Innovation and Commercialization: A Report on Chilly's Business

This report examines the innovation and commercialization strategies of Chilly's, highlighting the importance of innovation compared to invention. It explores how organizational aspects such as vision, leadership, culture, and team dynamics shape innovation. The report delves into the 4 P's of innovation (Paradigm, Product, Process, Position) and the application of the innovation funnel. Frugal innovation development is discussed, along with the commercial funnel and the significance of new product development. The report provides an innovation business case for Chilly's and outlines different types of intellectual property. Key concepts such as customer satisfaction, competitive advantage, and communication within an innovative culture are also addressed. The report also analyzes the sources of innovation within the organization and how to foster an innovative environment.

Innovation and
Commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 What in Innovation and Its inportance..............................................................................1
M1 Different source of innovation how organisations can foster and develop an environment
and culture of innovation........................................................................................................2
P2 Explain how Different aspect of the organization can affect and shape innovation and
commercialization..................................................................................................................2
P3 Explain Innovation and Innovation 4 P's..........................................................................3
P4 Frugal innovation development........................................................................................6
M2 Application of innovation funnel.....................................................................................6
M3 Role of frugal innovation.................................................................................................7
D1 Critically analyse how innovation is developed, embedded and measured in an
organisational context.............................................................................................................7
As per Peter F Drucker there are 7 source of Innovation.......................................................7
P5 What importance does commercial funnel and application of New product bring to the
company.................................................................................................................................7
P6 Innovation Business Case.................................................................................................9
M4 & D2 Overall effectiveness using appropriate techniques available to test, iterate and
improve.................................................................................................................................10
P7 Different type of Intellectual Property (IP).....................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is one of the ongoing process in which the organization try to generate the new
and creative idea through which the Cited Firm try to satisfy the need and requirement of
customer in the market. Case study of Chilly's is the basis on which report is made. Report start
with highlights the importance of innovation in comparison with invention. After that the report
highlighting how different aspect in the organization can affect and shape the innovation. After
that the report explain innovation 4 p's and explain the use of the innovation funnel to examine
and shape innovative ideas. After that the report highlights commercial funnel and the New
product development application importence. Then report highlights the Innovation business
case for the selected organization Chilly's. In the end the report highlights the different tool
which can be used by the organization about intellectual property.
MAIN BODY
P1 What in Innovation and Its inportance
Innovation is one of the ongoing process in which the organization try to generate the
new and creative idea through which the Cited Firm try to satisfy the need and requirement of
customer in the market Innovation is generally performed to find out the solution of the issue or
concern which is faced by the consumer in the market. Another reason which force or drive the
company to implement the innovation in the Firm is by looking at the opportunity which is
available in the market. In simple word, it can be said that the innovation is the supporting
process of the research and development which is performed in the organization (Akter and
Rathnayaka, 2019)
Innovation and Invention are the two word which used to be together many time but in
real both are very different from each other as Invention refer to bringing very new product in
the market, which was never had been made before. At the same time innovation refer to
implementation of idea for the product which has been already in market or implying process for
first time. Generally, invention build new product but innovation adds value to existing product
of the company. Invention generally happens when new idea strikes the individual. At the same
time innovation happen when need or improvement is realized by the Cited Firm in the market.
The biggest similarities in both the process is that both the process are based on the Research and
Development activity.
Importance of Innovation
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Customer Satisfaction: All the Firm which are setup with the sole motive of satisfying
the customer in the market. As customer are the one who used to consume the product and all the
decision which are taken in the organization are taken with centralizing the customer. Innovation
may prove crucial in helping the company in effectively satisfying the need of the customer in
the market as innovation process looks at the requirement of consumer in the market and try to
develop the product which can satisfy the need of the customer (Antony, Setijono and Dahlgaard,
2016). This will eventually result in increasing the efficiency of work in the organization.
Competitive Advantage: Innovation is very important process for the company in
getting the competitive advantage in the organization. In the rapidly changing environment it is
very important for all the Cited Firm to have a USP of the organization to be competitive in the
market. Innovation proves good for the company in developing the USP of the organization
which eventually help the organization in getting the competitive advantage in the market.
Communication: Innovation not only help the Cited Firm in improving the profitability of
the business it helps the Cited Firm in improving the internal environment. As in the innovative
culture there is a free flow of communication in the organization as new and creative idea are
pass on to the many stages in the organization before getting the approval.
M1 Different source of innovation how organisations can foster and develop an environment and
culture of innovation
In order to bring innovation in the organisation it is very much important that the overall
culture of the enterprise is changed. For Chilly the foremost source of innovation is building
effective teams. This will assist in welcoming change and will develop a competitive work
culture. Another major source for change is motivation. In context of same whenever something
new is suggested by the employees it should be encouraged and implemented if found worth.
This will further raise their interest in the work and hence the overall productivity of the firm
will be raised.
P2 Explain how Different aspect of the organization can affect and shape innovation and
commercialization
Innovation in the Firm is always drive by many internal and the external factor as they
used to have an impact on the thinking and the way innovation shape in the Cited Firm.
Organization Vision: As chilly's was founded with the vision that they have to provide
the cold water to all the people in the society without hurting the environment of the society.
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Many competitors were also in the market for the Chilly's but organization has innovated on the
regular basis to increase product line in the market to be competitive. So the Vission of the
company drive the Cited Firm to change and shape the innovation process on the regular basis.
Leadership: Leadership is the process in which the leader tries to influence the different
order to the individual so that the work of the individual can contribute in achieving the
organizational objective (Archibald and Archibald, 2016). There are many type of leadership
style which is used by the leader to influence the work of the employee which shapes the
innovation process in the Firm. As leadership style like democratic and supportive help the
business in getting the best idea out of the employee as all the employee are given the authority
to keep their point and the view point in the organization.
Organization Culture: Organizational culture is the aggregate values and norms and attitudes of
the employees and the process which defines how things used to run in the organization. Culture
is heavily influenced by the country value and attitude so it has impact on the innovation process
as the value and attitude of all countries are different so organization require to be flexible in the
way innovation are adopted in the company.
Team: Team is the group of the people with common interest come together to solve the
issue or to complete the task of the company. All the task which has been performed in the Firm
are performed in the team dynamic. Also all the team used to discuss the different idea which are
possessed by their member and the best idea is pass on to the team which used to see the
innovation work in the company. This influence the innovation process in the Firm as
organization used to get many different ideas to innovate the product in the organization.
Demographics: It is one of the biggest source of Innovation in which our lifestyle can also be
source of innovation.
Changing Perception: The perception of the people used to change on the regular basis which
gives birth to the innovation.
Knowledge: Knowledge about the market also play a very crucial role in giving birth to the
innovation. As new area are discovered and get added to the knowledge on regular basis.
P3 Explain Innovation and Innovation 4 P's
There are 4 P's of innovation also known as an innovation mix which looks at the different
aspect of the innovation in the Cited Firm. This P's was developed by John Bessant and Joe Tidd.
4 p's of innovation are:
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Paradigm: It is the process in which the organization faces the problem of changes of
being taken innovative idea and the thinking process. Chilly has to find out the solution how to
do the business in the changing situation for the business as the organization is facing the
competition in the market they have to make sure that the Firm increases the product line to be
competitive (Arora, Athreye and Huang, 2016).
Product: Product is the thing which is offered by the company to the consumer in the
market with the sole motive to satisfy their need. Organization continuously add the value to the
product of the company to satisfy need of the customer. Chilly's has to make sure that the
product which will be brought by the company should be unique enough to add the value to the
customer.
Process: Process is the way or path through which the innovative product is developed
and offer to the customer in the market. Chilly's has to make sure that the Cited Firm uses the
mix of the distribution channel to provide the product for the customer in the market as
depending on one distribution will affect the efficiency of the business.
Position: Position is the way the Firm is hoping to present the product and company in the
market. Chilly's has to make sure that the organization promotes the environmental message in
the market which will prove crucial for company in getting the attention from the customer end
also.
INNOVATION FUNNEL
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Innovation Funnel is a Funnel management process which help the business in creating an
effective innovation and the realistic plan in the company. There are many different type of the
idea which can be undertaken by the company to innovate the function in the organization.
Funnel innovation is the process which provides with the graphical structure so that on basis
same thinking about the generation and alternative development options, and combining can be
used in product concept.
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Illustration 1: Innovation Funnel

P4 Frugal innovation development
Frugal Innovation is the process in which the organization takes the innovative decision to
reduce the cost of organization. Generally, this is performed in the company in such a way that
the Cited Firm try to remove the wastage of the company in the production or can remove the
non-essential feature from the product of the company. Frugal innovation used to play a very
essential role in getting attraction of the customer in the market as cost used to play a vital role in
competitive advantage. Income and expansion are also two big factor which drives the frugal
innovation in the organization. Manager of Chilly's can use this method to bring the innovation
in the Firm.
For example:
Chilly's is the organization who used to manufacture water bottles in the market to be
offered to the consumer in the market. Company used to manufacture the water bottle with the
use of hi technology and environmental method. The difficulty which is faced by the
organization is that they are many other competitors also in the market who used to offer the
same thing in the market. So with the help of the frugal innovation organization can improve the
supply chain and can install lean production technique in the organization so that with the help of
the same organization can reduce the cost of the company can offer the same product at low rate
to get a competitive advantage.
Application of Frugal innovation in Chilly's
By analyzing the market and the need of the customer in the market Chilly's will be
applying the Frugal innovation in the Cited Firm for launching the new product of the company.
In which Firm will be making effort to improve the supply chain of the company by introducing
the clarity of order among the employee involved in supply chain (Baldwin and Henkel, 2015). It
will help the company in reducing the wastage in the company which will eventually help the
organization in offering the energy drink in the market at a lower rate as compare to the
competitor in the market. Manager will also purchase the raw material in the larger quantity so
that the company is able to get the big discount from supplier which will help the company in
reducing cost of the product in the organization.
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M2 Application of innovation funnel
Innovation funnel is a very useful model for Chilly’s as whenever an innovation is planned
it is first evaluated using the same concept. First step in which is taken is gathering the
information and investigating about the information in the market by looking at the needs and
requirement of the customer in the market. After that the funnel process look at the best idea
among the different idea which is apt for implementation of innovation (Bagno, Salerno and da
Silva, 2017). After that organization sees the consequences of the company and on the basis of
the same innovation is implemented in the Firm.
M3 Role of frugal innovation
Fugal innovation plays a crucial role in Chilly’s as it helps the firm to take corrective
actions against the limitations of its resources. Through this concept pocket friendly solutions are
found for the business which give good return on the investments made. Also when the frugal
ideas are adopted company can cover greater market share as it delivers affordable products and
services then which has huge demand in the market.
D1 Critically analyse how innovation is developed, embedded and measured in an organisational
context.
As per Peter F Drucker there are 7 source of Innovation
Unexpected: Innovation can take place unexpectedly or may be stumble upon a new idea or
product.
Incongruities: when need is in congruent with supply innovation might be born.
Market structure: In this source the innovation used to born by looking at the existing
marketing structure.
Necessity: In this innovation used to take place when there is need of something in the market.
P5 What importance does commercial funnel and application of New product bring to the
company
Commercial funnel used to show the journey of depicting their sales process, which
starts from awareness to action. Commercial Funnel used to work on the basis of four section i.e.
Awareness section, which has the idea about the business but not shows the interest. Interest
section is the section in which interested customer are there. Decision section of the customer iis
the section which comprise of confuse customer about the company offer as compare to the
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competitor company offer. Action section is the section which has customer who has already
decided based on company marketing strategy.
The biggest importance which is brought by the commercial funnel is that it helps the
business in having thorough knowledge about the customer which need to be targeted by the
company and also prove crucial for the company in understanding difficulty faced by the
consumer in market (Bertoni and Tykvová, 2015). So that on the basis of the same the Firm used
to pick up the best marketing strategy available in the market. This will help the organization in
bringing the innovation on the basis of the customer identified. As It will be important for
Chilly's to focused on customer rather than the Firm working.
Competitive advantage is the another benefit which is brought by the commercial funnel
to the organization as it will help Chilly's in getting the perfect direction on which the company
can work on to. As there is a huge level of the competition in the market but it is not compulsory
that all the organization has the perfect direction which will help the company in getting the
advantage in market.
It will also help the Firm in relating with the different customer in the market as after
going through the commercial funnel the organization is easily able to relate the customer of the
company with the type of the product which is developed by the company (Bertoni and Tykvová,
2015). This will help the company in building the good trust factor with the customer in the
market.
New product Development is the process in which company brings the new product to the
market place. Generally the organization used to engage in this type of the organization is the
change in the customer preference, competition and technology. This is the process which
includes the 7 stage changing program that start with new product strategy and ends at
commercialization idea generation, screening and evaluation, business analysis, development,
testing is the middle part.
NDP helps the business in providing the added and new value to the customer of the organization
which helps the business in building the trust between Firm and customer.
NDP help the business in improving the product line of the company which helps the business in
offering the variety of the option to the customer. As Chilly's is looking to increase the product
line of the company it is very important process.
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P6 Innovation Business Case
As the Chilly's is facing the healthy competition in the market the company has to innovate the
new product in their product line to be competitive in the market. A company is looking to
introduce energy drink to increase the product line.
Requirement
It is analyzed chilly's company performance has fall due to competition, one of the major
reason behind decreasing performance due to lack of product offer by the company. Also,
customers taste and the preference are changing is the big requirement for change.
Solution
The best way through which the organization can survive the competition is by increasing the
product line of the company for the same reason company is looking to bring the energy drink in
the market. This will help the company in offering variety of the product to the customer in the
market.
Innovation need
The need of bringing innovative product in the product line is that the organization has seeing the
good amount of the competition in the market. So it will be difficult for the company to be
competitive with just one product in the market so there is requirement of the new and innovative
product in the market to be competitive (Coleman and MacNicol, 2016). Another reason for
innovation is that there is a good demand of the energy drink in the market.
Market research
Market research about the product will be done by the company with the help of the
going through the feedback of the consumer which will be revived by conducting the survey by
the company. Survey will be conducted with the help of questionnaire which will include open
ended and close ended question so that the best information about the need and the requirement
of the customer can be gather in better way. Survey will be conducted on the existing customer
of the company. Manager of the Chilly also have to invest very heavily in the R&D activity of
the business as it will help the company in getting the best information from the market.
Investment requirement
1000 pounds will be budget of Chilly's for this project.
Possible outcomes
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This Project will prove crucial in increasing the sale of the company, will also help in
increasing the product line of the company which can help the company in getting the
competitive advantage in the market. (Mortazawy, 2018). As there is a good demand of the
energy drink in the market it may help the organization in increasing the market coverage area of
the company.
Source of Fund
Their are many source of the fund which is available in front of the chilly's to borrow the
fund and invest in the new project.
Share capital: It is the best way through which the Firm can issue the capital in which the
company has to issue the share in the capital market and have to invite the application for the
same. This is the one of the most secure way through which the capital can be issued by the
company (Cooper, 2018).
Bank loan
This is the another source which can be used by the company in which the organization
has to apply for the bank loan. In which the Bank will be funding the company for the new
product but will demand the interest in return of the same.
Personal savings and Reserve
It is the another way through which funding can be sourced by the company in which the
company has to take the funding from many reserve available or owner have to invest own
money in the Firm.
M4 & D2 Overall effectiveness using appropriate techniques available to test, iterate and
improve
The above business case is effective enough to bring innovation in the business. In order to
check or make sure that the desired results are achieved from same key performance matrix can
be used as through this evaluation of the plan can be done at different levels which help in
knowing that weather the set standards are achieved or not.
P7 Different type of Intellectual Property (IP)
Intellectual Property(IP) is the category of property which includes intangible creation of
product of the human intellects refers to the creation of the mind such as inventions with works,
designs and symbols in proper manner.
Patents
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