Chilly's Company: Innovation, Commercialisation Report Analysis

This report examines the innovation and commercialization strategies of Chilly's, a company that introduced reusable water bottles. It delves into the importance of innovation, organizational vision, leadership, culture, and teamwork in shaping commercialization. The report analyzes the 4Ps of innovation (product, process, position, and paradigm) and the innovation funnel to shape innovative ideas. It also highlights the significance of the commercial funnel and presents an innovation business case. Furthermore, the report evaluates the tools used by the company to develop, protect, and retain intellectual property, offering a comprehensive overview of Chilly's approach to business development and market success. The report also compares innovation and invention, and provides a detailed analysis of the various sources of innovation within an organization.

Unit Number and Title 08:Innovation and Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Importance of innovation to the Chills organization comparison of invention..........................4
Organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation........................................................................................................................5
Different sources of innovation that foster and develop an environment and culture of
innovation in organisations..........................................................................................................6
LO 2 ............................................................................................................................................8
4Ps of innovation.........................................................................................................................8
Developments in frugal innovation............................................................................................10
LO 3 ..........................................................................................................................................12
Commercial funnel.....................................................................................................................12
Innovation Business Case ........................................................................................................16
Executive Summary...................................................................................................................16
LO 4.............................................................................................................................................1
Different tools that company used to develop, protect and retain knowledge.............................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1
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INTRODUCTION
Innovation in business is one of the most important thing which has to take company at
high platform. It defines as procedure of making money and creating ideas or innovation into
service or products that create value for which consumer will pay. Commercialisation is the
process of selling innovative products and services in the return of monitoring gains. The present
report is based on Chilly's organization which started their business in 2010. This report explain
innovation and their importance for company and also clarify organisational vision, culture,
leadership and teamwork that shape commercialization and innovation. It justifies 4Ps of
innovation and innovation funnel to shape innovative ideas. This study explain importance of
commercial funnel and reflects the innovation business case for company. Furthermore, this
report evaluate various tools that firm used to retain, protect and develop intellectual property.
LO1
Innovation is the procedure of translating an invention or idea into service or products
that create value for which clients will pay. Its aim is to bring something new as well as different
from existing products within marketplaces. In business, innovation results when new concept
and ideas is applied by organizations in order to satisfy the requirements and needs of consumers
(Brem and Viardot, 2015). For instance, Chilly's company founder, James Butterfield and Tim
Bouscarle innovated a Bottle that always keep water cold. It helps people to have cold water for
long journey, they do not need to buy plastic water bottle. It contribute to increased profits in the
first attempt due to its innovative feature of Bottle. However, with growing competition,
organization faced gradual decrease in its revenues that affected their overall business
performance.
Here, invention is defined as unique method, concept, process and composition, it is the
procedure within overall products development structure. It helps to improve the existing
products and also refer to the new process for making an object. Invention increase the
profitability of business as well as contribute to generate revenue rather than before. By
implementing and adopting invention in current business structure organization can achieve its
objective that is selling reusable and insulated water bottles, which allow people to keep water
cold for long period of time. However, it clearly define that innovation and invention is different
to each other (Shan, Song and Ju, 2016). After many trials some times invention is failed and
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also consume a lot of time which is not appropriate for business, on the other hand gets
launching for first time whereas in innovation, some changes made in the recent product in
accordance to the clients requirements. For instance, Chilly's company take risk of innovating
cold water bottle which inverted out profitable, it prevents land pollution that get increased due
to high amount use of plastic bottles. By innovating this new products they can raise its position
within market which is beneficial for them as well as for their consumers.
Accordingly, differences on basis of importance include on creation which centring on
gaining competitive benefits for organization. Innovation is done through out the adoption of
invention by company team that helps to accomplish new project effectively. (Bhardwaj and
et.al., 2017).
Importance of innovation as compare to invention-
Invention is the procedure to create new product or services for consumers which is not
cost effective as compare to innovation. Innovation or creativity is the more important rather
than the other activities in business it helps to modify existing products much better than before
and save time as well as money. In term of cost, innovation is more essential for company
because it changes the existing things into new version, furthermore, in term of research and
development, innovation does not require in depth search, it just gets an idea how to modify
product according to consumer requirements which is beneficial for firm.
Difference between innovation and invention :
INNOVATION INVENTION
It occurs when someone improve and make
the significant contribution to current goods
or services.
It define as the creation and development of
goods for the first time.
Innovation helps to provide the unique
competitive position for Chilly's business in
marketplace.
On the other hand, invention consist with risk
as failure that negatively affect overall
procedure of investing new goods.
It is disruptive and best way to go towards
success and growth for business.
It is outcome of ideation and practical
manifestation
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Importance of innovation to the Chills organization comparison of invention
Innovation is consist with uniqueness, it is the act of making some changes to existing
goods by introducing new ideas or way. Innovation is beneficial for company which they
adopted for gaining competitive benefits within market place. Simply, it is related with
procedure of implementing and making creativity in business for improving their performance.
Chilly's firm by making use of creative idea in firm can maximized market share and also
increase their consumer base. As compare to invention, Innovation is more effective for
company by which they can get the positive outcomes and make success in very first time.
1. By adopting innovative business concept or producer, organization can develop new
products or services of unique features. As compare to invention, innovation bring new
opportunities for Chilly's as it helps to gain competitive advantages consist with low risk of
failure. With the help of innovation company can create their good image among target
consumers.
2. Hard work and perspiration is very important, innovation create dynamic products
when Chilly's company implement this in their business, it consume less time more than
invention.
3. On the other side, invention is focusses on making new things, ideas and goods which is
completely new and unique from the existing ones. It is usually related with implementation of
different techniques as well as new methods for manufacturing existing services & products. By
adopting invention organization can get many benefits as well as retain people with them for
longer.
Organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation
Commercialisation:
This is the process of managing and running some business with main aim of financial
gain with starting new business or product.
Define
Innovation and commercialization are the front lines for any organization to maintain the
performance management and establish transparent channels for proper employees' engagement
(Saebi and Foss, 2015).
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Organisational vision: This is the core values that must be followed by the company's
taskforce. Here, there is a relationship between the employees with management of the company
and policy making. How vision is shaping innovation at ED?
This vision will help Chilly's to reach the vision of the company in systematic modes
through promoting innovation and bringing the employees to work for one common objective.
Organization vision is to reduce air and water pollution by innovating new product that is
reusable and helps to balance distinctive styles.
Leadership: A good leader is the one who looks after the organizational vision and guide
the entire taskforce to reach it by consistency and with persistence. Under effective leadership,
the company can reach a good market positioning and promotes the commercial aspects as well.
Culture: This is the social parameter that helps in assessing the behaviour, attitude and
cognitive ability of individuals for reaching the vision by taking guidance from leader. For
instance, an amiable culture leads to improved levels of productivity and effectiveness.
Teamwork: This aspect helps the employees of any company to bring innovation with
combined efforts from each individual. Here the team members work together to create new
products to reach the vision.
In regard to the same, Chilly's Founder is a visionary who constantly directed the team to
employ new and fresh ideas for gaining larger pool of customers. Thus, they created a new eco
friendly substitute in technology ad launched it and received huge acclaims due to innovation
and this company's distribution capability. This was achievable due to a good leadership who
guided the development team to move forward and took risks which proved beneficial. However,
the popularity got decreased in the third year due to the substitutes in the marketplaces and thus,
there is a need to continuously bring something new all the times to maintain the reputation and
brand image.
Collaborate culture in team, good leadership and support of management will promote
innovation in company effectively.
Different sources of innovation that foster and develop an environment and culture of
innovation in organisations
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There are several types of innovation such as disruptive innovation, incremental
innovation, architectural innovation and radical innovation. These sources are required to
channelise the type of innovation that includes market structure change, demographics,
customers' requirements and perceptions levels of distributors, investors and customers and more
(Schuelke-Leech and Barry, 2016). Thus, there is need to adopt the best type to maintain the
brand image and reputation of the companies. Moreover, the technology and market are the
parameters that help in gaining simplistic perspectives for promoting innovation using the
different sources. Herein the culture and environment at workplace are important to conduct
tasks related to innovation and help the teams to design, analyse and supervise the required
resources for the product development.
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Illustra
tion 1: Types of innovation

LO 2
4Ps of innovation
4 Ps of innovation is the model to understand the improvement process of an organisation
to improve the planning process. This is based on bringing changes in the product or service to
the customers and gaining their loyalty and earn profits. The aim is to gain an upper hand on the
existing competition and attract the potential investors, distributors, clients and others. The
business strategy must be in accordance to the 4Ps such as
product, process, position and paradigm innovation.
Product: Chilly's company need to manufacture the best product according to clients
needs that helps to gain positive outcomes. They introduced cold water bottle with high
performance technology, which is quite beneficial for them.
Process: Organization focus on production procedure, they produce products according
to consumers demand, more focus on requirement of talented applicants in firm how have
innovative ideas and concept to present goods in attractive way. Product innovation is anything
they do to improve operational efficiency in company, such as supply, recruitment and others, it
helps to shape innovative ideas.
Position: organization have to use social media as the best marketing tool which helps to
promote their product and reach its target market. They need to chose right place for this new
product as it helps to grab the attention of customer and attract towards new innovative goods.
Paradigm: it is specific innovation category, concerns modification in way something is
complete in company. For chilly's it may the way they manufacture new products and sold to
consumers. Organization set affordable price of this new or innovative product.
This innovation mix helps in overcoming the challenges of the organization in context to
given solutions to improve the customer centric approaches.
In context to this, innovation funnel would be an asset and is defined as the management
of the product development to meet the needs of the marketplaces. There are steps to take up
processes and operations in systematic modes to reach the market needs by using the innovative
funnel. Here the focus is to bring ideas and new concepts to attain the objective of any
organisation.
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Innovation funnel:
Define
Innovation funnel, is the mechanism that able constant stream of ideas that can be
screened for viability. It also defines to as funnel management procedure, it is popular approach
for innovation that is used by Chilly's to create the innovation and realistic activities plan.
It is applicable for Chilly's , innovation funnel contribute to make innovative products and helps
to make innovation in which company can be able to generate revenue.
The idea of this funnel is to quantify the potential customers' and discuss about the ideas
regarding a product or service. Moreover, it ensures the functional units of the company's teams
under feasible and innovative planning. Therefore, this funnel would be effective for the
management to give creative ideas for better results in terms of monetary aspects and gaining
customers.
Image :
Frugal Innovation:
Frugal innovation is defined as the process of engineering to make the processes less
complicated and minimising the costs of any goods and its production. It is related with the
technological advancement which assist every business organisation in making its business
processes less complicated as well as transparent. By making use of frugal innovation technique,
a business firm can reduce the complexity level of its business operations to a great extent. Also,
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it helps the company in minimizing the overall cost expenses as associated with the most
unproductive business operations of the company. By using frugal innovation, cost of producing
goods and services can be reduced thus increasing the overall profitability aspects of the
company.
Developments in frugal innovation
It is the concept or procedure that urges organization to respond to limitations in assets,
whether material or financial. Frugal innovation generally experienced to take sustainability
factor in development of products for businesses. In addition, it play significant role in reducing
waste material and abdicable features from existing product or service provided by
organizations(Thompson, Herrmann and Hekkert, 2018). it helps to grow business rather than
before and also contribute to enhance their performance. Some indicators are exist in frugal
innovation that help in brining affordability and practicality to overcome problems in short
period of time.
Illustration 2: Components of frugal innovation
(Source: Innovation Funnel, 2019)
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Example: Frugal innovation is used for sustainable growth and development within UK
that helps to define new ways of goods development and design. UK innovation company,
NESTA used this concept for environmental constaraints.
Frugal innovation ideas with its examples includes following:
1. Banking sector – It is one of the best example of frugal innovation adopt by Banking
industry for longer time period in order to provide better services to their consumers. They
implement new technology in business, and provide mobile banking service to people which is
highly beneficial for them. With the help of this facility they can assist large number of clients at
same time across the world. It permit consumers to transfer money at any place where every they
wants to easily. In simple words, mobile banking services is possible when banks make some
innovation within their existing services. It provide by financial institutions and banks within UK
that allows people to conduct financial transactions remotely by using mobile device like tablet
or smartphone.
2. R-600 refrigerator system- Samsung electronic innovate its newest refrigerator
model that earned coveted energy star as emerging technology. It help to conserve energy and
protect climate from any kind of pollution. R-600 refrigerator system meets EPA's demand
criteria that support to reduce energy and lower greenhouses gas emissions.
Frugal innovation and Chilly's :
Frugal innovation impact on organization business procedure it is used to create and
design procedure that helps to meet with the needs as well as demand of consumer, it also helps
to fulfilling requirement of people related with services or products. (Dedehayir, Mäkinen and
Ortt, 2018). Chilly' worker need to use frugal innovation that is beneficial for them to understand
the requirement of something new and better than before. By creating something different they
can attract people and also able to create new products effectively.
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LO 3
Commercial funnel
Commercialisation refers to process of launching new goods and services in market. It
includes service like marketing, distributing, customer service, production, operations, and sales.
These departments are responsible for business growth and development. Commercialisation
process consist of three phases which are involved in making marketing strategies. It includes
stages like identification, business process stage, stake holder stage (Bradford, Johnston and
Bellenger, 2016).
Overview of commercial funnel
Commercial funnel is also known as sales funnel or revenue funnel. It refers to a process
to buy goods and services from retailer or producer. It involves the steps that are included in
process of purchasing products. Every sale starts with different high potential customers and
ends with small customers. Generally, small customers are responsible for purchasing product.
High income customers are defined to buy luxury products not of regular one.
Commercial funnel is important to raise awareness among public about new and existing
products. Like company Chilly's has a great success in initial year to sell “ Normal Water bottle”
but after that it has significant decrease in selling products (Le Meunier-FitzHugh and Douglas,
2016). Its all depends on commercial one.
Commercial funnel include four sections for making process effective and efficient:
Awareness:
This section refers to promotion services through company. For aware customers about
new product, it first need to aware public about them, so that they can think to buy and have
services. For awareness stage, company can use social media marketing, as it is being in current
trend. Other channels are also available like public promotion. Introducing campaigns either by
mail or telephone. The Chilly's will apply commercial funnel into their sales and marketing
strategy like promoting and creating awareness among their customer. Thus it will help company
to create market potential identifying all target customer and dividing them into groups.
Interest:
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