Inovation and comercialisation

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Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 Innovation and the difference between invention and innovation......................................3
LO2 Different types of innovation..............................................................................................6
LO3 Process required to commercialisation innovation.............................................................8
LO4 Rang of methods for protecting ideas and advantages/disadvantages..............................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation can be described as process that company uses for creating something new in
their existing product and after the implementation new things in same old product company
launch this product into market, which is known as commercialization (Rasmussen and Eliason,
2017). The both are important term which are used by various organization for successful,
growth and sustainability in market.
Chilly's company is founded by the James Butterfield and Tim Bouscarle in 2010. The
aim of this company is providing water bottle to their customers. Study will explain significance
of implementing innovative at workplace. This study will also describe 4P's of innovation, frugal
innovation, and also explain their examples. It will also explain process of NPD and also develop
business case for an organization.
LO1 Explanation of difference between innovation and invention
Invention: An invention is different and original device, process, composition or systematic
process. Invention is something like instrumentation or procedure that has been design or made
up, or the systematically process of shaping or making up thing of calculation out a way to do
something. Invention is also, known as creating something new which never happen before
(Henttonen and Lehtimäki, 2017).
Innovation: Innovation means add some new changes in the same or old products. In the
innovation process person will modify the old product by creating or making some changes in
the old product. With the of innovation old things and products are change in the new scenario.
In the others words, creating changes in the existing products in known as innovation.
Innovation and its significance
Innovation is essential thing that help company to improve quality and performance to
great extent. Because by creating something challenging give a chance to organization to sustain
the market. Because by creating something new company can use this innovative idea for
improving their production, brand and also give competition to their competitors in the market.
Innovation also helping an organization for making loyal customer relationship (Henttonen and
Lehtimäki, 2017). Because nowadays, it is very difficult task to sustain their customers. It is
beneficial in serving consumers well. For an example, by the using the method of innovation
Chilly company can attract more customers towards their water bottle product. Because they are
providing new and novel type product within market.

Invention importance: Invention is an important thing for an organization. It can be helpful for
the company to solve any kind of practical problem. With the help of invention, company can
introduce those types of products and techniques by company can solve their problems.
Inventions are also helped company to fulfilling the basic needs (Henttonen and Lehtimäki,
2017). Also, inventions help organization to reduce the any kind of complexity which is
appeared during the work. For an example, Chilly organization can use invention. It will support
company can reduce the competition in the market by design new types of water bottle which
give challenges to the competitors in the market.
Difference between innovation and inventions:
Basis Innovation Invention
Concept The concept of innovation is
base on implementation of
practical idea or a new idea, by
which organization or
company can grow and
become successful.
Whereas, inventions concept
is the base on the real idea.
In this concept all things are
implemented at the first
time.
Skills In innovation process
marketing, strategic and
technical skills are required
(Henttonen and Lehtimäki,
2017). Because in this process
changes are happened in the
existing products and services.
For the inventions scientific
and systematic skills are
required, because everything
is creating is very first time
and for this scientific
methods are required for the
successful implementation.
Activities In inventions process complete
organization are involved.
But in the innovation
procedure only Research
and development team are
involved.
Examples For an example Chilly
company design those types of
plastic bottles which are easily
Whereas, chilly innovate
those types of products and
machinery which are

decomposed and that is
environmental friendly. So,
this is the inventions of the
company.
helping them creating
environmental friendly
plastic water bottle.
Commercialization: Commercialization is the systematic process or method by which
organization can easily introduce new service in the actual market. In method of
commercialization various things are included such as production, distribution, sales, marketing,
customer supports etc. These are important part of every commercialization process. In the
process of commercialization few steps are included, the first one is Discovery, next is
disclosure, Evaluation and the last one is protection of intellectual property.
Vision of Chilly: Vision of the organization is designing water bottle those are environmental
friendly.
Vision promote innovation and inventions: This vision of company promoting innovation and
inventions in the organization. Because company wants to introduce very different concept. By
the vision of the company, in company various types of innovative ideas are flow.
Role of culture, team work, leadership The innovative couture, leadership quality and team
work are promotes innovation in the organization. Because these factors and practices are
provided significant information in the organization and motivate organization people for doing
something new, unique and innovative.
Culture is the major factor that shape the innovation, effective culture is beneficial in
minimising resistance at the time of changes hence people accept modifications so easily that
help in bringing right changes of implementing new ideas in effective manner. Poor
organisational culture creates negatively and managers fails to implement changes at workplace.
Leadership is the great factor that supports in shaping innovation, if leaders are leading
team well then people will be positive and they will follow guidelines of leaders. Poor leaders
decrease motivation of workers and they fail to understand why firm is making changes hence
innovation gets failed to be implemented at Chillys.
Team work is another major factor that creates opportunities to shape innovation as if
people work in team then it will help in minimising work load and completing task on time. That

would help in controlling over negativity hence changes will be accepted in easy manner in
Chillys.
M1: There are different types of sources of innovation. Such as new knowledge, process needs,
changes in the market and industry, changes in the perception etc. By using these sources of
innovation company can design an innovative work culture and the environment (Lipkova and
Braga, 2016). Such as by using the source of industry and market structure change, company can
design those types of products and services by which all the employees and workers are involved
in the innovation process and design products and services which is existed in the market, but
serve by the company in the market some innovative thoughts and ideas.
LO2 Innovation types
4P's of innovation
Product: In this step company design those types of products who have something different
qualities. In this step company design some plan that supports in introducing new products. Such
as Chilly's company can design plan by they are able to change their bottle by adding some new
features and qualities (Lipkova and Braga, 2016). According to this plan of the company, the
suitability of Chilly's products are improved in the market.
Process: The next P of 4P's of the innovation is the process. As per this P of innovation,
company change their plan as per new aspect and demands of the market. By this P of
innovation, company are adding some new steps and strategies in their manufacturing, supply,
selling, accounting, financing various process by which the process of company products and
services are improved. For an example, company Chilly's wants to develop new products so that
it can attract new buyers
Positioning: Positioning is also an important thing of 4 P's. In this, company evaluate that where
and by which technique they can enhance their product demand (Kuratko, and Hoskinson, 2016).
For this company evaluate the old marketing strategies and then evaluate those strategies. As per
the evaluation, company find out where the organization is lacking in their marketing strategies.
After the evaluation of all procedure, now company is able to add some new and unique concepts
in their process. By adding innovative ideas in the positioning, company can achieve profit. If the
Chilly's company, wants to achieve profit than company have to add something unique idea in
their positioning.

Paradigm: Paradigm is included. In this step company manufacture or produce the same
products and services, but they are change the complete process. Such as organization wants to
improve their production but for enhancing the manufacturing company adopt new procedure
which is completely new and profitable for the firm. If the Chilly's wants some innovation in
their company than they can use this (Kuratko, and Hoskinson, 2016). By using this method
company Chilly's can change the process of production or something else and adding new
changes in this organization improve their production of water bottle and also create
environmental friendly products.
Funnel Innovation: Funnel innovation is a performance that enables a continual flow of opinion
that can be screened for practicality. It is use by various organization for the creating advanced
and practical action plan. The midpoint of funnel innovation is to generating various or numbers
of ideas as possible, in this step various ideas and opinion are converted and refining them into
concrete development plan. This process is creating certain shape which is known as funnel
(Hossain and Kauranen, 2016). In this process of innovation individual or organization have lots
of idea at the very starting stage but after the filtration few ideas are remained. Funnel innovation
is process by which company know about the best effective idea of innovation by using that idea
company can be developing. In the funnel innovation process 5 steps are included which can be
used by the Chilly's organization for introducing new water bottle:
Ideas: The very first step of funnel innovation is idea. In this step company gather ideas, opinion
and suggestion from the top management, employees and workers of the company. They are
providing numbers of ideas for the shape of the bottle and which are eco- friendly.
Proposal: In this step company filter all the ideas on the bases of their needs and requirements.
Company selected those ideas who are effective and as per the policy and wants of the company.
Like Chilly's organization wants to create water bottle which eco-friendly (Xiao, Li and Liu,
2016). For this company collect various ideas but select those ideas who are as per the new plan
of the company.
Prototype: After the selection of few ideas and opinion, company design a plan. This plan is
crate as per few selected opinions and ideas. In this step they design products and then test them,
if the products are working are effectively and efficiently, then the next step is started.
Commercialization: In this step of funnel innovation process, selected idea and product who are
work as per the needs and requirements of the company, it is launched in the market. Chilly

organization at this step launch those bottle of water who are effectively in the shape and also as
per the policy of company which is eco-friendly.
Result: The last step funnel innovation process, company achieve the result of their new product
launch in the market. And also, company know that product is profitable or not for the company.
Frugal Innovation: It is the method by which organization can minimise complexity related to
production (Lipkova and Braga, 2016). The main idea behind this process is creating and shaping
products and services which are completely set this market. Frugal innovation is important for
the Chilly's organization by using this method company can reduce the complexity and also its
production. Company also improve their accuracy in the market. Frugal innovation is also helped
Chilly's company to develop high end technology products and provide them low cost in the
market. This process gives benefit to Chilly in order to improve production process and remove
the wastage. By this way production cost can be controlled in significant manner.
LO3 commercialization innovation
Commercial funnel can be defined as process which is organized by the team of marketing
and focus on change over prospects in target market into leads. (Wang and et.al., 2017). This is
also helped company to relate with customers and also help business to enhance more sales ion
the market.
NPD Process: new product development can be defined as process that is used by business to
develop new product in the market so that firm can increase competition and can gain attention
of buyers. NPD has five major steps which are use by the organization for developing a
completely new product. It includes:
Idea Generation: In this phase idea is generated for the new product development. This idea is
include customers, competitors, newspapers, employees and suppliers.
Research and Development: In this step idea for new product is gone through the research and
development process. In this step company collect important information about new idea and
also evaluate that idea is effective or not.
Concept Development: In this step company evaluate all their concept at internal level. For this
they are use SWOT analysis method, in which they are find out the strength, weakness,
opportunities and threats of the concept in the market.

Product Development: In this step company develop new product as per their evaluate concept
development (Henttonen and Lehtimäki, 2017). For this company also use prototype method and
test the product. If the product is successful than the next step is started.
Commercialization and Rollout: This is the last step of the NPD process and in this process
company launch completely new product so that it can generate more profit.
Steps of Commercialization:
Develop a direct marketing plan: In this company Chilly directly contact with their customers
about their new product through the mail, social media marketing etc. For example: firm needs to
develop marketing plan through which new product can be developed and market easily ad firm
can attract new consumers.
Creating advertising plan: In this step Chilly's company create or develop advertising plan so
that more consumers can get attracted. Firm needs to make proper advertisement so that more
people can get to know about the new product and they start taking interest in it.
Create communication materials: For this Chilly company create brochure of their products
and sale posters for gaining attention in the market. After that Chilly should develop appropriate
communication material so that people can get to know the advance features in the new products
so that interest of consumers can be raised.
Develop a sales plan: Chill's design sales plan for sale their new product into the market. For
this they are design sales strategies which improve sales.
Pricing strategies: Company design price for their new product. Price will be premium or
minimum.
Business Case for Innovation
Executive Summary: In this study it has been concluded that how Chilly's organization design
an innovative product. Also, it has been described the need of innovation, tools for promotion
which were used b y the company (Datta, Mukherjee and Jessup, 2015). In this study it has been
included competitive market which is created in the market after the innovative product of the
company. This study has been also explained the marketing strategies and promotional strategies
for product advertising, target group of customs and financial sources for funding.
Background: The Chilly's company is established in 2010 by the founder of Jams Butterfield
and Tim Bouscarle. The mission of the company is to speed up the adoption and ordinary use of
product. And the vision of the company is designing water bottle which are eco-friendly.

Need for innovation: Company need for innovation is arisen by the concerning about the
environment and company wants to invented product which is environment friendly.
Innovative product meet the need: Chilly's product is completely appropriate to meet the need
of the company. Company wants to design those types of plastic bottles which are provided eco-
friendly environment and also easily decomposed in the environment.
Competitive Edge in the market: The product of company is unique and completely different
in the market. Because numbers of companies are available in the market and no one design
these types of plastic bottles which are eco-friendly (Ke and et.al., 2016). By the new product of
the company in the market competitive environment is increase and Chilly's is become new
competitors for the water bottle industry.
Market Opportunities: The market opportunities for the Chilly's product of water bottle is very
wide. With the help of this type of idea company can attract customers towards their products
and it will give company opportunities to grow in the market.
Target customers: The target customers of company are those people who are at the age of 16-
45. Who are generally been going for walk and jogging(Kim and Park, 2018). Company can
target also those customers who have living standard is medium or high. And for reaching those
customers company can use methods of technologies such as websites, internet, application etc.
Marketing Strategy: For their innovative product promotion company can use the strategy of
social media. By this strategy company can share information about their new product in the
market and grab customer share.
Effective marketing and Promotional Strategies: Various types of marketing and promotional
strategies are available in the market. By using those strategies company can promote their
products and services (Dutta and Folta, 2016). Company can use techniques such as social
media, branded promotional gifts, customers referral incentives program, product giveaway and
sample etc. for their water bottle selling and promoting.
Financial Sources: For the manufacturing and designing the product company can take help
various financial sources which are available in the market. Such as Chilly's company can take
financial help from crowdfunding, angel investors, savings, bank loan etc. are available.
Company can collect fund from these financial sources and implement their new product in the
market successfully. Chilly can get funds from bank to introduce this new product and get
commercial benefit from it.

Marketing cost 300 Pound
Raw material purchase 200 Pound
Production cost 350 Pound
Total cost 850 Pound
LO4 Intellectual properties
Content Repository: This tools is helpful for organization to organizing and sharing the
knowledge. For many years the controlling tools for knowledge management repositories and it
is a type of software for management documents (Hameed, Von Staden and Kwon, 2018). The
strength of this tool is that it is helping an organization to manage their all data and information
at one place and company can use this data at the time of urgency. The weakness of this tool is it
can be corrupt or hack by the hacker so, the data can be mislead. This tool content systems such
as Cloud management system, Content management system etc.
Communication Tool: This tool help company to communicate the knowledge and information
and also provide knowledge by the communication. The major strength of this tool is company
or management can share information in short time period (Chun and et.al., 2015). And the
weakness of this tool is that this is tool is some time not helpful for sharing appropriate
information and megasea to the employees and most of the time exact message and information
are not share to the employees and management. In this included email, chat, instant massaging,
video conferencing etc.
Copyright: This is another intellectual property rights that restrict the rights of person for their
innovative design or invention. This gives protection to the original work of person.
Advantage
 It has long statutory life
 If there is any kind of constitutional harm then proprietor can get extra benefit for the
same.
Disadvantage
 Critical refinement is the drawback of copyright.
Patent: This is the tool that reflects right of creator. Right is given by government for fixed
period for their innovation. If other person uses patent material than creator has right to claim
against the person.

Advantage
 It has monopolistic nature that helps in exemplifies the actual innovation
 Counterfeit restriction is another benefit of patent because it increases cost of this
innovation.
Disadvantage
 It has short financial life as compare to other IP tools.
Justification
One of the most effective tool for protecting the intellectual property which chilly can
use is the patent. The most important advantage of this tool is that it protects the design of
anything functional and most importantly the government offers monopoly protection up to the
entire life of patent. Thus, this will help Chilly to protect their processes and products to the
lifetime even after the company will dissolve which other tools does not provide. Thus, Chilly
can use patent for securing their rights.

CONCLUSION
Study can be summarised as innovation gives beneficial results to business. In this study
has been various things are included such as innovation and inventions, their importance for an
organization and difference between them. Study explained about funnel and frugal innovation.
Also, in this study has been described the process of new product development and
commercialization process for implementation new product in the market. It has been also
designed business case which include executive summary, background, need of innovation
various things. In this study also concluded different tools which are sued by the company for
knowledge management, retain, protecting and also presented their strength and weakness in e
organization.

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