Innovation and Commercialisation

This document discusses the importance of innovation and commercialisation in business and how it can shape the success of an organization. It explores the 4 P's of innovation and the process of applying new product development for commercialisation. It also discusses the tools used to retain and protect knowledge and intellectual property.

Innovation And
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Innovation and its importance in comparison with invention................................................1
P2 The vision, leadership, culture and teamwork can shape innovation and commercialisation
.....................................................................................................................................................2
Task 2...............................................................................................................................................3
P3 4 P's of innovation and its uses of the innovation funnel ......................................................3
P4 Developments in frugal innovation and examples to used in organisational context............4
TASK 3............................................................................................................................................4
P5 Explanation of importance of commercial funnel and the process of applying new product
development for commercialisation of innovation.....................................................................4
P6 Building the innovation business case for an organisation that includes the ways for
funding........................................................................................................................................6
TASK 4............................................................................................................................................7
P7 Evaluation of different tools that could be used by organisations to retain and protect
knowledge and intellectual property...........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The procedure of the innovation to interpreting of an idea or invention in order to invent
new goods and services for which customer will pay (Ameka, 2013). In the term of the business
the innovation applied to get effective outcomes and satisfy the need of the customer as well as
expectations. Commercialisation is linked with the different business activities which is
essential for the running business activities in appropriate manner. The report based on the chilly
which is established in 2002 by James Butterfield and Tim Bouscarle. The main aim of the
organisation to offer cold water on go without having to buy single use plastic water bottles.
This report consist of important of the innovation regarding the organisation, difference between
invention and innovation. Along with define the vision of the organisation in order to promote
culture, teamwork and role of leadership. Apart from the report explain 4ps of innovation and
importance of the commercial funnel regarding to procedure of new product development.
Task 1
P1 Innovation and its importance in comparison with invention
To introduce new things and services by a organisation known as the innovation that
apply by the company for effective changes in the business activities that supports to generate
higher profits. The innovation procedure important for any organisation in order to cover large
market and attract customer for new product and services. Through innovation procedure
company attract to customer and generate high profits. The chilly company is manufacturing
organisation that wants to provide cold water to people so for this produced stylish water bottle
that based on the high technology and eco friendly for traditional mask.
Comparison between innovation and inventions
Basis for comparison Invention Innovation
Meaning In this procedure launch new
product and services in the market
that has been never made before.
The term of innovation apply on
the particular product and service
to modify according to current
market situation.
Purpose To attract customer through new
product and services
To achieve competitive advantages
through customers and
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organisation.
Necessary skills For this procedure required to
technological management and
effective skills that supports to
develop new items.
In this required marketing,
technological as well as strategic
management skill to innovate the
products.
Activities For this required to limited
research and development.
All the operations is expand all
over the company.
P2 The vision, leadership, culture and teamwork can shape innovation and commercialisation
The business organisation based on the vision, culture, leadership and culture sure to
support to increase the profitability as well as efficiency to provide shape of the innovation &
commercialisation (Boehm and Hogan, 2013). The particular term mainly linked with the
different types of business operation that present all the activities in order to meet with business
goals effectively. There are defined different types of term that related with the innovation such
as:
Vision: The main vision of the organisation to intensify the selection and every day
utilise the reusable products. Aim of the company to developing products for an active urban
lifestyles that create perfect balance for the different style ans unrivalled performance. The chilly
company mainly focused on the design of the water bottle that is different from other because it
have unique shape and based on high technology.
Leadership: When new product launch by the company require to all employees are
working with the motivation. The motivation provide by the leader regarding to particular work
and prepare for the change. Such as chilly company create a team that lead by the particular
leader in order to provide guidance to its staff members and prepare for the advanced technology
and innovation & commercialisation.
Culture: If any organisation have different culture so it become reason to attract
customers and supports to increase productivity as well as profitability. Culture mainly depended
on the values, beliefs and behaviour of people. At Chilly company both founder develop
effective atmosphere for different culture that supports to effectively introduce new products to
provide shape of the innovation and commercialisation.
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Teamwork: In every organisation a particular team set their goals and objectives that
based on the team performance. It is based on the skills of the team members and understand the
expectation of organisation to achieve target on time. In the context of Chilly company set the
goals for the team that supports to provide shape of the innovation and commercialisation.
Task 2
P3 4 P's of innovation and its uses of the innovation funnel
Innovation mix is a model that based on the product, place, promotion and public
relation. The particular tool allow to present the effective innovation procedure in order to
improve and carry the effective business activities. In the innovation mix consist of the process,
position, product and paradigm (Datta, Reed and Jessup, 2013). Chilly company apply the
particular tool for the innovation procedure such as:
Paradigm: In this element focus on the innovation activities that execute by the different
types of organisation in order to modify the business activities as per the current situation. Due to
apply particular element of the chilly company to assure about the decision to introduce the
unique design bottle to get positive outcomes. For this purpose, apply all the appropriate
modification in the present business model regarding to new produced product.
Product: The particular aspect is part of the innovation mix that linked with the new
product will be supplied by the chilly organisation to customers. Due to apply the idea of Unique
design bottle that based on high technology. It is essential for the business as compare with other
organisation.
Position: In this element mainly focus those area where sell out the product and target
customer for the innovation. Such as Chilly restaurant introduce the unique plastic bottle to cover
large market that essential for the manager and assure about the features of the product. It will
help to get position in the mind of clients successfully.
Process: The procedure of the process applied by the company for the manufacturing
product where is required to determine the planning of the innovation. In this the manager of the
chilly adopt accurate process to get success to introduce new plastic bottle (Engel, 2015).
Innovation funnel: The theory of the innovation funnel is related with the produce of the
new ideas as well as thoughts in order to invent new products and services that is called as
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innovation funnel. The main aim of this theory to apply on organisation to fulfil the demand as
per the customer expectation. There are consisting of different phases such as: Mouth of the funnel: In the first step analysing the market place for new products as well
as services. For this require to competitor regarding to product then take step into the
market to manufacture of the product. In the context of chilly organisation determine the
market and collect all the appropriate information to know the people need and demand
regarding to water bottle. Narrowing the funnel: At the particular stage manufacture product by the company after
analysis the current market situation. Such as chilly company develop effective strategies
and planning about the purpose of development of bottle in unique design (Godin, 2012).
 Narrow part of funnel: It is last stage where defined all the appropriate strategies and
take right step to reach the organisational goals and objectives. The particular procedure
shipped all the products and services to increase productivity.
P4 Developments in frugal innovation and examples to used in organisational context
Frugal innovation: It is a term of the business which is concentrated on the limitation of
resources, institutional resources, material and deduce the all the problems efficiently. In this
procedure the business entity mainly focus on the production as well as manufacturing cost that
supports to generate higher profits. Through particular approach a business can increase the
efficiency and performance. The chilly company utilise the particular procedure as non effective
cost like: Environmental Constraints: Through frugal innovation Chilly can increase its
production activities in respect to save environment. In the context management of chilly
utilise the plastic bottle the create with reuses things and do not harm to environment and
become strength for the product.
 New technology platform: The particular feature applied by chilly restaurant to deduct
the cost of the innovation in the plastic bottles. Through new technology company grab
many opportunities to get success effectively.
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TASK 3
P5 Explanation of importance of commercial funnel and the process of applying new product
development for commercialisation of innovation
Commercial funnel: It is also known as sales funnel because it is used by the companies
to increase their revenues by attracting large number of customers. In other words it can be
defined as the procedure which is focused by large as well as small business entities for the
purpose of finding, qualifying and selling all the products and services to the buyers. As Chilly is
launching innovative bottles in the market so it could be used by management of the company
for the purpose of increasing sales by attracting clients towards its new concept of products
(Hausman and Johnston, 2014). With the help of it managers in the enterprise will be able to
bring all the potential clients towards organisation by offering them such products which are
different from other companies.
Importance of commercial funnel:
 It can help organisations to attract potential customers so that sales could be maximised.
 It is vital for companies such as Chilly to use because it is useful way of visualising the
journey of clients from initial awareness of product to conversion.
 It provides a framework to business entities to analyse the business in detail and identify
the areas where improvement is required.
New product development: It can be defined as the process of launching or introducing
a new or innovative item in the market for customers. For Chilly it is very important to focus on
it because it is launching new bottles in the market which is an innovative concept. While using
it different steps are required to be followed by the management. All of them are discussed
below in context of Chilly:
 Idea generation: It is the first step of product development process in which
management of the Chilly ask the staff members to generate innovative ideas to develop
the organisation. All the employees use their brain and create new concepts for growth of
business.
 Idea screening: Different ideas are received by top authority of company and all of them
are screened by them for the purpose of selecting one of them. At this stage all the ideas
are analysed properly for the selection of best one.
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 Concept development and testing: At this stage different types of concepts are
developed for new products and tested for launching in the market (Hrdy, 2015).
 Marketing strategy development: When different concepts are developed then
marketing strategy for promotions is created to enhance awareness of it.
 Business analysis: When marketing strategies are developed then business analysis is
conducted to make changes in the existing products.
 Product development: Right after business analysis product is developed according to
the plans formulated earlier.
 Test marketing: When the developments are made in the bottles by Chilly then testing
of it is done that it is able to meet requirements of customers or not.
 Commercialisation: It is the last stage of new product development in which Chilly will
launch the new bottles in the market for the purpose of attaining growth (Kilelu, Klerkx
and Leeuwis, 2014).
P6 Building the innovation business case for an organisation that includes the ways for funding
Innovation business case is a written document which guides organisations to summarise
information of new innovation launched in the market. The business case for Chilly's new bottles
is as follows:
Elements Description
Summary Chilly is going to launch innovative bottles in the market for the
purpose of increasing sales and revenues.
Objectives Main objective of the company is to increase profits by 5% in next
year with the help of innovative bottles.
Market research In order to launch the bottles in the market the company is
conducting research to gather information about requirements of
customers.
Funding As Chilly is going to launch innovative water bottles in the market
so it requires funding for the same. One of the main source is selling
old business assets as it will help arrange finance easily. Another
funding resource is bank loan that will help to get funds from bank
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on a predetermined interest rate (Walsh, 2012).
Benefit New bottles of Chilly are beneficial for company as well as
customers. It will help to increase revenues for organisation and
fulfil requirements of customer to keep the water cold for a long
period.
TASK 4
P7 Evaluation of different tools that could be used by organisations to retain and protect
knowledge and intellectual property
For all the organisations it is very important to use different tools and techniques for the
purpose of protecting and retaining intellectual property and knowledge. For this purpose
different types of rights could be used. As chilly is going to launch new and innovative bottles in
the market so it is very important for it to use some of them so that the design and concept could
be saved from getting copied by other enterprises (Miller and French, 2016). Some of the tools
which could be used by managers of the company are as follows:
Patent: It can be defined as a right that allows innovator to keep the legal right of making
and selling the business concept. If a property is patented by an individual or a company then it
is not possible for others to make or sale it in the market without the permission of patent holder.
It is provided by legal authorities for a limited time period. It could be used by Chilly for the
purpose of protecting the design and concept of the innovative bottles which are introduced by it
in the market (Patent, 2019).
 Strength: It can help the company to get the right of one and only producer of eco
friendly bottles which are launched by it in the market for a limited time period in future.
 Weakness: The cost of acquiring a patent is very high and for small companies it is very
difficult to spend so much money on getting patents for their products.
Copyright: It is also a legal right which is provided by legal authorities to the owner of a
work for example a website, movies, book or a design. According to this only one person or
organisation is allowed to use the copyrighted property. Others are not allowed to use it but it
could be sold by the owner to other by taking appropriate monetary value of asset. It could be
used by Chilly to keep the rights for making innovative bottles and selling them in the market. It
will help to retain the intellectual property for a long period in future (Pellikka, 2014).
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 Strength: With the help of it an individual can get the right of publishing a book or
music in the market and it could be sold to others for getting monetary benefits.
 Weakness: It do not allow the right holder to openly permit others to use the work or
distribute it in the market.
Trademark: It consist a sign or design which makes the property different from others.
These are main used for identification purpose of products and services that are innovative. It
could be used by Chilly for the purpose of distinguishing its innovative bottles from other
companies. With the help of it the company will be able to protect the design of its new product.
 Strength: It guides companies to differentiate themselves from other sellers which are
selling similar products in the market.
 Weakness: It is provided by the legal authorities for a small period of 5 to 6 years and
after this the holder is required to renew it for using it in future.
From all the above described tools management of Chilly can use patent for the purpose
of protecting or retaining its design of new innovative bottles. With the help of it only the
company will be allowed to manufacture and sale the products in the market (Sheep, Fairhurst
and Khazanchi, 2017).
CONCLUSION
This project report concludes that innovation is the process for formulating an idea which
is never being introduced in the market by any organization. Commercialisation is the procedure
which is followed by business entities for the purpose of successfully introducing the new
product in the market. Innovation is very important as compare to the invention because it helps
a company to attain growth and competitive advantage in the market. Organisational leadership,
vision, teamwork and culture can share commercialisation and innovation because with the help
of all of them staff members could be motivated to perform all the tasks appropriately. There are
four main p's of innovation which are process, product, paradigm and position. By paying
attention towards all of them a company can launch innovation in the market successfully. Most
of the organisations are using frugal innovation to achieve growth by reducing unnecessary
features from products and reduce costs. While developing a product it is very important for
companies to follow the process of new product development so that success could be assured.
Innovation business case is also required to be formed to keep track record of all the activities
performed by the company while making innovative product. If a company is willing to retain
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and protect knowledge and intellectual property then it is very important for it to use different
tools such as patent, copy right, trade mark etc.
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REFERENCES
Books and Journals:
Ameka, I., 2013. Technology push vs. market pull in technology university innovation
commercialization case study: ITB. Information Management and Business
Review. 5(7). pp.337-341.
Boehm, D. N. and Hogan, T., 2013. Science-to-Business collaborations: A science-to-business
marketing perspective on scientific knowledge commercialization. Industrial Marketing
Management. 42(4). pp.564-579.
Datta, A., Reed, R. and Jessup, L., 2013. Commercialization of innovations: an overarching
framework and research agenda. American Journal of Business. 28(2). pp.147-191.
Engel, J. S., 2015. Global clusters of innovation: Lessons from Silicon Valley. California
Management Review. 57(2). pp.36-65.
Godin, B., 2012. “Innovation Studies”: The Invention of a Specialty. Minerva. 50(4). pp.397-
421.
Hausman, A. and Johnston, W. J., 2014. The role of innovation in driving the economy: Lessons
from the global financial crisis. Journal of Business Research. 67(1). pp.2720-2726.
Hrdy, C. A., 2015. Commercialization Awards. Wis. L. Rev., p.13.
Kilelu, C. W., Klerkx, L. and Leeuwis, C., 2014. How dynamics of learning are linked to
innovation support services: insights from a smallholder commercialization project in
Kenya. The Journal of Agricultural Education and Extension. 20(2). pp.213-232.
Miller, F. A. and French, M., 2016. Organizing the entrepreneurial hospital: Hybridizing the
logics of healthcare and innovation. Research Policy. 45(8). pp.1534-1544.
Pellikka, J., 2014. The commercialization process of innovation in small high-technology firms–
theoretical review. Handbook of Research on Techno-Entrepreneurship, pp.91-109.
Sheep, M. L., Fairhurst, G. T. and Khazanchi, S., 2017. Knots in the discourse of innovation:
Investigating multiple tensions in a reacquired spin-off. Organization Studies. 38(3-4).
pp.463-488.
Walsh, P. R., 2012. Innovation Nirvana or Innovation Wasteland? Identifying commercialization
strategies for small and medium renewable energy enterprises. Technovation. 32(1).
pp.32-42.
Online
Patent. 2019. [Online]. Available through:
<https://www.bvresources.com/blogs/intellectual-property-news/2018/03/12/what-are-
the-advantages-and-disadvantages-of-patents-copyrights-trademarks-and-trade-secrets>
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