Innovation and Commercialisation

This document discusses the importance of innovation and commercialisation in organizations, focusing on the case of Chilly's Bottles. It explores the P's of innovation, the use of innovation funnel, and the development of frugal innovation. It also highlights the significance of the commercial funnel and the application of new product development (NPD) in the business context.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1: Innovation and its importance to organisation in comparison with invention.................4
P2: Organisation vision, leadership, culture and teamwork that can shape innovation and
commercialism.......................................................................................................................6
P3: P's of innovation and the use of innovation funnel to shape the innovative ideas...........7
P4: Developments of innovation frugal innovation in organisational context ......................8
TASK 3............................................................................................................................................9
P5: Importance of commercial funnel and application of New Product Development (NPD)..9
P6 Build a business case.......................................................................................................11
TASK 4..........................................................................................................................................13
P7 Evaluate the several tool of protecting the intellectual property.....................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
.......................................................................................................................................................16

INTRODUCTION
Innovation is a process of converting an idea into a good or services that can add value to
the customers fort the amount that they pay. It helps to identify the ways to do the things
differently. Innovation can be achieved by introducing creativity in the products and the
processes of the organisation. To make the organisation competitive the companies need to
innovate their processes, products and services. Innovation offers opportunities that can be
grabbed which will help them in their growth. While commercialisation is the process to carry
out new products and the services in the existing marketplace. For this report the organisation
that is taken into consideration is Chilly's Bottles which offers a wide variety of water bottles,
coffee cups, accessories etc. The company is planning to introduce innovation by introducing a
new bottle which is basically for workout purposes. In this report the significance of innovation,
sources of innovation, innovation funnel, commercialisation funnel etc. are discussed.
TASK 1
P1: Innovation and its importance to organisation in comparison with invention
Innovation is concerned with introducing new ideas in the businesses which will help
them to attract more and more customers. It can be defined as a process which includes various
ways of doing things differently than others. Innovation are always developed with the creativity.
Innovation helps the organisation to adapt the changes that are taking place which will help the
companies to ensure their survival (Bernstein, 2015).
Invention is something that has identified or developed for the first time. They are such
ideas that has never been used before by anyone. The inventors take rights to protect their
invention. It can be an improvement in the machine, product which creates an object as a result
(Rasmussen and Eliason, 2017).
Importance of innovation in comparison to invention
The innovation is important for every organisation as it helps them to maintain their
position in the market. Chilly's has been providing water bottles, coffee cups in which they have
to face various competitors. So, they will be innovatively introduce a new product. The
importance of innovation is given below :
 Satisfy the customer’s needs : With the help of innovation the companies launch new
products or make changes in the existing ones. This can be done based on determination

of the needs and wants of the customers. As Chilly's identified the requirement of
workout bottles they introduced it. This will help them to attract a large number of
customers.
 Gaining competitive advantage : Innovation is done in the existing products and
processes which helps the organisation to take the competitive advantage as they can
attract the customers easily which will increase their market share. Chilly's with the
launch of this innovative product can take the advantage as they are providing innovative
products (Paradkar, Knight and Hansen, 2015).
Difference between innovation and invention
Basis for comparison Innovation Invention
Meaning The innovation helps the
organisation to make
improvement in the existing
processes and the products
which will make customers
loyal as they are based on their
needs and wants.
While the invention leads to
change the entire thing or to
introduce something which
has never offered before so
this put a threat that it may not
accepted by the customers.
Purpose The purpose of the innovation
is to increase the value of the
existing products.
The aim of the invention is to
bring out something which has
never been used before by
anyone.
Necessary skills The skills required are
marketing skills, strategic
skills etc.
The skill that are required in
this is technical skills which
helps to identify something
new.
Activities The activities involved in this
are related to researcher and
interpretation.
It is basically depends upon
the experiments that are
undertaken.

P2: Organisation vision, leadership, culture and teamwork that can shape innovation and
commercialism
Commercialisation is the process associated with introducing new products and services
in the market which will help the organisation in achieving commercial success (Lipkova and
Braga, 2016). The commercialisation is important for the organisation as it helps them to sell
new products in the marketplace by protecting the goods with the help of intellectual rights etc. It
also offers various economic benefits as they can give license to other companies.
Vision of the organisation : The vision of the Chilly's is to increase the use of better-quality
reusable water products every day.
This vision promotes the innovation as they have to provides the better quality of the
products and which can be done by dematerialisation i.e., introducing new products which are
slightly different than the existing one.
Role of leadership in innovation : Innovation put various challenges before the employees
which affects their performance. The leaders Of Chilly's make the employees comfortable with
the change by creating a vision and making them understand the benefits and opportunities they
will have from such innovation.
Role of culture in innovation : Culture is related to the values and beliefs of the people in the
organisation. So, the managers and the leaders of the Chilly's tries to maintain the employee’s
behaviours with the help of various innovative policies, rules and principles. That guides them to
work and behaves also if offers the employees various opportunities to grow and develop
(Miller and French, 2016).
Role of teamwork in innovation : The innovation needs to implement effectively in the
organisation and the products which will help them to achieve their goals by making their
customers understand the benefits from it. This can be done by effective communication and in
Chilly's their marketing and sales team plays effective role by their teamwork as they
aggressively work with each other to create awareness about the benefits of the innovation. The
teamwork help the companies to achieve their goals as they work with full cooperation and
coordination. This helps them to get better results as in a team everybody suggest some or the
other idea which helps them to achieve their targets without any delay.
On the basis of this innovation and commercialisation Chilly's can effectively bring out
any new product or can innovate in existing products. The teamwork will help the employees to

be consistent and be cooperative with each other. The leaders of the company will motivate the
employees to share their vision and encourage them to work. All these will facilitate them to
commercialise their products in the marketplace.
P3: P's of innovation and the use of innovation funnel to shape the innovative ideas
Innovation that are introduced by the organisation can be with various purpose on the
basis of which its type is determined. Various types of innovation are :
 Sustaining Innovation : IN this type of innovation a significant improvement is made
on the existing products of the company which will help to sustain in the business
environment.
 Radical Innovation : This type of innovation has impact on the entire industry as the
technology is high and updated along with that it has high impact on the market.
Innovation helps the business to get the competitive advantage for which they have to
undertake the it. To identify the strategies of innovation the Chilly's need to understand the P's of
innovation which are as follows :
 Product : Products are the offerings that are provided by the company to the customers
to satisfy the needs and wants of the customers. In case of Chilly's, they offers reusable
water bottles, coffee cups etc. in which they have to necessarily adopt the innovation
which they did by introducing a water bottle for work out in which a separate space is
provided to keep the mobile phones (Isaksen and Jakobsen, 2017). With the help of
innovation new products can be launched by the company or improvement can be made
in the existing products that are offered by them.
 Process : It includes all the factors which are associated with the delivery of the
products to the end user. This strategy of innovation helps the organisation to
understand the changes which have to make to improve their processes. Chilly's need to
consider the effective process of distribution with the help of which they can easily
place their product in market.
 Paradigm: This depicts the ways in which the business can bring innovation in the
organisation. With the help of this changes can be introduced in the mental model that
frames how and what the organisation can undertake their activities. Chilly's need to
identify the procedures so that they can identify the changes to be made in the prevailing
situation.

 Position : This is related to the conceptualisation that determines the value of the
products and services to the society. This will facilitate the Chilly's to position their
products. It will help the Chilly's to enhance their market position which will facilitate
them to increase their market share.
Innovation funnel is a three-step process which helps the business to provide such
products which can satisfy the customers. Chilly's can use these three steps to improve the
existing products. Innovation funnel is important for the organisation as it helps them to identify
the ideas and then understand them by evaluating them. Further it helps them the organisation in
formulating the strategy. The steps in innovational funnel are :
 Mouth of Funnel : In the first stage of Mouth of funnel the marketing research will be
conducted by the Chilly's. They will identify the core competitors, need of the customers
and products by undertaking the research which has the influence on their products.
 Narrowing the funnel : In the next stage of narrowing the funnel, the Chilly's can
implement their strategies and ideas for introducing new products in the market. The
evaluation will be also be made on the basis of cost benefit analysis, profitability etc.
which will help them to put the idea into action.
 Narrowed part of the funnel : Lastly in the narrow part of the funnel, the Chilly will
ensure that all of their strategies and the identified contents are able to meet the targets
that they wanted to achieve.
P4: Developments of innovation frugal innovation in organisational context
Frugal innovation is a technique that helps to determine an effective process that can help the
organisation to reduce the cost of the manufacturing and eliminate all the defects in the process
(Hossain, and Kauranen, 2016). Various aspects that will help Chilly's to reduce their
manufacturing cost are that they can identify the opportunity in the adversity such as people
faces various issues when they carry their mobile with them at the workout place so they
provided product accordingly. Chilly's need to focus on the principle of Do more with less in
which they can focus on providing better solutions to the problems faced by the customers. They
need to think and act flexible which will help the Chilly's to identify and make changes in the
products and processes as per the market situations. The other principle is keep smile which
will help Chilly's to get their desired outcome with efficiency. The last principle of innovation
frugal which helps the organisation in achieving their objectives and goals are follow your heart

will make the employees of the Chilly's to be effective and passionate which will help them in
improving their performance (Henttonen and Lehtimäki, 201). The frugal innovation can easily
be used by the Chilly's in their organisation. This will help the companies to identify the
opportunities when the organisation faces hard time such as Chilly's introduce bottles for the
people who are fitness conscious. With the help of this model they could easily identify the
solutions to the problems. Chilly's kept the things simple and launched the bottles.
All the principles of the frugal innovation will help the Chilly's in eliminating the detects
and the reducing the manufacturing cost of the company.
TASK 3
P5: Importance of commercial funnel and application of New Product Development (NPD)
Commercial funnel- This is also known as sales funnel which is considered as buying
process from which a customer’s goes through while purchasing a product. The consideration of
this concept is essential for the manager of Chilly's as it will help them in analysing all the
business operations effectiveness so that they will be able to implement required changes easily.
This will provide the huge benefits to the organisation as by increase the engagement of
customers towards their products which will enables them in increasing their productivity and
profitability (Hau, 2016 ). The commercial funnel is important as it will help them to attract the
strangers and convert them into visitors. The funnel will further help them to close the deals by
providing them satisfactory services which will make them feel delighted. It will facilitate the
Chilly's to target the customers and resolve their issues.
New product development process:
In order to successfully introduce a new product in the market it is necessary for the
business organisation to appropriately adopt the new product development process. As it will
give them the detail about all those methods which needs to be carry out while launching a new
product or service. This process contains various steps which are describing below: Idea generation: This the foremost stage of this model in which the manager will give
their emphasis on developing a new idea or strategy related to introduce a new product or
service in the marketplace by assessing their internal and external environment. Chilly's
organisation will formulate decision at this step in which they must give their focus on

launching a new product as per the customers’ requirements, needs and demand so that
they will be able meet their expectations effectively. Idea screening- In this stage, the manager of Chilly's will evaluate their ideas that they
are able to meet their set criteria or standards or not. In the case if they found some
complexities in their strategies then at this position, they can implement some required
changes easily (Greco, Grimaldi and Cricelli, 2015). Concept development- This another crucial step as in this Chilly's organisation will
execute their ideas and strategies by tracking their technical feasibility, market potential
and product design. Here, the product differentiation concept also will consider as this
will help the management in showing that their products is better than their competitors. Development strategies- Herein, research and development department of the company
will formulate strategic strategies related to promoting their products in the marketplace
so that the overall sale of the business can be increased in a limited period of time. Examine business conditions- This refers to examination of business environment before
launching a product so that the succession of the product can be determined. Product development- This stage contains process of development a product in which
manager needs to give their focus on collecting the information or data about the required
resources for manufacturing the products so that all the activities can be operated in an
optimal manner (Engel, 2015).
 Marketing Test- This step helps the manager of Chilly's in assessing the customers
reaction or reviews towards the new product so that they can determine that their product
is able to meet the demand of the customers or not. Also, it will enables them in
implementing some required changes in their process so that the success of the business
can be ascertained by attaining higher customers satisfaction.
 Commercialization- In this phase the manager of Chilly's will determine the prices of
their products and finalised their marketing plan for successfully launching their product
in the marketplace. The commercialisation has various steps which the organisations need
to undertake while commercialising their products. Firstly they need to conceptualise the
product in which they have to identify the idea. Then on the basis of which the product
architecting will be done in which various features will be identified on the basis of
research. Accordingly product will be developed and will be released in the market.

 Product launch: It is the endmost stage, where the manager of Chill's will finally launch
their product that is a workout bottle in the marketplace in order to meet up the customer
demand and earn higher profitability.
P6 Build a business case
Business case
It is seen as a formal document which clarify all the reasons of creating a project. As in
the present scenario, Chilly's is concerned for introducing a new product that is workout bottles
which have a zip where customers can keep their mobile phones. So before launching this
product they create an effective business case which contains several components like
development process, market conditions, pricing strategy and many more (Dutta and Folta,
2016). Business case of this respective company is as follow:
Executive Summary- It is the brief of the business plan that provides the description of
various strategies which they have to follow, the target market which they will cater. Along with
that it includes various steps which are to taken by the Chilly's to solve the problems which they
have identified.
Overview of the organisation : The Chilly's organisation is formed by James Butterfield
and Tim Bouscarle in 2010. The annual turnover of this company is £2 to £10 million and the
numbers of employees are 10 to 15. To resolve the issues faced by them they have to introduce
new product which is a water bottle that can be used while working out. In that they can keep
their phones in the separate space which is provided specially for the same purpose.
Vision : The vision of the company is to reduce the use of plastic bottles.
Mission: The mission of the company is to increase the use of reusable water bottles.
Objectives- The major aim of this organisation is to increase market share by providing
great convenience to their customers in carrying their phone while going for workout.
Need of innovation : The customer faces issues with the phones as they have to carry
them but while they are doing activity they face problem of placing the phone.
Opportunity : Nowadays most of the people are engaged in the activities so it will be an
opportunity for them to serve a large number of customers.
How it will the need - This term gives a brief view of the issue which Chilly's wants to
solve by introducing a new bottle which makes easy for the customers to carry out mobile phone
and bottle together while going for workout.

Innovation in products- In terms to operate all the business operations or functions as
per the current market trends and situations Chilly's is considering innovation term in their
business so that they can produce their bottles as per the customers demand and needs and
increase the chances of their succession.
Competitive edge : The opportunity of being successful is high for the company which is
why they will have competitive edge as it will solve a major problem faced by the customers.
Research- For assuring the success of their new product in the marketplace manager of
Chilly's must conduct an effective research by using the questionnaire and online survey methods
so that they can identify the perceptions, demand and requisitions of customers and can operate
all the activities accordingly.
Target market and Promotional strategy : The target market of the company is their
existing customers and the one who are engaged in sports activities and the one who into any
activities related to gym etc. The product can be promoted through television, displaying in the
stores and by offering various discounts.
Strategy : After completing the research, manger must make design and develop an
appropriate plan related to introduce product in the market. It is essential for them to consider all
the factors linked to the products in their decision-making so that the achievement of desired
outcomes can be ascertained (Datta, Mukherjee and Jessup, 2015).
Funding- The importance of funds is remarkable as all the activities or plans can convert
into reality only when sufficient funds available. In this aspect, the organisation can use various
resources like bank loans, financial institutions, crowdfunding and many others. All have their
own significance for example, among all of them bank loan is perfect for them as it will give
them specific time period to repay the loan amount.
Benefits- It is beneficial for the Chilly's as it will help them in ascertaining the
significance of their products towards the customers.
The ask: In this manager will give their focus on taking the feedbacks and reviews from
the customers so that they can implement required changes effectively in order to enhance
customers experience.

TASK 4
P7 Evaluate the several tool of protecting the intellectual property
In terms to keep business position safe and sustainable as compare to competitors the
business manager of Chilly's needs to protect their ideas, products, technologies, rights from
using it by another rivals.
Intellectual property are the activity of mind such as any innovation, symbols, designs
etc. for which the protection need to be given so that it cannot be imitated by any person. For the
organisation and the individual it becomes important to protect such creation. Importance of
intellectual property is it helps to take the competitive advantage over others, encourages
innovation, helps in meeting up with the global challenges etc. In this aspect, various tools and
frameworks are given below from which organisation can use any of them.
Patent : It is seen as a coherent possession or right which is given to the company so that
another rivalry cannot use their right of manufacturing same products and services. The time
limit of possession of this right limited which required to be renewed it time to time. It is very
beneficial for the company as the it comprises the strength which strictly not allow other
companies to produce or copying an organisation product. But it also creates problem in
renewing in time to time which considered a big weakness of it. The advantages of patents are
that it protects the designs of the company also it helps them to protect them to get their
innovation copied. While the disadvantage is that it increases the cost of the company as because
cost of procuring patent is high.
Copyright : This is a unshared right which is only rendered to that person who has
specific skills and have finished artistic work. It is mainly provided to that persons who have
their main focus on writing poems, novels and making moves so that any person cannot stole
their idea or method. It has huge significance due to their long-lasting nature but it also sometime
hurdles because of its specific aspect and not considering the whole concept. The copyrights
offers various advantages such as it prevents the work to get stolen or misused, it gives right to
the people the sole right to use and reproduce. While the disadvantage of having copyright is that
it enables people to share their work.
Trademark: It is very reflective tool which can be determined by the symbols, phrases
and names that helps the organisation in making an own identity of their products which enables
them to make differentiation from their rivals. The major strength of this tool is the

characteristics of providing higher security but in every 10 years organisation have to pay a
specific fee (Brown, Gregson and Mason, 2016). The advantage of trademark is that it helps in
differentiating the products than the others whereas the disadvantage of trademark is to get the
trademark renewed they have to pay heavy fees after a specific period of time.
As per the above discussion it can be stated that Chilly's organisation must take the Patent
as it will give them rights to protect their products and services to manufacture by any another
organisation which enables them to build their own recognition in the marketplace and higher
profitability as well. Also they can take trademark which will help them to differentiate their
products with that of their competitors.

CONCLUSION
From the preceding study, it can be understood that consideration of innovation term is
must for the organisation in order to operate their business activities as per the current market
segments. It helps the organisation in bringing all the effective changes in their products and
services so that they can meet their customers’ requirements and needs appropriately. In this
aspect the innovation funnel has great importance which will help them in bringing innovation
significantly. Along with this, the NDP process and business case also plays a huge role as it will
them the information about the overall activities of the business which will help them in
introducing a new product in the marketplace optimally and get them the higher success and
growth in the marketplace.

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