Innovation and Commercialisation Report: Business and Strategies

This report delves into the concepts of innovation and commercialization within a business context, using the Chilly water bottle company as a case study. It begins by differentiating between innovation and invention, emphasizing innovation's role in gaining competitive advantages and reinforcing brand value. The report then explores how organizational vision, leadership, culture, and teamwork shape innovation and commercialization processes. Task 2 examines the 4 Ps of innovation (product, process, position, and paradigm) and their application using the innovation funnel. It also discusses frugal innovation, highlighting its importance in cost reduction and resource optimization. Further, the report explores the commercial funnel and new product development, including building an innovation business case. Finally, it addresses tools used to retain and protect knowledge within a business. The report provides valuable insights into strategic business development and innovation management.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Innovation and its importance in comparison with invention................................................1
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation .......................................................................................................................3
Task 2...............................................................................................................................................4
P3 4 Ps of innovation and its uses of the innovation funnel .......................................................4
P4 Developments in frugal innovation and examples to used in organisational context.............6
Task 3...............................................................................................................................................7
P5 Importance of the commercial funnel and the application of New product development......7
P6 Build an innovation Business Case for an organisation.........................................................8
Task 4...............................................................................................................................................9
P7 Different tool used by business organisation to retain and protect knowledge......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is the process of attracting or innovating new things in business market for the
purpose of meeting with customer's requirements. It is a new idea or innovative thoughts which
is used to introduce some thing new and make them happy (Carayannis, Cherepovitsyn and
Ilinova, 2016). Commercialisation is highly connected with business activities which are
important to for running a business. It helps businesses to continue their business by making
higher profits. To understand about innovation Chilly has been taken that was founded in 2010
by James Butterfield and Tim Bouscarle. The main object of such organisation is to provide
people with the ability to always have cold water without using plastic water bottles. Such report
covers different topics such as difference between invention and innovation, types of innovation
and process which is important to commercialise innovation. Along with all discussion, report
also covers range of methods for protecting ideas that helps to continue business for ling period.
Task 1
P1 Innovation and its importance in comparison with invention
Innovation is continuous procedure which is used by all business organisation by
bringing some effective changes in their business that helps to make higher profits. Innovation is
made with innovative word that means to bring or innovate something new which is not came in
market before this (Paradkar, Knight and Hansen, 2015). In this process business concern create
and develop the new products and services according to customer's needs and wants that helps to
accomplishment business goals. Chilly is manufacturer of water bottle company hat designed to
combine the convenience of plastic water bottle. Such organisation is focusing on innovation in
which management decided what some should be new and eco friendly that can attracts
customers as well as make them healthy. Chilly is planning to introduce a stylish and designable
water bottle with unique shape and metallic body by reusing plastics. This bottle will be easy to
carry for customers, environmentally friendly, durable, easy to clean and stainless that will keep
healthy to people and by providing such bottle. Market risk is highly connected with innovation
where all business concern have equal chances to develop the new product and increasing
existing market share that helps to increase profitability
In contrary invention is mainly comprises development of new idea that does not need to
replicable. It helps to add customer's value by attracting customers in high range. When products
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are introduced at first time without any modification is consider as invention (Maritz and
Donovan, 2015). The importance of innovation for business organisation and others are defined
as:
Gaining competitive advantages: Innovation is playing an significant role for business
organisation by gaining competitive advantages. It is important for business organisation to get
information about its competitors and their products then need to produce attractive products and
services as compare to competitors that helps to increase the number of customers effective and
get competitive advantages. For example, the management of Chilly organisation has found that
its competitors are also providing plastic water bottle then they decided to design unique water
bottle by reusing plastics which will attract customers to buy such product.
Reinforce the brand: Innovation is also important for organisation for the purpose of
reinforce the brand of their products. As customers are highly aware about brand so it is required
for organisation to introduce from attractive products and services that can help to reinforce the
brand effectively (Svensson, 2015). For instance, Chilly is has own brand which is known for
reusable of plastics in designable and convenience products is uses innovation and introduce new
products that helps in strengthen such brand.
Comparison between innovation and inventions
Basis for comparison Invention Innovation
Meaning To introduce newly product and
services which is not available in
market. Moreover, Excogitation is
uses of new ideas and thoughts
which never have been used.
This is related with modification
and changes in products by
implementing new ideas and
thoughts for the propose of
increasing profits.
Purpose The main purpose is to create or
introduce new products and
services.
To increase the value for
customers and organisation which
is already exist.
Necessary skills It is require technological,
management and innovative skills
that helps to create newly
products.
Innovation is require
technological, marketing and
strategic management skills to
innovate the products.
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Thoughts This is the concept of introducing
new product and services with the
help of innovation.
This is the concept of utilisation
of new thoughts.
P2 How organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
Business organisation have different vision, leadership, culture and team work that helps
to increase the productivity and profitability by shaping innovation and commercialisation.
Innovation and commercialisation is related with business activities that helps to perform all
function within organisation and achieve business goals effectively (Park, Sung and Kim, 2015).
All are the components are contributing in shaping innovation and commercialisation that are as
defined:
Vision: This contains needs and wants of company which company expects for their
future. The vision of any organisation should be clear and work according that helps to complete
the work properly and shapes innovations and commercialisation (Souto, 2015). For instance, the
vision statement of Chilly is to accelerate the acceptance and every day use of reusable products
with the help of innovation. By focusing on this Chilly is introducing stylish and designable
water bottle with unique shape and metallic body which is shaping innovation and
commercialisation.
Leadership: Leaders are one who provides a good inspiration to employees that helps to
deal with critical situation. They motivates employees to use new technology and method to
develop the products and maintain a profitability situation. Such as Chilly organisation has
effective leadership management in which leaders provide assistance to its employees for using
new technology and reuse the plastic that shapes innovation and commercialisation.
Culture: The culture of any business organisation should be attractive and
understandable which helps to increase the productivity and profitability (Sheep, Fairhurst and
Khazanchi, 2017). Culture is related with values, beliefs and behaviour of people are working at
workplace and attracts people towards business activities. In context to Chilly organisation,
James Butterfiely and Tim Bouscarle create a good working culture for employees that helps to
introduce new products effectively which is shaping innovation and commercialisation.
Teamwork: To complete targets and achievement of business goals teamwork is playing
significant role that understand what are the expectation of organisation and how it can be
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satisfied. When number of individual are working collectively within organisation for
completing common targets known as teamwork. It accept the changes and perform all functions
effectively. Such as team member of Chilly works together in order to complete the decided
goals that can shapes innovation and commercialisation by introducing new products and
attracting more customers in order to increase productivity (Oderanti and Li, 2018).
Therefore, it has stated that leadership, culture and teamwork of Chilly is shaping
excogitation and mercantile by introducing new products by reusing the plastics and providing
healthy and creative water bottles.
Task 2
P3 4 Ps of innovation and its uses of the innovation funnel
Innovation and Mercantile are consider as important business function of any
organisation in which different activities are performed by management in order to make smooth
way to accomplishment goals (4 P's of Innovation, 2019). The management of Chilly are using
innovation mix model in order to identify the changes and modify the water bottle for increasing
brand value and maintaining friendly environment that are as defined:
Illustration 1: 4 P's of innovation, 2019
Source: 4 P's of innovation, 2019
Product innovation: This describes the changes in products and services which are
modified by organisation in order to attracting more customers. In this step products are require
to get change in the form of taste, preference, design, affordable etc. which can used by
customers. As environment is changing continuously due to high uses of plastics which also
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causes health of people (Jauhiainen and Hooli, 2017). So management of chilly reuses plastics
and produced designable water bottle with unique shape and metallic body in order to change the
customer's mind towards its products.
Process innovation: In this step organisation uses process to deliver and supplying the
products effectively that helps to reach each customers and increases productivity. This process
can be used by Chilly's management in order to deliver its new designable water bottles by
changing process which helps to increase productivity (Dincer and Acar, 2017).
Position: Herein, the concept of position is related firm's value which is created by
organisation through providing better quality of products and services. For instance, Chilly has
maintain a good position in market by designing water bottles that pull customers towards new
product.
Paradigm: It states the way and manner that helps to bring innovation in their products
and services in order to accomplishment of business objectives. In context to Chilly, all business
procedure is inspect by management along with theories and principles for the purpose of
recycling the material and change in to useable designable water bottles (Edquist and Zabala‐
Iturriagagoitia, 2015).
Innovation Funnel
A theory which is associated with the development of new ideas and thoughts of people
for the purpose of developing products and services is known as innovation funnel (Van
Lancker, Wauters and Van Huylenbroeck, 2016). The main vision behind using this, to satisfy
the needs of their customers and increase more. It involves different phases such as:
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Illustration 2: Innovation funnel, 2019
Source: Innovation funnel, 2019
Mouth of the funnel: It is first step that should be done before innovating new products
and services in market place (Innovation Funnel, 2019). In this, management should analysis its
competitor before entering in to any market then should produce products accordingly. It should
be use by Chilly's management to analysis the market and get information about people's needs
that helps to introduce designable water bottle with unique shape and metallic body effectively.
Narrowing the funnel: This is developing stage where products should be develop
according to market demand. In this, Chilly's management build strategies and planning for the
purpose of development of their new water bottles by designing the plastics in other structure.
Narrow part of the funnel: This is consider as endmost stage that states that all
predetermined strategies and step are effective to meet with business objectives. In this process
products and services are shipped by management that helps in transportation of products
effectively in order to increase productivity.
P4 Developments in frugal innovation and examples to used in organisational context
Frugal innovation: This is a business concept which focus on limitation of financial
resources, material and institutional resources and remove the difficulties effectively. This
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process is mainly used by organisation to reduce the manufacturing and production cost that
helps to make higher profits. This is suitable approach for each organisation that maximize the
productivity and profitability (Kusharsanto and Pradita, 2016). Chilly organisation uses this
process to eliminate the non effective cost such as:
Environmental constraints: By using frugal innovation Chilly can increase its
production by removing the environment hurdles. Such as management of such organisation uses
plastic for designing and producing water plastic bottles which strengthen the production (Block,
Fisch and Van Praag, 2017).
New technology platform: This is other feature which is used by Chilly's management
in order to reduce the cost of innovating water bottles. Moreover, it helps to create many
opportunities for business organisation.
Therefore, frugal innovation process is used by management of Chilly who reduces the
cost of technology and increase eco friendly environment that helps to introduce new product
efficaciously.
Task 3
P5 Importance of the commercial funnel and the application of New product development
Commercial funnel: This is sales funnel which depicts the process, used by business
organisation to attract customers and engage them in purchasing process. Under this process,
firm identify, implement and sales its products and services by attracting people. In other words,
sales funnel pull customers on the side of new products and services. This process is used by
Chilly because:
 It helps organisation to make attractive marketing strategy and plan.
 To create a good and healthy environment by reusing the plastics.
 To grow and develop the business by using different ways.
 To increase productivity and sales volume of business organisation.
 To capture high market share by making good relations with customers.
New product development process: An effective process which is used to find the basic
methods for introducing new products and services in business market. Chilly is using NDP
process for the purpose of improving sale of business organisation such as:
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Idea generation: It refers as systematic process of generating new and creative idea for
the the purpose of developing the products effectively (Rainville, 2017). For instance, Chilly
design existing products on the demand of young generation that is designable water bottle with
unique shape and metallic body according to current generation.
Concept definition: Companies need to define the specification of particular products to
customers that processed to product development. This process allows Chilly's management to
show their customers how their new products are differ from others.
Market analysis: To launch any new product in market, management needs market
analysis that states wants of targeted customers efficiently (Krasyuk, Kirillova and Kozlova,
2017). In context to Chilly, market analysis should be done by organisation in order to sustain
their position for long period by introducing new product.
Product development: This step is require to development of product by gathering all
information as well resources that helps to maintain the profit. By using this process Chilly
develop the water bottles and attracts customers in wider range.
Commercialisation: This is ending process which is used by organisation to manage all
business activities in order to attract customers and sale them products and services. Chilly is
playing huge role in commercialisation that helps to increase the number of customers by
improving the products such as it has developed new product and uses marketing activities in
order to increase customers.
P6 Build an innovation Business Case for an organisation
Business case is a written strategies which is sued by Chilly in order to measure its
business performance and improve its existing product effectively. The management of chosen
company has prepared a business case such as:
Summary: Chilly is a producing company that has aim to provide people with ability to
have always cold water by using plastics (Purchase, Kum and Olaru, 2016). Company is
introducing new designable water bottle by understanding the demand of customers and making
eco friendly environment.
Mission: “To accelerate the adoption and make reusable products for customers”
Objectives:
 To develop the new product in order to capture market share more.
 To increase productivity and profitability.
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SWOT analysis:
Strength Weakness Opportunity Threats
 Innovation in
products by
creating new
ideas.
 Focus on
customer needs
and healthy
environment.
 Lack of
technological
adoption.
 Competition in
same industry.
 Innovative
products
change the
mind of
people.
 Brand value for
customers.
 Changes in
currency and
tax rates.
 Lack of
transportation.
Funding: Chilly has various option to arrange the funds such as banks, financial
institution, venture capital, angel investor etc. that can provide funds to innovate the products
effectively.
Benefits: By using business case Chilly can make bright future of organisation as it
attracts customers towards its new products and increase it number of sale in order to make
profits.
Task 4
P7 Different tool used by business organisation to retain and protect knowledge
Business organisation should use different techniques in order to protect their knowledeg
and remain competitive organisation. Such as Chilly's management are using different tools to
protect their products:
Copy right: This is unshared right which does not allow to other to create same type of
creative activities. This right make sure that their products and services is not to be copied by
others.
Trademark: It defines recognition of sign, design logo and expression that distinguish
from other's product and create a goodwill (Suzdalova and et. al., 2017). It helps to to give a
different identity in business market that helps to gain competitive advantageous.
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Patent: This technique used by business organisation to get legal rights or licence for
their innovative products which cannot be used by others. Such right is given only for particular
period that need renewal again after the expiry.
Chilly organisation should use patent method to save or develop its products that can
attracts customers more and increase productivity. In this, no one has right to produce same kind
of product which is designed by Chilly. Such organisation is using the waste material and
plastics in order to produce some thing new and different. There is need to follow some
strategies which helps to maintain the profit margin. So, Chilly uses plastics in order to make
water bottles and reduced environmental hurdles.
CONCLUSION
From the report it can be concluded that, organisation should produce something new that
helps to retain the customers for long term. The main aim of business organisation is to increase
the market share by developing different types of products and services effectively. Innovation
and invention are different thing where products are modified in innovation and new or
innovative products are identified in invention process. New product development process is
used to introduce from new products and services by using different strategies. By taking
innovation, company can increase production as well as profit level at work place. Innovation
mix model is used to introduce a new product by following some steps that helps to operate a
business successfully. Innovation funnel is mainly used by organisation in order to shaping the
innovation and commercialisation. Different tools should be use by a company that give rights to
save its products from copies.
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