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Unit Number and Title Unit 8: Innovation and Commercialisation
Project Title Innovation within a small business context

INTRODUCTION
In general context, innovation is known as creation of something new in existing
product. It is very important for all organisations to innovate their products in regular
interval. This ensures customers are getting something new every time and customer
satisfaction is increased. This leads to increase in sales and profits for the company. In
the following report, Chilly's company is considered which has recently designed a
modern & stylish product i.e. plastic bottle of high-performance technology and eco-
friendly benefits. This organisation was founded by Tim Bouscarle and James
Butterfield. The main objective of these two is to provide chilled water to people
when they are outside home. The present report includes discussion about 4 P's of
innovation, innovation funnel, business case and tools for protection of intellectual
properties.
TASK 1
P1
Innovation is the invention of fresh ideas, imagination and thoughts that can be
implemented in services & products. Innovation is important in organisation as it is
helpful in creation of new business models and making change in present environment
for delivering better services & products (Biemans, 2018). These innovations and
creations provide value to customers in this competitive market. Innovation is
essential in business organisations as it provides opportunity to deal in competitive
market. The management of Chilly organisation is focusing in order to formulate and
introduce a new product i.e. smart water bottle. This bottle is known as smart as it will
let you know it's time to drink water. There is application which track and monitor
intake of water by the person. These is helpful to adjust goals depending upon
external factors. Innovation in Chilly is helpful for management to make more money
and profits.
Another term is invention which is sometimes mixed with innovation, but they
both are different terms and have different meaning. Invention is defined as creation,
development, designing & discovering of various methods, process and approaches
which are not present in current market.

Difference between innovation and invention
Basis Invention Innovation
Definition
Invention is termed as
occurring of idea that creates
development in a product or
service.
Innovation is defined as
creation of new ideas that are
implemented on existing
services, products and process
of the organisation
(Innovation, 2019.).
Emphasis
Mainly it focuses on creating
new services and products.
Innovation emphasises on
developing values in product
offered.
Aspect
This is generation of ideas and
their functioning in theory. This is practical
implementation of creative &
new ideas.
Skills needed
The business owners must
have employees who have
innovative skills, scientific
skills, creativity and analytical
thinking (Etzkowitz and Zhou,
2017) .
This person must have good
marketing research abilities,
strategical thinking and
technical skills.
Occurrence
This is occurred when new
ideas come into person's mind.
This occurs when there is
requirement for improving
product or service.
Example Nikola Tesla is a great
inventor.
Ada Lovelace is name of an
innovator.
There is need of innovation in Chilly's organisation. With the help of innovation,
it includes introducing a new feature in bottles offered by them (4 Important Benefits
of Innovation in Business,2018). Successful innovation of this company is helpful for
becoming part of business strategy, where this organisation can create culture of of

innovation and made way for creative thinking. This innovation will bring success to
owners of Chilly organisation.
P2
Innovation & commercialisation are two terms related to vision, culture,
leadership and teamwork of the company. It is seen that innovation influences and
impacts these factors. Leaders have to change their ruling and guiding when new
products are launched in markets.
Organisational Vision – There is significant vision of every organisation and it
provides information about goals & objectives of organisation. Organisational vision
affects managers and employees as they have to put more efforts to provide
innovative products to customers. Employees of Chilly organisation have to conduct
effective market research before launching products in market (Bain and
Kleinknecht, 2016) . The vision of Chilly organisation is to provide water to people
everywhere they go. Thus, they have made a new water bottle that is linked with
application which will tell people how much water intake they take and what is their
actual requirement. The vision of Chilly organisation is linked with promoting
innovation and commercialisation as this company wants people to have water with
them everywhere they go. This is a great concept that motivates managers of Chilly to
think something creative and innovate water bottle and provide to customers.
Leadership – Leadership is defined as ability for individuals to rule over other
people and make them work according to your instructions. This is function for
managers and leaders of Chilly organisation to manage and control processes and take
actions towards reaching goals of the company. Leaders can follow various kinds of
leadership styles including democratic, autocratic, participative, laissez-faire,
decisive & consultative. Innovation of products affects the way in which a leader
manages and controls business operations. In context of Chilly company, the leaders
have adopted autocratic leadership style. Here all decisions, plans and strategies are
developed by the owner or executive. Other employees and subordinates have to work
as per his instructions and guidance. A good leadership helps in providing assistance
to the organisation in order to generate innovation within regular periods. In this way,
innovative thinking of owners help Chilly organisation to provide innovative water
bottles to people everywhere. This helps in gaining competitive advantage in market
place.

Culture – This is defined as value, belief, assumptions, way that an organisation
chooses for operating. These are generally expectations, philosophy, experiences of
organisation which helps employees to work hard and attain organisational goals.
Culture types are person, role, power, task. In context of Chilly, owners are adopting
task culture within their company. In this type of culture, manager of each department
provides guidance for working and performing well. For instance, the manager of
technical department provide training to all subordinates for understanding new
technologies adopted by the company.
The employees working in Chilly organisation are highly talented and innovative
towards their working. This makes them fir for existing in competitive marketplace
where there is need of continuous innovations. These workers are proactive and they
generate attractive innovations in products. Employees are not given rest periods in
Chilly as this decreases capability of creating new ideas and thoughts. Continuous
motivation and support is provided to employees for increasing their creative
mindset (Dodgson, 2018). In context of Chilly organisation, there is presence of
culture for developing innovative ideas. This is helpful for business owners of Chilly
to transform into innovation drivers in operating field.
Teamwork - Team in organisations are important and they are assigned specific
tasks which are to be completed in given time interval. Teams provides an opportunity
for employees to express their views and thoughts about innovating products and
services. The business owners of Chilly make effective teams and assign them tasks in
order to resolve problems and attain organisational goals and objectives. The
managers of Chilly have made effective teams and they are responsible for making
new innovations and commercialise processes & products. A good teamwork is
possible only when there is existence of strategies and plans. Workers of Chilly
organisation are formed into group of 10 or 12 for making innovative ideas about the
existing or new products. This it is helpful for fostering innovation for collaborative
environment (Yun, 2017). Team members encourages employees for enhancing
efficiency & productivity for promoting commercialisation. In this way, innovation
and commercialisation of products is enhanced as employees work effectively for
attaining common goal.
Leadership, culture and teamwork are three aspects which helps in promoting and
commercialising in Chilly organisation. In this company, plans and strategies are
developed by the owner or executive. In context of Chilly, owners are adopting task

culture within their company. In this type of culture, manager of each department
provides guidance for working and performing well. The managers of Chilly have
made effective teams and they are responsible for making new innovations and
commercialise processes & products.
TASK 2
P3
Innovation is defined as creation of new ideas and plans in the present products
and services offered by the company. There are basically 4 P's of innovation followed
by every organisation while planning for product innovation. This innovation mix was
given by John Bessant & Joe Tidd. This mix provides help for estimating success or
failure of innovative product. The four P's of innovation mix are adopted by business
owners of Chilly for improving market share and sales of the company. For Chilly, it
is mentioned below -
Product innovation- This is very essential for organisations to develop strategies
and plans for earning profits and money. Innovation in products is helpful in
increasing customer satisfaction level (Laihonen, 2015). People will buy products
from the organisation which provides quality products and services. Thus, Chilly
owners have innovated their cool water bottle. In context of Chilly organisation,
value is added to water bottle by adding new feature of water tracker. This new water
bottle will attract people of UK.
Process – There is a process which is followed by organisations for creating good
reputation in market. Chilly is a company that deals with water bottles. There is
presence of strong and effective process for producing and delivering of products.
This process costs less to the company and smart water bottles will enhance customer
satisfaction and reliability.
Position- This is defined as maintaining good position of company in
marketplace. The managers of Chilly conducts market research for analysing the
current position of market. This tells what are the factors which are beneficial for new
product and what are not good for the product. This is an important concept which
must be known by Chilly organisation while launching new innovative water bottle.

Paradigm- This process is for handling changes and innovations which are
implied when there is execution of new ideas & innovation (Wang, 2017). This
develops a different aspect for Chilly organisation's employees and workers.
Innovation funnel at Chilly organisation:
It is defined as process of development where new ideas & thoughts are
developed in a service/product. These innovative changes in a product must be
beneficial for the customers as it leads to increase in satisfaction among customers.
Various ideas of innovation which are implemented on products & processes for
enhancing customer satisfaction as well as retention.
Illustration
1: INNOVATION FUNNEL
(Source: Innovation Funnel, 2019)
Chilly organisation is involved in collecting information and data regarding
choices and preferences of customers. The managers of this company must know
whether their smart bottle is liked by customers or not (Bagno, Salerno and Silva,
2017) .
Opportunity assessment- This is known as first step and Chilly organisation's
managers evaluates demands and needs of customers. In this way, different ways to
apply changes and creativity in water bottle.
Insights based ideation- This consists of formulating strategies which will help
in enhancement of profits and money earned by the organisation. The managers of

Chilly conducts effective market research for creating good market position. In
context of Chilly organisation, market research for smart bottle is done by using
surveys, crowd sourcing questionnaire, focus groups, online communities, online
survey ,etc.
Conceptualization- Chilly organisation designs actual concept by using
information extracted from ideas and thoughts of people. Innovation in cool water
bottle and now there is addition of smart application in that bottle is innovation done
by Chilly organisation.
Evaluation and Benchmarking- This step consists of actual implementation of
new thoughts and idea into product of the company. The new water bottle is then
provided to people . Feedbacks are taken from customers to know what the limitations
of this bottle are.
Implement or not implement- Feedbacks provides enough information for
estimating product's services in market. The managers of Chilly makes effective
decisions for introducing new changes in product or service (Gundry,Ofstein and
Kickul, 2014). Different concepts considered by manager are cost, margins &
consumer behaviour.
Launch- In this step, product is finally introduced in various marketplace.
P4
This is process for searching new business model that will estimate value chain as
well as design products in order to satisfy customers. This is manner by the help of
which Chilly organisation is able to develop quality services & products.
Examples :
 India: TATA Nano car
 China: Washing Machine made by Haeir
 India: Chotukool
 China: BYD lithium-ion batteries
Frugal innovation
As chilly organisation is involved in making smart water bottles for people. In
this way, profits are made by the company.

New market opportunities- Chilly company identifies and analyses market
opportunities for growth and development of product. Market research will help in
knowing consumer preferences and behaviour for making effective strategies
(Petkovska, 2015) . Chilly organisation keeps updating and innovating its products in
order to enhance customer satisfaction.
Resources- These are essential asset of any company and it is necessary for
companies to make use of these resources effectively. Frugal development needs
resources and this chilly organisation has to use these resources in an effective
manner. Chilly organisation has sufficient resources by the help of which this
company can provide innovative water bottles to customers.
Innovation Funnels- Developing of new products and this is essential for
companies for formulating business model. In context of Chilly organisation,
innovation of new water bottle will attract customers towards purchasing it.
TASK 3
P5
Commercial Funnel
This is framework which is helpful for utilising and reforming present products
by implementation of plan and procedures. There are three phases of this funnel.
Pricing policy- Chilly organisation is offering cool water bottles of people. Price
at which this company sells bottles is reasonable. This is useful for setting price of
services & products by estimating demands & needs of people.
Improving ways of growing business- The innovation funnel is helpful for
understanding needs and demands of customers. This increases customer satisfaction
and retention.
Process of New Product Development:
 Idea Generation- This is first step in the process of NPD. This includes
generating idea for doing innovation in product. This idea is generated by
conducting an effective market research. This helps in Evaluating
requirements customers. In context of Home the first step which involves
generation of idea in the product and conducting a research to analyse needs
and demands of customers. This includes generating ideas for existing

product and service of the company. In context of Chilly organisation,
managers are confident that new smart water bottle will attract more
customers.
 Idea evaluation- This is the next step of NPD and it includes implementation
of new innovative idea in product. Idea screening is defined as filtering ideas
and applying the best idea in products. The main objective of generating idea
is to create more ideas. The cost at every stage of this product increases in
higher stages. Thus it is essential to eliminate poor ideas as soon as possible. It
is implementing of new and creative idea into service or product. Chilly
company ensures that new water bottle will provide good experience to
customers as it tracks water intake for body.
 Concept definition- The concept of fragrance paint is that it should provide
good experience to customers. These paints must provide pleasant experience
to people. The concept of chilly organisation must be effective so that it can
increase number of loyal customers.
 Analysis of strategies- The strategy of this company is attractive and able to
meet the desired needs of customers. The competitiveness of product in
market is must so that it can help in increasing sales of the company . Chilly
organisation's strategy is to provide innovative product for attracting quality
products and services.
 Product development and testing- The next step of NPD is product
development and testing. A product concept is defined as new product's
detailed version which is started in terms of consumer. The new idea of
fragrance paint is a good idea and it can be implemented to the existing
product. This is must for managers to analyse whether this product will be a
failure or success.
 Commercialisation- Through the help of testing product, information related
to make final decision for product is achieved. This is final stage of NPD and
known as commercialisation. This stage incurs highest costs. This means
launching of new product. It is must for Chilly organisation to take care while
launching new water bottle in market for attracting customers (Afuah, 2014).
 Product launch- Product is launched in market in this stage. The new
fragrance paints are launched in market so that people can buy it. In this
company, cognitive systems and big data are used for depicting consumer

trends. Also for knowing future trends in market and social media are used for
for promoting and distributing products. New smart water bottle launched in
market.
New product Smart bottle:
 Features: Smart bottle tracker and application
 Value: Customer centric product and mainly made for people to be hydrated
always.
 Packaging: Steel & Plastic
 Marketing and Sales: Social media marketing
 Competitive price: Price range is 2 Pound.
Illustration 2: Innovation Funnel,2019

P6
The Business case and business plan are future predicting actions that are written
for increasing profit earned by the company in future. The business plan covers single
product and product line of the organisation. Business performance predicts main
income statement categories like profits and revenues. Business case can be both
written and verbal document used for providing information of organisational goals &
objectives.
 Executive summary- Chilly was founded in the year 2010 by Tim Bouscarle
and James Butterfield. The main aim for these two people is to create
technological advancement so that customers have ability to have cold water
on the go.
 Mission statement- “To accelerate the adoption & everyday use of reusable
products.
 Resources- Chilly organisation needs raw materials, funds, technological
advancement tools, etc.
 Financial projection- The fund required for smart water bottle is £25,000.
 Types of funding- Chilly organisation takes money for innovation from banks,
friends and relatives.
 Problem statement: The given case is on Chilly company and it's sales
declined due to less innovation in products. Consumers are bored of buying
the same products from the company.
 Possible solutions: This company has decided to innovate new fragrance
paint. This is creative development in company which will enhance profits and
sales of the company.
Access funding for new product range:
Chilly organisation needs money for product development, marketing and for this
it takes funds from the following sources -
 Investor: These are people on whom the company can rely for bringing up
new innovative products.
 Profits: Chilly organisation is a profit-making company and it can use its
profit in launching of new smart bottle.
 Bank loan: As Chilly company is having good reputation in market; it can
easily apply for loan in order to work on project of smart bottle.

TASK 4
P7
Chilly's organisation can use various tools for protecting knowledge and property
of its products and innovations. These are patent, copyrights and legal authorities.
These help in taking legal actions towards any other person or organisation if they use
plan of another company. The different types of tools for Chilly company are listed
below -
Patent- This is known as invention that provides authority and rights to owner of
the company from preventing exploration of products (Linder and Williander, 2017).
Chilly organisation has to take patent of new smart bottle for preventing sales of this
innovative water bottle by other competitors.
The advantage of this is it provides exclusive rights to owner of the company and this
acts as an effective tool against the imitators. Drawback of patent is it needs high cost
of registration as compared to other tools. This type of protection tool lasts for 20
years and this is of longer duration than other tools.
Trade Secrets- This is a kind of intellectual property which may in the form of
process, formula, pattern, instrument, commercial method, practise, instrument, etc.
which is not revealed to anybody. This is economic advantage that company has over
the competitors. These are also known as confidential information.
The advantage of this is there is no registration cost and protection is not fixed for
a fixed interval of time. This tool provides high security and also it costs less than
other tools. The weakness of this is There are restricted rectifications and these can be
easily patented by other companies. This type of protection tool does not provides
effective results for new product invention.
Copyright- This is another protection tool which prevents stealing of ideas.
Copyright of product includes rights & economic rights. These have rights for
copying and publishing any substantial part of product. Organisations have to register

for copyright and make easy for ownership when conflicts occur. Chilly must take
copyrights of new smart bottle for protecting and saving product from any harm.
The advantage of Copyright provides rights to Business owners of intellectual
rights in order to produce & reproduce materials. This also provides rights to
authorise a product. Copyrights acts as evidence of ownership of intellectual
property. The main drawback of this is these costs higher than other protection tools.
The weakness of Copyrights is they have fixed period of time and this becomes
costlier every time.
The best protection tool used by Chilly organisation is copyright in which These
have rights for copying and publishing any substantial part of product. The benefits of
using copyright to Chilly organisation are listed below -
Public notice of your ownership. The work of Chilly organisation will be
published in the Copyright Office’s Catalog and will be searchable to the public.
Legal evidence of ownership. If somebody takes your work, registration will avoid a
costly dispute over the actual ownership.
Validity. The registration will demonstrate the validity of your copyright if it is
registered within five years of publication.
CONCLUSION
This has been analysed that innovation is the most essential factor that enables an
organisation to earn more profits. Every company must innovate its products and
services in order to attract customers. The 4 P's of innovation helps in knowing what
the ways by which product are is launched. Commercial funnel & steps of NPD
provides information about how product can be innovated effectively. Business case
provides overview of product innovation and company's vision and mission. There are
some tools for developing, retaining & protecting intellectual property of products so
that no other company can steal idea.

REFERENCES
Books and Journals
Afuah, A., 2014. Business model innovation: concepts, analysis, and cases.
Routledge.
Bagno, R. B., Salerno, M. S. and da Silva, D. O., 2017. Models with graphical
representation for innovation management: a literature review. R&D
Management.47(4). pp.637-653.
Bain, D. and Kleinknecht, A. eds., 2016. New concepts in innovation output
measurement. Springer.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government
innovation and entrepreneurship. Routledge.
Gundry, L. K., Ofstein, L. F. and Kickul, J. R., 2014. Seeing around corners: How
creativity skills in entrepreneurship education influence innovation in
business. The International Journal of Management Education.12(3).
pp.529-538.
Laihonen, and et. al., 2015. Technological strategy, open innovation and innovation
performance: evidences on the basis of a structural-equation-model
approach. Measuring Business Excellence.
Linder, M. and Williander, M., 2017. Circular business model innovation: inherent
uncertainties. Business strategy and the environment. 26(2). pp.182-196.
Petkovska, T., 2015. Role and importance of innovation in business of small and
medium enterprises. Економски Развој-Economic Development.17(1-
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Wang, J., 2017. Structuring innovation funnels for R & D projects under
uncertainty. R&D Management. 47(1).pp.127-140.
Yun, J. J., 2017. Business Model Design Compass: Open Innovation Funnel to
Schumpeterian New Combination Business Model Developing Circle.
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through:<http://www.businessdictionary.com/definition/innovation.html>
4 Important Benefits of Innovation in Business,2018. [Online]. Available
through:<https://medium.com/swlh/4-important-benefits-of-innovation-in-business-
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