Comprehensive Report: Innovation and Commercialisation in Business

This report delves into the concepts of innovation and commercialisation, exploring their definitions and distinctions. It highlights the role of organizational vision, culture, and teamwork in fostering innovation and successful commercialisation. The report examines the 4Ps of innovation, the innovation funnel, and frugal innovation, providing practical frameworks for businesses. Furthermore, it emphasizes the importance of a commercial funnel and analyzes a case study, offering insights into knowledge and intellectual property management. The report covers various aspects of innovation and commercialisation, offering comprehensive strategies and tools for businesses aiming to thrive in a dynamic market. The report examines the 4Ps of innovation, the innovation funnel, and frugal innovation, providing practical frameworks for businesses.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation can be defined in a modern manner as "a new idea, creative thoughts, new
imaginations in form of device or method". Often, Innovation is viewed as application of some
better solutions that might meet new or unarticulated requirements or existing needs (Hossain
and Kauranen, 2016). This report highlights the meaning of the innovation and difference
between innovation and invention. After that the report highlights role of organization vision,
culture and teamwork in shaping the innovation and commercialization. After that the report
highlights 4 p's of innovation and innovation funnel. After that the report explain frugal
innovation. After that the report goes on to explain importance of commercial funnel for the
organization. In the end the report summarized innovation case for an organization and the
different tool that an organization can adopt to develop, retain and protect knowledge and
intellectual property.
MAIN BODY
LO 1
Innovation and Invention
Innovation means “a new idea, creative thoughts, and new imagination in form of
devices or methods”. It also means that translating idea into invention. It is the cornerstone of
sustained economic growth and prosperity (Datta, Mukherjee and Jessup, 2015). As per the
author, Kanter, innovation can be defined as modification of an already invented product i.e.
generation and incorporation of new ideas, goods, services and processes. Innovation is basically
generation of more creative and newer ideas towards solving the needs and requirements that are
existing in the market currently. Innovation refers to creating more effective processes, products,
and ideas. To handle business one should have innovation so that he can invent something
special. The one who had innovation can success more than one who do not have innovation.
Innovation can increase likelihood of one’s business succeeding and can create more efficient
things that result in better performance. One has to come up with creative things to solve
problems in business. Many a time person had to face problems for setting up new business and
had to think outside the box to come up with new invention that had not be done by anyone else
in the world. One should focus the programs and workflows that one can use to increase
productivity. It is always preferred in business to test new ideas and invention. One should have
to put his best intention and creativity to make product more attractive and useful. One should

develop a unique character in his/her business to make unique identity among people. For this
one should also have to make marketing plan that suit his/her business. Innovation gives
organizational sustainability when one makes continual improvement and re-branding.
Invention on the other hand ins a new i.e. novel experiment or idea that has not been
formulated before and creates a new market amongst the existing customers addressing a set of
needs that were earlier not even acknowledged (Pisano, 2015). There is a fine line between
innovation and invention and it can be categorised in following manner and it has been supported
with the examples for better understanding:
Invention Innovation
1. Creation of product or introduction of a
process for first time is known as invention.
1. Innovation on the other hand signifies
translating ideas into invention is known as
innovation.
2. It usually involves invention of a Single
product using scientific skills.
2. And innovation is combination of different
products and process involving a set of
marketing, technical and strategic skill.
3. An original idea and its working in theory. 3. Practical implementation of new idea.
4. New idea strikes a scientist. 4. A need is felt for product or improvement
in existing product.
5. Limited to Research & Development
department.
5. Spread across the entire organization,
industry or market.
6. Invention usually formulates unexpected
results and if successful, they give
unchallenged supremacy to the person or
company responsible for bringing such
invention.
6. Innovation contributes a major part in the
company’s growth and additionally gives the
company a competitive advantage.
Example: The best example of inventive person
in Nikola Tesla who made major inventions like
3-phase power, neon lamps, induction motor
etc. and simplified everyday life activities.
Example: Apple is one organization which can be
taken as bet example of innovation since they
innovated products like iPhone, iPod etc. and
became world leaders.

Role of Vision, Leadership, Culture and teamwork
The success of an organization can be largely attributed to the innovative and new ideas
that are being developed by the company and these assist in both innovation as well as
commercialization. The concept of Commercialization can be defined as a process through
which the new invention or innovation is integrated with the marketing process and the product
or service is then presented before the consumers so that they can consumer it and profits can be
generated form such innovation.
The vision of Chilly’s Company is to increase the usage of reusable in everyday use
products and the vision of the company itself is an extremely innovative and creative one where
they are motivating people to increase the use of recyclable products so that the environment can
be protected and people can move towards an active urban lifestyle. Organization involves
teamwork which is a crucial part in ensuring success of the company. While bringing and
implementing innovation in the company it is essential to incorporate coordination as well as
collaboration amongst the employees. Every employee has a different skill set and they must be
assigned job roles accordingly so that together, an extremely efficient output can be generated
which help Chilly’s in spreading their innovative concept (Hameed, von Staden and Kwon,
2019). Organization Culture is another factor influencing the factor that hoe easily the
workforce of an organization moves towards innovative and newer practices which cannot be
incorporated with the dynamic environment easily. Since the very aim of Chilly’s is so
innovative, the top management of the company has to employ and maintain a dynamic and
flexible work culture in the business. Lastly, both the factors i.e. tam work and culture can be
linked to the fact that how effective a leadership is in an organization and how influential is the
power held by the leaders. At Chilly’s the leaders James Butterfield and Tim Bouscarle are both
extremely influential in ensuring that the company regularly incorporates innovation and latest
trends in their business moving towards more eco-friendly and sustainable factors.
Chilly's Bottles are made from high-grade 18/8 stainless steel on both the inside and outside, this
is a chromium-nickel-iron alloy (18% chromium & 8% nickel). The Chilly's Bottle lid is made
from stainless steel, plastic (polypropylene) and a silicon o-ring.
While celebrating World Oceans Day, the company Chilly's launched their new Sea Life
Edition, which was specially designed by Will the Artist for the company. Also in 2018, Will
developed a new idea and painted the base of Chilly’s Bottle white in the manner of hand drawn

illustrations depicting sea creatures to raise awareness about plastic pollution in the ocean. Usage
of reusable bottles instead of single-use plastic bottles would help in reducing harmful pollution
in the ocean and contribute to the protection of marine life for years to come.
LO 2
Types of Innovation
There are a variety of innovative techniques that can be used to study this aspect and
some of them are Incremental, disruptive, architectural and radical. However, in order to
simplify the process of innovation, following 4P's can be discussed:
The 4Ps of innovation comprises of four major factor that assist in bringing innovation in the
company and can be categorised as Paradigm, Product, Position and Process.

Figure 1: 4Ps of Innovation
Source: 4PS- EXPLORING THE INNOVATION SPACE, 2018
While linking the operation of Chilly’s Company with that of the 4Ps of innovation, the concept
can be illustrated in following manner:
 Paradigm: This step helps the management in formulating what changes need to be
incorporated and how they can be incorporated in the current business practices and how
these can help in developing leverage for the profit. Innovation helps in improving the
manner in which business is conducted. Chilly’s have the basic idea of increasing the use

of reusable plastic through bottles. The company can expand into more products like
tiffin or boxes etc. thus developing new market.
 Product: At this step, the firm is concerned with the fact that how they can differentiate
their product from the competitor’s product. At Chilly’s the idea is extremely innovative
of using plastic bottles made out of reusable plastic (Chuang and Lin, 2017). However,
this idea can be further improved by incorporating additional innovations like recycling
the plastic that is used in the water bottles in such manner that they can be again recycled
and reused.
 Position: At Chilly’s, the position of the company in their targeted market segment and
basically they are positioning themselves in the upper class and upper middle class
consumers who are motivated to adapt to an urbane lifestyle in a healthier and more eco-
friendly manner. Process: Chilly’s involve an extensive supply chain management where the company
presents their products in a variety of shops and stores making it easily accessible to the
customers intending to seek it. Further, they are also improving their online presence
making themselves noticeable with the unique concept presented by them.
Innovation Funnel: Innovation funnel is used to select that one most innovative and productive
ideas out of all the possible ideas that are generated (Innovation Funnel Management, 2017). It is
important to select one basic idea amongst all the available ones. Especially for organisations
like Chilly’s, Tools and techniques like Innovation Funnel are extremely important since these
help in collecting and filtering of innovative ideas so that their core nature i.e. presenting
innovative products to the public who always expects something new form these companies is
made possible. Innovation Funnel helps in identification of all possible innovative ideas that the
firm can adopt and after this, these are segregated so as to select one or two most plausible and
profitable ideas for the company. The importance of Innovation Funnel for organisations like
Chilly’s is further highlighted below in the steps through which this model is implemented:

Figure 2: Innovation Funnel
Source: Innovation Funnel Management, 2017
The five stages of innovation funnel can be applied in the Chilly’s Company in following
manner: Idea Development: At this stage, all the ideas that have been generated are captured and
then evaluated. Chilly’s invite their employees to brainstorm and produce as many ideas
as possible irrespective of the fact that whether they will get selected or not. Due to the
constant stream of ideas, these must be carefully studied and connections must be made
between the idea and the objectives. Developing Innovative Projects: At this stage, the management of Chilly’s formulates
appropriate stages or phases through which a plan can be implemented are formulated
and these are extremely clear and detailed (Stenard, Thursby and Fuller, 2016). This can
occur because new ideas are rejected at an early stage when they don’t meet the criteria.
The model encourages development of the safe ideas, rather than the creative ideas. Protecting and exploiting the outcomes: All the possible outcomes of implementing
some of the best alternatives that have been selected are identified by the management of
Chilly’s. The situation of failure or crisis that might occur is also taken into account and
protection strategies are devised.

 Introducing in the Market: When the management of the company, is satisfied of the
outcomes of one core idea amongst all the selected ones, it is then implemented and the
product is introduced in the market.
 Results: After introducing the product, the managers regularly monitor and evaluate the
performance of the product in the market. The Innovation Funnel helps them to structure
the chaos of innovative ideas and carefully select plans that display viability, efficiency,
and effectiveness.
Developments in frugal innovation
Frugal innovation concept can be defined as the one through which the company tries to
bring innovative goods and services in the market by cutting down the unnecessary costs and
removing the non-essential or unimportant features (Asheim, Grillitsch and Trippl, 2017). Some
of the major development that has occurred in frugal innovation involves:
Identifying the Frugal Innovation: Here, the company identifies those areas in which frugality
can be introduced and these are then implemented in the company.
Deducing the problem: After identification of the appropriate areas, areas which are not creating
any additional benefit for the consumers are removed.
Deducing the solution pattern: In this stage, all the potential solutions are identified and are
replaced with the more profitable or advantageous areas.
Deducing the pattern: The most suitable innovations that will helps in implementing appropriate
solutions are introduced in the market.
Frugal Innovation was the core of developing ideas in Tesla where the technology was
extremely innovative. The frugal innovation plays a major role in the growth of the entire
organization and in Chilly’s this is majorly done through introducing affordability and
technological update. Affordability is implemented by providing the goods or services of the
company to the consumers at an affordable rate so that the number of consumers can increase as
well (Song and Yu, 2018). Further, technology is said to be a one-time investment whose
expenditure cost can be recovered by effectively minimizing the resource consumption in other
products.

LO 3
Commercial Funnel and application of New Product Development
Commercial funnel can be defined as that process through which the journey of
consumer ending with buying of products and services are evaluated (Pisano, 2015). The concept
of commercial funnels is important because it's a useful model for visualizing the customer
journey from initial awareness all the way through conversion. The commercial funnel provides
a useful framework through which you can analyse your business and identify areas for
improvement. It is important for organisation to understand and implement the commercial
funnel since amongst all the viable ideas that a business can adopt, it helps in selecting that
particular idea that will be most successful and will help in satisfying a particular need or desire
of the targeted consumer group.
Figure 3: Commercial Funnel
Source: Commercial Funnel, 2016
The various stages of the commercial funnel can be linked with their implementation in
Chilly’s in following manner:

 Awareness: A this step the company needs to make the public aware regarding the
product that they have launched. Chilly’s Company needs to use extensive technological
methods like social media marketing etc. in order to increase awareness. Interest: The interested customers segment which tis the one with highest potential is
identified and targeted. Chilly’s Company can identify the target group after conducting
an STP analysis. Decision: This stage is achieved when the interested consumer group is converted
successfully into customers and can be achieved by using effective marketing campaigns
and technologies. Chilly’s Company can use such marketing campaigns to effectively
convert the consumers
 Action: At this stage the consumers have been converted and are now being served and
monitored. Chilly’s Company can generate maximum revenues at this stage by
monitoring their consumers and keeping them satisfied (Gao, Hsu and Li, 2018).
The process of New Product Development where a company develops new product involves
some of the major stages which can be categorized in following headings and the manned in
which they are being used in Chilly's is detailed below: Idea Generation: The current needs of the consumers are identified and these are then
analysed so that effective products can be made i.e. potential markets for newer products
is identified. Chilly’s Company conducted a critical analysis of the unmet demands of the
consumers at this stage. Concept definition: The specification of the new product is designed and Chilly’s
Company specify how they are going to use reusable plastic for their new lunch boxes. Market Analysis: Before introducing new product in the market, existing conditions are
analysed and Chilly’s Company studies the trends and movement in the existing market. Product Development: Based on the identification and analysis of trends, the appropriate
product is developed as per the needs of the consumer (Chuang and Lin, 2017). Chilly’s
Company at this stage manufacture the lunch boxes form reusable plastic.
 Commercialization: Using extensive pricing techniques and marketing campaigns the
product is launched in the market and Chilly’s Company can use penetration pricing for
their product.