Innovation and Commercialisation - Chilly's Assignment

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Innovation and determine its importance to organisation in comparison with invention .....1
P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation ......................................................................................................................3
TASK 2............................................................................................................................................4
P3 4P's of innovation and use of innovation funnel....................................................................4
P4 Development in frugal innovation ........................................................................................4
TASK 3............................................................................................................................................5
P5 Importance of commercial funnel and application of NDP processing for
commercialisation of innovation ................................................................................................5
P6 Innovation business case including ways to access funding .................................................5
TASK 4............................................................................................................................................5
P7 Different tools that organisation use to develop, retain and protect knowledge and
intellectual property ...................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In order to sustain in market for a long time duration a company need to adopt effective
innovation and commercialisation because through it they able to produce attractive offerings
and deliver them to customers (Bashmakov and et. al., 2015). Innovation is define as a
procedures which add value to the existing product whereas commercialisation is a process in
which a company introduce new product and services for targeted potential customers. This
report is based on Chilly's company which is founded by James Butterfield and Tim Bouscarle in
year 2010. Their aim is to provide cold water to society on the go by avoiding single use plastic
bottle. Topics included in this report are innovation and invention by using different method such
as innovation funnel as well as frugal innovating. It will also include 4 P's of innovation along
with the process of product development as well as it will describe about the diverse method for
protecting or securing the intellectual property related to new developed product.
TASK 1
P1 Innovation and determine its importance to organisation in comparison with invention
Innovation
Innovation is define as a procedure which are adopted by a company in order to do add
on the existing products to make it more innovative as well as attractive. Through this process a
firm able to attract huge ratio of customers toward the products and it also attract investors for
investment (Carayannis, Cherepovitsyn and Ilinova, 2016). By this a company able to gain
number of benefits such as attract customers, increase profitability ratio, market shares and so
on. In respect of Chilly's they are conducting innovation through which peoples able to get cold
water by avoiding one time plastic bottle.
Importance of innovation
In today's time innovation is necessary because through it a company gain number of
benefits by attaining their goal as well as objective that will also lead to gaining high competitive
advancement at the marketplace. In context of Chilly's they are implementing innovation at their
workplace for launching product which provide cold water to society on the go, without using
any type of plastic which is one time use. Through this innovation respective company able to
gain several benefits which attract more targeted as well as potential customers at marketplace,
some of the major benefits or importance gain by Chilly's are given below:-

 Help in gaining high competitive advancement: Innovation plays an essential role in
providing competitive advancement to the company at their potential marketplace (Chun
and et. al., 2015). In respect of Chill's they are develop product proving cold water to
peoples as well as in this they are not using any single use water bottle by which they
able to attract peoples that help in gaining competitive advancement.
 Help in fulfilling customers requirement and expectation: By adopting innovating at
workplace or production a company able to satisfy customer need and demand in
effective manner. In respect of respective company by developing product for providing
cold water firm able to fulfil customers requirement as well as they are not using single
use water bottle which is environment friendly which attract huge customers ratio.
These are the some of the major importance gain by the Chill's Company by adopting
innovation at the workplace. Along with this, innovation and innovating are different factors
which help company in gaining their target or objective more impressively or effectively. Some
of the major difference between the innovation and invention are given below:-
Difference among the Invention and Innovation-
Basis for comparison Invention Innovation
Meaning Invention refers to the
procedure in which there is
occurrence of the new idea
related to products or activities
that will not been develop
before in the marketplace
(Henttonen and Lehtimäki,
2017).
Innovation is define as a
procedure at which company
add new innovation to the
products and services.
Concept Its concept is based on new
and fresh idea and for it work
on the theory.
It is define as concept of
adopting new thought or idea
in product.
Necessary skills For this scientific skills is
required.
For adopting this technical,
marketing as well as strategic
skills are needed.

P2 Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
In an organisation there are numerous components that play important role in offering
effective returns which are vision, leadership as well as teamwork (Hossain and Kauranen,
2016). These all play important role in enterprise growth and development explanation of these
are as follows :-
Vision - It affiliate with the forthcoming aims, objectives and goals of the company.
Vision and mission of the company are set and formulate with the assistance of administrator of
the company. For instance, the vision of Chilly's company is to intensify the acceptance and
everyday utilization of reusable products.
Culture - It is related to beliefs, feelings as well as value of several customers. Culture is
characteristics and knowledge of specific person which include various aspects such as social
habits, language, religion and many more. In chilly's company products and services produce
according top the requirement of customers for minimising cultural differences. For this, they
innovate products like bottles according to customers desires like reusable or recycle.
Teamwork – It is related to group of people who are working for accomplishing
common goals by using their skills as well as knowledge (Jamil, Ismail and Mahmood, 2015).
For example, if employees of Chilly's, will perform their duties in a group or team then they
will easily attain set objective of the company.
Leadership – It is simply process in which leader lead and guide team as well as provide
guidance for meeting predetermined goals and objectives. In Chilly's company leader is utilising
democratic leadership style which assist in motivating staff members. Along with this, for sale
and profit maximisation leader of Chilly's using autocratic leadership style which help in
attention of various customers. For example, in Chilly's, if the employees will perform their
duties in a group or team then they will easily attain set objective of the company.
Innovation assist the organisation to maximize the gross sales, customer satisfaction,
gaining competitive benefits from the market. Preceding defined components are also beneficial
to provide shape innovation and commercialisation.

TASK 2
P3 4P's of innovation and use of innovation funnel
To ensure that there is development is there of business and also for attainment of success
it is necessary to have a component of innovation it is important for overall success of company.
Innovation is required in various products and services by Chillys also, 4P's of innovation are
discussed below:
 Product- It is a idea which is used by companies n creation of a model which can ensure
creativity in the products. In chilly's various products which are manufactured by the
company are part of this product (Paradkar, Knight and Hansen, 2015). This includes
different types of bottles and other related products. Process- In Chilly's it refers to various activities and functions from the process of
manufacturing to the stage of offering of product to the target market of company. There
are various process which are part of it such as supply, distributions and other related
aspects. Position- It is related to concepts related to company and various products and services
which they are offering to their customers. There are various designs and sizes in which
products are offered by the company and they are willing to make innovation in such
products.
 Paradigm- It refers to the way or manner in which company is trying to bring innovation
in their products. In Chilly's company is trying to bring innovation in their products by
using a material in their production activity which can be recycled and this will help
company in taking a initiate for the protection of environment also.
Innovation Funnel
This is applies to those steps which help in processing of a process and a commodity.
There are three basic steps of this innovation funnel which are discussed below:
Mouth of the funnel- This is the first step of innovation funnel which is developed by every
organisation to make a data base or information base. Major objective of this step is to collect
sentiments with the help of assertable ways. In Chilly's company's administration will use this
method by gathering institutes, partners, research, competitors or institutes etc. with the help of

such assistance company can get information and then make their products in more appropriate
manner.
Narrowing the funnel- In the next step management of company uses such thought and ideas
which they have collected in the earlier steps of innovation funnel (Schmitz and et. al., 2017). In
Chilly's company administration can use this relevant data or information which they have
gathered in the above steps of innovation funnel.
Narrow part of the funnel- this is the third and last step of innovation funnel under which
company's makes sure that information they have collected can be used to meet objectives of the
company as a whole. Organisation can do the innovation in products and their service and deliver
them in market place to fulfil the needs of their customers.
P4 Development in frugal innovation
Frugal innovation is an activity which assist in minimising as well as reducing cost of
product and its manufacturing cost (Olefirenko and Shevliuga, 2017). This discover new
business model, reconfigures value chains and redesigns products to serve users who face
extreme affordability constraints, in a scalable as well as sustainable way. With the assistance of
frugal innovation Chilly's company will achieve growth in market and long term sustainability.
There are several principle of frugal innovation in relation of respective organisation are as
follows:-
Illustration 1: Frugal Innovation
Source: Frugal Innovation, (2019)

 Find opportunity in adversity - The organisation can get several opportunity in complex
situation (Song and et. al., 2016). For instant, the management of Chilly's can use
recycling products to manufacture reusable bottles. Do more with less - The company can attain success with the assistance of available
origins. For example, the administration of respective company can manufacture reusable
bottles with the help of recycling and waste material which is reusable Thinks and act flexible - To think critically and gathering data or examining it, the
investigator can offer and acquire ideas of success to the firm (Wang and et. al., 2017).
For instant, in Chilly's the administration of the organization collect information
regarding customers needs and demands that which kind of bottles they required. Keep simple- In Chilly's, the solution of issues should be simple so that it can be
beneficial to gain appropriate outcomes such maximization in the sales and profit. Follow your heart - It indicates to the individual who is passionate and ready to do work
by utilizing their efforts so that the company can attain its set objectives in given time
period.
All these principles of frugal innovation are beneficial for producing effective products
and minimising the cost of products or maximizing the profitability of the company.
TASK 3
P5 Importance of commercial funnel and application of NDP processing for commercialisation
of innovation
Commercial funnel- This simply indicates towards managing procedure of purchasing
method that helps company in influencing customers while making purchase. This supports
company in converting customers into consumers (Bashmakov and et. al., 2015). This also
contributes in enhancement of organisational productivity which also leads to increase in
profitability by getting higher support of targeted audience. Some common steps of new product
development are described a below:
New product developments process
Idea generation- It is first stage at which management team of company generates idea
by collection various thoughts presented by external and internal sources. With reference to
chilly's, it administration department have developed idea of reusing bottles through recycling

waste material. At time of introducing fresh product at market place manager goes through
numerous of ideas among which they have to choose most essential one.
Idea screening- At second stage, finalised idea is used with further evaluation on the
basis organisations requirement. This aware company that whether idea is effective for them or
not.
Concept development- At next, developed ideas and thoughts are turned in to reality so
that respective department can use their capabilities and contributes in gaining competitive
advantages. With reference to Chilly's, its management team here checks that whether the idea is
meaningful for customers or not.
Development strategies- At this phase, management team emphasises on developing
strategies. It is basically developed on the basis gathered information from research and
development session (Carayannis, Cherepovitsyn and Ilinova, 2016). In context of Chilly's, it
management team formulates effective strategies associated with distribution, production,
resource collection and others.
Examine business condition- Here, main focus of management of Chilly's is on
interpreting overall business environment so that survival of company can be analysed in
effective manner and it also supports in checking that operations of this business could be done
in effective manner or not.
Product development- At this level, major emphasizes of company is on developing
relevant products and services. Here, monitoring of overall manufacturing work is done in order
to check that whether resources are available for them or not. In context of Chilly's, its manager
will collect overall recycling material for developing reusable bottles.
Marketing Test- At this level, it is essential for business association to launch developed
product at marketplace in order to check reactions of targeted audience in effective manner. This
introduction of product at marketplace allows company in understanding that whether they will
be able to sustain at marketplace for longer period of time or not.
Commercialization- If the product crosses marketing stage and succeed then another
stage of this funnel emphasises that whether it will provide commercial benefits to company or
not. For this, they introduces all developed products at marketplace. Here, main efforts of
company is placed on modifying products according to the requirement of customers so that they

can be further influenced to buy the same product. As a result, it contributes in improvement of
organisational profitability in effective manner with higher sales performance.
P6 Innovation business case including ways to access funding
Business case: It is considered as a written document which includes a detail information
or overview about the project. It includes detail discussion about the changes takes place within
the organisation (Chun and et. al., 2015). In the context of Chilly's Bottle, it has been said that it
is considered as a type of decision making tool used by the organisation in order to examine the
impact of new and innovative idea. There are various types of stages included in a business case
which are as follows:
Summery- It is identified that Chilly's Bottles is an organisation developed in the year
2010 by Tim Bouscarle and James Butterfield. It is a business entity operates its business
function in retail sector which includes 10-50 staff members and is a private limited comapny.
Apart from this, overalll turnover of the company is £2 to £10 million.
Objectives- Apart from this main objectives of the business organisation is to innovate
and manufacture reusable bottles.
Solution- With the help of waste plastic water bottles, company decides to manufacture
reusable water bottles.
Innovation in products- It is one of the most innovative product as they are the first one
who use such innovative products.
Research: Chilly's is presently concentrating on analysing and monitoring of their target market
and their target segment of customers. They are trying to gather primary form of data related to
their customers and then based on that collected information they want to use it in forming a idea
related to the innovation which they are willing to do in their products.
Funding: To convert any opportunity or idea into business it is strong need that company will
require financial resources. Such funds have to be generated from some sources which have to be
identified by the company. Company will make attempts that source is cost effective tro
company. Such that there is no adverse affect on profit margin of company. Chilly's has also
identified sources such as bank loan, various financial institutions, investors, various
stakeholders and others. Various sources of funds are explained below:

Bank loans: these are the most commonly used method of funding fo companies, banks offer
loan at a certain rate of interest and for a specified time period. This is very helpful for
companies having a goodwill to avail a loan from this source.
Angel Investors: these are those investors who are wealthy individuals or may be company
executives who are willing to invest their extra available finance in some attractive business idea.
They mostly spend and invest in early stage of business (Henttonen and Lehtimäki, 2017). This
is also a attractive source where investment can be beneficial for both company and investor
both.
Benefits: This innovation will help the company in attaining their set vision and mission. With
its help organisation will be able to increase the satisfaction level of their target customers..
company can also benefit from it by enhancing their overall level of profitability and also
productivity at same time. This is beneficial for the firm as there is increased competition which
can posses threat for company's overall sales, so such tyepo of innovation can help chill's get a
competitive advantage in market.
TASK 4
P7 Different tools that organisation use to develop, retain and protect knowledge and intellectual
property
Intellectual property is broad category which utilise for protecting creation of mind which
have both moral as well as commercial value. For protecting though, ideas or any innovation
intellectual properties play important role and it help organisation in securing their innovative
business ideas (Ke and et. al., 2016). There are several type of intellectual property which
company can use explanation of these are as follows :- Copyright – It is an legal term which utilise for describing the rights which creators have
on their literary as well as artistic work. Within this work include books, music, painting,
sculpture, films, computer programs, advertisement, technical writing and many more.
Cost of taking copy right depend on type of work which will protect and it vary between
approx. $25-$100. Trademarks – In trademarks several things get protected such as words, phrases,
symbols, sounds, colour schemes, smells and many more. In simple term, trademark is
sign which have capabilities of distinguish goods and services from one corporation from

those of other enterprise (Kuratko and Hoskinson, 2016). In addition to this, Trademarks
date back to ancient times when artisans utilized to put their signature or "mark" on their
products. Cost of obtaining trademark is generally less but there is periodic government
maintenance fees of it.
 Patent – It is exclusive right which granted for an invention and patent provide right to
owner how or whether invention can be used by others (Kolychev and Prokhorov, 2015).
After taking patent individual will gain right to use that particular technology or business
arrangement. Without permission of owner no individual have right to use that particular
innovation. For Chilly's company patent will be suitable because they come up with some
innovative idea i.e., reusable bottle which produce by recycling material. With the
assistant of patent they can secure their innovative idea from competitors available in
market.
Thus, for Chilly's Company patent will be suitable intellectual property right which they
can take as it will help them in protecting their innovative idea within effective manner.
CONCLUSION
From above discussed topics it can be determine and summarise that in today's time for
every company it is necessary to adopt proper innovation and commercialization on regular
basis. This is so because through it they able to attract more number of customers which also
help in attainment of organisation goal as well as target. Along with this while developing
strategies related to new product development, it is essential for a company to adopt innovating
and commercialisation. In this there are several factors which will contribute such as leadership,
vision, culture, network and many more as well as a firm can also adopt various methods like 4
P's of innovation, frugal innovating, innovation funnel and so on. By adopting all these methods
or strategies a company able to implement innovating as well as commercial in effectual way
which help company in attaining their target and objective in effective and impressive manner.

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Online
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growth-model-for-complex-times-part-2-of-3/>.