Innovation and Commercialisation in Chilly's: A Case Study

This case study explores the role of innovation and commercialisation in Chilly's, a sustainable water bottle company. It discusses the influence of vision, leadership, teamwork, and culture on shaping innovation. It also examines the 4 P's of innovation and the use of the innovation funnel. Additionally, it explores the developments in frugal innovation and provides examples of its application in an organizational context.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Innovation and Invention.............................................................................................................1
Influence of Vision, Leadership, Tea, Work and Culture on Shaping Innovation for Chilly's. . .3
LO2..................................................................................................................................................4
4 P's of Innovation and Innovation Funnel..................................................................................4
Innovation Funnel........................................................................................................................5
Developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................6
LO 3.................................................................................................................................................7
The importance of the commercial funnel and the application of New Product Development
processing for commercialisation of innovation. ........................................................................7
Innovation Business Case for an organisation, including ways to access funding......................8
LO 4.................................................................................................................................................9
Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Innovation is considered as a process of translations where people convert creative and
new ideas into good and efficient practices which are good for their personal and professional
objectives. Business innovation starts with a need or issue that is preventing the organization
from generating value from their business. This report is providing brief of innovation for
Chilly's company that is providing the sustainable alternative of the plastic water bottle to the
consumers. This company was established in year 2010 in United Kingdom. The main objective
of the company to ensure the availability of sustainable water bottle that is made of material
which is not harmful for environment and made of recyclable material. This report is providing
differentiation between the concept of innovation and invention. Influence of organization
culture, vision, team work and leadership on the shaping of innovation and commercialization. 4
P's of marketing and use of innovation funnel for business organization will be discussed in
study. Brief of frugal innovation will be explained on the basis of examples. The new product
development plan will be explained in report which is based on business case. Various tools and
techniques of protecting knowledge and intellectual property will be discussed in study.
LO1
Innovation and Invention
Innovation
The main concept of innovation for business organization is involvement of new creative
practices in business operation that can improve the performance of the business organization in
target market. A organization faces different issues in operation and conduction of business. To
come over these problems they need to implement some innovative practices which are effective
enough to solve the issues of company. This process includes effective changes in the current
system or operation of companies like Chilly's. (Morabito, 2017.)
Invention
Invention is a process that includes development of something new that was not exist before. It
also can be taken as development of complete new technology or process that can improve and
change whole operation process of the company. (Lin, 2018)
Difference between Innovation and Invention
Innovation Invention
1

Meaning  It is known as development
of completely new products
and services. This is all about
creating something new with
new creative idea.
 Innovation can be explained as
the process that consists of
implementing new ides in
current technology and
processes of organization.
Includes  Creation of process or
product.
 Implementation of new
practice in existing processes.
Concept  Based on research of original
ideas and theories. (Treanor,
2019)
 Implementation of innovation
is based on addition of new
process in current technology.
Required Skills  It is important to possess
scientific skills to meet
required goals.
 Technical and practical
implementation skills.
Occurring Time  As new ideal or concept
come to the mind of person.
 It occurs when organization is
facing an issue or problem in
their business practices.
Deals With  People deal with only one
product or technology.
 It includes the process where
person have to deal with whole
process or operation of
company.
Actions  Actions are limited to the
research and development
department of organization.
 This process includes the
research and development
along with other operational
departments of company.
This is how business organization use practices of innovation and invention to improve
the business and operation of company in the target market. For example whenever a business
organization stuck in business operation they look for innovation in their current technology that
can help them to sort out their problems with business operations. The case of invention is
2

completely different form the innovation. Invention comes with generation of new idea that
comes in mind of a person. This how invention and innovation are completely different process
that looks similar.
Influence of Vision, Leadership, Tea, Work and Culture on Shaping Innovation for Chilly's
Innovation is one of the most important process for a business organization but there are
certain things that force or lead the shaping of innovation in company. Company culture, team
work, leadership and vision of organization shape the innovation for company.
Vision
The operations and processes in Chilly's are depended on their business vision. Mostly
the action of the company are based on their business vision. The planning and strategies are
defined by company by considering their vision. For example the vision of Chilly's is to make
sustainable water bottles that can take the position of water bottles. They are looking for
providing alternatives that can help the organization to contribute in sustainability of
environment. This is how organization is bounded with their vision, this vision force them to
work in field to improve their product and make it more environment friendly by process of
innovation. The commercialisation is also depended on how company is carrying their vision to
make available a product to the consumers. (Lawton Smith, Bagchi-Sen and Edmunds, 2018)
Culture
There is huge role and influence of company culture in the shaping of innovation. There
are various type of company culture are present in business organizations. Work place culture
defines the environment of company. If work place of Chilly's is good enough to create positive
then it will enhance the capability of employees to think creative and provide better and efficient
solutions to the organization related to the problems of company in commercialisation and
implementation of innovation.
Team working
Success of a business organization is depended on the efficiency of teams that are
working in it. Better team working leads to effective communication process and it also help the
Chilly's to create positive working environment on the floor. This positive environment in
company encourage the employees to work more creatively to provide better solution to
company. This is how better team working shape the innovation in company. This is same for
3

commercialisation process because high effective team working provide better strategies to
commercialized a product or services of company. (Ransbotham and Kiron, 2017)
Leadership
Role of leader is most important in shaping innovation and commercialisation in
company. Whole work and operation of Chilly's works on the vision and mindset of leader. If
leader of company are actively participating in implementing innovation in company processes
then it can be consider as main driver of innovation in company. This also can be taken for
process of the commercialisation because how the leader wants their product or services to be
launched or commercialized in market place. That is how leadership shape the innovation and
commercialisation with in Chilly's.
Sources of innovation
There are different sources of innovation in Chilly's. The main source of innovation in
Chilly's is their business vision that enables practice of innovation. Other sources or innovation
are their business objectives, failure in design of water bottle and sustainability of product and
services. This sources encourage the employees and management of Chilly's to implement
innovation in their product and operations. (Nastiti and et.al., 2017)
LO2
4 P's of Innovation and Innovation Funnel
4 P's of Innovation
There are different ways are possible that can help the organization to create better
innovation strategy or planning that can help them to improve their business objectives with
higher effectiveness. There are 4 P's are includes in process of innovation to generate better
results. These P's of innovation are- Product, process, positioning and Paradigm. Some of these
P's are similar to the 4 P's of innovation.
Product- This is about implementing change or innovation in product that can enable Chilly's to
attract more people to by their water bottles. This process includes the changes or innovation in
the particular product to improve its value for consumer.
Positioning- Positioning is concerned with the strategy of company that is used to present or
position their produce in market place. By creating more psychological impact on consumer
Chilly's will be able to encourage the consumers to select their product instead of other plastic
water bottles. This is possible with concept of sustainability.
4

Process- Chilly's is already using better and efficient process to create water bottles with
sustainable raw material which is less harmful to environment. Company can also use other
sustainable process to get better response of consumer in the target market. (Kozlowski, Searcy
and Bardecki, 2016)
Paradigm- This is completely different from the p's of marketing because, in this process
company can alternate whole process of product development and commercialisation in order to
generate better response from the target market. This is about implement innovation in all
processes of company. (Morabito, 2017.)
Innovation Funnel
Innovation funnel is a process that represents the operation of screening ideas. As
organization look to implement or propose innovation in organization they use certain process to
short listing ideas which are proposed for the implementing innovation in company. There are
various filtering processes are used by Chilly's which are based on different aspects that are need
to considered before selecting an idea for innovation. The filters used in process are considered
as gate filters. The process of innovation funnel is-
5

Idea Development- As Chilly's look for innovation in the design of their product to make
available more products in market as per demand of consumer. In this step on the basis of need
of organization a specific criterion is used by the company. On base of need of company, for
innovation process many ideas are collected by responsible people through the brain storming
process and research process. The number of ideas are available at this stage which is
represented by the wide open mouth of funnel.
Concept development- The concept development stage is consists of process that includes the
two steps which are discovery and scoping. Both steps are important for organization because,
through this process organization shortlist those ideas in screening process which is based on
application and scope of particular idea in the future. Initially ideas are shortlisted on basis of
their applicability and that further these ideas are screened on basis of future scope. After this
step only few ideas remain for implementation. The narrowing region of funnel represents the
decrement in number of ideas. (Herrera, 2016.)
Concept Launch- This is the last step of innovation funnel where shortlisted ideas are developed
in the organization as a prototype. For example in Chilly's shortlisted designs are developed in
company as prototype for testing. By this development and testing operation most of the designs
6
Illustration 1: Innovaytion Funnel
(Source: High Value Strategic Idea and Concept Development. 2019)

are eliminated in the process and only few prototypes get shortlisted through this step. After this
the most economical and better option are selected for launch.
This is how the whole process of innovation can be understand by the innovation funnel.
The innovation funnel used by the companies to get better planning of innovation. (Heinonen,
2015)
Innovation Funnel-
Chilly's take this method into use when they want to extract ideas that gives
prospects to the with in the viable area. This tool helps the company to bring innovation
successfully.
Developments in frugal innovation and provide examples of how it is used in an organisational
context.
Frugal innovation is used to reduce the cost of the products at the manufacturing stage and
reducing the complex nature of the products. This process is used for the parts which the
company considers they are not durable and useful. Chilly's has their headquarters in London.
They have to expand their operation which require them to make their products durable and
cheaper. Company has the competitive advantage of making sustainable bottles. They target their
customers on the basis of that. Due to globalization the demand of this process on the rise.
Company has to use this as most of the people don't want to spend much on water bottles and
they want it with good quality so that they can use it again and again for a long time. This takes
time as the process and set up of manufacturing is changed so that will ultimately increase the
overall cost. That is why company has to make it necessary to use this innovation so that they
can reduce those materials which are not necessary so that they can reduce the cost of the
products. They want to expand their market into developing market as these products have a big
scope there. After expansion company only needs to focus on maximizing the sales and if the
product is not successful then also it is good as it was made with best ideas. For instance they can
sell their goods to another manufacturers and they in turn can sell that by their name. Before
considering this idea company needs to analyse every aspect so that they can know the needs and
wants of the targeted customers. This will help the company to know how to implement this
innovation as after studying the factors of the environment they will know what materials to
7

remove and what to use so that they can manufacture it exactly as per the needs and wants of the
consumer.
Role of Frugal Innovation-
It helps the Chilly's to cut their fund which further lead to reduce their debts in the
market. Place where conditions of the environment is not good and less availability of energy
there company has to make this method available and make products from this approach.
LO 3
The importance of the commercial funnel and the application of New Product Development
processing for commercialisation of innovation.
Importance of Commercial Funnel-
Helps in picking a appropriate marketing strategy for the company-
At any stage when Chilly's is out of strategies then they consider this funnel the most
important to improve their business model. They use this funnel so that they can recognize which
strategy is suitable in which area. This will help them to achieve success in the market. Chilly's
remain in touch with their clients and never loose their contact so that they can promote their
products to their existing customers.
Helps the company to generate more sales-
The company has a unique selling preposition in the market but still it is tough to beat the
companies who are already existing in the market. Chilly's have selected the strategies in which
they are confident will attract the customers. The company has understand the techniques and
mechanism of the commercial funnel thoroughly that is the reason behind attaining more and
more sales and helps them benefit in the long run. This has made the Chilly's so confident that
now they are not even afraid of launching and maintaining the sales of their new products. They
are confident that they will satisfy the customer at any stage. By understanding the method of
funnel the company has achieved their desired outcome.
Commercial Funnel gives an advantage to the company against their competitors-
By understanding the procedure of the funnel company has understand every aspect of the
environment whereas new companies face problem as they are confused about making a decision
and any wrong attempt their competitors make is beneficial for Chilly's.
8

Innovation Business case-
These type of business case work on a method approach which is totally clear. Many times the
ideas which are good goes to waste because they are not suitable according to the business case
or they have not thought it clearly. If it is thought properly then Chilly's can get the areas to clear
the discussion and the decision they make they can quantify them and qualify them. While
addressing the case thoughts must be considered from the customer perspectives so that their
needs and wants can be taken care of. (Dhewanto and Sohal, 2015)
Innovation Business Case for an organisation, including ways to access funding.
Strengths-
Chilly has successful track records for develop new products and bringing innovation into the
market. The company has achieved high level of customer satisfaction in UK as they are
dedicated to follow the strategy of customer relationship management. By following this the
company has achieved high level of brand equity. Company also has made connection with the
suppliers to whom they can easily rely on which also helps them to reduce the problem of supply
chain management. (Cheah, 2016)
Weaknesses-
To expand and extend their operations company needs a high amount of investment so that they
can increase the scale of operations and make an attempt to invest in new and upcoming
technologies. Company needs to build their cash flow strong so that they can manage their
operations easily. Company has to put a team of management for handling the aspects of
financial management so that they can use the cash at anytime they need.
Opportunities-
Chilly's has a chance to boost their productivity and profitability as the cost of transportation is
decreasing or they don't change the price and enjoy the increased market share. Company has a
lot of scope in expanding their product line into various markets as trends are changing at an
9

inconstant rate. Their sustainable products has the opportunities to grab more share in the market
as it is cheaper and reusable.
Threats-
Demand for these type of products is seasonal so it is difficult to maintain the operations at the
time of off season. Buying pattern of customer changes a lot which can affect the profitability of
the company. Manufacturing of these products are getting costlier as the rate of labour is
increasing.
LO 4
Different tools that organisations can use to develop, retain and protect knowledge and
intellectual property.
Copyright of Chilly's-
All rights such as copyright of database, the website of the company and the
contents presented on it are specifically licensed to Chilly's or only they have the permission to
use it as governed by the law to the holder of copyright. No one has the right or they are allowed
to republish, copy, reproduce, post, images, logo, icon, graphic and their selection. No one has
the right to use any of these things or alter it without agreeing the terms of license first.
(Bereznoi, 2015)
Patent of Chilly's-
There are many patents which are under the name of Chilly's such as the design of
their bottles, their sustainable innovation, their materials which keeps the water cold for 24
hours, their method of putting a seal lock so that the water does not leak from the water bottles
and their method of production by which the company can use the water bottles again and again.
Trademark-
Trademark of Chilly's was filed on April 28,2017 and it was registered
successfully. No. of the trademark is 01666188. The holder of the trademark is also represented
by BIRD & BIRD LLP with the ID no 14596. no oppositions were raised at the time of
publication. The company completed their 90 day period of opposition on May 19, 2017. the
expiry of their current trademark is April 28, 2027. Their trademark also includes their products
10

of household such as containers, crockery, utensils, brushes etc. (Apanasovich, Heras and
Parrilli, 2016.)
Copyright, Trademark and Patents-
These tools help the company to protect their interests, their products, their
innovation and free them from the issue of misuse of their content. After implementing all the
components like these the company can make themselves free from the false attempts people
make. It also benefits the company by maintaining their reputation.
CONCLUSION
From the above studies it has been concluded that this study is based on innovation and
commercialisation of the Chilly's. This report covers many aspects such as intellectual property
rights of the company as in how they protect and safeguard their organization. Ways for
innovation and SWOT analysis of the company. The report also highlights issues such as
commercial funnel and frugal innovation. It highlighted the fact that in order to expand their
product company needs to increase their quality of the product, decrease their prices and have to
be in confidence so that they can handle their competitors and other forces which affect the
productivity and profitability of the business. The report also highlights 4p's of innovation. The
aspects of this report helps to analyse that where the company is making progress and that is the
making of sustainable water bottles. The company is even known for that. There are areas where
company needs to improve their portfolio and overcome their weakness such as improving the
cash flow of the company so that they can maintain their operations. They have to build their
structure strong so that they can flow their productivity easily at the time of off season.
11

REFERENCES
Books and Journals
Online
High Value Strategic Idea and Concept Development. 2019. [Online]. Available Through.
<https://www.sopheon.com/idea-concept-development/>.
Anaya, L., Dulaimi, M. and Abdallah, S., 2015. An investigation into the role of enterprise
information systems in enabling business innovation. Business Process Management Journal.
21(4). pp.771-790.
Apanasovich, N., Heras, H.A. and Parrilli, M.D., 2016. The impact of business innovation
modes on SME innovation performance in post-Soviet transition economies: The case of
Belarus. Technovation. 57. pp.30-40.
Bereznoi, A., 2015. Business model innovation in corporate competitive strategy. Problems of
Economic Transition. 57(8). pp.14-33.
Cheah, S., 2016. Framework for measuring research and innovation impact. Innovation. 18(2).
pp.212-232.
Dhewanto, W. and Sohal, A. S., 2015. The relationship between organisational orientation and
research and development/technology commercialisation performance. R&D
Management. 45(4). pp.339-360.
Heinonen, T., 2015. Management of innovation in academia: Going beyond traditional
technology Transfer. Journal of Technology Management & Innovation. 10(2). pp.198-210.
Herrera, M.E.B., 2016. Innovation for impact: Business innovation for inclusive growth. Journal
of Business Research. 69(5). pp.1725-1730.
Kozlowski, A., Searcy, C. and Bardecki, M., 2016. Innovation for a sustainable fashion industry:
a design focused approach toward the development of new business models. In Green
Fashion (pp. 151-169). Springer, Singapore.
Lawton Smith, H., Bagchi-Sen, S. and Edmunds, L., 2018. Innovation cycles and geographies of
innovation: a study of healthcare innovation in Europe. European Urban and Regional
Studies. 25(4). pp.405-422.
12

Lin, S., 2018. The structural characteristics of innovation ecosystem: a fashion case. European
Journal of Innovation Management. 21(4). pp.620-635.
Morabito, V., 2016. The Future of Digital Business Innovation. Switzerland: Springer
International Publishing.
Morabito, V., 2017. Business innovation through blockchain. Cham: Springer International
Publishing.
Nastiti, A. and et.al., 2017. Cultivating innovation and equity in co-production of
commercialized spring water in peri-urban Bandung, Indonesia. Water Alternatives. 10(1).
pp.160.
Ransbotham, S. and Kiron, D., 2017. Analytics as a source of business innovation. MIT Sloan
Management Review. 58(3).
Treanor, L., 2019, April. Can Entrepreneurship Education Bridge the gap? STEMM Women's
Entrepreneurial and Commercialisation Activity. In International Conference on Gender
Research (pp. 630-XXIV). Academic Conferences International Limited.
13