Innovation and Commercialization

1. Explain the difference between invention and innovation and their significance in an organizational context.

The process of transmitting a thought or development into a decent or administration that makes esteem or for which clients will pay.To be called an innovation, a thought must be replicable at a practical expense and should fulfill a particular need. Development includes intentional use of data, creative mind and activity in determining more prominent or various qualities from assets, and incorporates all procedures by which new thoughts are produced and changed over into helpful items. In business, development regularly results when thoughts are applied by the organization so as to additionally fulfill the requirements and desires for the clients. (

An invention is an interesting or novel gadget, strategy, structure or procedure. The creation procedure is a procedure inside a general building and item improvement process. It might be an improvement upon a machine or item or another procedure for making an article or an outcome. A development that accomplishes a totally novel capacity or result might be an extreme achievement. Such works are novel and not clear to others gifted in a similar field. An innovator might be stepping toward progress or disappointment. (Wikipedia)

Some samples that can help understand innovation and invention are:



Having mobiles with 4G is innovation in technology industry with camera

Creation of mobile phone

Having smart TVs and slim TV is innovation in the product invented earlier

Television invented in 19th and 20th century

LED bulbs and lights of all sizes

Electric bulb/ lights

Solar glasses was an innovation in existing product

Lens invented to have better vison

Portable computers and laptops

Computer with size of a room


2.         Explain the value and importance of innovation to organizations and how this can be embedded within the organizational vision, leadership, teamwork and culture at Essence Drinks. Analyze different sources of innovation that can be adopted at Essence Drinks, and what can the leadership do to develop an environment and culture of innovation.

Importance of innovation in organization:

Most organizations will concur that advancement is critical to their business development. They depend on groups to create, execute, and make new thoughts and answers for satisfy the needs of developing the business in the commercial center.

Officials will begin by sharing the vision of advancement - the enormous thoughts worth following. There will be designs set up for how groups ought to be driving the thoughts and what objectives the organization is attempting to reach.

In any case, the vision and even the arrangement will all crash and burn if there is no expectation for how to really compose things. The association of development is the establishment for which the thoughts can develop from and flourish.

So as to make and execute on new, clever thoughts, it requires taking a jump to get an association framework set up and the order of assessing and repeating association techniques as you come. (Holst, K., 2018)

Organizational vision, leadership, teamwork and culture

A decent Leader makes a dream, verbalizes it, possesses it and drives it to culmination. In an association, the workers pursue the pioneer in seeking after objectives. A dream or strategic center reason for an association sets the bearing for the future and lays out steps to arrive at it.

The three are unique, however they provide guidance to the association. Workers can't be creative if there is no reason for it. At the point when the vision is set, at that point the representatives are enthusiastic, vigorous, and they are prepared for any test.

It is the duty of pioneers to convey to and lead representatives to an ideal goal. The vision sets the path for creative thoughts on the best way to accomplish it. It is the beginning stage for destinations, measurements, and vital plans. A development vision takes your association from its present state to a superior future. Organizations who don't have an advancement vision explanation wind up being old and cloud. (Martin, 2016)

Innovation itself is a procedure requires novel ranges of abilities from a group to fuel development. In a studyof 145 programming advancement extends, the outcomes show that cooperation quality and execution is reliant on the creativity of the undertaking. Collaboration quality is basic when finishing profoundly inventive undertakings in light of the fact that normally there are visit changes and unexpected conditions. In this manner, it is fundamental for groups to meet to share data and difficulties to guarantee the venture is on track.

It is fundamental to comprehend the estimation of cooperation and the advantages of how it can encourage an association. Incredible groups fabricate solid connections as well as they can fortify individual individuals. (Wong, K., 2018)

A culture that continues and supports development is one that energizes sensible hazard and vulnerability in the objective of bigger, increasingly gainful items and administrations. It is a culture that depends on experimentation and revelation, in light of the fact that numerous smart thoughts or bits of knowledge exist outside the corporate limits. That recommends too that inventive societies have permeable limits – individuals, thoughts and ideas stream into, and out of, the association always. Inventive societies comprehend that producing and growing new thoughts is an iterative revelation process, which isn't great and positively doesn't generally make the item or administration that clients need. Creative societies likewise comprehend that when disappointment happens, as opposed to hide the disappointment where no one will think to look, the firm endeavors to remove learning and new bits of knowledge so that the "disappointment" drives in the end to another achievement. Creative societies comprehend characteristic prize frameworks, urging trend-setters to deal with their thoughts and to remain included and locked in. They don't "pay individuals for thoughts" however perceive association is its very own prize. Creative societies support development as a method for tasks, as opposed to considering advancement an infrequent, sporadic procedure. Development societies invite various perspectives, alternate points of view and look to affiliation unique thoughts and advancements into new items and administrations. It will be uncommon to hear somebody in an inventive culture say "we've never done that" as an approach to close down thoughts – rather, it will be viewed as a test worth seeking after.(Phillips, J., 2012)

Sources of innovation:

The unexpected - The commercial center is the main zone to search for circumstances. A decent chief ought to be continually concentrating the market. Is a specific item or administration in more prominent or lesser interest than foreseen? Why? Is there a way we can misuse this unforeseen achievement? What needs to occur on the off chance that we need to change over this accomplishment into a chance?

The Incongruity - here is a disparity between what is and what ought to be. This is a vital aspect for growing uncontrollably effective organizations however it's dubious. Facebook is an organization that nailed it. Before the informal organization's productive ascent Myspace was the predominant player, however it had its defeats.

Process Need - Procedure need includes distinguishing your organization's procedure shaky areas and adjusting or updating them. This is an errand arranged arrangement implying that the wellspring of advancement originates from inside your current capacities and methods for working together – not the market.

Industry and Market Structure Change - Your industry and the market are in continual flux. Regulations change and some product lines expand while others shrink. Firms should continually be on the watch for this.

Demographics - We constantly see changes occur in populations, income levels, human capital (education) and age ranges. Smart firms are constantly paying attention to this. When it comes to the baby boomers businesses have been following them constantly as they got older. At present they are one of the largest as well as the most affluent demographic groups with high levels of disposable income.

Changes in Perception, Meaning, and Mood - After some time populaces and individuals change. The manner in which they see life changes, where they take their importance from, and how they feel about things likewise is altered after some time and keen organizations must focus on this so as to underwrite (and abstain from getting overlooked, a relic of ages past).

New Knowledge - As the speed of innovative upset expands there will be a consistently expanding number of chances that open up. The web has been the most striking one in the last couple decades yet there have been a plenty of different enterprises and openings spring up because of this mechanical insurgency.

Essence Drinks recommendations

As an innovation consultant for Essence Drinks I would suggest Essence Drinks to have a market study first that would help to know what is in demand and how to can the target market be reached. This can either be done by Research and development team or the managers must spend some time brainstorming how to add local flavor to the drink that will be accepted by all in UK. This way Incongruity source of innovation will be fulfilled.

            Since Essence drink is working on selling something desi in UK – they must find different or rather desi ways to process the drink and advertise it. As this is more of a desi drink – Essence drinks process owner must add some desi touch to the process. They must make the lassi using wet mud utensils or the lassi must be stored in mud pit for a certain time to have the real desi flavor. This way the process will be slightly innovated and this will need to be advertised to attract more customers.

In regard to demographic source of innovation – I would suggest Essence drink to reach out to schools and target young children as their target market. Young kids normally have junk and awareness can be sent to parents about this healthy drink and it being stored in Mud pots that is considered as healthy. Innovating by reaching out to different customers will help boost the sales and also help innovate better based on feedback received

Essence Drinks must innovate the packaging and the look of the drink. Since this is a Desi Lassi – Essence Drinks must focus on packaging that must be attractive to both Desi and non-desi. Essence Drinks must add the Packaging with a new punch line and also the storage must be done in a mud pot. This new look will make customers feel different about it and hence tempt them to try this drink that has a different look.

Not all the sources of innovations can be adopted Essence Drinks however, as an innovation consultant three major innovation areas that needs focus in my opinion that would help boost their sales for coming days.

Furthermore, the owner or CEO of Essence Drinks must consider some important points during the innovation phase to be sure all employees understand the need to innovation. The below points are correlated with role ofleadership and culture in innovation as explained earlier:

  1. Organizational awareness and leadership – the owner of Essence Drinks must bring in confidence his employees and have almost a week’s workshop with all, spreading awareness about the innovation and why it is important. This can be done 2 hours daily which will ultimately help know the perception of employees and it will also help come up with more innovative ideas. Maybe an innovation manager would emerge within the team
  2. Teamwork – The Essence owner must make few teams within his company that would focus on certain innovation. For example – a team that would work on the packaging part and come up with ideas to implements. Another team focusing on beverage flavors that can help boost the sales. This way the employees of the company would understand the need for innovating with time and also have feel of belongingness within the company.
  3. Culture–the culture of Essence Drinks is based on staff making decision hence this allows to implement much easily when it comes to innovation. The culture is very open to new suggestions – staff would feel the need to share their ideas and hence help in better innovating the drink.

3.         Explain the 4Ps of innovation and how this supports capability and management of innovation. Advise Essence Drinks which form of innovation they should engage in.

Subsequent to covering the nuts and bolts, we can at last plunge into the subtleties of the 4 P's of Innovation Space. This idea was created by Tidd and Bessant and first distributed in 2005. The recap of their discoveries can be found below:


The 4 P's of Innovation as depicted by Tidd and Bessant are item, procedure, position, and worldview and characterized as following:

Product innovation is the main thing that strikes a chord when discussing development and passes on the adjustments in the things (items/administrations) which an association offers. For Essence Drinks I would suggest to focus on adding new flavors to Lassi that would complement both Asians and British. As suggested earlier, Essence Drinks must create a new lassi that has not be made before. Berry lassi that would have traditional touch and also innovate the product.

Process innovation, then again, alludes to changes in the status quo made and conveyed. For Essence Drinks the process need some innovation that would help it stay within the goal of company as the owner wants. As stated earlier – storing the lassi in Mud pot while it is prepared will help have an innovation in process. Another innovation in process can be to have the lassi made using old school utensils. These utensils can be added to machines making the lassi that will again gain some positive feedback from the customers and also help gain more. One important factor would be to have this process change or new utensils added advertised which can only attract more customers.

Position innovation is the adjustment in the setting wherein the items/administrations are presented or as it were the place the objective of the offering lies and what the story told about it is.

For Essence Drinks – this look of the product will help position a better image of the product in the mind of customer. The company must attempt to have the drinks introduced in schools or places where there are children that can try the new innovated product. already advised, the product should be packed in a mud pot that is healthy and also does not harm the environment. Partnering with some NGOs that promote healthy lifestyle and environment would help here.

Paradigm innovation, specifically, is the adjustment in the fundamental mental models which outline what the association does or on the other hand how the organization outlines what it does. The isolating line between these is frequently obscured and advancement in one measurement regularly carry changes to the others.

            All in all, Essence Drink can be very innovative and product can easily be innovated but there is a slight challenge to ensure that there is no raw material used that would be harmful to consumers. In addition to it is very important to also know that all the legal requirements in UK are fulfilled. This would apply from collecting Raw materials to producing and to delivery the product on shelves of the market.

4.         Analyze and apply the innovation funnel to Essence Drinks and evaluate the feasibility of whether frugal innovation model can be adapted to its main product? Critically analyze how Essence Drinks can measure the success of its newly developed drink.

Application of innovation funnel in Essence drinks

It is known that most of the organizations has to be innovative for successfully running its business, the importance of innovation is increasing at a rapid pace. Innovation has a  great impact on the strategic planning of an organization.

 There are many unique challenges that are involved in the management of development funnel, the initial challenge is for narrowing the funnel neck which means the ideas that are created must be focused on its resources and targeted on the most valuable opportunities (Eberhardtet al., 2017). The next challenge is for widening the mouth of the tunnel, this indicates that Essence drinks must have sufficient information to enhance the number of ideas that are processed as well as their products and increase their knowledge. 

There are two innovation funnel models-

  • Innovation funnel for a lone project 

In this particular model, Essence drinks can bet on a single project, this model is basically used in small organizations or among entrepreneurs. 

  • Innovation funnel for a number of projects’

This funnel model is much larger and wider compared to the previous model. Essence drinks can rely on their research and group of development for creating new ideas related to product and technologies. 

Analysis on usage of frugal innovation in Essence drinks

The organization of Essence drinks can use frugal innovation, which will help in removing features that are not required from the drink product. Essence drinks can use frugal innovation, which can help in redesigning their product for serving their users, reorganizing the value chains, and it can also help the organization in finding new business models (Kirkegaard et al., 2017). Essence drinks can innovate the way of overcoming resource problems within the organization for the creation of a better market. The frugal innovation uses new applications for fighting costing problems and limited resources, Essence drinks needs to properly organize frugal on the organization for fighting off challenges related with its products.

Essence Drinks should take the frugal innovation process so that with the help of this model, they can address the needs of the customer. The frugal innovation model takes restraints in resources as an opportunity, the organizations who take help of this model does not want to impress its consumers with complex products and services (Dutta and Folta, 2016). Essence drinks can create products that are excellent in quality  and can provide unique value to clients at low cost,  there are some steps  which the organization of Essence drinks can go through for creating a new innovative drink- 

  • Identifying the wow- The staff members of Essence drinks, that are particularly concerned with R & D activities should find the outliers that are of some interest (Spence, 2017). This can be a traditional experiment for ideas and business models that can benefit the organization.
  • Executing the ‘so what’- the second stage would be the implementation of ‘so what’. This can help in gaining knowledge of the fact that these ideas can enhance the strategy of Essence drinks in the initial phase of executing the idea. Essence drinks should  consider the novelty experimentation after coming up with an idea of creation of a new drink.  

Critical analysis 

The activities of Essence drinks are mostly related to sales and the revenue that is generated through sales, there are some unique ideas that Essence Drinks can take for innovating its products. There are ideas that can help in innovation of their product, some of these ideas are-

  • Engagement through social media- The organization has to interact with its audience with the help of social media, this will help in better interaction of the organization's business with the public (Gambalet al., 2018). The social media persona of the organization can be enhanced with the help of a partner who has a reputed online marketing organization.
  • Sponsoring of events related to community- The organization of Essence drinks should be able to achieve opportunities that are related to the market that can enhance the growth of organizations of its partners.  For creating enhanced brand visibility, the organization can be a partner with business in its immediate market. 
  • Becoming a resource- The organization of Essence drink brand has to be a resource for its customers that are of some value. With this the organization can enhance its sales, for this purpose the organization has to give guidance to its clients as well support and required information. 

Essence drinks can take a number of steps for deriving a unique and new drink, some of the steps are as follows- 

  1. To be the first for marketing and finding the price-inelastic and demand of latent.
  2. For operation of growth related to profit, the organization of Essence drink has to adjust or create a new company portfolio. 
  3. For delivering of operation related to profit growth, the organization is required to align function performance.
  4. The organization should be able to properly balance the power levels within themselves.
  5. There should be the creation of a mid-term strategy that is valuable for it retail partners. 
  6. Commercial investment should be targeted as well as used efficiently by the organization of Essence drinks. 

5.         Determine techniques for testing the effectiveness of the new product for commercialization. Identify the solution to the problem and build a detailed business case of Essence Drinks, using the commercial funnel to highlight strategic capability meeting following guidelines:

?         Matching goals to funding resources and ways to access funding

?         Assessment of risk

?         Value analysis applying frugal innovation

Analysis of Essence Drink (Lassi)

The organization of Essence drinks in the UK was developed in the year 1896, the organization saw great success with its first launched drink which was of a mango lassi. With that product, sales began to increase and it was largely due to the innovative method and great capability of distribution. The organization saw some decrease in product sales in its third year due to the entry of other market competitors (Tidd and Bessant, 2018). Their lassi product has a good flavour that is approved due to its quality and has a remarkable taste, with the exception of mango lassi Essence drinks organization has prepared a number of other lassi flavors such as saffron lassi, orange lassi and watermelon lassi. The essence drink organization focused mainly on their lassi products because it performed the best on the market, their mango lassi topped the charts due to its unique flavour and unmatched product distribution.

Figure: Commercial Funnels

(Source: Herhausenet al., 2019)


With the help of commercial funnel, it can provide strategic analysis of different funnels; it can be identified about the status of funding resources and ways of acquiring funding (Herhausenet al., 2019). In the diagrammatic view of the commercial funnel below would be possible for an innovation consultant to acknowledge all the three different funnels from marketing, sales, and customers. Based on the effectiveness of the product, Essence Drink in the UK market seems to be required for an effective source of funding resources and the business need to adopt some suitable accessible medium of funding as well.

The marketing funnel segment 

According to Sapian and Vyshnevska (2019), the marketing funnel segment is an effective way of monitoring marketing activities and initiatives in a definite market area. This would also require the strategic implications of innovations in offering the drink in a different manner to the segmented group of customers in the UK market. In this regard, for Essence Drink, the marketing funnel segment would need to be managed by the marketing team effectively for enhancing the target market prospects in the UK.

Sales Funnel Segment

On the other hand, the sales funnel segment can be improved by the help of sales staff involved in the business of Essence drink to be served in a definite market (Rouse, 2018). According to this funnel, it would need the sales unit to be participative and active in converting their interested customers with a confirmation of purchasing the final product and increase the rate of profitability in the business.

Customer Funnel Segment 

The customer funnel segments are a significant part of the business extension plan and generating healthy and effective communication (Herhausenet al., 2019). In complying with the customer segmentation policy in the UK market for Essence Drinks (Lassi), this needs to be seriously taken care of by the overall functional unit to retain a customer in the UK-based market.

  • Matching goals to funding resources and ways to access funding

Based on this understanding and analysis of the above commercial funnels, it can be identified that Essence Drinks having some gap in setting up their business goals and finding adequate funding resources from the market. Funding resources need to be generated from a genuine medium so that it can assist in initiating business progress in a market (Owen et al., 2019). As per the overview of the market, this business would need to depend on currently the funding resources such as bank loans or from private financial services through supply chain financial networks that could be possible for the management to invest in suitable areas of marketing processes well using digital channels.

  • Assessment of risk

Assessing risk is another significant area of business like beverage products like Lassi in a market (Rouse, 2018). Being an Innovation Consultant, it can be observed that the business of Essence Drink having some uncertain risk of handling the funding resources from suitable platforms, which need to be planned and executed well in advance for further with a contingency risk assessment plan by the management. For example, it would need to be improved by an application of the strategic implementation of the risk management team in the business.

  • Value analysis applying frugal innovation

With the help of the frugal innovation model above, it can be recognized that the business would need to concentrate on the area of effective hiring and staff for managing its key concerns of business like supply chain network and operations well (Winkler et al, 2019). In this regard, it would automatically be able to produce the quality process of drink in the market, as per customer choice and tastes as well.

6.         Evaluate and present with evidence which different tools Essence Drinks can use to develop, retain and protect the knowledge and intellectual property rights of a new drink. Critically evaluate what challenges are envisaged during the New Product Development of Essence Drinks and how can these be overcome to develop a successful innovative product

According to Forbes, (2020), different tools that can be used by the business to develop, retain and protect the knowledge and intellectual property rights, there can be multiple options and scope of implementing the correct method as mentioned below

Not filing any patent        

                                            If the management of Essence Drinks to avoid in filing of any patent, it might secure its ingredients to get explored in the market.

Running lean and fast technology

Getting relentless innovation cycle would also help and assistance to the production unit to maintain evolutionary jumps in the market, For example, competitors attaining excellence in its products like Marmite Crunchy Peanut Butter and Coca Cola Energy and others similar kind of products have gained competitive advantage in the British market well (Brockman, 2020).

Avoiding Joint Ownership

If the senior management can avoid joint ownership agreement, it would be effective in protecting the rights under ethical conditions and norms in the business (Forbes, 2020). For example, if a partner makes fraud in the joint venture project, it would impact financially on the other partner.

Critical evaluation of challenges envisaged during the New Product Development of

Essence Drinks

According to Rosenzweig and Grinstein, (2016), suitable financial resources might not be possible to attain from the local UK market that can support buying innovative tools and machines. On the contrary, Owen et al., (2019) argued that it might not be compulsory for business management to invest a high amount of financial credit from the market, as the preparation of Lassi in this case of Essence Drink is quite in the Desi style and flavors in the British market. Therefore, it would only need to find better ingredients and Asian beverage producers so that it can enhance its flavors in a more organic way to British customers.

Ways of overcoming these challenges to develop a successful innovative product

Based on the above research and market analysis of the overall business situation of Essence Drink in the market, it can be suggested to the business process team to focus on its staff able to prepare original tastes of Lassi. This must be in different forms and innovations as well as find out better stakeholders (investors, regulatory body and IT partners) to engage into an ethical form of agreement that might protect the content, process, and product preparation method with the help of fair legal procedures and principles.

Therefore, based on the overall analysis of the research, it can be understood that Essence Drink can attain an effective position in the market through proper channels and mediums of promotion as well as efficient manpower resources. Moreover, the recommended ways of overcoming challenges would be suitable for gaining a competitive advantage in the UK market.





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