Report on Innovation and Commercialisation: Chilly's Company Analysis

This report delves into the concepts of innovation and commercialization, exploring how businesses can transform ideas into valuable products and services. It examines the case of Chilly's, a company that launched silicon bottles, and analyzes the significance of innovation in gaining a competitive advantage and satisfying customer needs. The report covers the 4Ps of innovation (Product, Process, Paradigm, Position), the innovation funnel, and frugal innovation, illustrating how these frameworks can be applied to shape advanced ideas and drive business growth. Furthermore, it discusses the roles of vision, leadership, culture, and teamwork in fostering innovation and commercialization, along with the principles of frugal innovation, such as finding opportunities in adversity, doing more with less, and maintaining flexibility. The report emphasizes the importance of these strategies in maximizing profitability and achieving customer satisfaction.

Innovation and
Commercialisation

INTRODUCTION
Innovation refers to the process of transforming a new idea and excogitation into goods
and services which able to create value among the customers so that they can pay easily for it. It
also involves those procedures which is applied by the business organisation in order to uncover
new ways to accomplish all the activities with the purpose of gratifying the wants of consumers
and attain the higher profitability. Commercialisation is related to carry the new products and
services in the marketplace or managing it by following various principles for earning higher
profit in the business. It comprises several activities within includes manufacturing, sales,
distribution, customers support and many more. The Silicon bottle is an innovative product which
is launched by Chilly's company which was formed in 2010 by Butterfield and Tim Bouscarle.
The main mission of this company is to reduce the usage of plastic bottles by manufacturing
Silicon bottles. So that their vision that is to attain the higher position in the marketplace can be
attained. This file will cover about the innovation and its significance, 4Ps of excogitation and the
study of innovation funnel to shape up the advanced thoughts. Along with this, the value of
commercial funnel and the application of new product development also will discuss in this file.
TASK 1
P1
Innovation
Innovation depicts as a procedure that is used by the association in order to bring some
effectual changes in their commodities and services according to the needs and expectations of
the customers so that the higher customers attention can be attained and profitability of the
business can be raised. For example, chill's seeks to make some innovation in their manufacturing
products like they are focussing on manufacturing the Silicon bottles which purifies water
automatically. The targeted customers are health conscious people. It is different from other
competitors because the feature and uniqueness of this bottle as this bottle automatically purifies
water and make it healthy for people to drink. The business will have higher opportunity of
succession as the main focus on them on making the world healthy(Chun, Chung and Bang,
2015).
Importance of innovation
1

The consideration of innovation within the organisation is essential as it will help the
business to maintain their position as per the competitiveness of the market. The term innovation
is also beneficial for the organisation of Chilly's as it will help them in generating innovative
ideas and processes for operating all their business functions with higher capacity. Also, it will
allow them to attain the higher success and growth in the marketplace without copying any other
firms ideas and concepts. The detailed explanation about significance of innovation for Chilly's
can be interpreted by following points:
Gaining competitive advantage- The major advantage of being an innovative provide
huge contribution in gaining the competitiveness from the marketplace by differentiating the
company's products and services from rivals. As the business organisation of Chilly's is operating
their activities with the motive of promoting the use of silicon bottles so it is essential for them to
make innovative plans related to create awareness among people that how much it is healthy for
them(uertes-Callen and Cuellar-Fernandez, 2014).
Satisfying customers needs- By adopting the innovation in the strategies and process of
the business the Chilly's organisation will be able to produce the products as per the current
market segments and customers choice which will enables the organisation to get higher
customers satisfaction and higher brand value of the business.
Invention
Invention is related to development of a new idea or method which has never been made
before. While organisation made some innovation then they need to make invention for a
particular area. By inventing new ideas for the business manager of Chilly's can develop new
products effectively which will enables them to attain higher growth in the marketplace.
Compare between innovation and invention
Basis for comparison Invention Innovation
Meaning Excogitation refers to the
development of an idea and
process which has never been
made before.
Innovation is related to
implementation of idea and
strategy for product and service
for the first time.
Purpose The main motive of this is to
create a new product.
The aim of this is to add value
in something which is already
2

exist.
Necessary skills For this, technological skills
are required.
In this, technological, strategic
and marketing skills are
needed.
P2
An administration success depend on the vision, leadership, culture and team work spirit
of all the workers in the organisation. All these components also have huge contribution in
shaping the innovation and commercialisation which can be ascertained by following points:
Vision- The vision of an administration define as what the company wants to attain in
near future. As the chilly's organisation wants to intensity the everyday utilisation of reusable
products. In this aspect, they needs to stay innovative and identify all the challenges opportunities
of their business so that they will be able to manage their employees efficiently in order to
accomplish the needs of being innovative can be attained(Aarikka-Stenroos and Lehtimäki,
2013).
Culture- It define as the values, behaviour and beliefs of several customers. In order to
achieve the desirable outcomes the business manager of Chilly's needs to regulate an effective
culture in their organisation which will enables their employees to willingly espouse innovative
things so that they can easily meet their customers expectations. To maintain the organisational
culture effective they needs to manufacture all the products as peer the customers demand and
expectations.
Leadership- It is the actions of a leader to lead a group of people in the organisation
which have greatly influenced on the them by their attitude and behaviour. It is essential for the
leaders of Chilly's to guide appropriately their employees so that they can stay encouraged and
motivated towards innovating and commercialising new products. For example, in this aspect
they need to focus on adopting Steve jobs leadership style as this will help them in creating
proper encouragement and innovativeness within the firm.
Teamwork- In order to enhance the innovativeness within the organisation manager of
Chilly's needs to focus on motivating the employees to do team work. It will allow free flow of
ideas and concepts within the firm which will enhance the overall value of the company by
achieving the goals and objectives effectively(Dincer, 2017).
3

Thus, it can be stated then innovation and commercialisation help the organisation in
maximising their profitability, customers satisfaction and attain the competitive advantage. Also,
all the above discussed elements help the organisation in shaping up the excogitation and
mercantile.
TASK 2
P3
4Ps of Innovation
In terms to get prosperity and development in the business an association must consider
the innovation term in the business as it will enables them in operate their business as per the
current market. In this aspect, organisation must consider the effective strategies in order to
identify the core requirements of the business. The business of Chilly's can use 4Ps in order to
make effective plans or strategies(Edison, Bin Ali and Torkar, 2013).
Product- It depicts to the commodities of the company which are produced by it like
bottles and others. As the business of Chilly's is mainly concern with reusing bottles so it is
necessary for them to adopt some innovative methods in designing their bottles so that they can
meet the customers requirements.
Process : This factor include all those factors which are related to deliver the products
and services to the customers. Chilly's manager must consider effective process and channels for
their business so that the effective delivery can be assured.
Paradigm: This depicts as the ways and manner which help the business in brining the
innovation in their products and services. In this aspect, the manager of Chilly's must inspect all
their business procedures so that they can implement some changes as per prevailing market
conditions. For example, in Chilly's, if the organisation produce products by using recycling
material then it can produce reusable products as per consumers.
Position: Here, it is related to the own conceptualization that what value of the firm
towards their products and services so that they can determine their position in the marketplace.
For instance, in order to maintain the higher position Chilly's must consider the effective size and
design of their products in order to attract the customers and get higher position(Polzin, von
Flotow and Klerkx, 2016).
Innovation Funnel
4

Innovation funnel consisting three steps within which helps the business organisation to
provide such type of products which can satisfy the needs and wants of customers. Also, these
three steps will help the business in developing and transporting the products and services
appropriately. Similarly, Chilly's also use these stages in order to improve it existing products:
Mouth of the funnel- This is the first step which depicts that before innovating fresh
product and services in the marketplace an organisation needs to conducts a research so that they
can identity their core competitors and products of them. It is also applied to the Chilly's which
will enables them to operate all their business operations effectively(Hang Do and et. al., 2014).
Source:Innovation Funnel, (2019).
Narrowing the funnel- This step comes after analysing the market situations in which
company will implement all the ideas and strategies which are related to producing the products
according to the market demand. For example, by using this approach development and
innovation funnel manager of Chilly's will be able to maintain product development
procedures(Dries and et. al., 2013).
Narrow part of the funnel- It is that endmost stage in which the company will ensure that
all pre-determined contents and strategies are able to meet the targets and goals of the enterprise.
At this stage, the manager of Chilly's organisation will take decision to release all the products
and services in the market in terms to fulfil the necessarily and demand of the customers.
P4
Frugal Innovation
5
Illustration: Innovation Funnel

The term Frugal innovation is also known as Frugal Engineering which is depicts as an
effective process that helps an organisation to decrease their manufacturing cost and eliminate all
the defects or complexities from the production process. This process is very appropriate and
suitable for the Chilly's as it will help them in removing unnecessary features from the product,
simplifying the production process and increase the product evolution efficiency. This will plays
a huge role in operating all the business operations appropriately without any crisis. This process
consist various principles which are described below:
Find opportunity in adversity- This will allow the organisation in getting various
opportunities in the complex situations so that they can take advantage of it in their business. F or
instance, this is huge opportunity for management of Chilly's to attract heath conscious people as
they will easily purchase the Silicon bottles so that the overall expenditure of the operations can
be reduced and profitability can be enhanced(Sonne, 2012).
Source: Frugal Innovation, (2019).
Do more with less- In this aspect the business organisation will identify the more working
ways to create better solution for their problems. For example, the management of respective
company will utilise the benchmarking technique as it will enables the manager to compare their
product from their rivals so that they can made some effective strategies for themselves which
will minimise their cost and maximise their profitability.
Thinks and act flexible- This principle define that the management of the company must
be improvisational not rigid in the nature as it will enables them to maintain proper flexibility in
6
Illustration: Frugal Innovation

the operations as per the market situation. For example, if the administration of Chilly's will
remain stay on the one method then it will decrease the chances of their succession whereas, if
they give their focus on collecting the information related to current market segments then they
will be able to offer the products accordingly which results higher success and growth of the
company(MacGillivray and et. al., 2014).
Keep simple- The management must consider the simplicity concept either it is in their
strategies or solution of the problem so that they can attain their desired outcomes with higher
efficiency.
Follow your heart- It refers to that individuals who is passionate and are able to
accomplishing their work with great efficiency to achieve the organisational aims in limited
period of time.
All the above mentioned principles are advantageous for the company to minimise the
cost and maximise the higher profitability (Youtie and et. al., 2012).
TASK 3
P5
Commercial funnel- It is also famed as sales funnel which indicates that process which is
utilising by the company to engage more customers and create more leads towards the company.
This has great importance for the Chilly's organisation as it will enhance their productivity and
profitability by exaggerating their customers list which render huge contribution in growth of the
business. It consist various steps which is helpful for the company in developing new product.
These are as follow:
New product development process:
It is cite to that process which helps the organisation in ascertaining the core methods
which is necessary for successfully launching a new product and services in the marketplace.
This process comprises some certain stages which are as follow:
Idea generation-It is the first stage in which the management of the business will give
their focus on creating new ideas and strategies related to their products and services by analysing
all the internal and external sources. In order to retain the customers the administration of Chilly's
must focus on producing Silicon bottles as per the demand of the current generation so that they
will be able to satisfy their needs and demands effectively.
7

Idea screening- This is the next step of develop a new product in which the management
will concern towards that the ideas which has been formed in first step will be able to meet the
objectives and aims of the business or not. This stage allows the manager of Chilly's to make
some necessary changes in their decisions which ensure the success of the
organisation(Kutvonen, Savitskaya and Salmi, 2014).
Concept development- In this step the company will convert its ideas and strategies into
reality or their products and services in the marketplace. The product differentiation process also
will take place in this stage which allows the manager of the Chilly's to represent that how much
their products are different from other competitors.
Development strategies- At this phase, the research and development department of
Chilly's will choose the most effective strategies and plans for enhancing the sale of their product
which is Silicon bottles. All the strategies and plans might related to the production, distribution,
allocation of resources and other manufacturing activities. Also, the manager of Chilly's
organisation will use effective promotional channels in order to promote their product in the
marketplace. In this term, they must consider the social media platform as it will give them huge
customer base.
Examine business condition- While developing new product it is essential for the
management of Chilly's to identify its business conditions or environment in order to sustain their
position for long duration of time(Ahn, Minshall and Mortara, 2015).
Product development- This phase is related to develop the product and gather all the
resources which are required to produce products. It is essential for the business of Chilly's to
must develop and design the products which is Silicon bottles in a certain way which will enables
them to attract a range of customers.
Marketing Test- After developing the product the management of the company will
assess the reaction of the customers that the product is able to satisfy their needs or not. This will
help the manager of Chilly's to ascertain the success of their business and assist them in
implement the required changes.
Commercialization- This is last step of this process which manage all activities in order
to attract the right customers in the company's product. In this aspect, the administration of
Chilly's will plays a huge role in launching the product in the marketplace and evaluating the
8

success of the product so that the necessary improvement in the commodities can be done in an
adequate manner.
P6
Business case
It is a written document which define the reasons behind initiating a project or task. It is
formulated by an organisation in order to measure their overall performance and also it is
utliseing by the decision making in taking the effective decisions. The management of the
Chilly's needs to make an innovative business case by considering various factors like pricing
strategy, development process, market situations and customers segments. Business case contains
various components which are as follow:
Summary- This organisation was established by James Butterfield and Tim Bouscarle in
London in the year of 2010. The total number of employees in this organisation are 10 to 15 and
the annual turnover of this company is £2 to £10 million(Abdul Razak and Murray, 2017).
Objectives- The main objective of this business organisation is to produce the Silicon
bottles in order to keep the society healthy. Also, the major aim of their organisation is to expand
their business globally.
Solution- It reflects the brief exposure of problem which the business wants to address
like Chilly's want to manufacture Silicon bottles so it will help them to determine the problems
and come up with the best solutions.
Innovation in products- The company is using the innovation term in their business in
order to manufacture the products as per the current market trends and for fulfilling the customers
needs. For manufacturing the Silicon bottles the production department of the organisation must
use innovative techniques to covert the waste material into useful products.
Research- In order to get the success in the new product development an effective
research must be conducted by the management of the company with the help of online survey
and questionnaire. This will help the business to identify about the needs and requisitions of the
different location customers.
Designing and development plans: After completing the research activities manager must
make an effective plan before launching a new product in the marketplace. They should consider
all the factors in their decision related to formulate a plan so that the business will be able
effectively implement their plan and able to achieve their desired outcomes.
9

Funding- The importance of this factor is unbeatable as it help the business in converting
its process and strategies into reality effectively. In this aspect, the management of the Chilly's
can use various options like bank loans, investors, stakeholders, financial institutions and many
more. The business manager of Chilly's must collect their funds from bank loans as it will
provide them the facility of repay the loan amount a specific period of time. Also it will create
less cost for them as it charge less interest amount as compare to others(Cosh, Fu and Hughes,
2012).
Benefits- In this, the business organisation will determine the benefits of new product to
the business as well as economy. Also, it will help the business of Chill's to measure the impact
of their products on the customers either it is positive or negative so that the idea of productivity
and profitability of the business can be ascertained.
The ask: This is the last component of the business case in which the manager of the
company will focus on taking the feedbacks and reviews from their customers that are they
satisfy from the company's new product or not. This will allows them to ascertain that the
operation should be operate in further future or not.
10