5. Techniques for testing the effectiveness of the new drinks produce and where this will fit into the process

There are many methods for determining the feasibility of a new Essence Drink product. Therefore, Paid surveys, consignment testing, market research mobile apps, and freelancing market researchers are just a few of the cost-effective ways for product testing and marketing (Ladd, 2020). Several methods are available for determining the efficacy of a new product, including the following:

Paid surveys: Paid survey sites provide market research questionnaires to enrolled users. A paid or incentivized survey is some kind of statistical survey wherein participants/members are rewarded for engaging in one or more polls via an incentive scheme, such as entry into sweepstakes or a small monetary payment (Bentley, Daskalova and White, 2017).

Consignment testing: The consignment service authorizes only those consignments which have completed the testing and evaluation process (Kassim, 2018). As a consequence, the new product's effectiveness is assessed, enabling the marketer to predict the project's success.

Market research mobile applications: Mobile marketing market research is conducted via a variety of online forums, focus groups, landing pages, personal visits, social media platforms, and Facebook advertising.

Freelance market researchers: But on the other side, a freelance market researcher watches job advertising websites seeking the latest project opportunities and makes work ideas to acquire new clients (Shevchuk and Strebkov, 2018).

According to the data above, paid surveys seem to be the most efficient way for the business to evaluate the effectiveness of their new crushed dry-fruit flavored lassi. The company Essence Drink may perform paid surveys of its frequent consumer base in return for extra discount offers on future purchases. It will require the Organisation to assess the efficiency of the new product and also the customer feedback will allow the company to forecast the success of its new lassi drink.

6. Resources required for proceeding with the innovation business case

Funding for Market research: Market research is an important element of the process of developing and launching a new product. Essence Drink must engage in market research to ascertain and evaluate customer preferences in order to reach the target market (Ladd, 2020). The business should invest in sponsored surveys to get a competitive edge.

Desk research: Prior to the advent of the Internet and online databases, the only major resource needed for desk research was the connection to libraries (Madina, 2021). Despite the marvels of the information superhighway, some materials are more readily available in hard copy or on library shelves. To learn about local consumers' beverage preferences inside the United Kingdom, the scholar should visit the nearest commercial library.

7. Analyze the different tools Essence Drinks could utilize to protect the intellectual property rights of a new drink

There are many methods to safeguard the intellectual property rights of the new Essence drink product, as mentioned below:

Copyrights

They are a type of intellectual property that safeguards artistic expressions or pieces of authorship (Guo-Fitoussi, Bounfour, and Rekik, 2019). Copyrights might well be given to a company for writing, artwork, drawings, or a combination of these.

Trademarks

To represent products and services, brand names, logos, and symbols are employed. A trademark is a name, phrase, sign, symbol, message, artwork, figure, inscription, image, or advertising which is used to identify a collection of goods, products, and services as belonging to the same owner or being manufactured by the same origin (Guo-Fitoussi, Bounfour, and Rekik, 2019). Thus, the company's emblem should be put on the new product to demonstrate that it originates from a single source.

8. Conclusion

To summarize, survival in a competitive global market needs continuous incorporation of information ideas and efficient execution methods, all the more so when rivals are openly threatening market opportunities with traditional products and services. Essence Drinks seems to have a lot of room for growth in the UK market with its new product of crushed dry-fruit flavored lassi. It will sell high-quality products enhanced by the health benefits of dried fruits.

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