Analysis of Innovation and Commercialization at Chilly's Report

This report provides a comprehensive analysis of innovation and commercialization strategies, using Chilly's as a case study. It begins by differentiating innovation from invention and exploring their significance for organizations. The report examines organizational vision, leadership, culture, and teamwork's roles in shaping innovation and commercialization. It then delves into the 'P's of innovation, the application of the innovation funnel, and the concept of frugal innovation within an organizational context. Further, it emphasizes the importance of the commercial funnel and the application of New Product Development (NPD), presenting an innovative business case. The report concludes by evaluating tools for protecting intellectual property. The report covers various aspects, including product development, process optimization, paradigm shifts, and positioning strategies. The importance of leadership, culture, and teamwork in fostering innovation is also emphasized. The report provides a detailed understanding of the innovation process, from idea generation to commercialization, and provides valuable insights into protecting intellectual property.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Innovation and its importance to organisation in comparison with invention......................3
P2: Organisation vision, leadership, culture and teamwork that can shape innovation and
commercialism............................................................................................................................5
P3: P's of innovation & the use of innovation funnel in shaping of various innovative ideas...6
P4: Developments of innovation frugal innovation in organisational context ...........................7
TASK 3............................................................................................................................................8
P5 Importance of commercial funnel and application of New Product Development (NPD)....8
P6 Innovative business case:.....................................................................................................10
TASK 4..........................................................................................................................................11
P7 Evaluate the several tool of protecting the intellectual property.........................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
Books and Journals .......................................................................................................................11

INTRODUCTION
Innovations is the process in which is used to convert a idea into a business. This is done
to increase overall value perceived by the customers. It is a way and a process through which
companies make attempt to do new things in their existing business ventures. Also, there is
intense competition in the market, innovation is a tool which helps companies in getting a
competitive advantage in market. This is also a tool which offers various opportunities so that
companies can grow and have increase profits. Commercialisation is a process which helps in
the existing customers aware about the new innovation being done in the business(Akis, 2015).
This report is based on the organisation Chilly's which is offering various variety of products
such as coffee cups, water bottles, different accessories etc. there are many different aspects
which are covered in this report such as comparison of innovation with invention. Various
sources of innovation, use of innovation funnel and commercial funnel in the business as a tools
which can foster innovation. Further, various types of intellectual property rights are discussed
which will help company in protecting of their innovation so that it is not copied or being used
by any other companies.
TASK 1
P1: Innovation and its importance to organisation in comparison with invention
Innovation: This is concerned with new ideas in business which help them in attracting more
customers and increase their overall productivity. It is defined as a process which is dealing with
various different ways through which creativity can be developed in the companies. Innovation
is also a tool which help companies in adapting to the changes taking place which can help in
surviving in the market for long term(Andreassen, Lervik-Olsen and Calabretta, , 2015).
Invention: This is a also a tool in which there is development of first time. They are dealing with
those ideas which is purely new and has never been used by anyone before. Inventors use
intellectual property rights so that their invention cannot be used by any other company before.
This is concerned with the research and development department of companies.

Importance of Innovation with comparison to Invention in companies.
Innovation is a very important tool which can be used by organisations so that they are
able to maintain effective position in the market. Chilly's is an organisation which is dealing in
coffee cups, water bottles and many other related products. This helps in innovating a new
product or making creative changes in the existing product of company. The major importance of
Innovation is discussed below:
 Satisfaction of customer needs: Innovation is very helpful for companies as this is a tool
which helps companies in launching new products and making creative changes in the
exiting product which they are dealing. When there is innovation this helps in increasing
the satisfaction level of customers. Chillys' will be able to attract more customers as
compared to their present number when they will bring innovation in their existing
functions of business(Styhre, 2015).
 Getting a competitive advantage in market: with the increase in the competitive
scenario it has become necessary for the companies to bring innovations which can help
them in managing their growth and sales. In case of Chilly's also because of the declining
sales of company there is a decision made to bring some innovation in the company.
Difference between innovation and invention
Basis for comparison Innovation Invention
 Meaning  The innovation helps
organisations to make
various improvement
in the overall existing
processes and
company's products.
This will help in
creating a loyal
customer base.
 Invention helps in
complete new product
development or a new
introduction which will
help in adding of more
customers but this also
posses a high level of
risk as the products
might completely be
accepted or rejected by
the customers.

 Purpose  The major objective of
the innovation is to
increase the overall
value of increasing the
value of
products(Mollick and
Robb, 2016).
 The major aim of the
invention is to bring
something which has
not been used before or
never being invented
by nay brand.
 Necessary skills  The skills required are
in the process of
innovation is strategic
skills, marketing skills,
etc.
 The skills which are
required in the process
of invention is
technical skills,
researching skills
which helps to in
identifying some new
ideas and opportunities.
.
 Activities  The major activities
involved in invention
are related to
researcher who has to
make researches and
then analyse what can
be various innovations
which can be done in
the existing products.
 This process basically
depends upon the
experiments which are
undertaken by the
inventor in the process
of researching and
inventing something
new.

P2: Organisation vision, leadership, culture and teamwork that can shape innovation and
commercialism
Commercialisation is a basic process which is being associated with the introduction of
new products or bringing changes in the existing products or services which are present
Vision of the organisation : The overall vision of the Chilly's organisation is to improve
the quality of service which they are providing to their customers.
The vision of company is very important for companies as they have to offer better
quality products to their target segment of customers. So for attainment of this vision company is
using a technique of dematerialisation which basically denoted to introduction of new products
which are having some modifications from their exiting products.
Role of leadership in innovation : Innovation has many challenges for employees in the
company. Which affects their overall performance at workplace. The leaders in Chilly's always
try to keep their employees very happy and satisfied. The leaders clearly understand that if
employees will be benefited and there will be more opportunities which the company will have
because of innovation.
Role of culture in innovation : Culture is related to various beliefs and values related to
people in the company. All the leaders and managers of Chilly's try to maintain the overall
behaviour of employee which helps in developing various innovative rules, policies and
performing principles. This guides overall behaviour of the employees and also provides
opportunities which can help in their growth and development.
Role of teamwork in innovation : The innovation is a change which has to be
implemented properly in organisation so that goals cane be easily achieved and customers are
made understand that that they are also benefiting from such innovation initiatives of company.
This can be achieved by effective communication and in case of Chilly's the overall sales and
marketing team in having effective role with the help of team work which helps in creating
awareness with regards to benefits of innovation mutually for the company and the customers.
An innovative leader is one who is more creative and can develop new ideas that can be
used for creating innovation in product. A good leader is one who is able to develop creative
ideas and forms vision tat can result in long term benefits for the company. If there is presence of
positive culture within the company then there are more chances of launching an innovative
products. Good teamwork is essential for working together and doing great job and innovating

products. A democratic leader is one who can have ideas of different employees for creating
innovation in products.
P3: P's of innovation & the use of innovation funnel in shaping of various innovative ideas
Innovation is a tool which helps business in getting a competitive advantage for which
they have to undertake. There are many different types of strategies which are associated with
innovation and which Chilly's have to understand properly(Miller and French, 2016). Various P's
of innovation are discussed below which play a very crucial role in the overall process of
innovation:
 Product : Products are those offerings which are provided by the companies their
customers in order to satisfy various wants, needs and demands of their customers. In
Chilly's company makes attempts to reuse the coffee cups, water bottles, etc. Which they
have to compulsorily adopt in the process of innovation which they are willing to
introduction their bottles which is that such bottles will be having a particular space to
keep their extra stuff which can be mobile phones, keys etc.
 Process : This includes various factors which are linked with delivering of the products
to the end users. In context of Chilly's it is a very important need to consider teh
effectiveness of the process related to distribution so that products can be easily
positioned in the market(Kuratko and Hoskinson, 2016).
 Paradigm: This is the aspect which depicts various different ways which business can
use in bringing innovation in their organisation. Chilly's it is a need that they are able to
identify some procedures which can help the company in implementation of the
innovation process, which will lead to bringing the innovative changes in the company.
 Position : This aspect is related to the conceptualisation aspect which is used in de-
terming the overall value of various services and products which is provided to the
society and their customers. In case of Chilly's company will be using this aspect to
create a effective position in market in comparison with their customers.
Innovation funnel is a process in which there are basically three steps included to provide
those products which will help them in enhancing the satisfaction level of their customers.
Chillys' is also trying to use this three step process which will help them in improving the overall
quality of these products. In the initial stage that is the first stage of Mouth of funnel, Chilly's
will be identifying who are its major competitors and then they will be doing the research of the

market. The outcomes of this research will be used to understand the overall impact on the
products of this company(Jamil, Ismail, and Mahmood, 2015). In the second stage when the
funnel is narrowing Chillys' can implement the strategies and various ideas for making changes
and modification in the products. In the last stage which is the third stage Chilly's will ensure
that all the strategies which they have planned and implemented are meeting the targets which
the company is willing to achieve(Mollick and Robb, 2016).
P4: Developments of innovation frugal innovation in organisational context
Frugal innovation is referred to as a technique which helps in determining a process
which can help any organisation so that there is reduction in the overall cost of manufacturing for
companies. This process will also help in eliminating all the defects in the overall process. Other
aspects which will help Chilly's in reduction of manufacturing cost which helps in identification
of opportunities, such as people are facing various issues such as a proper place is needed so that
they are able to carry their mobile phones or any thing which is required to be carried with them
wherever they are going. Chilly's is focussing on the principle Doing more with least resources.
The frugal innovation is defined as reverse innovation, inclusive innovation and constraint
innovation that describes a type of innovation in which technological products are customised at
low price and high volumes in the emerging markets. Such innovations are not confined to
technological breakthroughs but they include product innovations aimed mainly at the bottom or
middle of income pyramid. Frugal innovation is defined as the process of finding new business
model, recognising value chain and designing product for satisfying customers. Frugal
innovation is the way by which companies create high quality products with limited resources.
This is also known as reverse innovation or inclusive innovation.
Examples :
These are some examples of frugal innovation:
 China: Haier Washing Machine ‘Mini Magical Child’
 China: BYD lithium-ion batteries
 Ghana: Toyola charcoal stove
 India: TATA Nano car
 India: Chotukool

They are trying to focussing on developing better solutions to various problems being
face by their customers. Thinking and acting flexible will help Chilly's in identifying and making
various changes which will help Chilly's in identification and making various changes in the
products & processes according to the situations of market. Other principle is Keep smiling
which will be very helpful for Chilly's that they will be bale to get desired outcomes and that will
be achieved with enough effectiveness. Lastly, another principle of innovation frugal is follow
your heart which will help the organisation in achieving of objectives which are laid before the
starting of the process(Henttonen and Lehtimäki, 2017). The management team of Chilly's is
very passionate about achievement of their goals with high level of efficiency in their work.
Frugal innovation is a key which will help in overall achievement of targets by Chilly's(Miller
and French, 2016).
Also, the process and various aspects of Frugal innovation will together help in
elimination of various defects which can helps in the implementation of process of innovation.
At the same time, this is a key which will also result in reduction of the manufacturing cost of
company.
TASK 3
P5 Importance of commercial funnel and application of New Product Development (NPD)

Commercial funnel-
This is also referred as sales funnel as this is sometimes considered as a buying process
which every customer goes through while they are willing to purchase a product. This concept is
considered very essential of the manager of Chilly's, this will help in analysis of effectiveness of
all the business operations.
New product development process:
To introduce a product in market it is very important for business organisation that they
are able to appropriately adopt the process of new product development(Kuratko and Hoskinson,
2016). This will give various details about the methods which can be used While the products is
being launched in the market. This process consists of some steps which are mentioned below:
Idea generation: This is the initial step of this model which is used by managers so that
they are bale to generate a new idea or any new strategy which is related to introduction of new
product or any service in the market. This can be done by assessment of the external and internal
environment which affects various business decisions. In context of Chilly's they will be
formulating some decisions which will help them in launching of their product according to the
Illustration 1: Innovation funnel, 2019

requirements of their customers and demands, their expectations, needs. This will help in
meeting up of various expectations.
Idea screening- In this step, the Mangers in Chilly's will try to examine and evaluate
their ideas so that they can test whether they have successfully bale to meet the criteria and
standards. In situations if they are not able to meet them then measures will be taken to make the
improvements and do the adherence. Also, if there are any complexities which are there for the
firms in building their strategic position then they have to do the necessary modifications.
Concept development- This is another stage and very crucial at same time for Chilly's as
it will help them in execution of their strategies and ideas and simultaneously tracking will be
done(Jamil, Ismail, and Mahmood, 2015). This is going to be done based on technical
flexibility, studying the potential of market and overall design of product design and its related
features. The concept of product differentiation will also be considered in this and this will be
helpful for the management of the company in having a differentiation advantage with
comparison to their other competitors in the market.
Development strategies- The role of research and development department of the
company is considered in this stage(Henttonen and Lehtimäki, 2017). It is there responsibility
that they will have to formulate their strategies according to the motive of increasing the sales of
company. Also, the limited availability of time acts as a barrier sometimes which has to be
overcome by the management team of chilly's.
Examine business conditions- The external environment is constantly changing is never
constant. So, it becomes important for every business to consider the factors of external
environment and various prevailing conditions which is affecting the overall success or failure
often company's products in which they are willing too bring innovation .
Product development- This is very important stage as in this stage the product is
developed which requires maximum focus of the managers as they have to collect the data and
information related to various resources. Resources are needed at every stage so that various
functions can take place without any barriers and objectives can also be achieved.
Marketing Test- This step is very helpful for the managers of Chilly's in assessment of
their customers reactions and their reviews towards new products or innovation in their existing
products. This can help them ion determining whether Their products are meeting the
expectation of their present and the prospective customers. Also, this step will be very helpful for

the mangers in analysing whether there are any modification needed to be done by them to
increase the level of customers' satisfaction.
Commercialization- In this stage the managers of the Chilly's will be analysing that what
should be the prices of their products. This is the very important stage as in this the marketing
plan is finalised and then product is launched in the market(West and Bogers, 2017).
Product launch: This is the last stage and at this stage the managers of chilly will be
launching their product finally in the market with the new innovation that they are making in
their existing bottles which is adding up of a additional space which can provided convenience
for keeping of extra utilities or things. This will help them in increasing the utility of bottle for
them and at same time customers will be able to have increase usage of the bottle. This bottle
will also be acting as a dual purpose bottle after addition of this feature by the chilliy's
managers.
Above mentioned are all the steps which will be used by Chilly's in the launching of its
products in the market(Hau, , 2016). This is process which has to be done step by step , as each
step has its own importance after one step is completed. This is the reason all the steps have to
take place in the provided sequence only, as this sequence actually is responsible for carrying on
of the process of innovation in a proper manner. Also, adequate attempts must be taken so that
there is no overlapping or duplication of the functions taking places. As, this leads to wastage of
time and resources by the
P6 Innovative business case:
Business case:
It is the type of a formal document which is used for creation of a new project. In the
present context, Chilly's is willing to introduce a new product and that is bottles having a extra
space which can help their users in keeping their things like, money, mobile phones etc. before
making this new product launching it in the market it is important for them to build a business
case which will include various aspects such as conditions of market, pricing strategies of
company, overall development process of products and many other important aspects which are
required while a new product is bing introduced in the market.
Summary: The Chillys' as company was started by Tim Bouscarle and James Butterfield in the
year 2010. this is a company which is having high growth and recently they are planning to make