Report on Innovation and Commercialisation Strategies for Chilly's

This report provides a comprehensive analysis of Chilly's, a company focused on producing innovative and environmentally friendly water bottles. The report explores the concepts of invention and innovation, highlighting how Chilly's differentiates itself from competitors. It delves into the crucial role of commercialization, examining Chilly's vision, leadership, and organizational culture in driving product development. The report then examines the 4Ps of innovation (Paradigm, Process, Positioning, and Product), and how Chilly's utilizes these to improve its products. The report further explains innovation funnels and frugal innovation, and how Chilly's employs these to create products that meet customer needs. The report also covers the new product development stages, organizational structure, and teamwork, that contribute to Chilly's success. Overall, the report illustrates how Chilly's has achieved a competitive advantage through its strategic approach to innovation and commercialization.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.................................................................................................................................................3
P2.................................................................................................................................................4
TASK 2............................................................................................................................................6
P3.................................................................................................................................................6
P2.................................................................................................................................................8
TASK 3............................................................................................................................................9
P5.................................................................................................................................................9
P6...............................................................................................................................................10
TASK 4..........................................................................................................................................12
P7...............................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is process through which new and innovative goods and services can be
introduced in the market which will help in increasing the convenience of customers and also
enhance their standards of living. Innovation help the companies in taking competitive advantage
in the market by providing customers with better products than their competitors which creates
value for them. Commercialisation is another important process which helps in seeking attention
of customers and includes production, distribution and promotion of goods so that sales can be
increased thereby increasing the company profits (Aloini and et. al., 2015). For studying in detail
various aspects related to innovation and commercialisation Chilly's which is a company founded
in 2010 by James Butterfield and Tim Bouscarle is taken. The company manufactures bottles
which is an alternative to single-use plastic bottles which helps people to carry cold water on-
the-go. Chilly's products are designed and styled by using high-performance technology and
these bottles environment-friendly which provides the company a competitive advantage over
plastic bottle manufacturers. The report will cover details about innovation, 4Ps of innovation,
innovation and frugal funnels along with new product development stages.
TASK 1
P1
Invention : It is a process through which new and innovative goods and services are
introduced in the market. It is related to creating something which has never existed in the
market before. For example : Chilly's bottles which are designed and styles using highly
advanced technology and is an alternative to single-use plastic bottles which causes environment
pollution. Chilly's bottles keeps the temperature of water cold whenever people need
(Invention .2019).
Importance of invention : Invention helps the company to introduce completely new and
innovative products in market with features that help in increasing customer convenience and
experience. With the increase in awareness of pollution caused by plastic bottles Chilly's
manufactured bottles that was an alternative to plastic bottles and also kept water cold.
Innovation : It is a process by which already existing products and services can be made
better so that customers changing needs and preferences can be efficiently met. It helps the
company in attracting customers by providing better products than the competitors

(Innovation .2019). For example : Chilly's aims at innovating its bottles by installing a system in
it which automatically cleans and filters water and also the temperature of the water can be
changed depending on the needs of customers. Following will be the benefits to the company
after innovating its products :
 Gaining competitive advantage : Innovation can help the company in gaining a
competitive edge in the market as better products and services can be provided to
customers which helps in shifting the interest of customers from the competitor products.
For this Chilly's has introduced a feature in its bottles which can clean and adjust water
temperature.
 Quick response to customer's expectations : Innovation can help in creating products
according to the dynamic needs and preference of customers which makes the company
customer-centric. For this Chilly's has innovated its products so that safe water can be
provided to its customers along with a feature which helps in adjusting water
temperatures according to the weather conditions.
Comparison between invention and innovation
Invention is related to development of completely new product or service which has
never existed before in the market which can help in fulfilling the new demands of customers.
Technological skills, scientific skills and research and development are required so that invention
can be brought. For example invention of cameras in phones was first time done by Samsung
Sharp.
Innovation is rather related to making improvements in the already existing products and
services so that economic value can be added to them which helps in enhancing customer
experience. Technological, strategic management and marketing skills are required to bring
innovation in products. For example innovation by Chilly's in its bottles by insatlling new
technology which can clean, filter and adjust water temperature.
P2
Commercialisation : It is the process through which new products and services are
successfully introduced in the market. It helps in attracting attention of customers by the use of
marketing strategy so that the sales of the company and its profitability can be increased
(Commercialization .2019).

Vision of Chilly's : The vision of company is to reduce the use of single-use plastic
bottles which cause environment pollution. This vision encourages the company to rapidly bring
innovation in its products so that use of plastic bottles can be reduced. The company has installed
an innovative feature in its bottles which can keep the water clean and also water temperatures
can be adjusted according to customer's needs.
Leadership : It is the ability of leaders to direct, guide, influence and encourage the
employees of the company so that they can coordinate together to achieve company goals and
objectives. Different types of leadership styles can be followed by leaders like : democratic style
which is the most effective leadership style as it considers the opinions and ideas of all the
employees to make decisions, Autocratic leadership style where the leaders are responsible for
taking decisions and the opinions of employees are not considered. Chilly's use democratic
leadership style which helps it to bring innovations in its products as the opinions and ideas of all
the company employees are considered (Bagno and et. al., 2017).
Culture : Organisational culture is the collection of the shared beliefs, values and
assumptions which prevail in the organisation and directs the way in which employees behave in
the company. There are five elements of organisational culture : purpose, ownership, community,
effective communication and good leadership which helps the company in bringing innovations
in their products. If the purpose of the company is to be a leader in the industry, then innovations
can be brought by the help of effective communication and leadership styles that are followed to
achieve these objectives. Handy's model can be used by the company to determine the kind of
culture which can be followed by it. Some of its types are : Power culture-in this culture power is
concentrated in few people's hand who takes all the business decisions. Task culture-in this
teams are formed so as to achieve a specific task or purpose and power shifts among the team
members as the project progresses to its completion. Chilly's follow task culture where teams are
formed so that a specific task can be completed and the project objective can be achieved.
Teamwork : An effective team consists of highly competent people who are directed by
clear set of gaols and ideas. All the decisions are made by the mutual consent of all the team
members and the directions given by team leaders are strictly followed. The work of all the team
members in an effective is well integrated and coordinated which maximizes their quality of
work and helps in achieving team goals in time. Effective teams that are formed at Chilly's
helped the company in brining innovation in its products.

All the above mentioned factors help companies in bringing innovations in their products.
The vision of Chilly's to reduce plastic usage, democratic leadership that is followed in the
company, task culture in which teams are formed ion the company and the effective teams that
are formed helped the company in bringing innovation in its products. Efficient collaboration
and coordination am9ong all the team members can be established so that brainstorming related
to their ideas and opinions can help in bringing improvements in their existing products
(Hermans, Klerkx and Roep, 2015).
TASK 2
P3
The model of innovation mix was given by John Bessant and Joe Tidd which helps the
companies in identifying the major areas where improvements can be made the 4Ps of innovation
are : Paradigm : It identify the ways in which innovation can be brought in the company.
Through this changes can be made in the underlying mental model which frames how and
what an organisation do what it do. All the business processes can be identified by
Chilly's so that improvements can be made like reusing the old bottlers so that new
innovation can be brought in those bottles rather than manufacturing new bottles. Process : It relates to the way in which company delivers its products and services to its
customers. This way company can improve their production and delivery methods which
reduce costs of the company and helps in satisfying customers. Chilly's can reduce its
costs and increase its efficiency and profits by innovating its internal process. Positioning : It helps in improving the way in which company positions its products in
the market. This helps in efficiently reaching to the interested customers so that the
market share and sales of the company can be increased. Chilly's can use this to reach to
various segments of the market so as to reach a large number of customers (Jahn, 2016).
 Product : This helps in bringing innovation in the existing company products so that
customer's needs and wants can be satisfied in a better manner. This helped Chilly's to
innovate its products according to increasing water pollution and changing weather
conditions.

Innovation funnel : It describes the steps which helps in developing a new process or product so
as to meet customer needs and wants. This funnel helps the company in creating an innovative
plan which is also realistic (Innovation Funnel. 2019). This funnel helps in selecting the best idea
out of all the available ideas regarding innovation. Chilly's can use the funnel in the following
manner :
 Idea generation : It is the idea where many ideas regarding bringing innovation in
products and services are generated after analysing the threats and opportunities that are
present in the market. Various solutions are found by the R&D department at this stage. Concept investigation : At this stage all the ideas generated in the first stage are screened
so that the best among all the ideas can be selected which helps in meeting company
goals and objectives. The concept and ideas are tested on customers and the required
resources are collected so that the implementation of plan can be done effectively. Feasibility study : At this stage the profitability of the idea is analysed along with testing
the technical and economic feasibility in the competitive market. Risks associated with
the idea are also evaluated so that effective plans can be formed to make idea successful.

 Development stage : The idea is developed into actual goods and services which can be
finally launched in the markets.
 Post release phase : After the release of products feedbacks from customers are collected
so that the necessary improvements can be made.
P2
Frugal innovation helps in reducing the complexity in production of goods and services
which also reduces the production costs. This is done by eliminating the waste or non-value
adding features from the products which increases the use of products for customers (Frugal
Innovation. 2019). The steps followed for this innovation are :
Illustration 1: Frugal Innovation, 2019
Source : Frugal Innovation, 2019 Seek opportunity in adversity : This means taking advantage of an unfavourable situation
and innovating products so that negative impact of adversity can be reduced. Chilly's
took the advantage of increasing water pollution and changing weather conditions by
installing in its bottles a feature which can clean, filter and adjust water temperature
which suites the customers. Do more with less : It means the limited resources are efficiently used to introduce
innovation in the company products. Chilly's reuses the old bottles and install in them
their new innovative features (Kerschke and et. al., 2015).

 Think and act flexibly : This means that the organisational structure and culture of
company must encourage innovative thinking so that innovation can be brought in the
already existing products so as to meet customers changing needs. Keep it simple : It means the plans of innovation should easy to understand and
implement so that successful innovation can be brought in company products without
engaging into complex production process. Include the margin : This means that the innovations brought in the products must be
customer-centric so that the needs of customers can be efficiently satisfied.
 Follow your heart : This means that if the management thinks that their innovation can
help them in maximizing customer satisfaction and increasing the market share then the
innovation must be introduced in the market.
TASK 3
P5
Commercial funnel : This funnel is also known as sales funnel and aims at converting
prospects into customers which increase the sales of company products and also generate leads
for the prospect customers who can be further converted into customers. This funnel helps the
company in their pricing policy so as to attract customers to buy their products. Chilly's can use
this funnel to introduce its innovative products in the market and increase sales of the company.
New Product Development : Through this process new products can be successfully
introduced in the market. This process is important so that improvements can be made in the
products according to the needs and preferences of customers. Following is the procedure of
developing new products : Idea generation : At this stage the need for developing a new idea is identified and is
followed by generation of several ideas. The R&D department of Chilly's come up with
many ideas to innovate their products to meet the needs of customers (Laihonen and et.
al., 2015). Idea screening : The several ideas that are generated are screened and the best among all
the ideas are selected so that the company objectives can be achieved. Development concept : At this step the idea is matured into a product concept so that the
product development can take place successfully.

 Marketing strategy : It means identifying the target market, determining the pricing
strategy, formulating a marketing-mix strategy etc. This helps in effectively marketing
the new product so that maximum customers can be reached. Business analysis : It means evaluating the effectiveness and feasibility of the new
product in market. This helps Chilly's to determine the profitability of new products. Product development : At this stage the product is developed to ensure that the product
idea can be converted into a workable market offering. This can help Chilly's in
efficiently developing its products. Test marketing : The new product is tested in the real market conditions so that company
can formulate marketing strategies efficiently so that the targeting, positioning,
advertising,distribution etc. can be done in an effective manner (Molnar, 2018).
 Commercialisation : Marketing test gives an idea if the product can be fully launched in
the market or not. Commercialisation is the final step where the developed product is
successfully brought in the market and attention of customers can be gained.
P6
Business case : It is a detailed and well structured written business document which
provide reasons for initiating a project or task. It provides the justification for initiating a
proposed project by analysing the commercial benefits related to the project. Chilly's can use a
business document to estimate the costs related to developing the project so that its
implementation can be done by analysing all the risks along with anticipation of commercial
benefits of the project. It includes the following : Executive summary : It is a brief introduction of the business plan which describes about
its business, its target market, steps taken by it to solve its problems including an
overview of the financial status of the company so that investors can be attracted towards
their business (Rosca, Arnold and Bendul, 2017). Background : Chilly's was established in 2010 by James Butterfield and Tim Bouscarle.
The aim of the company is to reduce the use of single-use plastic bottles by providing the
customers with an alternative product which can help to keep water cold any time they
want. Chilly's bottles are designed by using highly advanced technology so that customer
satisfaction can be achieved. Vision : To become the world leader in manufacturing of

environment-friendly products and eliminate plastic bottle companies. Mission : To
increase the use of environment-friendly products and reduce the use of plastic Needs satisfied by the innovation : Chilly's has introduced a new feature in their products
which will help in keeping the water clean and also the water temperature can be adjusted
according to the weather conditions. This will meet the needs of clean water along with
adjusting water temperature according to their needs. Opportunity in the market : Increasing water pollution and extreme winters in UK is an
opportunity in the market. How will the product meet that need : As the bottles can clean water and adjust its
temperature according to customer needs, the problems faced by the customers by unfit
water and extreme winter conditions can be efficiently dealt with (Vanhaverbeke, 2017). Competitive edge : This innovation gives a competitive advantage over plastic bottle
manufacturers as customers can be provided with clean drinking water along with a
facility to adjust water temperature. Size and growth possibilities : This innovation can increase Chilly's market by 30% even
in the cold weather as warm water can be made available to customers. Also its sales will
increase by 40%. Target market : Population of UK belonging to all ages, gender, income groups etc. are
targeted by Chilly's. Strategy : Economic pricing policy will be used by Chilly's. Promotional strategy : Promotions will be done by marketing through TV, digital media
etc.
 Funding : It is the process byu which companies collect the required funds so that new
product development can be successfully done. Chilly's can acquire funds from : bank
loans where banks provide business funds in return of collateral security along with
monthly interest which is charged on the principal amount. Angel brokers is another way
of acquiring funds where people who have enormous amounts of ideal funds can provide
those funds to the entrepreneurs to be used in their businesses.

TASK 4
P7
Intellectual property : Intellectual property refers to the unique and creative ideas which
helps in inventing something completely new that has never existed in the market before. It is
essential to protect the intellectual property by the company so that the ideas, techniques or
methods that helps it in producing innovative products and services in the market can be
protected from their competitors (Wang, 2017). It is important for Chilly's to protect their
knowledge and innovative methods which are used in making Chilly's bottles. This prevents
imitation of the ideas by competitors so that the originality of idea remains intact with the
company. Various tools that can be used for this purpose are : Patents : It is a form of legal right or license which is given to the company which has
introduced some innovative products or services in the market. It means that the
exclusive right of using the innovative ideas remains with the original company and
cannot be imitated by others. Patents are valid for a specific time period and expires when
the time period gets over after which the patent needs to be renewed. Advantage of using
this tool is that it can help in protecting the original ideas of the company from getting
copied by other competitors. However the disadvantage of patent is that the cost of
renewing the patent right is high which increases the cost of company.
 Trademarks : These are distinctive and recognizable designs, symbols or signs which
helps in separating the oproducts and services of one company from the other companies.
The trademarks give companies a distinctive identity among all the products of different
companies. This also associates with the brand image of the company. Advantage of
using trademark is that it differentiates company products from their competitors.
However the disadvantage is that heavy fees is to be paid by the company in every 10
years for continuing the use of that trademark (Wieczorek and et. al., 2015).
Chilly's can use patents as the tool to protect their intellectual property so that the
innovations brought by the company in its bottles can be protected from its competitors. This
helps the company in gaining a competitive advantage in the market and also the vision and
mission of the company can be efficiently achieved.