Innovation and Commercialisation 1

INNOVATION AND COMMERCIALISATION

Name

Professor

Institution Affiliation

Date
 Innovation and Commercialisation 2

Table of Contents
Abstract......................................................................................................................................................4
1. Introduction.......................................................................................................................................5
2. Background Information..................................................................................................................6
2.1 Invention..........................................................................................................................................6
2.2 Innovation......................................................................................................................................7
2.2.1 Significance of Innovation in Business.............................................................................7
2.2.2 Strategies for the Embedment of Innovation at Natural Drinks Limited......................7
3 Forms of Innovation..........................................................................................................................8
3.1 Incremental innovation.............................................................................................................8
3.2 Disruptive Innovation................................................................................................................8
3.3 Architectural Innovation...........................................................................................................9
3.4 Radical Innovation.....................................................................................................................9
4 Four Directions of Change..............................................................................................................10
5 The 4P’s of Innovation....................................................................................................................10
5.1 Product Innovations................................................................................................................10
5.2 Process Innovation...................................................................................................................10
5.3 Position Innovation..................................................................................................................11
5.4 Paradigm Innovation...............................................................................................................11
5.5 Recommendations for the Natural Drinks.............................................................................11
6 Approaches Essential for Innovative Ideas Processing.................................................................12
6.1 Innovation Funnel....................................................................................................................12
6.2 Frugal Innovation....................................................................................................................12
7 Steps for the Development of the Product.....................................................................................12
8 Innovation Business Case: Natural Drinks Ltd.............................................................................13
8.1 Executive Summary.................................................................................................................13
8.2 Statement of the Problem........................................................................................................14
8.3 Discussion of Possible Options................................................................................................14
8.4 Recommended idea and why it is innovative.........................................................................14
8.6 Details of Chosen Option and Need for Development...........................................................14
8.7 Expected Benefits.....................................................................................................................14
 Innovation and Commercialisation 3

8.8 Value and Financial Return on Investment...........................................................................14

8.9 Investment requirements to move forward and the next steps.............................................15
9 Tools to Protect the IP Rights of New Drinks................................................................................16
10 Conclusion....................................................................................................................................17
11 Bibliography.................................................................................................................................18
 Innovation and Commercialisation 4

Abstract
Natural Drinks Ltd is one the beverage company that manufactures drinks. In the first few years
of the inauguration, the company recorded a significant increase in productivity, but later the
production declined. The factors behind the fall include the use of poor invention and innovation
approaches by the firm's leaders that needed to meet the consumers' preferences, such as health.
Many people prefer drinks with less sugar content and high nutritional value. To meet these
needs, beverage companies must develop innovative strategies to maintain their competitive
ability in the market. The report focuses on how good inventions and innovative approaches can
be applied in Natural Drinks Ltd to enhance productivity. In addition, the report explains the
business plan of the above company and how to protect its IP rights using various tools.
 Innovation and Commercialisation 5

1. Introduction
Natural Drinks Limited is a private company that deals with the production of soft drinks and
mineral waters in the United Kingdom (THE NATURAL DRINKS COMPANY (UK) LIMITED
| 09547335 ... no date). The report will highlight and explain various inventions and innovation
approaches to be embraced in the company to enhance increased productivity and low cost of
production. In addition, the report will describe the business case plan of Natural Drinks Limited
and the tools necessary for the protection of the IP rights of the product.
 Innovation and Commercialisation 6

2. Background Information
2.1 Invention
Invention is the discovery of new things that did not exist in a particular field, for instance, in
business. These things are essential as they ensure the smooth running of the operations in the
business hence increasing productivity. Some of the inventions utilize the innovations after
combining them into new ones. Creativity is essential in invention. However, the invention is
more than arising with novel ideas, differences in themes, and a mixture of thought (Laverty and
Littel 2020). Therefore, developing new things is necessary for entrepreneurs since a novel
service or product is viewed as unique, enhancing the creation of a new market. In addition, the
correct invention is significant in the marketplace since it enhances the creation of a recognized
market.
An accurate market can significantly impact culture and social aspects (Laverty and Littel 2020).
From a social perspective, a novel invention can influence a company's operations. For instance,
in the tea sector, the invention of plucking machines increases the kilograms harvested per day,
reducing the production cost. In addition, the invention of desktop computing in many industries
has enhanced the fast transmission of information in many companies. Every worker is supposed
to write emails to their seniors while enquiring about any information. Furthermore, desktop
computing allows the storage of information in safer folders compared to hard copies that can be
lost.
The invention process is challenging to tabulate since various inventors use different paths.
Mostly, the process path takes several directions, entails many people apart from the inventor,
and includes many starts over. The pace and modes of invention are determined by the field in
which the inventor performs the task. The development of processes with their products is
determined is done by the team and the inventors. For instance, the development of SpaceX,
Tesla, PayPal, and Solar City processes are different despite belonging to the same inventor,
billionaire Elon Musk (Laverty and Littel 2020). All these companies have different roles and
target various market forces. For example, Tesla company deals with the manufacture of electric
cars, while PayPal deals with money transactions in all parts of the world.
 Innovation and Commercialisation 7

2.2Innovation
Innovation refers to a modification that increases the value of a prevailing service or product.
According to Drucker, innovation means responding to modifications within and outside markets
(Laverty and Littel 2020). Various thinking methods can be applied in organizations, including
linear or lateral. Lateral thinking entails applying creativity approach toward solving a problem.
Linear thinking entails using data and a systematic approach to solving challenges. However,
creativity is only evident in some innovations. For instance, when an organization wishes to
innovate the existing product, what matters to that organization is the achievement of the
innovation unlike the level of creativity applied (Laverty and Littel 2020). Therefore, individuals
and organizations should be keen on the chances to innovate.
2.2.1 Significance of Innovation in Business
I. Increases productivity: Innovation enhances increased productivity in business models,
processes, and individuals (Emeritus 2023). It provides new ideas to the leaders to
increase efficiency with minimal resources reducing the cost of production.
II. Increases revenue and reduces cost: Innovation provides the leaders with new ideas that
help increase productivity, reducing production costs.
III. Enhances competition in the market: Innovation gives ideas to the managers, making
them come up with ways to market the products (Emeritus 2023). Advertising is one of
the methods used to market the product giving them a competitive ability advantage in
the market.
IV. Brings novelty and uniqueness to business process: Innovation has brought a significant
change in the business setting that has lacked for several years (Emeritus 2023).
Businesses that have embraced innovation have become strong in the market, increasing
revenue.
V. Solving complex business problems: The knowledge of the product management
lifecycle is different from the solution to complex business problems (Emeritus 2023).
Innovative ideas are solutions to these problems and help steer the business positively.
2.2.2 Strategies for the Embedment of Innovation at Natural Drinks Limited
I. Support of Leaders: Leaders at the company must show commitment to innovations by
encouraging and supporting ingenuity thinking. They should create time, allocate
resources for innovation plans, and act as role models.
 Innovation and Commercialisation 8

II. The Natural Drinks company should set clear visions and goals that align with its
objectives and dreams.
III. Enhancing teamwork in the organization: Teamwork is important since it enhances
sharing new ideas in solving problems, increasing efficiency. Some companies like
Toyota encourages team working to enhance efficiency.
IV. Rewarding and recognizing all those who come up with good innovative ideas. They
should be rewarded in groups or individually to boost their morale and encourage them to
develop more innovative ideas.
V. Training of the employees: All the employees should undergo training to provide them
with skills. The training can involve class training and job training. Class training entails
the theory part while job training involves physical training on how to conduct various
tasks. At Toyota, all employees undergo mandatory training involving class and job
training (Benkarim and Imbeau 2022). The employees get skills that help to increase the
productivity of the company.
VI. Enhancing good communication at the workplace: Effective communication between
workers and employers enhances good working relationships. The workers always feel
free to share any arising problems with their employers. The workers should be free to
work without strict supervision to boost their morale. In addition, they should be
consulted before deciding on the company. Although the decision will not depend on
their views they will feel valued.

3 Forms of Innovation
3.1 Incremental innovation
This form of innovation utilizes the current technology within the current market. The main
objective of the innovation is to improve the current appearance by adding new features and
modifications in design (Talin 2023). A good example is in the smartphone field whereby the
majority of the innovation deals with improving design, adding features such as a camera, and
bringing up-to-date hardware.
3.2Disruptive Innovation
It applies new technologies to current industries. At first, the new technologies seem inferior to
the current solutions but after interactions, they outshine the current models taking over the
 Innovation and Commercialisation 9

market due to effectiveness advantages. For instance, Amazon introduced internet innovation in
selling their books, interrupting the book shops industry (Talin 2023). In addition, the Apple
company came up with iPhones that were touch screens disrupting the market of phones in the
market that used buttons.
3.3 Architectural Innovation
The innovation entails the application of the current market to enter a new market. The
innovation aims to enhance the opening of new markets and expand the customer population. A
good example is Amazon, which has entered the medical care setting (Talin 2023). The company
applies their ability in developing platforms, apps and current customer population to deliver
new products and services for various markets.
3.4 Radical Innovation
It entails the application of new technology to create a new market. The invention of the airplane
is a good example of radical innovation (Talin 2023).
 Innovation and Commercialisation 10

4 Four Directions of Change

I. Modifications in the organization's strategy: The changing business environment can
influence the change of strategies. The firm must change its objectives, goals, missions,
and strategies.
II. Modifications in the structure of the business firm: A change in the structure
hierarchy can occur to enhance the creation of new departments, redefinition of roles, and
adoption of new technology (Talin 2023).
III. Modifications in the human workforce of the business firm: A firm can alternate the
kind of people employed in the company to change the workforce and ensure the hiring
of talented employees (Talin 2023). In addition, the organization can recruit new
employees and assign them new roles and responsibilities.
IV. Modifications in the problem-solving actions: A firm can alter its way of solving
problems that arise in the business organization (Talin 2023). Corrective responsibilities
are intended to address the challenges that occur in the firm.

5 The 4P’s of Innovation

5.1 Product Innovations
It entails the changes in services or products offered by the organization. Product innovations
can entail a change in the design of the current product or modifying the entire product or
service. One of the significant product innovations is that it aid in creating novel spaces in
saturated markets. Therefore, companies need to identify the existing gaps to create new
spaces that target the audience (Krishnan 2021). However, product innovation does not
generally entail the creation of completely novel products that confronts the new problem.
5.2 Process Innovation
Entails innovations that ensure the companies align their processes according to the
customer's preferences to ensure the success of their business. The processes comprise four
elements: procedure management, process flow, technologies, and procedure deliverables
(Krishnan 2021). Process-oriented organizations adapt quickly to modifications in the
business setting. Although many companies have embraced technology, the covid pandemic
 Innovation and Commercialisation 11

made it necessary for all companies. Companies were forced to conduct online sales since
physical customer interaction was impossible. However, the full embrace of technology is
expensive but provides high returns.
5.3 Position Innovation
Entails offering a service or product in a new market. For instance, some companies like
Complan previously targeted children aged between 3-16, but they have changed and have
started targeting women aged between 18-45(Krishnan 2021). In addition, Airbnb previously
focused on conferences but has moved to the traveler and general holiday industry.
5.4 Paradigm Innovation
It refers to the shift from one business to another that is more profitable. A good example is
smartphone growth, which has enabled many people to consume data through phones instead of
reading newspapers (Krishnan 2021).

5.5 Recommendations for the Natural Drinks

The beverage company should develop innovations focusing on developing new and
healthier drinks to meet the changing customer preferences. They manufacture drinks that are
healthy and contain ingredients that are rich in nutrients. In addition, the company should
develop a good culture that ensures all the employees can give out their ideas during the
manufacturing process.
 Innovation and Commercialisation 12

6 Approaches Essential for Innovative Ideas Processing

6.1 Innovation Funnel
Applies a wide range of ideas and incorporates them into one idea that can be developed. It
entails a process whereby various processes and product ideas pass through the funnel for
investigation. However, only a few became part of a development project. The management
of the innovation funnel entails various challenges or tasks. The first is to broaden the mouth
of the funnel whereby the firm must expand its knowledge base and access to information to
increase the number of novel process ideas and products (Innovation Funnel no date).
Secondly is the narrowing of the funnel neck whereby ideas developed must be audited, and
resources should be channeled on the best opportunities. The main objective of the second
challenge is to ensure the creation of a range of projects that meet the organization’s
objectives. In addition, it enhances the organization’s strategic capability to undertake future
developments. The third trial is to ensure that the selected development achieves the
objectives. The Toyota company has a well-developed innovation funnel whereby
employees’ ideas are considered before making decisions. Therefore, Natural drinks should
embrace the innovation funnel from the generation of ideas to the implementation.
6.2 Frugal Innovation
It entails the utilization of universal technologies to transform better, cheaper, and faster. The
main objective of frugal innovation is to increase productivity while minimizing the cost. An
excellent example of a frugal innovation is the Tata Nano, a car developed for the middle
class in India (Granados and Prabhu 2022). The car is manufactured using few materials
making it reliable and affordable.

7 Steps for the Development of the Product

I. Idea creation: It entails the development of new product ideas or means to improve
the current product. During the discovery process, the firms research, examine the
market, and identify the clients' needs to solve the problems. External and internal
sources are two primary sources essential for generating novel ideas (Maze 2021).
The internal source of ideas comes from various areas within the company such as
 Innovation and Commercialisation 13

sales team, customer support, and marketing. The external sources include extensive
studies on the competitors and responses from the audience.
II. Idea screening: The process entails selecting the ideas that are favourable to the
proposed project. The decision on the ideas to choose or discard depends on the
factors such as technical possibility, product improvements, and expected profits to
the target group.
III. Concept development and testing: The ideas selected at the screening stage are
developed into product concepts. The product concept components should include the
proposed price of the product, the profit of your solution, and the target market (Maze
2021). In addition, the concept should also comprise the projected cost of developing,
designing, and introducing the product.
IV. Business analysis and marketing strategy: Business analysis deals with the
expected costs, sales forecasts, and profit plans. Marketing strategy acts as a tool to
guide the positioning, pricing, and promotion of the new product (Maze 2021). After
planning the marketing strategy, product management can describe the business
attractiveness of the product idea.
V. Product development: It entails the development of a product concept into a
complete and marketable product.
VI. Test Marketing: It entails releasing the finished product into the sample market to
work out its performance under the predetermined marketing strategy.
VII. Product Launch: At this juncture, the product is ready for introduction into the
market.

8 Innovation Business Case: Natural Drinks Ltd

8.1 Executive Summary
The scenario of Natural Drinks Ltd necessitates the need to develop a good innovation plan
that will increase productivity and reduce the cost of production. The products manufactured
by the company should meet all the customers’ needs, such as being healthy and affordable.
The company will maximize its profit by coming up with a good innovation plan.
 Innovation and Commercialisation 14

8.2Statement of the Problem

Recently, most consumers have started to value their health and have opted to do away with
beverages with a lot of sugar content. As a result, the need for developing new innovative
plans has been created. The innovative plans aim at bringing drinks that have healthy
benefits. Therefore, Natural Drinks Ltd must respond to these demands concerning health
while ensuring the ingredients used for the manufacture are of high quality.
8.3 Discussion of Possible Options
 Collaboration with health organizations to ensure the production of healthy products with
high ingredients.
 Introduction of value additional substances to the existing products
8.4 Recommended idea and why it is innovative
Introducing plant-based substances in the manufacture of drinks enhances the production of
drinks with high nutritional content and healthy. This meets the needs and preferences of many
consumers.
8.5Market Analysis
There is a significant rise in demand for plant-based drinks since they contain high nutritional
value.
8.6 Details of Chosen Option and Need for Development
Using plant-based products helps target the population that likes healthy drinks with low sugar content.
8.7 Expected Benefits
Socially the manufacture of drinks with high nutritional value by Natural Drinks Ltd will impact the
lifestyle of the consumers significantly. Financially, plant-based products will generate high income due
to the increased demand. Environmentally the products used are environment friendly, and this shows the
readiness of the company for the environmental sustainability
8.8 Value and Financial Return on Investment
The value of the Natural drinks company will rise since the company will be perceived as the brand
ambassador of plant-based products. The financial returns will be high due to the increased demand for
the products since the ingredients are highly nutritional.
 Innovation and Commercialisation 15

8.9 Investment requirements to move forward and the next steps.

More resource allocation is essential for research, production, and marketing. In addition, developing a
marketing strategy and securing partnerships with manufacturers and suppliers are significant steps to
embrace.
 Innovation and Commercialisation 16

9 Tools to Protect the IP Rights of New Drinks

I. Trademarks: These tools distinguish services and products from those of different
traders. Natural Drinks Ltd can use trademarks with unique logos, colours, smells, or
combinations (Trade marks | nibusinessinfo.co.uk no date).
II. Patents: It gives the right to stop people from using, making, or selling their inventions
without permission (Get patent protection for your business | nibusinessinfo.co.uk no
date).
III. Copyright: It allows one to determine how the original work can be copied, published, or
adapted (Copyright for your business | nibusinessinfo.co.uk no date).
 Innovation and Commercialisation 17

10 Conclusion
There is a need for all companies to apply good invention and innovation in their operations.
This is because good innovation enhances production while minimizing the cost.
 Innovation and Commercialisation 18

11 Bibliography
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