Innovation and Commercialisation Report for Chilly's Company

This report provides a comprehensive analysis of Chilly's company, focusing on its innovation and commercialization strategies. It delves into the core concepts of innovation, emphasizing its importance for organizational growth and customer satisfaction. The report examines the 4 P's of innovation (product, process, position, and paradigm) and their application within Chilly's. It explores the innovation funnel, detailing the stages from opportunity assessment to launch, and discusses the company's approach to commercialization. The report also covers the impact of innovation on organizational vision, leadership, culture, and teamwork. Furthermore, it touches upon frugal innovation, new market opportunities, and the significance of resources. The analysis includes a discussion of business cases and tools for protecting intellectual property. The report provides valuable insights into how Chilly's has successfully innovated its products and processes to gain a competitive edge in the market.

Innovation and
commercialisation

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

Definition
Invention is termed as
occurring of idea that creates
development in a product or
service.
Innovation is defined as
creation of new ideas that are
implemented on existing
services, products and process
of the organisation.
Emphasis
Mainly it focuses on creating
new services and products.
Innovation emphasises on
developing values in product
offered.
Aspect
This is generation of ideas and
their functioning in theory.
This is practical
implementation of creative &
new ideas.
Skills needed
The business owners must
have employees who have
innovative skills, scientific
skills, creativity and analytical
thinking (Etzkowitz and Zhou,
2017) .
This person must have good
marketing research abilities,
strategical thinking and
technical skills.
Occurrence
This is occurred when new
ideas come into person's mind.
This occurs when there is
requirement for improving
product or service.
Example Nikola Tesla is a great
inventor.
Ada Lovelace is name of an
innovator.
P2
Innovation & commercialisation are two terms related to vision, culture, leadership and
teamwork of the company. It is seen that innovation influences and impacts these factors.
Leaders have to change their ruling and guiding when new products are launched in markets.
Organisational Vision – There is significant vision of every organisation and it provides
information about goals & objectives of organisation. Organisational vision affects managers and

employees as they have to put more efforts to provide innovative products to customers.
Employees of Chilly organisation have to conduct effective market research before launching
products in market (Bain and Kleinknecht, 2016) . The vision of Chilly organisation is to provide
water to people everywhere they go. Thus they have made a new water bottle that is linked with
application which will tell people how much water intake they take and what is their actual
requirement.
Leadership – Leadership is defined as ability for individuals to rule over other people and
make them work according to your instructions. This is function for managers and leaders of
Chilly organisation to manage and control processes and take actions towards reaching goals of
the company. Leaders can follow various kinds of leadership styles including democratic,
autocratic, participative, laissez-faire, decisive & consultative. Innovation of products affects the
way in which a leader manages and controls business operations. In context of Chilly company,
the leaders have adopted autocratic leadership style. Here all decisions, plans and strategies are
developed by the owner or executive. Other employees and subordinates have to work as per his
instructions and guidance. A good leadership helps in providing assistance to the organisation in
order to generate innovation within regular periods. This helps in gaining competitive advantage
in market place.
Culture – This is defined as value, belief, assumptions, way that an organisation chooses
for operating. These are generally expectations, philosophy, experiences of organisation which
helps employees to work hard and attain organisational goals. Culture types are person, role,
power, task. In context of Chilly, owners are adopting task culture within their company. In this
type of culture, manager of each department provides guidance for working and performing well.
The employees working in Chilly organisation are highly talented and innovative towards
their working. This makes them fir for existing in competitive marketplace where there is need of
continuous innovations. These workers are proactive and they generate attractive innovations in
products. Employees are not given rest periods in Chilly as this decreases capability of creating
new ideas and thoughts. Continuous motivation and support is provided to employees for
increasing their creative mindset (Dodgson, 2018). In context of Chilly organisation, there is
presence of culture for developing innovative ideas. This is helpful for business owners of
Chilly to transform into innovation drivers in operating field.

Teamwork - Team in organisations are important and they are assigned specific tasks
which are to be completed in given time interval. Teams provides an opportunity for employees
to express their views and thoughts about innovating products and services. The business owners
of Chilly make effective teams and assign them tasks in order to resolve problems and attain
organisational goals and objectives. The managers of Chilly have made effective teams and they
are responsible for making new innovations and commercialise processes & products. A good
teamwork is possible only when there is existence of strategies and plans. Workers of Chilly
organisation are formed into group of 10 or 12 for making innovative ideas about the existing or
new products. This it is helpful for fostering innovation for collaborative environment (Yun,
2017). Team members encourages employees for enhancing efficiency & productivity for
promoting commercialisation.
TASK 2
P3
Innovation is defined as creation of new ideas and plans in the present products and
services offered by the company. There are basically 4 P's of innovation followed by every
organisation while planning for product innovation. This innovation mix was given by John
Bessant & Joe Tidd. This mix provides help for estimating success or failure of innovative
product. The four P's of innovation mix are adopted by business owners of Chilly for improving
market share and sales of the company. For Chilly, it is mentioned below -
Product innovation- This is very essential for organisations to develop strategies and
plans for earning profits and money. Innovation in products is helpful in increasing customer
satisfaction level (Laihonen, 2015). People will buy products from the organisation which
provides quality products and services. Thus, Chilly owners have innovated their cool water
bottle. In context of Chilly organisation, value is added to water bottle by adding new feature of
water tracker. This new water bottle will attract people of UK.
Process – There is a process which is followed by organisations for creating good
reputation in market. Chilly is a company that deals with water bottles. There is presence of
strong and effective process for producing and delivering of products. This process costs less to
the company and smart water bottles will enhance customer satisfaction and reliability.

Position- This is defined as maintaining good position of company in marketplace. The
managers of Chilly conducts market research for analysing the current position of market. This
tells what are the factors which are beneficial for new product and what are not good for the
product. This is an important concept which must be known by Chilly organisation while
launching new innovative water bottle.
Paradigm- This process is for handling changes and innovations which are implied
when there is execution of new ideas & innovation (Wang, 2017). This develops a different
aspect for Chilly organisation's employees and workers.
Innovation funnel at Chilly organisation:
It is defined as process of development where new ideas & thoughts are developed in a
service/product. These innovative changes in a product must be beneficial for the customers as it
leads to increase in satisfaction among customers. Various ideas of innovation which are
implemented on products & processes for enhancing customer satisfaction as well as retention.
Illustration 1: INNOVATION FUNNEL
(Source: Innovation Funnel, 2019)
Chilly organisation is involved in collecting information and data regarding choices and
preferences of customers. The managers of this company must know whether their smart bottle is
liked by customers or not (Bagno, Salerno and Silva, 2017) .

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

As chilly organisation is involved in making smart water bottles for people. In this way,
profits are made by the company.
New market opportunities- Chilly company identifies and analyses market opportunities
for growth and development of product. Market research will help in knowing consumer
preferences and behaviour for making effective strategies (Petkovska, 2015) . Chilly
organisation keeps updating and innovating it's products in order to enhance customer
satisfaction.
Resources- These are essential asset of any company and it is necessary for companies
to make use of these resources effectively. Frugal development needs resources and this chilly
organisation has to use these resources in an effective manner.
Innovation Funnels- Developing of new products and this is essential for companies for
formulating business model.
TASK 3
P5
Commercial Funnel
This is framework which is helpful for utilising and reforming present products by
implementation of plan and procedures. There are three phases of this funnel.
Pricing policy- Chilly organisation is offering cool water bottles of people. Price at which
this company sells bottles is reasonable. This is useful for setting price of services & products
by estimating demands & needs of people.
Improving ways of growing business- The innovation funnel is helpful for understanding
needs and demands of customers. This increases customer satisfaction and retention.
Process of New Product Development: Idea Generation- This includes generating ideas for existing product and service of the
company. In context of Chilly organisation, managers are confident that new smart water
bottle will attract more customers. Idea evaluation- It is implementing of new and creative idea into service or product.
Chilly company ensures that new water bottle will provide good experience to customers
as it tracks water intake for body. Concept definition- The concept of chilly organisation must be effective so that it can
increase number of loyal customers.

 Analysis of strategies- Chilly organisation's strategy is to provide innovative product for
attracting quality products and services. Product development and testing- This is must for managers to analyse whether this
product will be a failure or success. Commercialisation- This means launching of new product. It is must for Chilly
organisation to take care while launching new water bottle in market for attracting
customers (Afuah, 2014).
 Product launch- New smart water bottle launched in market.
New product Smart bottle: Features: Smart bottle tracker and application Value: Customer centric product and mainly made for people to be hydrated always. Packaging: Steel & Plastic Marketing and Sales: Social media marketing
 Competitive price: Price range is 2 Pound.
P6
Business case can be both written or verbal document used for providing information of
organisational goals & objectives. Executive summary- Chilly was founded in the year 2010 by Tim Bouscarle and James
Butterfield. The main aim for these two people is to create technological advancement so
that customers have ability to have cold water on the go. Mission statement- “To accelerate the adoption & everyday use of reusable products. Resources- Chilly organisation needs raw materials, funds, technological advancement
tools, etc. Financial projection- The fund required for smart water bottle is £25,000.
 Types of funding- Chilly organisation takes money for innovation from banks, friends
and relatives.
Access funding for new product range:
Chilly organisation needs money for product development, marketing and for this it takes
funds from the following sources -
 Investor: These are people on whom the company can rely for bringing up new
innovative products.

 Profits: Chilly organisation is a profit making company and it can use it's profit in
launching of new smart bottle.
 Bank loan: As Chilly company is having good reputation in market, it can easily apply
for loan in order to work on project of smart bottle.
TASK 4
P7
Chilly's organisation can use various tools for protecting knowledge and property of it's
products and innovations. These are patent, copyrights and legal authorities. These help in taking
legal actions towards any other person or organisation if they uses plan of another company. The
different types of tools for Chilly company are listed below -
Patent- This is known as invention that provides authority and rights to owner of the
company from preventing exploration of products (Linder and Williander, 2017). Chilly
organisation has to take patent of new smart bottle for preventing sales of this innovative water
bottle by other competitors.
Advantage This provides exclusive rights to owner of the company and this
acts as an effective tool against the imitators.
Disadvantage This needs high cost of registration as compared to other tools.
Strength This type of protection tool lasts for 20 years and this is of longer
duration than other tools.
Weakness Invention that is executed by the company can be revealed.
Effective /ineffective Effective
Trade Secrets- This is a kind of intellectual property which may in the form of process,
formula, pattern, instrument, commercial method, practise, instrument, etc. which is not revealed
to anybody. This is economic advantage that company has over the competitors. These are also
known as confidential information.
Advantage There is no registration cost and protection is not fixed for a fixed
interval of time.
Disadvantage This type of protection tool does not provides effective results for
new product invention.

Strength This tool provides high security and also it costs less than other
tools.
Weakness There are restricted rectifications and these can be easily patented
by other companies.
Effective/ineffective Ineffective
Copyright- This is another protection tool which prevents stealing of ideas. Copyright of
product includes rights & economic rights. These have rights for copying and publishing any
substantial part of product. Organisations have to register for copyright and make easy for
ownership when conflicts occur. Chilly must take copyrights of new smart bottle for protecting
and saving product from any harm.
Advantage Copyright provides rights to Business owners of intellectual rights
in order to produce & reproduce materials. This also provides
rights to authorise a product.
Disadvantage These costs higher than other protection tools.
Strength Copyrights acts as evidence of ownership of intellectual property.
Weakness Copyrights have fixed period of time and this becomes costlier
every time.
Effective/ineffective Effective
CONCLUSION
This has been analysed that innovation is the most essential factor that enables an
organisation to earn more profits. Every company must innovate it's products and services in
order to attract customers. The 4 P's of innovation helps in knowing what are the ways by which
product is launched. Commercial funnel & steps of NPD provides information about how
product can be innovated effectively. Business case provides overview of product innovation and
company's vision and mission. There are some tools for developing, retaining & protecting
intellectual property of products so that no other company can steal idea.