Innovation and Commercialization

This document discusses the importance of innovation and commercialization in the context of Chilly's, a famous manufacturer of water bottles in the UK. It explores the role of leadership, culture, vision, and teamwork in shaping innovation and commercialization. The document also covers the 4P's of innovation, the use of the innovation funnel, developments in frugal innovation, and the application of new product development. Additionally, it evaluates the importance of the commercial funnel and the application of new product development in Chilly's. Finally, it presents an innovative business case for Chilly's.

Innovation
and
commercialization

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Innovation and its importance in comparison with invention..........................................3
P2. Role played by leadership, culture, vision & teamwork in shaping innovation &
commercialisation...................................................................................................................4
TASK 2............................................................................................................................................5
P3. 4P's of innovation & innovation funnel use.....................................................................5
P4. Developments in Frugal Innovation.................................................................................6
TASK 3............................................................................................................................................7
P5. Importance of commercial Funnel and Application of New Produce Development.......7
P6. Innovative Business Case.................................................................................................8
TASK 4..........................................................................................................................................10
P7. Evaluation of various tools in order to retain, develop & protect various rights of
intellectual property..............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation is defined as the process which results in generation of a new offering by
incorporating change in existing products and services. Innovation is facilitated within the
premises of organisation so as to increase the value that customers perceive of a product. This
influences their purchase behaviour and makes them undergo purchase of merchandise sold by a
corporation. Apart from this, commercialisation can be referred to as the process whereby
offerings of an entity are rendered within the market to gain the attention of public and enhance
the financial performance of company (Saebi and Foss, , 2015) . This project is done on Chilly's
which is a famous manufacturer of water bottles functioning within the periphery of UK. The
management of this corporation is considering to enhance its existing product portfolio by way
of introduction of a new product at market place. The project comprises of concept of innovation
together with differences in this concept and invention. Also, it includes 4 P's of innovation and
process for commercialisation of innovation. At the end, tools and techniques for protection of
innovative idea are included along with its merits and demerits.
TASK 1
P1. Innovation and its importance in comparison with invention
Invention is deciphered as the procedure resulting in creation of a new offering which did
not have any existence prior. It can also be said that innovation is the process which creates new
demand or fulfils an existing demand of people prevailing at market place.
Opposed to invention, innovation is deciphered as the chain of activities which are aimed
at incorporating enhancements within an existing organisational offering to develop a new
product (Souto, 2015) . Such procedure results in inflating the value of certain product in the eye
of a customer.
Innovation is regarded as a crucial component of organisations as it provides them with
an opportunity to gain the attention of people and thereby enhance the market value of brand
among the customers. With respect to this, some of the points which manifest the importance or
value of innovation for an enterprise are given as follows:-
 It helps in attainment of competitive edge at marketplace through the execution of
increment in current capacity of an organisational offering. This results in fulfilment of
needs as well as choices of people.

 Innovation provides an opportunity to organisations across the globe such as Chilly's to
enhance their Return on Investment to a large extent.
Innovation v/s Invention
The differences between the concepts of innovation as well as invention are outlined as
follows:-
BASIS INVENTION INNOVATION
Scope
This is a concept which has an
extensive scope as it is comprised of the
development of a new offering (Yadav
and Goyal, 2015) .
This concept has a narrow scope as it is
just constituted of inclusion of
enhancements in an existing product.
Occurrence
This concept occurs whereby a new
demand is created in market place for a
product or service or an old demand is
fulfilled.
This execution of innovation is posed
to incorporation of enhancements
within existing organisational
offerings.
Applicability
This concept within a corporation is
facilitated by the Research &
Development unit.
This concept is facilitated at each and
every business unit in order to obtain
favourable results for corporation.
P2. Role played by leadership, culture, vision & teamwork in shaping innovation &
commercialisation
Commercialisation can be said as a procedure which has a aim to provided organisational
offering in market. There are, many element which are shaping the overall process of innovation
& commercialisation in case of Chilly's. These aspects are discussed below:
Vision: This is a crucial element in a organisation which is used fOR shaping of process
and in process of commercialisation. Chilly's has to ensure that there is decrease in use of plastic
bottles ( Jha and Desouza, 2015). In innovation such facilities can be useful in creating

alternatives which can help n achievement of vision. Commercialisation will also help in
company in creating commodity which is reusable and durability. This vision of Chilly's will
help in reaching to large number of customers by their unique offerings (Polzin, von Flotow, and
Klerkx, 2016).
Leadership: This is another aspect which is shaping procedure of innovation and
commercialisation. In this view it can be said that leaders are applying this procedure in chilly;s
organisation. They are creating a vision for all their staff members which will ensure smooth
functioning in organisation.
Culture: This is related with values and beliefs of a enterprise. This is a fact which is
encouraging innovation & commercialisation in organisation. In chilly's this culture is used for
assessment of responsibility and roles which are assigned to individuals according to t heir
expertise and skills. It is also identified that if there is positive culture then this will help
employees in having positive enthusiasm and working towards achievement of their goal. It will
become easy for employees in start working towards new innovation which has to be
implemented in the organisation.
Teamwork: This is also a very crucial element in which a company will adopt innovation
& commercialisation based on teamwork and efforts of employees. In context of Chilly's this
will be encouraging a collaborative atmosphere of working. Team work will be aligned with
overall mission that is usage of reusable products by Chilly's. It will lead to a positive
environment and this will lead to innovation in organisation.
TASK 2
P3. 4P's of innovation & innovation funnel use
Innovation is very important for every firm which provides scope to increase market
share and position in industry which the company is operating. Companies are using innovation
mix in premises of Chilly's :
4P's of Innovation
Innovation mix is a accumulation of elements which helps in developing a route map
which can help in conducting activities in a organisation there are four basic element in this :

Positioning innovation: This is one element which is related to innovation mix and is connected
with organisational offerings so that a company can reach to heights after they have innovated
their products. In Chilly's this strategy will be used so that innovative products can be placed for
customers (Hossain and Kauranen, 2016).
Process Innovation: This is one element of innovation mix which is used for developing a
product by application of critical thinking. In this emphasis is on the thought procedure rather on
product development. In Chilly's overall creativity & innovative skills will be used so that
organisation can come up with innovative ideas and this can be implemented in organisation.
Product Innovation: This is focal point of a innovation mix this there is incorporation of
various improvements in the present organisational offerings which can help in creating a large
customer base. In Chilly's this innovative & creative skills will be applied and in overall process
of innovation it will be used so that final product can be innovated. This will help in new
product development in the specified time which can help in maximum satisfaction of customer.
Paradigm innovation: This is a element which is part of innovation mix and is most crucial
fact which is used for linking target to innovation in specified time period (Hohenberg, and
Homburg,2016). Paradigm is using in policies, strategies and activities which are being adopted
in due course of functions in chilly;s .
Innovation Funnel: This is a framework which has been undertaken by companies across world
which is used for defining procedure of new product development. This consists of various
events which are necessary to be done in a sequence so that ideas can be transformed in reality.
This has some benefits and uses which are mentioned below:
 This enables a organisation in filling of market gap in both economic & manufacturing
form.
 This is providing aid and competitive advantage which helps in development of a
commodity so that customers can demand products in market.
P4. Developments in Frugal Innovation
Frugal innovation is a process used for development of commodities by use of updated
technology. These products are available for customers at low prices. Both external environment
factors have a crucial impact on such type of innovation. In case of Chilly's the company is
willing to bring innovation in their products. The prevailing technological, trends also play a
major role in shaping innovation as Sanipolymers are used so that purity of water is not getting

affected in a negative manner (Heirati. and Cass, 2016). This company will have to use frugal
innovation is time when product is being developed. Innovation funnel has a very significant
role for Chilly's and will be used in manner given below:
Opportunities exploration: In this step market is researched and company is using to
ascertainment of various opportunities. This helps in effectively conducting of research by way
of questionnaire.
Idea Processing:In this step organisation is using various opportunities available in
market. Chilly's is trying to get information with regards to how a idea can be converted into
reality.
Conceptualisation: In this stage product is finally designed by firm. At this stage there
are various designs which are developed in form of water bottles by chilly's.
Benchmarking: This is stage where a idea or a concept is converted into a new product.
Launch: The objective has to be stipulated by firm so that they are able to develop a new
product according to their chosen idea which will finally be implemented by them an launched in
form of innovation in their product.
Frugal innovation will be very helpful for companies such as Chilly's in increasing their
overall revenue and profits. It help in utilisation of available resources in a better manner so t hat
there is no wastage and frugal innovation can be used in overall NPD process with help of
limited resources also (Hadidi, and Kirby, 2015). Chilly's will be using frugal innovation while
they are willing to develop water bottles which are made up of bamboo as raw materials and
Sanipolymers as a attribute to purify water.
TASK 3
P5. Importance of commercial Funnel & Application of NPD
Importance of Commercial Funnel:
Commercial Funnel can be used in whole process when a customer is accepting a product
based on its innovation. In Chilly's this funnel is used so that there is appeal made to increase
potential base of their customers and persuade them so that overall sales can be increased. It
also helps the organisation in expansion of their exiting base of customers by carrying down
market research. This is very helpful in driving people to purchase products of a company.
New Product Development:

with reference to exiting issues in UK. It has become necessary for Chilly;s that they
have to undertake various measures which can help them in fulfilment of market gap. This is
facilitating company in having a raw material bamboo used in their products which can help
them in contributing towards saving of environment. This new product will be named as
“Chilly's -X” Bottles . The process of new product development is discussed below:
Idea Generation & Screening: This is stage of NPD which is facilitating generation of
ideas which are new so that innovative products can be developed. In Chilly's internal analysis
will be used for making a analysis of feedback from customers, employees and also doing
external analysis of market (Edquist and Zabala‐Iturriagagoitia, 2015). Every idea is screened
according to mission & vision being stipulated by organisation.
Concept Development: This is the stage which is in concern with developing of a concept
which can be communicated to a small market segment so that knowledge can be gained about
customer reaction. In Chilly's the concept of Bamboo being used in water bottles will help in
attracting more customers who are having concern for environment protection.
Market Strategies: It is necessary that a firm is bale to make effective strategies of
market which can help in developing a new product. In Chilly's company is focussing on
adopting marketing mix aspects so that their overall sales can be increased.
Internal Analysis: This is a phase which is concerned with analysing various aspects such as
sales and cost so that profitability can be reviewed with respect to new product (Dincerand Acar,
2017).
Product Development: In this phase of NPD actual development of the new product in
Chilly's-X. This is the stage in which there is recruitment of individuals and updated technology
is used in developing a new product in bamboo water bottles.
Test Marketing: The new product which has been developed is marketed in small
segment so that customer relations can be noted and then it can be used in analysing their level of
satisfaction which has been achieved by them.
Commercialisation: This is the last step of NPD which is having a relation with launch
of new product in market.

P6. Innovative Business Case
Chilly's is launching a new product as Chilly's-X for a innovative business case is discussed as
follows:-
Element DESCRIPTION
Company
Overview
Chilly's is a well known organisation and is involved in manufacturing bottles
with usage of technology and recyclable materials. This is used to deal with
rivalry and competitor in market. This firm is now willing to expand their
operations in form of increasing their market share.
Objectives
The major objective of Chilly's is that they have to do expansion of their
offerings in specific time intervals by using updated technology & techniques
which are environment friendly.
Solution
For attainment of objective set by organisation, Chilly's is planning to bring a
innovation in their existing product, by launch a innovative product which is
named as Chilly's-X. This is bottle in which Bamboo is used as a raw material
and this can be reused (Carlino and Kerr, 2015). It is very helpful in having a
purified water and making it last for a longer time.
Innovation
in services
Sanipolymer is a type of technological innovation which has been brought by
company in case of Chilly's-X. Further, the addition of zinc in their bottles is
used for enhancement of durability & quality of water.
Research
Chilly's has to do internal research as they are collecting of feedback of
employees. This is inflating scope for this firm so that they can come up with
various unique ideas which can help in expansion of existing product portfolio
in a very effective manner. Further, this entity has also done research of
external environment so that comprehensibility can be gained and analysis can
be made of needs & preferences of their customers, etc.
Funding For the objective of introduction of a innovative product in market, the firm
will require sufficient amount of funds. In order to facilitate this, Chilly's will
have a no. of alternatives like, borrowings from known ones, bank loan, usage

of retained earnings & investors. With this regard and understanding of merits
& demerits of various management, alternatives, of Chilly's is willing to
arrange their sources of funds by taking a loan from band this will help in
having funds from a authentic source.
TASK 4
P7. Evaluation of different tools in order to retain, develop & protect various rights
It is very important to develop, protect & retain various intellectual property rights which
have been developed by companies. This present its usage by any unauthorized person in and
illegal manner (Brem and Viardot, 2015). In case of Chilly-X the new innovation in their
products has also be protected by this company so that it cannot be copied without permission.
There is lot of efforts being a particular innovation hence it becomes very necessary to get it
protected from being copied.
Copyrights: This is a tool which helps organisation in protecting their innovative
technology . Chilly's will be using this tool of copyright in order to protect their new technology
in their products (Blok and Lemmens, 2015). This will help in preventing its usage from being
copied by their competitor firms. This will lead to payment of a fee which will give protection
rights to Chilly's.
Patents: this is a type of licence which also prevents usage of innovation of a company by
another organisation for specified period of time. Usually this period is for 20 years. Chilly's
will be protecting their product “Chilly-X” from being imitated by any other company. This will
also provide this company a competitive advantage over other rivals. This will lead to increasing
exiting revenue of customers.
From point of Chilly's the best tool in protecting their innovation is patent as this will
help in protecting their innovation.

CONCLUSION
Base on above discussion of topics it can be said that innovation and commercialism are
tow most effective tools which can be used by organisations while they are willing to move
towards growth and want to increase their sales and profits. It is being analysed that innovation
are used whenever there is a innovative idea which is with a company and can be used easily in
their exiting product. In such process there is no new product which is being developed but
existing products are only modified by organisations. Various aspects such as innovation funnel,
frugal innovation can be used so that innovation can be implemented easily. Also, lastly it has
been discussed that it is important for organisations that they are protecting their innovation by
using patent, trademark or copyrights. Which help in preventing unauthorised usage of
innovation by any other competitor.

REFERENCES
Books and Journals
Blok, V. and Lemmens, P., 2015. The emerging concept of responsible innovation. Three
reasons why it is questionable and calls for a radical transformation of the concept of
innovation. In Responsible Innovation 2 (pp. 19-35). Springer, Cham.
Brem, A. and Viardot, É., 2015. Adoption of innovation: Balancing internal and external
stakeholders in the marketing of innovation. In Adoption of Innovation (pp. 1-10).
Springer, Cham.
Carlino, G. and Kerr, W.R., 2015. Agglomeration and innovation. In Handbook of regional and
urban economics(Vol. 5, pp. 349-404). Elsevier.
Dincer, I. and Acar, C., 2017. Innovation in hydrogen production. international journal of
hydrogen energy, 42(22), pp.14843-14864.
Edquist, C. and Zabala‐Iturriagagoitia, J.M., 2015. Pre‐commercial procurement: a demand or
supply policy instrument in relation to innovation?. R&D Management, 45(2), pp.147-
160.
Hadidi, H.E. and Kirby, D.A., 2015. Universities and innovation in a factor-driven economy:
The Egyptian case. Industry and Higher Education, 29(2), pp.151-160.
Heirati, N. and O’Cass, A., 2016. Supporting new product commercialization through
managerial social ties and market knowledge development in an emerging
economy. Asia Pacific Journal of Management, 33(2), pp.411-433.
Hohenberg, S. and Homburg, C., 2016. Motivating sales reps for innovation selling in different
cultures. Journal of Marketing, 80(2), pp.101-120.
Hossain, M. and Kauranen, I., 2016. Open innovation in SMEs: a systematic literature
review. Journal of Strategy and Management, 9(1), pp.58-73.
Hossain, M., 2015. A review of literature on open innovation in small and medium-sized
enterprises. Journal of Global Entrepreneurship Research, 5(1), p.6.
Nambisan, S., Siegel, D. and Kenney, M., 2018. On open innovation, platforms, and
entrepreneurship. Strategic Entrepreneurship Journal, 12(3), pp.354-368.
Polzin, F., von Flotow, P. and Klerkx, L., 2016. Addressing barriers to eco-innovation:
Exploring the finance mobilisation functions of institutional innovation
intermediaries. Technological Forecasting and Social Change, 103, pp.34-46.
Saebi, T. and Foss, N.J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal, 33(3), pp.201-213.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 51, pp.142-155.
Yadav, V. and Goyal, P., 2015. User innovation and entrepreneurship: Case studies from rural
India. Journal of Innovation and Entrepreneurship, 4(1), p.5.
Ye, C., Jha, S. and Desouza, K.C., 2015. Communicating the business value of
innovation. International Journal of Innovation Science, 7(1), pp.1-12.