Report on Innovation and Commercialisation in Entrepreneurship Module

This report delves into the concepts of innovation and commercialisation, crucial for business success, using Chilly's Bottles as a case study. It differentiates between invention and innovation, highlighting their importance and the drivers behind organizational innovation. The report explores organizational vision, leadership, culture, and teamwork's impact on innovation. It then examines the 4Ps of innovation (product, process, position, and paradigm) and the innovation funnel, illustrating their application. The report also analyzes different sources of innovation and explains how Chilly's Bottles can leverage these concepts for commercial success. The report covers the importance of innovation, invention, and the organizational aspects influencing innovation, providing a comprehensive analysis of the topic.

Innovation and
Commercialisation

Table of Contents

INTRODUCTION
Every organization in the world has to deal with the different types of demands and
satisfactions of the customer and the success of the organization mainly related to the
fulfilments. Innovation is the process of creating and developing the such business offerings that
may accomplish the desires and requirements of the consumers along with the betterment of
manufacturing process and assembly lines (Kirkegaard Sløk-Madsen, Ritter and Sornn-Friese,
2017). In today's commercial world, it is necessary to continue innovate new content and
creations which are the core business of the organization so that customer needs can be satisfied.
For the presentation of this report, the organization which have been chosen is the
Chilly's Bottles that was established by James Butterfield and Tim Bouscarle in 2010 in order to
provide reusable water bottles and flasks which will also be eco-friendly. This report will explain
the variances between innovation and invention and elaborate various types of the innovation. It
will also discourse the operations needed for the commercialize innovation and a extent of tools
for protecting ideas.
TASK 1
P1 Importance of innovation in comparison with invention:
Invention: Invention is the procedure of making new items, products or services or
developing new methods of making these products or services. This is the first step that take
place before the process of innovation. Product designing, business models and working
prototypes are the example of inventions. Creativity is the most important element for new
inventions without which inventions can not occur (Sağ, Sezen and Güzel, 2016).
Innovation: Innovation can be defined as the activity that transforms a thought or idea
into a usable product or service that may create a value or for which the customers will be ready
to pay a price. An idea that is representable at a financial price and fulfil a particular requirement
can be called innovation. The process of innovation involves continuous application of
imaginations, informations and initiatives that can utilize the resources in a different way to
convert them into new useful product or service. There are numerous forces that drive innovation
in an organizational environment such as courage, intellectuality, thinking and differentiating.
Importance of Innovation and Invention: The capability to formulate new idea or
thought of a new useful product or service and innovation which is the process of actualizing the
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idea into action both are significant for an organization to create and develop its business. When
an organization will invent new products and innovate new ideas or services then it will
ultimately get competitive advantages in the competitive marketplace (Souto, 2015). In case of
Chilly's Bottles, when the organization tried to find out new productive ideas of reusable plastic
bottles and flasks, then it will ultimately become a successful company. For instance, Apple
company innovate its products and launch the devices every year with distinctive services and
facilities that makes the company most successful in present market.
Difference between invention and innovation:
Invention Innovation
Invention is defined as the emergence or
occurrence of an idea for a completely new
product or precess.
Innovation can be referred as the execution or
implementation of new invented idea for any
product or process (Weisburd and Braga,
2019).
Invention requires several scientific skills. Innovation needs technical, strategic and
marketing skills.
This concerned with single product and
process.
On the other hand, it is concerned with
combination of products.
Commercialization: This is the process of introducing new products or services into the
market that is economically beneficial (Molnar, 2018). This process includes numerous key
functions such as production, marketing, sales, distribution, customer support, etc. to make the
products and services successful. In case of Chilly's Bottles, the vision of the company is to
accelerate the adoption and utilization of reusable products. The aim of the company is to fulfil
the vision through introducing business offerings for an urbanized lifestyle with complete
balance of classic style.
The company is expanding the range of wider selection of reusable products with more
interesting development in products. This is making the company more competitive and bring
innovation in the business in order to decrease the cost of production and products can be
commercially successful.
Chilly's vision:
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The main vision of Chilly's is to adopt more and more unique policies and strategies
everyday in order to make reusable products by developing products within the urban lifestyle.
With the help of vision Chilly's can easily promote their services by applying innovative
tools and strategies in a proper way. Whereas, they can also commercialise their products by
including so many aspects like sales, distribution, marketing, customer support and so on. By
having different types and strategies they can make better ways to promote their products by
applying innovations and commercialise its goods and services appropriately. Therefore, having
effective vision will promote their innovations and commercialisations.
P2 Impact of organizational vision, leadership, culture and teamwork on innovation:
The achievement of an organization vastly depends upon the vision, mission, leadership,
culture of the enterprise and teamwork spirit of the worforce.
Mission- The mission statement of the organization explains the motive behind the creation and
survival of the company
Vision- The organizational vision provides help to the employees to interpret their roles and
responsibilities according to the organizational objectives. Company's vision clearly explains the
future aims of the organization what it want to become or achieve in the particular time period.
For being innovative, the selected establishment needs to develop innovative visions and have to
explain them to the employees clearly.
Culture- The behaviour of the organizational people and attitude of the leaders also influence the
environment of the company. Each team member or employee must be more innovative at its job
and motivated by the leaders. For example: if Chilly's will provide reusable water bottle in
different shapes and colours by applying innovative thoughts and ideas then it directly influence
society culture and help firms to promote their vision at large scale level.
Leadership- Leaders are responsible to operate the workforce with their adequate assistance and
assign the resources that are essential for making the employees more innovative. Organizational
culture must be innovative and encouraging (Choi, 2016). For example: Chilly's have large
number of employees within the workplace then they are able to make unique collaboration
within groups and team members in order to promote its vision by applying new ideas properly.
Therefore, leadership plays very significant role within the organisation who encouraged
employees in a proper way.
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Teamwork- The team work is also crucial in the aspect innovation. This is so because if there
will not be team work among employees then all activities can not be performed in an effective
manner.
To enhance their cognition and acquirements team work is primary requirement of every
individual. If the organization permits free flow of strong concepts and ideas, they can mix more
increased values within the team culture of the establishment and also beings more innovative in
nature. Google is fabulous and famous for its creativity and the most effective feature behind
their success is their team culture. Similarly, Chilly's Bottles requires that it adapt all the
mentioned elements that help the entity to implement and develop the innovation within the
environment of the establishment.
M1 Different sources of innovation:
There are various sources are available that can motivate the innovation within the
organization. Some of them are incongruities, process change, industry and market structure,
demographics, perceptional changes, new technological knowledge, etc. These sources are
helpful in creating an innovative culture and environment within the organization. These sources
enhance the knowledge of the employees and make the process and products more efficient and
effective. Innovation within the organization can be foster with the help of these sources as they
are responsible for bringing creativity and productivity within the organization.
TASK 2
P3 Explanation of 4P's of innovation and use of innovation funnels:
Innovation funnel- This can be defined as a kind of mechanism which is being used by
business entities in order to create innovative and realistic plan (Yun, 2017). It is beneficial for
those companies who want to launch new innovative products in market because by help of this
approach they can become able to perform different activities in an effective manner. Such as for
Chilley's bottles, this can be useful in order to launch new innovative products.
The concept of innovation space was established by Bessant and Tidd and first published
in 2005. This concept covers 4 elements that will help in understand the innovation in a more
explained manner. These four P's are presented as below:
Product Innovation: development of the products is the first thing that comes into mind
when innovation takes place. The sale estimations of the organization determined by the products
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or services that are offered within the market so while developing the design of the product, the
management must be very careful. Chilly's Bottles needs to analyse the market trends while
innovating the products.
Process Innovation: Process innovation is all about the changes, alterations and
modifications in the processes or methods with which the products are created (Vanhaverbeke,
2017). In order to break the rigidity and make the process more cost efficient and effective, it is
necessary to evaluate the performance of the process and make necessary changes into the
procedures. Such as in Chilly's Bottles company, they can modify their process in order to
produce their bottles in cost effective manner.
Position Innovation: Position innovation derives changes in the context in which the
business offerings are launched or introduced. This innovation factor is focused on the
communicating and framing with the products and services. It is related to the changes that a
specific product is perceived and how business offerings are utilized. In the aspect of above
company, they can make innovation in their locations wherein they sell out their products.
Paradigm Innovation: The endmost portion of innovation space is inflation or paradigm
innovation that explains the situations and challenges to be faced after innovating the product
and later on going through the process of product what we have changed in it (Dolińska, 2015).
In Chilly's Bottles this innovation can be beneficial for them in order to specify the changes done
by them in manufacturing of bottles.
Innovation funnels: Innovation funnel can be explained as a technique or mechanism
that helps in developing a product or process. The main purpose of this technique is to create
some procedures and systems that can refine the products in the initial stage of development.
Chilly's Bottles also adapt the three steps of innovation funnel to develop its products, which are
defined as under:
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Source: (Innovation Funnel, 2019)
Research- In this stage of innovation funnel, companies conduct proper research in order
to gather key information about customers need want and demand. Such as in above company,
they are needed to do research of market to get perception and mind set for their existence
products.
Development: After analysing the market, the company needs to manufacture the
products as per the customer demands. With the help of development process and innovation
funnel, selected organization is able to develop useful products.
Commercialization: This is the last process of innovation funnel. It is referred as the
process of transfer the products from the place of manufacturing to the place where it should go.
Better execution of this process saves the company from unnecessary damage of the products
(Brem, and Viardot, 2015).
For example: If Chilly's organisation follow all these above mentioned steps from the
innovation funnel then they can easily evaluates different types of stages in order to make unique
ways to meet business needs and goals in a proper way. Whereas, 4 P's of funnel innovation
always influence other in a proper way and encourage firm to develop different types of goods
and services as per the customers demand. Therefore, innovation funnel is more important for
Chilly's to achieve targeted goals and objectives in a proper manner.
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M2 Analysis and application of innovation funnels:
For building an innovation funnel, strategic thinking is crucial. With the help of
innovation funnel, the company is able to increase the overall value of the organization
irrespective of availability of the resources. The process of innovation funnel consist some steps
which are; strategic thinking, concept, planning, development, qualification, introduction or
launching and life cycle. The most significant part that is used to build and manage the
innovation funnel is the strategic plan of the establishment that needs to be really very effective.
P4 Development in frugal innovation:
Frugal Innovation: Frugal innovation which is also known as frugal engineering can be
defined as a process that assist the organization to decrease production and manufacturing costs
and eliminate the complexities and difficulties of production process. Any type of establishment
can use this innovation process because it helps in removing non-effective features of the product
(Kennedy, Whiteman and van den Ende, 2017).
Source: (Frugal Innovation, 2019)
The management of Chilly's Bottles adopted this economical innovation method so that
the company can cut off the irrelevant costs from production line, control design cost, improving
product development efficiency, simplify the manufacturing process, eliminating irrelevant
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features and collecting the capital and investment for the business development. The production
cost of reusable bottles can be reduced by cutting off the cost of development and designing of
the product and by adding only one significant and valuable feature into the bottles that are
provided by the company. By reducing the cost, company is able to provide its products on a
lower price which will help in attracting the new customers and take the competitive advantages
of the market.
M3 The role of frugal innovation in organization:
Frugal innovation is a concept that helps the business to respond in the situation of
limited resources and turn the difficulties into innovative ideas (Rigby, 2016). This innovation is
necessary for the establishment as it plays an important role in cutting funds to decrease debts
and lacklustre the growth, implementation of new and advanced technology, adapting changes of
dynamic market trends, controlling environmental constraints and caring for rapidly ageing
community.
D1 Critical analysis of how innovation is developed, embedded and measured:
Innovation is an entire process that can be developed within the organization with the
help of innovative employees, effective teamwork, creative culture and motivational leadership
(Canning and Szmigin, 2016). Various types of innovation such as process innovation, paradigm
innovation, frugal innovation, etc. helps in embedding the innovation. To measure the
performance and degree of innovation in the organizational environment, innovation funnel can
be the measurement tool to analyse the process.
TASK 3
P5 Importance of commercial funnel and application of New Product Development:
Commercial Funnel: Commercial funnel which is also known as sales funnel or revenue
funnel can be referred as the purchasing or buying procedure of the company that leads the
clients or customers while they are purchasing or marketing. This is a marketing concept that
assess the journey of a customer when making any kind of product or services. There are four
basic steps of commercial funnel which are; Attract the strangers, Convert them into visitors,
Close the leads and Delight for the customers (Slavtchev and Göktepe-Hultén, 2016). A sales or
commercial funnel is important for the selected organization because:
 It assist the organization to plan a marketing strategy.
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 It provides help in increasing sales volume of the company.
 It also provides help in making better relations with the clients or customers.
 The commercial funnel gives an edge against new and potential entrepreneurs.
 It also helps the organization to improve the ways to grow the business.
New Product Development (NDP) Process: NPD process is the process to identify the
core methods that are crucial for introducing new products and services in the marketplace. This
process is developed by the Chilly's Bottles to improve the sales of the organization at the time
of market emergence. Several stages that are followed for NPD process are presented below:
Idea Generation: To manufacture products according to the needs of the customers, it is
essential to develop new ideas and initiatives for altering current products. These ideas must be
creative and based on the current market trends and requirements of the clients. Chilly's Bottles
manufactures products which are based on the demand of environment concerned customer base.
Concept Definition: With the help of this step, the selected establishment tries to define
and explain the product specification according to the customers. Product differentiation is the
most important part of this step. The Chilley's bottles has opportunity to show that how it is
different from the others in the market and what extra features it can provide to the customers
(Pilav-Velić and Marjanovic, 2016).
Market Analysis: Before developing the product and introduce it into the market, it is
necessary to analyse the condition and status of the market first. Market demand and trends
should be identified before launching the product. In Chilley's bottles company they are needed
to determine the potential target market and pricing strategies before launching new bottles and
flasks.
Product Development: After market analysis, it is significant for creating and developing
new design and adding new features in the products in such a manner that it can attract the
costumers effectively. The Chilly's Bottles designed its bottles in such manner that customers can
hold them easily and grip on the bottles would be stronger.
Commercialization: Commercializing is the process that includes the exhibition or
advertisement of the products into the market. It is necessary to promote the product into the
market after testing it so that customers can be aware about the product and attract to purchase it
(Park and Ryu, 2015). Such as for above Chilley' bottles, they will needed to make advertisement
of their bottles into the market so that customers can aware about their product.
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Ways to access funds: Financial resources are known as one of the most significant
resource require to implement business operations as without funds a company cannot carry out
its commercial activities. To introduce innovation Chilley’s bottle also require funds and
different ways that could be use by company to get funds can be understood by following points:
Bank loan: This is one of the most effective tool or source of fund that could be employ
by enterprise to get funds for implement business activities. In this, banks offer loan to firms and
charge a set percentage of interest.
Crowd funding: This is another way of raising fund, under this, amount of finance is raise
from large number of people with help of internet. This is one of the fastest way of getting funds.
P6 Innovation business case of the organization for access funding:
Background of company- The company was founded on 26th of July 2010. This is located
in London, United Kingdom and involved in process of manufacturing of bottles that can be
reusable. The motive of company is to protecting environment by providing reusable bottles to
customers.
Mission- The mission of company is to enforcing everyone in order to adopt reusable
products so that environment can be protected.
Vision- The vision of above company is to making existence of reusable products in
entire United Kingdom so that environment can not be harmed.
Need of innovation- The innovation is needed for above bottle manufacturing company
because if they will adopt innovative strategies in their production then their customers will
attract to buy their products (Kobarg, Stumpf-Wollersheim and Welpe, 2018). Otherwise in the
absence of proper innovation, this can be difficult for them to meet with their mission and
visions. For them innovative products can be kind of bottles in which cold item can remain cold
for more then 24 hours as well as hot drink can remain hot for long time period.
Opportunity in the market- For above company, the opportunity in the market for their
new innovative product is range of customers who need similar product (Jeong, 2017). As well
as another opportunity for them is uniqueness of their product that may attract maximum number
of customers.
Way in which innovative product meet their need- Their innovative product can meet the
need of their customers. This is so because customers want to a kind of product that can keep
their drinks in similar form for long time period.
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