Innovation and Commercialisation

This document discusses the importance of innovation and commercialisation in organizations and how it shapes business vision, leadership, culture, and teamwork. It explores the 4P's of innovation and the use of the innovation funnel. It also explains the concept of frugal innovation and provides examples in an organizational context.

Innovation and
Commercialisation

Contents
Contents...........................................................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
P1. Explain innovation and determine its importance to organization through comparing with
invention......................................................................................................................................2
P2. Explain that how business vision, leadership, culture and teamwork shape the innovation
and commercialization.................................................................................................................4
P3. Evaluate the 4P's of innovation and use of innovation funnel to examine and shape the
innovative idea.............................................................................................................................5
P4. Explain the development in frugal innovation along with examples in organizational
context..........................................................................................................................................6
P5. Explain the importance of the commercial funnel and the application of New Product
Development (NPD) for commercialization................................................................................7
P6. Build innovating business case for organization and including ways to access funding......9
P7. Evaluate the different tools that business used to develop, retail and protect knowledge....9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Innovation in the organization means generate new ideas which help the business to
commercialize their operations in the domestic as well as international market. In context of
organization, innovation will be done through analysing the needs and demands of the consumers
and generate new idea for the successful outcomes (Abdul Razak and Murray, 2017)
. In addition, commercialization refer to the process of introducing new product or method of
production which provide huge success. For the better understanding of this concept, this project
report select the Chilly's which is founded in 2010 by James Butterfield and Tim Bouscarle.
Comapny innovate new product that is Silicon bottle which have aim to provide the ability to
always carry cold water without using plastic bottles. This report cover the various topics such as
what is innovation and its importance for the organization. Differenced types of innovation,
process required for commercialized innovation and evaluate the range of methods for protecting
ideas.
MAIN BODY
P1. Explain innovation and determine its importance to organization through comparing with
invention
Innovation refer to the process of translating idea or invention which used to convert into
goods & services that create value for the organization in terms of maximising productivity as
well as profitability. In context of Chilly's, company innovate Silicon bottle which purify water
automatically so organization target those customers who are health conscious. This product is
different from their competitors because they innovate different features that is automatically
purifier that purify water which is beneficial for health. Chilly's have high opportunity to
increase their customer base through introducing healthy product for the people.
Importance of innovation for organization:
Innovation is very important for the organizations because it provide various benefices
which further helps in expanding their business as well as maximise the productivity as well as
profitability (Importance of Innovation in context of Business, 2019). Some of the importance
mentioned below which help the Chilly's company to get various benefits:
 Increase productivity: In order to maximise productivity of their business, organization
have to innovate something new which can increase the demand and then productivity as
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well. In the Chilly's company, they introduce Silicon bottle which is in demand because
of their uniqueness so it will increase the interest of people which result the high demand.
At the end, it will maximise the production as well as profit margin of the company
through innovating new product which fulfil the needs of people.
Beat the competitors: With the help of innovation, organization able to beat their competitors
because they introduce unique featured products which make them different from others
which automatically increase the demand (Abdul Razak, Murray and Roberts, 2014). In
context of Chilly's, they innovate Silicon bottle which purify the water automatically
make people healthy because water is the basic need which everyone required. So
unique innovation will helps in beating competitors in the market or maximise
productivity as well as profitability.
Invention: It is the unique method or process which is used for overall engineering &
product development process. It is used for the machine as well as for product through crating
new object for the effective outcomes. With the help of invention managers of Chilly's can
develop new products which make them able get higher growth in the marketplace.
Comparison of innovation and invention:
Basis Innovation Invention
Meaning It is the new idea regarding any
product & services which helps in
satisfying customer's needs &
desires.
It is refer to the method or process
which is used for the product
development and which is not use
before that.
Purpose Build something new which
create value for the Chilly's and
meet with customer's objectives.
They have to build their own solutions
to develop product by using unique
technology and process by Chilly's.
Concerned with It more focus on innovating
various products and processes.
It give more importance on invent a
single product as per the market
demand.
Activities Innovation is spreading in whole
organisation to find the best
suitable opportunity.
It is limited to research and
development department)
(Adelowo, Akinwale and
Olaopa, 2017)(Amponsah
and Adams, 2017)..
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P2. Explain that how business vision, leadership, culture and teamwork shape the innovation and
commercialization
Vision: It is refer to the want that company wanted to accomplish in the future through
giving lot of efforts. Every organization have their vision because without it, it is impossible to
perform or make strategies. In context of Chilly's, company wanted to produce a product which
is daily usage and utilise to maximise its value for customers they innovate through analysing the
challenges as well as opportunities which make them capable to manage their employees
efficiency through completing their goals & objectives. Vision of the company shape the
innovation such as Chilly's innovate Silicon bottle for daily use and which provide purify water
for good health.
Leadership: It is the most effective aspect which any business required which help the
organization to perform their operational activities in well manner. In order to shape the
innovation and commercialization, leaders have clear goals & objectives which they haver to
achieve so they build their strategies accordingly. Organizational leadership shapes the
innovation and commercialization by allowing other people to take the lead on projects that helps
in completing goal (Chun, Chung and Bang, 2015). Every leaders have some skills such as
accountability, humanity, positive attitude, vision etc. CEO of Chilly's company posses all the
skills which make them able to perform their task. Leaders follow the democratic leadership style
where they focus on employees involvement for the decision-making process. Effective
leadership style will helps in shaping the innovation and commercialization.
Culture: It consider the values, beliefs or behaviour of individual in order to achieve
desired results. Managers of Chilly's needs to maintain the effective work culture which able the
employees to perform willingly and helps in meeting customer expectations. In order to satisfy
consumers, Chilly's have to innovate new ideas as per customer's demand or needs. For example:
Chilly's company innovate Silicon bottle for the purpose of providing purify water which is the
basic need and current requirement of customers. In the organization, Chilly's follow the
hierarchical structure which help them to share accurate information and motivate employees to
support the free flow of informations and data. It is easy to make changes in the operational
activities without generating any kind of complexity in the production process.
Teamwork: At the time of shaping innovation & commercialization Company
required whole team efforts. So management of the Chilly's have to focus on team work and
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make sure that they follow the conmen goals which encourage them to perform their task
accordingly. In order to enhance the efficiency of team members, managers have to consider the
following elements such as commitment regarding work, contribution, effective communication
between members etc. For example: In order to shape the innovation such as Silicon bottle,
Chilly's have to provide proper guidelines to their team members that how they have to perform
in order to achieve their goals & objectives (Dezi and et.al., 2018)
.
Above discussion stated that, in order to shape the innovation and commercialisation
organization have to focus on above points which helps in maximising productivity, profit
margin, customers satisfaction, competitive advantage etc.
P3. Evaluate the 4P's of innovation and use of innovation funnel to examine and shape the
innovative idea
4P's of innovation help the organization to narrow their investigation for the specific area
which make organization capable to find opportunity through innovating new ideas. It include
the product, process, position and paradigm which followed by the Chilly's company in order to
make business strategies and beneficial in further decision making process. It mentioned below:
Product: It represent the physical product which produced by the company such
as Silicon bottle by Chilly's. Company use some innovation method to produce this bottle and
meet the customer's expectation (Kutvonen, Savitskaya and Salmi, 2014)
. Main motive of Chilly's company is to make people heather by consuming pure water that's
why company innovate the Silicon bottles that purify the water automatically. It also reduce the
use of plastic bottles which is harmful for the nature as well.
Process: It include the whole process which is used to manufacture product from raw
material to finished goods. Managers of Chilly's follows the effective process where they
manufacture Silicon bottle and distribute to the retailers which can deliver the products directly
to the costumers. Company follow effective distribution channel for the delivery of products and
make sure to make availability for the consumers all the times.
Position: It is related to the own value of their products in comparison to the market
requirements. In order to maintain high position in the market, organization have to implement
various strategies where they have set standards for product size, design etc. In context of
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Chilly's, management set the product size, design, colour, shape etc. in order to attract customers
and getting high position in the market.
Paradigm: It shows the ways and manners which bring the innovation in the
products and services. In context of Chilly's, managers implement some changes in order to
survive in the market for longer period. For example: Chilly's company use the Silicon bottle by
using waste material which further used by the consumers as a reusable product which is
environmental friendly (Mazzarol and et.al., 2014).
Innovation Funnel: It is the funnel management process which is used by the
organizations in order to innovate new ideas and make appropriate action plan for the execution.
It include three steps which used by the Chilly's to improve their existing products such as
Silicon bottle:
 Mouth of the funnel: In this step, organization have to conduct intense research
regarding need of product in the consumer's life as well as in the market. Also need to
analyse that, if it is competitive or not. It is used by the Chilly's to maintain their
operational activities and identify the consumer demand for the innovation.
 Narrowing the funnel: After analysing the market situation, company have to implement
ideas and strategies related to the products. By using product development approach
Chilly's company able to maintain their process or execute the innovation in order to get
huge popularity in the market.
 Narrow part of the funnel: It is the last stage of innovation funnel where organizations
ensure that all the pre-determined strategies and policies which target the goals &
objectives of the company. Managers of Chilly's make decision for the manufacturing of
products & services in the market to satisfy the demand of consumers.
P4. Explain the development in frugal innovation along with examples in organizational context
Frugal Innovation: It is the process of reducing the complexity of the
manufacturing unit which helps in minimising the cost of goods. Basically it is used to remove
the non- essential features from durable goods and it is mostly sell in the developing countries
(PMazzarol and Reboud, 2017)
. It is suitable for the Chilly's where they remove the unwanted process from the production of
bottles. This process include various principles and some of them mentioned below:
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Find opportunity in adversity: It allow to get various opportunities in the complicated
situations where they advantage from it. It help the business to cop up with difficult conditions
and make them capable to perform in well manner. It helps in reducing overall cost which
maximise the profitability. So in context of Chilly's, company find the opportunity through
developing Silicon bottle for the heath conscious people. It helps in reducing overall expanses
and maximise the profitability of the company.
Do more with less: Under this principle, business identify the various ways or working
which create effective solutions for the problems. It help the business to select suitable option for
the operations in order to enhance the productivity and profitability. For example: managers of
Chilly's use the benchmarking technique which used to compare their product & services with
their competitors. So they can adopt the strategy and implement in well manner to minimise the
cost and maximise profit margin.
Act flexible: Under this principle, management should be flexible not rigid in the nature
because market condition will change timely so they have ton change their policies or strategies
accordingly. Business have to adopt changes in order to satisfy customer's needs & demand for
the success. For example: Chilly's always stay on single method and does not change their
strategies which decrease the chances of their succession. They focus on collecting information
from market which make them able to offer the products as per the requirement of consumers
which provide them huge success and growth.
Keep simple: Business operations have to follow simple process such as Chilly's do.
There strategies and solutions used to attain desired outcomes along with high efficiency.
Follow your heart- Organization have to hire those people in the business who are
passionate regarding their work. It is beneficial for the Chilly's company to accomplish their
goals & objectives in the given time period.
Above mention all the principles are beneficial for the Chilly's company which help them
to minimise their product cost and it automatically increase the profit margin.
P5. Explain the importance of the commercial funnel and the application of New Product
Development (NPD) for commercialization
Commercial Funnel: It is also known as a sales funnel which helps the managers to
indicate the process which is used by the company to create more leads and engage more
customers in order to achieve the organisational goal. In Chilly’s organisation it is important for
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the managers as it helps the organisation to enhance its overall productivity and achieve its
organisational goal by exaggerating their consumers (Mohannak and Samtani, 2014)
. Following are the steps which are used in an organisation to develop a new product:
New product development process:
It is a process which is used by the companies to help in the ascertainment of the methods
which are considered to be core for the successful launching of new services and products.
Following are the various stages involved:
Idea generation: It is an initial stage in which an organisation focuses on the developing
new ideas and strategies in order to market their product and services after proper analysis of its
internal and external factors. In Chilly’s the managers focuses on the manufacturing of a silicon
bottles in order to satisfy the needs of its targeted market segment.
Idea screening: It is the next step in which the higher authorities of the organisation
concerns towards idea that whether it will cater to needs of the customers and can achieve the
organisations aim and objective. In this managers in Chilly’s take necessary decisions to ensure
that the product will be able to satisfy the needs.
Concept development: In this step the organization will change over its thoughts and
techniques into the real world or their items and administrations in the commercial center. The
item separation process likewise will happen in this phase which enables the managers of
Chilly's to speak that how much their items are not the same as their competitors.
Development strategies: At this stage, the innovative work division of Chilly's will pick
the best techniques and plans for improving the closeout of their item which is Silicon bottles.
Managers of Chilly's association will utilize viable limited time diverts so as to advance their
item in the market. In this term, they should consider the internet based life stage as it will give
them tremendous client base.
Examine business condition: While growing new item it is fundamental for the
administration of Chilly's to distinguish its business conditions or condition so as to continue
their situation for long span of time
Product development: In this step organisations starts the development of their product
and procure the resources which are required in the development of product. In chilly’s it is
important for the company to develop the silicon bottles in order to attract and capture its market
share
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Marketing Test: once the product is developed it is sent in to market to test and to get
feedbacks that whether their product was able to meet the needs of its target consumers. It help
the managers of Chilly’s to check that whether their product was able to satisfy the need of its
consumers.
Commercialization: In this perspective, the organization of Chilly's will assumes a
colossal job in propelling the item in the commercial center and assessing the achievement of the
item with the goal that the important improvement in the wares should be possible in a
satisfactory way.
P6. Build innovating business case for organization and including ways to access funding
Business case
It is a composed archive which characterize the explanations for starting an extend or errand.
It is figured by an association so as to quantify their general execution and furthermore it is
utliseing by the basic leadership in taking the compelling choices.
Objectives- The main objective of this business organisation is to produce the Silicon
bottles in order to keep the society healthy. Also, the major aim of their organisation is to expand
their business globally.
Designing and development plans: After completing the research activities manager
must make an effective plan before launching a new product in the marketplace. They should
consider all the factors in their decision related to formulate a plan so that the business will be
able effectively implement their plan and able to achieve their desired outcomes.
Funding- The importance of this factor is unbeatable as it help the business in
converting its process and strategies into reality effectively. In this aspect, the management of the
Chilly's can use various options like bank loans, investors, stakeholders, financial institutions and
many more. The business manager of Chilly's must collect their funds from bank loans as it will
provide them the facility of repay the loan amount a specific period of time. Also it will create
less cost for them as it charge less interest amount as compare to others.
P7. Evaluate the different tools that business used to develop, retail and protect knowledge
Security of thoughts, strategies or techniques utilized by an association so as to create
products and enterprises is significant as it gives them an aggressive advantage in the market and
improves them than their rivals. Different apparatuses can be utilized by associations in securing
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these thoughts which will guarantee organization's spot on their innovation. A portion of these
apparatuses are examined underneath :
• Patents : It is a type of sane holding which gives lawful rights or permit to the proprietors
with the goal that their creations are utilized solely by them barring others from utilizing,
selling or making the development. The licenses are given for a set timeframe after the
expiry of which these licenses are to be restored once more.
• Copyright : It is an unshared right that is allowed to an individual who has made some
imaginative work. This privilege empowers the individual to imitate their work over and
over a predetermined timeframe. These are typically given when the individual has made an
imaginative work in writing, craftsmanship, music and so forth. This is given in order to
secure the first thought with the goal that they are not replicated by another person.
• Trademark : It is conspicuous sign, structure or articulation which helps in recognizing
items or administrations of one organization from the other. This gives the items and
administrations a particular character in the market. These trademarks help the organizations
in separating their items from that of their rivals.
From the above strategies, Chilly's can utilize patent so as to create, hold and secure its
advanced and smart plan of Chilly's containers which are planned so that they are as helpful
as the plastic water bottles and furthermore have elite innovation and eco-accommodating
advantages of a customary flagon. These jugs are structured so that they can keep water
constantly cold with the goal that the clients don't purchase single-utilize plastic containers
each time they need cold water. This will help in lessening the utilization of plastic as
Chilly's containers can be reused and contamination to the earth can be decreased.
CONCLUSION
From the file it can be concluded that the organisation has to commercialise its new and
innovative product in order to achieve its organisational goal. The above file also speaks about
the innovation and its significance to organisation. It also includes the importance of the
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organisational vision, leadership, culture and team works helps the company to give shape to its
innovation.
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REFERENCES
Books & Journals
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relationship between innovation and commercialisation. Knowledge and Process
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Adelowo, C. M., Akinwale, Y. O. and Olaopa, O. R., 2017. Innovation and knowledge transfer in
Nigeria. International Journal of Research, Innovation and Commercialisation. 1(1).
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Amponsah, C. T. and Adams, S., 2017. Open Innovation: Systematisation Of Knowledge
Exploration And Exploitation For Commercialisation. International Journal of
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efficiency throughout innovation and commercialisation stages: evidence from Korean
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innovation among small high-technology firms. International Journal of Innovation and
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Management. 4(21). pp.260-269.
Schot, J. and Steinmueller, W. E., 2016. Framing innovation policy for transformative change:
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Online
Importance of Innovation in context of Business. 2019. [Online]. Available Through:
<https://medium.com/swlh/4-important-benefits-of-innovation-in-business-
64ed0d78d150>
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