Innovation and Commercialization

This document discusses the importance of innovation and commercialization in business. It defines innovation and compares it with invention. It also explores how company's culture, vision, teamwork, and leadership can shape commercialization and innovation. The document further explains the 4Ps of innovation and discusses the use of innovation funnel. The case study of Chilly's Bottle is used to illustrate these concepts.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define innovation & determine its importance in comparison with invention.................3
P2 Discuss how company's culture, vision, teamwork and leadership can shape
commercialization and innovation.........................................................................................5
TASK 2............................................................................................................................................7
P3 Explain 4Ps of innovation and discuss the use of innovation funnel................................7
P4 Explain the improvement in frugal innovation.................................................................8
TASK 3............................................................................................................................................9
P5 Define importance of commercial funnel and application of New Product Development9
P6 Develop an Innovative Business Case which involves various ways of funding...........11
TASK 4..........................................................................................................................................13
P7 Evaluate different tools that business entity can use to develop, retain & protect intellectual
and property knowledge.......................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Books & Journals.................................................................................................................15

INTRODUCTION
Innovation refers to a procedure of developing and implementing new thoughts or ideas
in order to produce attractive and innovative goods and services. It is the method in which
organisation develop new and innovative products by using upgraded technologies which
increase the value of goods and services offered by company. Apart from innovation,
commercialisation means launching of new and innovative goods & services at the marketplace.
Along with this it includes sales, marketing, production, distribution and other essential
functions which leads towards the attainment of organisational goals and objectives (Afuah,
2014). Chilly’s Bottle is the base company in this report which generally provides water bottle to
their customers is chosen as the base company. It is the organization which was introduced by
James Butterfield & Tim Bouscarle in the year 2010. According to the current environment
managers of the company decide to launch new and innovative water bottle which have Solar
Powered Illuminating water bottle. In this bottle there are five to six LED lights which have the
ability to charge itself with the solar energy. In the present report, there are different types of
topics which are going to be covered in an effective manner.
TASK 1
P1 Define innovation & determine its importance in comparison with invention.
Innovation: It is define as a procedure of translating a thought, invention or idea into a
product or service which create huge amount of value at the marketplace. Each and every
organisation use this method at some point in their in order to create attractive and unique goods
and services. In context of business, innovation often outcome when ideas and thoughts are
applied by the organisation in order to fulfil the requirements and wants of customers
expectations (Bagno, Salerno and da Silva, 2017).
Basis Innovation Invention
Concept It refers to a procedure with
the help of which new and
innovative product & services
is being launched by the
organisation at the
On the other hand, it has been
said that invention is the
process where the product is
totally new and unique at the
marketplace (Invention. 2019).

marketplace.
Scope Innovation refers to the
method which takes place after
the process of invention.
In case of, invention it is the
method which is always
happen before innovation.
Activities Innovation is the process
which is spread around all the
departmental functions within
the organisation.
In context of invention, it is the
method which is commonly
associated with R&D
department of the company.
Example Addition in the features of the
Chilly's bottle is knows as
innovation.
Providence of new product
which is different from the
earlier and earlier not having
existence.
Importance of Innovation within Chilly's Bottle: For each and every organisation, it is
essential to innovate new and unique things in order to satisfy the requirement of customers
(Bain and Kleinknecht, 2016). This is very important for an organisation as it will assist in
enhancing their profitability at the marketplace. Importance of the innovation method are as
follows: Increased net income: Chilly's Bottle is an organisation which mainly provide water
bottles to their customers with some uniqueness. It has also been analysed that every
customers have their own requirement which is quite different from others. In order to
satisfy the needs and demands of customers it is required by the management team of
company to launch new and innovative products. Therefore, managers of the company
innovate and launch Solar Powered Illuminating water bottle with the unique quality of
having LED lights within it. With the help of this, company will be able to gain more
profitability at the marketplace and gain various opportunities as comparison to invention
because in terms of cost and R&D is efficient in nature. Also, innovation has the
capability to build the product as competent that easily satisfy the demand of customers.
 Unique quality of company: In today's environment there are various unique products
which is given to the customers by ample number of companies. In the context of Chilly's

Bottle, manager of the company decides to provide new and innovative products to their
customers. In this context, company launch an attractive product which is Solar Powered
Illuminating water bottle having LED lights within it (Biemans, 2018). The importance of
this innovation in comparison to invention is understand in the way that innovation
always help to develop the existing one that means customers perceive higher value
whereas invention incudes the formulation of product first time which must have some
flaws. So, in terms of providence of high quality in cost efficient nature innovation is
more competent.
P2 Discuss how company's culture, vision, teamwork and leadership can shape
commercialization and innovation.
Innovation refers to the method which is one of the most essential as well as crucial
element for an organisation which will assist in increasing the profitability of the company at the
competitive market area. In reference of Chilly's Bottle, managers offer unique quality of goods
and services according to the requirements of customers. It is the company which provide unique
quality products so that they can attract ample number of customers towards their business
entity. For example, it is the company which mainly have both online and offline stores and
provide services to customers in an effective manner. In addition to this, managers of the
company provide unique water bottle with LED lights and can automatically charge itself with
the help of solar energy (Dodgson, 2018). In references to Chilly's Bottle there are various
factors such as culture, vision, teamwork as well as leadership. All these factors are discussed in
an effective manner:
Innovation & vision:
It is said that if a company having strong and positive vision it will assist them in order to
utilise their money, time, energy and efforts so that they can develop innovative products and
services. On the other hand, if organisation do not have effective vision then the company leads
towards failure at the marketplace. Apart from this, there must be skilled leaders within Chilly's
Bottle so that they can motivate their employees to perform their task so that they can attain their
vision statement. In context of Chilly's Bottle, it is essential for the management team of the
company to provide high quality products and services to their customers at the marketplace.
This as a result assist in performing organisational goals and objectives in an effective manner
and consider all the factors in an effective manner.

The vision of this organisation is about diminish the use of single use plastic product and
build the product which is sustainable and reusable in nature. This vision help the organisation to
focus over innovative practices which help to improve their product capability. Working in this
direction help to bring innovation in bottle and includes the providence of solar power
illuminating water bottle which is competent in nature deliver warm water for more than 24
hours.
Innovation and Leadership:
To carry out each and every task in an effective manner, it is essential to have skilled
leaders within the company. As a result, it will assist in guiding and directing staff members in a
positive manner so that they can bring innovation in order to satisfy the requirements of
customers. Along with this, it will assist in performing the business functions in an effective
manner. In the present context of Chilly's Bottle, it is essential for the organisation to have
effective and trained leader so that they can encourage all the staff members to provide
innovative products at the marketplace (Etzkowitz and Zhou, 2017).
Innovation and Culture:
It has been said that culture plays very essential role in an organisation which assist in
performing organisational goals in an effective manner. Culture includes all the factors such as
religion, belief, language, background of a person. In an organisation there are ample number of
individuals and have different kind of culture. In reference to Chilly's Bottle, it is essential for
the managers & leaders to consider each and every individual in an equal manner. With the help
of this, employees feel motivated and create new and innovative ideas in order to maintain
competition at the marketplace. In the context of Chilly's Bottle, managers consider all the
culture available at the marketplace. This as a result assist in developing positive relationship and
trust between the staff members (Gundry, Ofstein and Kickul, 2014).
Innovation and Teamwork:
With the help of using different techniques, tools and procedure organisation will be able
to perform their task in an effective manner. In the present context of Chilly's Bottle, it is
essential for the managers to develop various teams so that they can perform their task in an
effective manner. With the help of effective teams organisation will be able to develop new and
innovative products and services which leads to create positive image of the company at the
marketplace.

TASK 2
P3 Explain 4Ps of innovation and discuss the use of innovation funnel.
There are basically 4 P's of innovation which need to be followed by every business
entity in order to plan for new product innovation. In the present context of Chilly's Bottle, top
management authority of the company wants to enhance their sales and performance at the
marketplace and for this they use 4 P's of innovation.
Product- It has been very important for the business organisation to develop effective
strategies and policies in order to maintain their sustainability at the marketplace. In order to
innovate new water bottle, managers need to develop effective strategies after adding new and
attractive feature. In this context, managers decides to introduce Solar Powered Illuminating
water bottle which includes LED lights (Laihonen and et. al., 2015). This makes the product of
Chilly's bottle more appropriate in comparison to other substitute products present in market.
This will also help in fulfilment of the need of consumers through providence of warm water for
more than 12 hours.
Process – It refers to a procedure where organisation create goodwill and reputation of
the company at the marketplace. In this context, managers use unique feature in their product so
that they can attract large number of customers towards their products. It is the process which
requires high cost so that they can perform their task in an effective manner. The development of
product includes the unique process which is about formulation of the separate department along
with hiring of technical personnels which help in effective development and implementation of
solar power illuminating water bottle. Further training is required to provide as this will help in
attainment of sustainability within the team.
Position- It is the stage which says that it is essential for the company to maintain their
reputation at the marketplace. For this, managers need to examine the whole market and helps in
deciding new product product. It is one of the most essential concept for the management team
of Chilly as they have to introduce new product. The new bottle is build fro the use of all middle
class individual. For effective communication of the same the aspect which h is used includes
digital platform due to having its wide reach and cost efficiency in nature.
Paradigm- It refers to the planned procedure of a business entity in order to handle
innovations and changes while there is implementation of new innovation and ideas. It help in
developing different aspect within Chilly's organisation (Linder and Williander, 2017). This

includes the use of innovation to carry on business and for further growth. This business model
allows the organisation to use personnel of an organisation in effective formulation of new water
bottle with the help of solar power illuminating technology.
Use of Innovation Funnel
It is define as a procedure which mainly adopts by organisation in order to develop new
and innovative products. Main aim behind considering this by the management team of an
organisation is to enhance their goodwill at the marketplace. In this context there are three main
steps which is used by the managers of organisation. Each and every business organisation need
to use innovation funnel so that it can assist in modifying stages accordingly.
The three different steps are defined below:
Wide mouth of funnel: First and foremost step is to have enough knowledge and
information about the changing trends and demands of customers. This is the process used by
Chilly's in order to make new and innovative products so that they can beat the competition
available at the marketplace. This will includes the collection of the large number of ideas. The
number of innovative ideas collected includes the use of solar power, heat censor etc.
Narrowing segment of the funnel: In the second step of this procedure, it is require to
monitor new thoughts which is planned by the company as their innovative technique. This
includes the scrutiny of the idea and selection of the best one which is effective and competent in
all respect. The idea which has advantages in all stages includes the use of solar power
illuminating technology to build water bottle which are able to provide warm water for more
than 24 hours which is double from their current capacity of 12 years.
Narrow segment of funnel: At the end of this stage, this is the funnel which will assist
in planning, executing and controlling all the steps in an effective manner. This stage also
includes the release of the product in market so, retail strategy is used to grab the market and
digital platform is used to take the help of promotion.
P4 Explain the improvement in frugal innovation.
Frugal innovation refers to a procedure used by organisation in order to identify and
search new as well as innovative business model which will acknowledge value chain along with
design products so that they can satisfy their customers. It is considered as one of the most
effective way used by organisations in order to develop effective and high quality goods with the
help of limited resources (Petkovska, 2015).

There are some effective examples of frugal innovation which are as follows:
 TATA Nano car: India
 Chotukool: India
 Haier Washing Machine: China
Frugal innovation & Chilly's Bottle:
Chilly's Bottle is one of the most well known industry at the marketplace of UK. Chilly's
organisation is going to introduce new and innovative water bottle in order to satisfy
requirements and demands of customer's. This will assist the company for earning more
profitability at the marketplace.
New market opportunities- In the present context of Chilly's Bottle, managers of the
company decides to examine and analyse the current opportunities available at the marketplace
for their growth and development. With the help of market analysis, company will be able to
know their customers taste and preference so that they can bring positive products (Wang,
2017).
Resources- It is one of the most essential asset for an organisation and it is required by
them to use these resources in an effective manner. Frugal development requires effective
resources with the help of which organisation will be able to produce high quality products and
services.
Innovation Funnels- It refers to the development of new and high quality products and
services for their customers. It is very important for Chilly's bottle to develop effective strategies
and policies to perform their business functions in an effective manner.
TASK 3
P5 Define importance of commercial funnel and application of New Product Development
Commercial funnel is also known as sales process or revenue funnel. Commercial funnel
involves a buying procedure in which a business firm leads customer base so that their products
and services can be purchased in high quantity. Adopting commercial funnel will benefits the
Chilly's in attracting attention form maximum number of people due to their four main elements
i.e. Awareness, Interaction, Interest, Action. These aspects of commercial funnel helps in
persuading customers that the products offered by concerned company is of high quality. In case

of Chilly's, commercial funnel will helps in modifying the purchasing behaviour of people in
favour of company so that high revenues and profits can be earned (Yun, 2017).
Application of New Product development
New product development is stated as a procedure to bring new product or service in
market. Each organisation is needed to develop new products on regular basis so that changing
needs of customers can be catered in a proper manner. In case of Chilly's, company is going to
innovate a new product i.e. solar powered illuminating water bottle. This new product will have
six LED lights that has the capability to charge itself in sunlight. This will bring innovation to the
existing water bottles of company which faces the disadvantage of non-thermality. There are
different stages which must be followed by the production manager of Chilly's to develop a new
product. These stages are mentioned beneath:
Idea generation: It is defined as a systematic search where new ideas are generated so
that a new and distinctive product can be produced. In general, an organisation generate
thousands of ideas so that tough competition can be given to rival firm in terms of innovation
and revenues. There are two sources from which manager of Chilly's can generate idea i.e.
internal and external sources (Biemans, 2018). For example, employees in Chilly's can introduce
new ideas like production of S'well bottles, solar powered illuminating bottle, Square bottles etc.
Idea screening: This is the second step in NPD in which all the ideas generated by
manager and workforce of a company will be screened and best idea will be selected. This will
help in innovating an appreciable product which will gain wide profits as per company's
expectations. For example, out of all the ideas, Chilly's have decided to chose solar powered
illuminating bottle as their new product.
Concept development and testing: This is the third step in NPD in which concept
associated with new product will be developed and tested to identify if that idea is capable to
attain expected outcomes of company or not. If testing of solar powered illuminating bottle will
fail, this idea will be dropped by the company.
Business analysis: At this stage, concept of company became finalised and now the firm
is required to decide different strategies so that their new product can gain wide popularity
among customers. Here, manager in Chilly's will be required to formulate branding, marketing
and other strategies to promote solar powered illuminating bottle desirably.

Product development: In this stage, solar powered illuminating bottle will be produced
by Chilly's but in limited quantity. These products will be used by random customers so that it
can be identified if required product is able to satisfy customers or not.
Test marketing: This is the second last stage in which new product is finally tested
before selling it into market on bulk. If solar powered illuminating bottles will require any
modifications, it will carried out in this phase (Dodgson, 2018).
Commercialisation: This is the last stage where new product of Chilly's will be
introduced into market so that customers can buy them and company can earn high revenues and
profits form its sales.
P6 Develop an Innovative Business Case which involves various ways of funding.
Business case is a well structured document or presentation which includes all the stages
and concepts to accomplish a business related activity. It is very important for Chilly's to prepare
an innovative business case so that activities related with their new products can be performed
and understood in a systematic manner (Laihonen and et. al., 2015). In context with Chilly's, an
innovative business case is mentioned below:
Executive summary: Chilly's is an Bottle manufacturing firm which is established in
2010. bottles provided by company have the capability to always have cold water. This feature
benefits the company in earning high sales in summer time. There are many customers which
prefers to drink warm water due to their health benefits and these customers do not prefer to buy
Chilly's Bottles. Hence, company has decided to introduce innovative product in market i.e.
solar powered illuminating bottles. This innovation will fulfil the needs of customer to have warn
and hot water rather than only cold water.
Organisational vision: Main vision of company is to offer modern and stylish products
to their customers which can be reused without any problem. The main aim is to create products
and services for an active urban life-style so that they easily balance between unrivalled
performance & distinctive style.
Mission: Mission of organisation is to boost up the everyday usage of reusable products
by producing innovative and distinctive style products. Their mission is to expand their business
by including range of reusable problems along with some unique innovations. For this, managers
of the company need to introduce new and innovative products so that they can fulfil their pre
defined objectives and goals.

Objective: Main objectives of company is to produce solar powered illuminating bottles
so that revenues of company can be increased by 40% in upcoming 1 year. For this, managers
need to innovate unique things so that they can fulfil their objective in an effective manner and
attain it within given time frame.
Target: In case of Chilly's, main target of company is to gain competitive advantage over
rivals by introducing their new solar powered illuminating bottles in marketplace. For this, target
customers of the company includes college students, health conscious individuals and many
more. Along with this, it includes various promotional tools so that they can effectively promote
their goods and services at the competitive marketplace.
Problem statement: This include all the issues that will stop the concerned company in
carrying out innovation in product. In context with Chilly's, problems which can take place are
shortage of LED lights, Shortage of material, lack of funds etc. All these issues might affect the
whole performance of the company in a negative manner which influences the overall profit
margin and sales of the organisation. For minimising the problems it is very essential to adopt
various funding sources so that they can reduce such issues.
Funding: In order to manufacture bottles without shortage of capital, manager of
company is needed to arrange funds from either internal or external sources (Petkovska, 2015).
Below are mentioned some options from where required funds can be gained:
 Banks and other financial institutions: It is the best way by which a company can
arrange their funds in a secured manner. With the help of this, managers will be able to
gather enough amount of funds so that they can conduct their business function in an
effective and appropriate manner. By taking loam from bank, Chilly's have to give their
property as mortgage and pay a fixed interest rate until they pay back entire loan.
 Friends and family: This is the best way to collect funds without any mortgage or
security and business owner can repay the loan without paying any interest rate. It is the
method with the help of which organisation will be able gather sufficient amount of funds
so that they can gather sufficient amount of money in order to perform their business
functions in an appropriate way.
Company can take loan from their friend and family as they do not have to pay any
interest on the loaned amount.

TASK 4
P7 Evaluate different tools that business entity can use to develop, retain & protect intellectual
and property knowledge.
Intellectual Property define as a category of different property which includes various
types of intangible creations develop by human beings. It has been identified that there are ample
number of intellectual properties such as trade secrets, patents, copyrights, trade marks and so on
(Wang, 2017). Main importance of IP is to safeguard the creation of people if they innovate
something unique as there work is being protect by the government for a limited period of time.
In reference to Chilly's Bottle, managers examine that there are various types of intellectual
property which can be used by them in order to protect their innovation. Some of the most
important intellectual property are as follows:
Patent: It is a form of intellectual property which mainly gives the owner of a creation
legal right. It will assist in excluding all other people from selling, making, importing and using
the invention for a specific period of time. In some countries it has been identified that patent
right comes under civil law and the patent holder have right to sue any person who use their
invention for their own use. According to the present context, Chilly's Bottle bring some
innovation where the water bottle contain LED lights, automatically charge itself with the help of
solar energy. Management team of the Chilly's Bottle decide to use patent so that they can earn
money by lending their creation to others.
Copyrights: It is define as the right which is given by the government to the creator of
innovative work for a particular period of time. Copyright is used to protect the original work
and not the idea itself. According to this element, the person itself can make any kind of
modifications in their creations. In the context of Chilly's Bottle, managers decides to adopt this
method Intellectual property in order to secure and protect their innovation at the competitive
marketplace. Reason behind adopting this method is that it is one of the most innovative and
creative method which gain huge amount of publicity at the market. This method of IP assist in
protecting and securing innovation launch by organisation from any kind of duplication.
Trademark: It is type of IP which includes the use of sign, design and expression which
help in identification of products and services from others. Trademark can be located on the
package, label or voucher or on the product itself. This will help in easy identification of
products from the different. The main advantage which is associated with this includes protection

of brand names and corporate logos. The disadvantage which is attached with the same includes
that not able to use symbol or brand name it looks similar.
As per the above mentioned, it has been clearly analysed that management team of
Chilly's Bottle need to adopt Patent method in order to protect their innovative product at the
marketplace. Apart from this, it is the type of Intellectual Property which will assist in gaining
huge amount of money as owner of the creation provide their invention to others for a limited
period of time (Linder and Williander, 2017).
CONCLUSION
From the above stated report, it is clearly identified that innovation is one of the major
element which increases the overall value of the company at the competitive marketplace. It has
been identified that with the help of innovation organisation provide creative and attractive
goods and services to their customers. As a result it will assist them in order to retain their users
for a longer period of time. Apart from this it has also been concluded that there are ample
number of sources available for the management team of a company so that they can gather
required amount of funds for their business functions. In the present context, best sources of
collecting funds is bank loan as it is one of the most secure an safe method. Apart from this, in
order to protect company's innovative product various methods are their with the assistance of
intellectual property rights.

REFERENCES
Books & 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(1-2).pp.55-74.
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. Springer.
Online:
Invention. 2019 [Online]. Available Through:
<https://www.britannica.com/technology/invention-technology>