Importance of Innovation and Commercialisation in Chilly's Organization

Unit Number and Title 08:Innovation and Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Importance of innovation to the Chills organization comparison of invention..........................4
Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation........................................................................................................................5
Different sources of innovation that foster and develop an environment and culture of
innovation in organisations..........................................................................................................6
LO 2 ............................................................................................................................................8
4Ps of innovation.........................................................................................................................8
Developments in frugal innovation............................................................................................10
LO 3 ..........................................................................................................................................12
Commercial funnel.....................................................................................................................12
Innovation Business Case ........................................................................................................16
Executive Summary...................................................................................................................16
LO 4.............................................................................................................................................1
Different tools that company used to develop, protect and retain knowledge.............................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1
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INTRODUCTION
Innovation in business is one of the most important thing which has to take company at
high platform. It defines as procedure of making money and creating ideas or innovation into
service or products that create value for which consumer will pay. Commercialisation is the
process of selling innovative products and services in the return of monitoring gains. The present
report is based on Chilly's organization which started their business in 2010. This report explain
innovation and their importance for company and also clarify organisational vision, culture,
leadership and teamwork that shape commercialization and innovation. It justifies 4Ps of
innovation and innovation funnel to shape innovative ideas. This study explain importance of
commercial funnel and reflects the innovation business case for company. Furthermore, this
report evaluate various tools that firm used to retain, protect and develop intellectual property.
LO1
Innovation is the procedure of translating an invention or idea into service or products
that create value for which clients will pay. Its aim is to bring something new as well as different
from existing products within marketplaces. In business, innovation results when new concept
and ideas is applied by organizations in order to satisfy the requirements and needs of consumers
(Brem and Viardot, 2015). For instance, Chilly's company founder, James Butterfield and Tim
Bouscarle innovated a Bottle that always keep water cold. It helps people to have cold water for
long journey, they do not need to buy plastic water bottle. It contribute to increased profits in the
first attempt due to its innovative feature of Bottle. However, with growing competition,
organization faced gradual decrease in its revenues that affected their overall business
performance.
Here, invention is defined as unique method, concept, process and composition, it is the
procedure within overall products development structure. It helps to improve the existing
products and also refer to the new process for making an object. Invention increase the
profitability of business as well as contribute to generate revenue rather than before. By
implementing and adopting invention in current business structure organization can achieve its
objective that is selling reusable and insulated water bottles, which allow people to keep water
cold for long period of time. However, it clearly define that innovation and invention is different
to each other (Shan, Song and Ju, 2016). After many trials some times invention is failed and
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also consume a lot of time which is not appropriate for business, on the other hand gets
launching for first time whereas in innovation, some changes made in the recent product in
accordance to the clients requirements. For instance, Chilly's company take risk of innovating
cold water bottle which inverted out profitable, it prevents land pollution that get increased due
to high amount use of plastic bottles. By innovating this new products they can raise its position
within market which is beneficial for them as well as for their consumers.
Accordingly, differences on basis of importance include on creation which centring on
gaining competitive benefits for organization. Innovation is done through out the adoption of
invention by company team that helps to accomplish new project effectively. (Bhardwaj and
et.al., 2017).
Importance of innovation as compare to invention-
Invention is the procedure to create new product or services for consumers which is not
cost effective as compare to innovation. Innovation or creativity is the more important rather
than the other activities in business it helps to modify existing products much better than before
and save time as well as money. In term of cost, innovation is more essential for company
because it changes the existing things into new version, furthermore, in term of research and
development, innovation does not require in depth search, it just gets an idea how to modify
product according to consumer requirements which is beneficial for firm.
Difference between innovation and invention :
INNOVATION INVENTION
It occurs when someone improve and make
the significant contribution to current goods
or services.
It define as the creation and development of
goods for the first time.
Innovation helps to provide the unique
competitive position for Chilly's business in
marketplace.
On the other hand, invention consist with risk
as failure that negatively affect overall
procedure of investing new goods.
It is disruptive and best way to go towards
success and growth for business.
It is outcome of ideation and practical
manifestation
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Importance of innovation to the Chills organization comparison of invention
Innovation is consist with uniqueness, it is the act of making some changes to existing
goods by introducing new ideas or way. Innovation is beneficial for company which they
adopted for gaining competitive benefits within market place. Simply, it is related with
procedure of implementing and making creativity in business for improving their performance.
Chilly's firm by making use of creative idea in firm can maximized market share and also
increase their consumer base. As compare to invention, Innovation is more effective for
company by which they can get the positive outcomes and make success in very first time.
1. By adopting innovative business concept or producer, organization can develop new
products or services of unique features. As compare to invention, innovation bring new
opportunities for Chilly's as it helps to gain competitive advantages consist with low risk of
failure. With the help of innovation company can create their good image among target
consumers.
2. Hard work and perspiration is very important, innovation create dynamic products
when Chilly's company implement this in their business, it consume less time more than
invention.
3. On the other side, invention is focusses on making new things, ideas and goods which is
completely new and unique from the existing ones. It is usually related with implementation of
different techniques as well as new methods for manufacturing existing services & products. By
adopting invention organization can get many benefits as well as retain people with them for
longer.
Organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Commercialisation:
This is the process of managing and running some business with main aim of financial
gain with starting new business or product.
Define
Innovation and commercialization are the front lines for any organization to maintain the
performance management and establish transparent channels for proper employees' engagement
(Saebi and Foss, 2015).
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Organisational vision: This is the core values that must be followed by the company's
taskforce. Here, there is a relationship between the employees with management of the company
and policy making. How vision is shaping innovation at ED?
This vision will help Chilly's to reach the vision of the company in systematic modes
through promoting innovation and bringing the employees to work for one common objective.
Organization vision is to reduce air and water pollution by innovating new product that is
reusable and helps to balance distinctive styles.
Leadership: A good leader is the one who looks after the organizational vision and guide
the entire taskforce to reach it by consistency and with persistence. Under effective leadership,
the company can reach a good market positioning and promotes the commercial aspects as well.
Culture: This is the social parameter that helps in assessing the behaviour, attitude and
cognitive ability of individuals for reaching the vision by taking guidance from leader. For
instance, an amiable culture leads to improved levels of productivity and effectiveness.
Teamwork: This aspect helps the employees of any company to bring innovation with
combined efforts from each individual. Here the team members work together to create new
products to reach the vision.
In regard to the same, Chilly's Founder is a visionary who constantly directed the team to
employ new and fresh ideas for gaining larger pool of customers. Thus, they created a new eco
friendly substitute in technology ad launched it and received huge acclaims due to innovation
and this company's distribution capability. This was achievable due to a good leadership who
guided the development team to move forward and took risks which proved beneficial. However,
the popularity got decreased in the third year due to the substitutes in the marketplaces and thus,
there is a need to continuously bring something new all the times to maintain the reputation and
brand image.
Collaborate culture in team, good leadership and support of management will promote
innovation in company effectively.
Different sources of innovation that foster and develop an environment and culture of
innovation in organisations
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