Innovation and Commercialisation in Chilly's: A Case Study

Innovation and
Commercialisation
STUDENT NAME:

INTRODUCTION
Innovation is a process of introducing better or new products or services in potential
market so to create value for customers. Innovative and developed goods with improved features
helps the organisation in gaining competitor edge in the market. Commercialisation is the
process of launching of new products or services in the market to gain attention of customers. It
includes production and distribution of new goods through marketing so that sales can be
augmented through customer support. In this report Chilly's is taken which was founded in 2010
by James Butterfield and Tim Bouscarle. The company aims at providing people with alternative
to single-use plastic bottles so that they can carry cold water on-the-go. Chilly's bottles are
designed in a modern and stylish way using highly advanced technology and are eco-friendly
which helps the company to gain a dominating position over plastic bottle manufacturers. The
report will cover details about innovation and its 4Ps, use of innovation funnel and frugal funnel
along with the use of new product development.
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Invention : It is a procedure through which ideas are converted into goods and services
that has never existed before in the market. Invention is creating something completely new
which helps the organisations in bringing new ideas in the market (Invention .2019).
For example : Chilly's introduced its bottles which were designed with high performance
technology and helped to keep water cold at any time. These bottles were first of its kind as
before this people used to purchase single-use plastic bottles every time they needed cold water.
Importance of invention : Invention helps the companies in introducing new kind of products in
the market so that customers can be provided with goods and services according to their
changing needs and preference. Increasing awareness of side effects of plastic helped Chilly's in
gaining competitive advantage in the market by introducing eco-friendly alternative to plastic
bottles.
Innovation: Innovation is an activity of introducing better or new products in the market
so as to meet the dynamic demands of customers. It focuses on translating idea or excogitation
into products or services that creates worth for customers and helps in attracting and retaining
customers thereby increasing the profits of the company (Innovation .2019).
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For example, Chily's aims at brining an innovative feature in their bottles with which the water
temperature can be adjusted by charging the bottles. This will help the customers in getting cold,
warm or hot water according to their needs. This will make the bottles all-weather friendly and
help in increasing sales for the company.
Importance of Innovation: Chilly's need to introduce innovation in their products as a large
number of competitors are entering the market. Innovation can not only help the company in
increasing their sales but also various other benefits can be gained by the company which are
listed as follows :
 Gaining competitive advantage: One of the major needs for innovating a product or
service is to remain competitive in the market. As many competitors are entering the
market it is important for Chilly's to bring innovation in their products. For this Chilly's
has inserted a feature with which the temperature of water can be regulated according to
the needs of the customer depending on the weather (Bagno and et. al., 2017).
 Quick response to customers’ expectations: Through innovation the expectation of
potential customers can be effectively fulfilled. Increasing consumers expectation
majorly impacts companies to become more customer-centric through innovation
change. Through innovation Chilly's can introduce bottles that are suitable for all kinds of
weather as the temperature can be adjusted according to the preference of customers
(Biemans, 2018).
Comparison between innovation and invention
Invention is related to the development of a new idea or process for the first time so that a
new type of product or service can be generated in order to fulfil the changing demands of
customers. Technological and scientific skills are required by the research and development team
of the company to bring invention. For example invention cameras in phones by Samsung Sharp
so that the inconvenience of carrying cameras by tourists can be reduced.
Innovation on the other hand relates to making improvement in existing products, process
or services so as to add economic value in something which already exists in the market. For
this, technological, strategic and marketing skills are required by the company to successfully
innovate their products or services. For example Chilly's innovated its bottles by installing a
system by which the temperature of water in bottles can be adjusted according to the
requirements of customers depending on the weather conditions.
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