Innovation and commercialisation - Chilly's Assignment

Innovation and
Commercialisation

INTRODUCTION
Innovation indicates to the procedure and activity of converting fresh content and
thoughts in to commodity and services which have some values and clients are primed to give for
them. It can be a procedure of making change and modification in existent commodity and
services of a company with the purpose of earning profit and satisfying customers needs
(Bashmakov and et. al., 2015). Commercialization is the act of bringing new innovative products
and services at marketplace. It consist various activities such as manufacture, distribution, sales,
customer support and others. This assignment is based on Chilly's and this organisation was
established in 2010 by Butterfield and Tim Bouscarle. The aim of this company is to offer people
with the quality to always have cold water on the go, without having to purchase single
utilization plastic water bottles. This report will discourse about invention & its grandness, 4Ps
of creation and the use of the innovation funnel. Further will explain about the importance of
commercial funnel, application of new product development and innovation business case for a
company.
TASK 1
P1. Innovation and its importance to organisations in comparison with invention
Innovation
It mention to the process of making innovation in present products of the company and
doing something new in an innovative manner within goods or services of an organisation.
Innovation can be an activity of implementing new thoughts and ideas so that the firm can offer
products to its customers by devising changes as per their necessarily and postulate.
Importance of innovation
It is essential in the workplace because it provides organisations an boundary in
discriminating marketplace quicker and offers an effective relation to developing markets which
can track to bigger growth options. In Chilly's, it is crucial because it assist in generating new
businesses and it is a cardinal source of success and development in the business of a company.
In context of a company innovation is important because with the help of it firms can make
improvement and develop product according to the needs of their target audiences (Carayannis,
Cherepovitsyn and Ilinova, 2016). In context of Chilly's grandness of creation is as below:

Gaining competitive advantage- Innovation is beneficial to provide competitive benefits
to a company because by devising excogitation in its products company offer goods and services
as per customers demands. In Chilly's the compatibility of the product is help in gaining
competitive advantages from the market. For example, respective company manufacture reusable
bottles in different size which is also beneficial to the firm to gain competitive advantages.
Satisfying customers needs- Now these days people are very health conscious and they
prefer prefer reusable products (Chun and et. al., 2015). In Chilly's, the management of the
company can fulfil customers needs with the help of innovation by offer reusable bottles. It is
beneficial to maximizing the sales and profitability of the company.
Invention
It refers to a new thing which are created and made by someone or identifying the way of
manufacturing goods and services. It is a specific procedure which can offer a new insight. When
organisations make innovation, they needed a particular area to make invention.
Comparison between innovation and invention
Basis for comparison Invention Innovation
Meaning Invention indicates to the
occurrent of a thought for a
product and activity which has
never been made before.
Innovation is the process of
making improvement in
products and goods by using
new ideas for very first time.
Concept A fresh thought and its running
in theory.
Functional execution of new
thoughts.
Necessary skills Scientific skills. Technical, merchandising and
strategical skills.
Activities Limited to Research &
development function.
Extended crosswise the
company.
P2. How Organisational vision, leadership, culture and team work can shape innovation and
commercialisation
In an administration, there are several component which play essential role in offering
efficacious returns and they can be vision, mission, leadership and cooperation. These all

elements are required to a firm so that it can accomplish its growth and development by
consisting them in its business.
Vision- It affiliate with the forthcoming aims, objectives and goals of the company (Henttonen
and Lehtimäki, 2017). Vision and mission of the company are set and formulate with the
assistance of administrator of the organization. For instance, the vision of this respective
organisation is to intensify the acceptance and everyday utilization of reusable products.
Culture- It indicates to the feelings, feeling and beliefs of different consumers. It is the
characteristic and knowledge of a specific group bunch of individuals which including belief,
social habits, language and others. In Chilly's, the administration of the company manufacture
products and services as per their potential customers needs and demands with the purpose of
minimising cultural differences (Hossain and Kauranen, 2016). For this, they innovate products
like bottles according to customers desires like reusable or recycle.
Leadership- It is a process of leading and guiding a group and team of individual of the
company regarding to meet the set objectives of a company. In Chilly's the leader of the
organisation can utilise democratic leadership and with the help of it, they can take decisions
with their team members and make innovation accordant to innovative idea. This leadership is
helpful to make innovation in organisation's products and services. To maximize the sales and
profitably, the leader of the company can implement autocratic leadership which help in getting
attention of various customers.
Teamwork- It indicates to the group action under which people are working in a term or group
to attain a common or shared goal and aim of the company by using their skills and knowledge.
It is beneficial to the company because it help in transferring effective services to its target
audiences. 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. 4Ps of innovation and the utilization of innovation funnel to examine and shape innovation
ideas
4Ps of Innovation
To make development and attain success in the business, innovation is an essential
component (Jamil, Ismail and Mahmood, 2015). Because it help in providing success and growth
to the company by making innovation in its products and services. The 4Ps of innovation are
defined as beneath:
Product- It is an idea which can be use in delivering procedure by creating their own
model that can germinate the creativeness and excogitation capability (Ke and et. al., 2016). For
instant, In Chilly's, it refers to the products of the company which are manufactured by it like
bottles and others.
Process- In Chiily's, it indicates to the all the actions and activities from manufacturing to
offering it to target audiences of the company. It consider different process such as supply, sales,
distribute and others.
Position- It is affiliated to the own conceptualization that what perception of the
company have towards it and its products or services. For example, in Chilly's if the consumer
have need of different designs and size of the bottles then the company make innovation in its
products and build a good position by fulfilling their needs.
Paradigm- It mentions the manner and manner through which the organisation make
creation in its commodity and services. For example, in Chilly's, if the organisation manufacture
products by using recycling material then it can produce reusable products according its
consumers.
Innovation Funnel
It applied to define the stages which assist in processing a procedure and commodity.
There are three primary steps of innovation funnel which are defined as follows:
Mouth of the funnel- It is first step within which an organisation develop knowledge and
data base. The major motive of it to collect assorted sentiments through its assertable ways
(Kolychev and Prokhorov, 2015). In Chilly's, the administration of the company can gather by
research, partners or institutes and competitors etc. With the assistance of it, they can gather
information and make innovation in its products in appropriate way.

Source:Innovation Funnel, (2019).
Narrowing the funnel- It is next step, in it, the management of the company use those
ideas and thoughts which are collected by them with the help of first step of innovation funnel
(Kuratko and Hoskinson, 2016). For instant, in Chilly's administration function can use
appropriate data and information to create competitions to its competitors and innovate or
modifies its produces as per target audiences requirements.
Narrow part of the funnel- It id the third and last step of innovation funnel, under which
the company insure that the information is close to meet the set objectives of the firm. In this
step, respective organisation can produce new services and products with the help of innovation
and delivered them at marketplace with the motive of fulfilling customers needs.
P4. Developments in frugal innovation and examples that how it is used in a company
Frugal Innovation
It is an activity of minimising and reducing the value of products or its manufacture &
simplicity. This procedure can be utilised and indicate to relocate non required characteristics
from the quality goods and services. With the assistance of Frugal innovation, the restrictive
company can achieve different growth options in the marketplace. There are several principle of
frugal innovation which can be used by Chilly's, they are as follows:
Find opportunity in adversity- The organisation can get several opportunity in complex
situation. For instant, the management of Chilly's can use recycling products to manufacture
reusable bottles (Olefirenko and Shevliuga, 2017).
Illustration: Innovation Funnel

Source: Frugal Innovation, (2019).
Do more with less- the company can attain success with the assistance of accessible
origins. For instance, the administration of respective organization can manufacture reusable
bottles with the help of recycling and waste material which is reusable (Paradkar, Knight and
Hansen, 2015).
Thinks and act flexible- To think critically and assemblage data or examining it, the
investigator can offer and acquire ideas of success to the firm. 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 the application of New product development
processing for commercialization of innovation
Commercial funnel- It indicates to the purchasing method and process which use by
organisations to lead consumers at the time of buying products (Schmitz and et. al., 2017). This
Illustration: Frugal Innovation

performing help the company in drafting the actual consumers in to consumers. This concept can
enhance the productiveness and increase profitableness magnitude relation of the company by
getting attention of new target audiences. There are various steps of application of new product
development and they are as following:
New product developments process
Idea generation-it is the first step of this procedure and within this phase, management of
the company create or collect ideas with the help of internal and external source (Song and et. al.,
2016). In Chilly's, the administration of the organization generate idea of reusable bottles by
recycling or wastage material form internal source.
While introducing a fresh commodity into the marketplace there comes several thought in
the mind of Maker and this step consider the ordering of content that can be reasoned by the
administration.
Idea screening- This is the second step, in it, the ideas are utilised and analysed which
are designed in first step. These ideas are evaluated as per the company requirement that the
ideas will be effective for the organisation or not.
Concept development- in this phase, ideas and thoughts are converted in to reality so that
administration can capable to create a competitive advantage out of it. In Chilly's, the
management of the company analyse detailed version of the idea stated in meaningful consumer
terms.
Development strategies- In Chilly's, in this step strategies and plan of action are chosen
by research & development team of the company. The administration of the company formulate
strategies regarding production, resource collection, distribution and others to manufacture its
reusable bottle.
Examine business condition- It is fifth step which is important for Chilly's to interpret
the business environment to survive in market in which it operating its business.
Product development- The organisation develops the goods and services within this
phase and collet and monitor required resource to manufacture product. In Chilly's the
management of the company will gather recycling material to produce reusable bottles.
Marketing Test- In this stage after manufacturing products, the ministration of Chilly's
launch its products in the market to see the reaction of its target audiences at very first time

(Wang and et. al., 2017). To analyse the capability of the product that it will be able to sustain in
the market till long time period of not.
Commercialization- It is the last step of new product development process. It indicates to
effective launching of the product at marketplace so that target audiences and attract towards the
product and take decision to purchase it (Bashmakov and et. al., 2015). In it, the management of
Chilly's play role to modify their commodities in an adequate manner that the customer is ready
to buy the product.
P6. Build an innovation Business case for a company, including ways to access funding
Business case
It is a written document which contain a concise summary of the intellect why the task or
business concern alteration has come about the difficulty, chance and change of condition. In
Chilly's, it can be a type of decision making tool which utilised to monitor the impact a specific
decision will have on profit margins. Different stages of a business case are defined as below:
Summery- Chilly's Bottles Limited is an actively running organisation which was
established by James Butterfield and Tim Bouscarle in London in 2010. This company operating
its business in retail sector with the help of 10-50 employees. The annual turnover of the
company is £2 to £10 million and it is a private limited company.
Objectives- The objective of the company is to manufacture reusable bottles with the help
recycling material and expand business at different geographical locations.
Solution- By manufacturing reusable bottles with recycling and waste plastic material.
By expanding business at different market of various nations to its target audiences.
Innovation in products- the product is innovative because respective company very first
time make innovation its products to protect environment and fulfil its customers needs. To
manufacture reusable bottles, the production department of the company can use the technology
to convert waste plastic recycling material.
Research- Chilly's is concentrating on monitoring market and affect of its products on
customers by questionnaire and online survey. The administration of this company can do
research about consumers need at different location regarding products.
Funding- To convert this all process and conceptualization in reality, the management of
the company required fund or money (Carayannis, Cherepovitsyn and Ilinova, 2016). So the

administration of Chilliy's can use different sources of fund like bank loan, financial institutes,
investors, stakeholders and others.
Benefits- From this innovation, the administration of the company can attain its set aims
and mission of the company. With the help of it, the organisation can provide satisfaction to its
target audience which help in maximizing the profitability and enhancing productivity of the
company (Chun and et. al., 2015). It is beneficial to the frim because it help in offering
competitive advantages to Chilly's.
TASK 4
P7. Different tools which can be used by the company to develop, retain and protect knowledge
and intellectual property
Intellectual property
It indicates to an immaterial artefact of human module. They are specific thoughts and
ideas which are developed by a person to establish a business by using a method, way and path
which is never been utilised and implemented. To protect these property is very essential for the
business they are set by someone by using unique ideas to acquire a market share and earn
maximal return. To provide protection a business, there are various tools, they are as following:
Copyright- It indicates to a legitimate condition for creator and written material work. It
is like as patent in which the individual who filled a legal right has right to offer approach to
other copy their work. It is occupied with national authority in context to provide protection to
original content which is engrossed by original author and writer.
Trademarks- It is consist as a mark which is utilised by to identify the product of one entity
from others. Within it, a distinct symbol can be used by the business and company which states
that specific product of some other person.
Patent- It is an inner rights configured by an individual and enrolled with a national
authority. So that only that individual has precise to usage that type of application or
arrangement its business concern. Patents offer a right to business person to determine that how
it will be utilised and has the ability to give patent right to others.
From the above information, it can analysed that in Chilly's, the management of the
company can used patent to its new product reusable bottles produced by recycling material

(Henttonen and Lehtimäki, 2017). With the help of it they can provide security and protection
form their competitors and no one can copy their product.
CONCLUSION
As per the defined information, it can be monitored that innovation is an important aspect
for the growth and development of the business of company. By making innovation in its
existing products and services or by launching new products a company can maximize the
productivity and profitability of a company. To provide shape of innovation ideas, the
management of a company cause innovation funnel. Business case of the company is beneficial
to provide information about the company, its aim and providing information of the company
with its new innovation. There are various tools which are provided by national authorities of
the nation to provide protection to intellectual properties like patents, copyright and others.

REFERENCES
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