Analysis of Innovation and Commercialisation for Business Success

This report provides a comprehensive analysis of innovation and commercialisation, focusing on the strategies and processes employed by Chilly's Company. It explores the significance of innovation, comparing it to invention, and examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialisation efforts. The report delves into the 4Ps of innovation and the use of the innovation funnel to develop and refine ideas. It covers different types of innovation, emphasizing the importance of adapting to market demands and customer needs. The report also touches on the value of the commercial funnel and the application of new product development, providing insights into how businesses can achieve success through innovative strategies and effective leadership. The document also explores the crucial role of leadership, culture, and teamwork in fostering a productive environment that encourages innovation and commercialization.

Innovation and
Commercialisation

INTRODUCTION
Innovation refers to the process of transforming a new idea and excogitation into goods
and services which able to create value among the customers so that they can pay easily for it. It
also involves those procedures which is applied by the business organisation in order to uncover
new ways to accomplish all the activities with the purpose of gratifying the wants of consumers
and attain the higher profitability. Commercialisation is related to carry the new products and
services in the marketplace or managing it by following various principles for earning higher
profit in the business. It comprises several activities within includes manufacturing, sales,
distribution, customers support and many more. The Silicon bottle is an innovative product which
is launched by Chilly's company which was formed in 2010 by Butterfield and Tim Bouscarle.
The main mission of this company is to reduce the usage of plastic bottles by manufacturing
Silicon bottles. So that their vision that is to attain the higher position in the marketplace can be
attained. This file will cover about the innovation and its significance, 4Ps of excogitation and the
study of innovation funnel to shape up the advanced thoughts. Along with this, the value of
commercial funnel and the application of new product development also will discuss in this file.
TASK 1
P1. Innovation and its significance to organisations in comparison with invention:
Innovation
Innovation depicts as a procedure that is used by the association in order to bring some
effectual changes in their commodities and services according to the needs and expectations of
the customers so that the higher customers attention can be attained and profitability of the
business can be raised.
Innovation refers to a process which is related to make a product better or new. It is not
only snatch the attention of a business to do something differently but also inspire them to bring
some new innovation or to make something new(Innovation, 2019). In other words business
innovation is a process of bring some new ideas, workflows, methodologies, services and
products. For example, Chilly's seeks to make some innovation in their manufacturing products
like they are focussing on manufacturing the Silicon bottles which purifies water automatically.
The targeted customers are health conscious people. It is different from other competitors
because the feature and uniqueness of this bottle as this bottle automatically purifies water and
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make it healthy for people to drink. The business will have higher opportunity of succession as
the main focus on them on making the world healthy (Chun, Chung and Bang, 2015).
Importance of innovation
The consideration of innovation within the organisation is essential as it will help the
business to maintain their position as per the competitiveness of the market. The term innovation
is also beneficial for the organisation of Chilly's as it will help them in generating innovative
ideas and processes for operating all their business functions with higher capacity. Along with by
bringing innovation in their working procedures Chilly's can get various benefits like improved
productivity, less cost, better quality, more added value, improved staff retention and many
others. Also, it will allow them to attain the higher success and growth in the marketplace without
copying any other company ideas and concepts. The detailed explanation about significance of
innovation for Chilly's can be interpreted by following points:
Gaining competitive advantage- The major advantage of being an innovative provide
huge contribution in gaining the competitiveness from the marketplace by differentiating the
company's products and services from rivals. As the business organisation of Chilly's is operating
their activities with the motive of promoting the use of silicon bottles so it is essential for them to
make innovative plans related to create awareness among people that how much it is healthy for
them (uertes-Callen and Cuellar-Fernandez, 2014).
Satisfying customers needs- By adopting the innovation in the strategies and process of
the business the Chilly's organisation will be able to produce the products as per the current
market segments and customers choice which will enables the organisation to get higher
customers satisfaction and higher brand value of the business.
Invention
Invention is related to development of a new idea or method which has never been made
before. While organisation made some innovation then they need to make invention for a
particular area(Invention, 2019). By inventing new ideas for the business manager of Chilly's can
develop new products effectively which will enables them to attain higher growth in the
marketplace.
Comparing between innovation and invention
Basis for comparison Invention Innovation
Meaning Excogitation refers to the Innovation is related to
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development of an idea and
process which has never been
made before.
implementation of idea and
strategy for product and service
for the first time.
Purpose The main motive of this is to
create a new product.
The aim of this is to add value
in something which is already
exist.
Necessary skills For this, technological skills
are required.
In this, technological, strategic
and marketing skills are
needed.
Concerned with It give more emphasis on
invent a single product.
It have more focus on
innovating several products
and processes.
Activities It is limited to research and
development department.
Innovation is spreading in
whole organisation.
P2. How organisational vision, leadership, culture and team work can shape innovation and
commercialisation:
Innovation and commercialisation is the most important part of the organisation as
innovation is related to bring some new idea in the business whereas commercialisation refers to
the process of launching a new product or production method in the marketplace.
Commercialisation concept contains three key aspects like first is funnel which says that
business must look into the various ideas to bring something new. Second it comprises various
stages which have their own milestone and goals(Commercialization, 2019). Also, it focus on
involving all the stakeholder which includes customers also in bringing new methods or
technologies. As the main vision of the organisation is to make world healthy by launching
Silicon bottle so in this case the focus on adopting Steve jobs leadership style as it which enables
them in motivating and encouraging employee to be more innovative. Also, they must focus on
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flat culture and teamwork so that the proper communication among all members can be
maintained.
An administration success depends on the vision, leadership, and culture and team work
spirit of all the workers in the organisation. All these components also have huge contribution in
shaping the innovation and commercialisation which can be ascertained by following points:
Vision- The vision of an administration defines as what the company wants to attain in
near future. As the main vision of Chilly's organisation is to intensity the everyday utilisation of
reusable products. The vision of this organisation insists them to stay innovative and identify all
challenges as well as opportunities of their business so that they will be able to manage their
employees efficiently and can be created value for the customers. For this, they give their focus
on innovate a new product that is Silicon bottle which allows purifying the water automatically.
This will help them in reducing the usage of plastic and meet up with the motive of their
innovation (Aarikka-Stenroos and Lehtimäki, 2013).
Culture- It defines as the values, behaviour and beliefs of several customers. In order to
achieve the desirable outcomes the business manager of Chilly's needs to regulate an effective
culture in their organisation which will enables their employees to willingly espouse innovative
things so that they can easily meet their customers’ expectations. To maintain the organisational
culture effective they needs to manufacture all the products as peer the customers demand and
expectations. In order to maintain appropriate culture within the organisation manager of Chilly's
needs to give their emphasis on cultural web that is developed by Gerry Johnson and Kevan
Scholes in which they give an effective tool for mapping the business culture which comprises
six interrelated elements. With the help of these elements business can identify that what is
working, which things is not working and which changes should be implied in the organisation.
These elements are Stories, rituals and routines, symbols, organisational structure, power
structures and control systems. These factors defines that how an organisation understand itself,
their way of accepting the norms and practices, the presentation of official and unofficial culture,
how the manager of the organisation establish control on all the activities. For example, as the
Chilly's have their main focus on producing Silicon bottles so if they will adopt the hierarchical
structure then they will be able to attain the more employee motivation and support as it will
make the free flow of informations and data which make easy for employees to adopt the changes
in their procedures.
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Leadership- It is the actions of a leader to lead a group of people in the organisation
which have greatly influenced on them by their attitude and behaviour. It is essential for the
leaders of Chilly's to guide appropriately their employees so that they can stay encouraged and
motivated towards innovating and commercialising new products. For example, in this aspect
they need to focus on adopting Steve jobs leadership style as this will help them in creating
proper encouragement and innovativeness within the firm. A leader must possess some essential
qualities like accountability, integrity, humility, positive, vision, delegation and empowerment
and many others. The CEO of this organisation have all these skills due to this they are able to
adopt effective leadership style that is democratic leadership which is very beneficial for them.
For example, in which they are given their main focus on involving all the employees in the
decision-making process so that ideas and opinions of them can be welcomes in judgement
process. This will direct lead the positive impact on the employees mind which results higher
profitability and succession of the business.
Teamwork- In order to enhance the innovativeness within the organisation manager of
Chilly's needs to focus on motivating the employees to do team work. It will allow free flow of
ideas and concepts within the firm which will enhance the overall value of the company by
achieving the goals and objectives effectively. In order to enhance the efficiency of their teams,
manager of Chilly's must consider some of the elements like commitment, contribution,
communication, cooperation, conflict management, change management and connections. For
example, as the Chilly's wants to produce new innovative product in this it becomes essential for
them to give their focus on team work as it will enables them to attain the attention and interest of
each employees in manufacturing process so that the succession of new product in the
marketplace can be assured (Dincer, 2017).
Thus, it can be stated then innovation and commercialisation help the organisation in
maximising their profitability, customers satisfaction and attain the competitive advantage. As all
the components like culture, leadership and teamwork are interrelated as if a leader will adopt
effective leadership approach like democratic then they will be able to regulate the positive
working environment as in enhance the involvement of the member in decision making which
also enables the leaders to motivate their employees to do team work so that the desired results
can be attained in a limited period of time.
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TASK 2
P3. 4Ps of innovation and the utilization of innovation funnel to examine and shape
innovation ideas:
In terms to get prosperity and development in the business an association must consider
the innovation term in the business as it will enables them in operate their business as per the
current market. Innovation has various types like incremental, disruptive, architectural and
radical. Some of them are describe here like incremental innovation refers to continues
improvement in existing methods, products and services in the present market. Whereas, radical
innovation depicted to that innovation which destroy or completely change the business model or
processes. In this aspect, organisation must consider the effective strategies in order to identify
the core requirements of the business. The business of Chilly's can use 4Ps in order to make
effective plans or strategies (Edison, Bin Ali and Torkar, 2013).
Product- It depicts to the commodities of the company which are produced by it like
bottles and others. As the business of Chilly's is mainly concern with reusing bottles so it is
necessary for them to adopt some innovative methods in designing their bottles so that they can
meet the customers’ requirements. The main motive of this organisation is to make whole world a
healthier and happier place due to which the main focus on them to produce silicon bottles so that
the use of plastic bottles can be reduced. For example, as the main motive of this organisation is
to make whole world a healthier and happier place due to which the main focus on them to
produce silicon bottles so that the use of plastic bottles can be reduced.
Process: This factor include all those factors which are related to deliver the products and
services to the customers. Also it refers to the various processes like how an organisation produce
goods, the ways that how the business are done their operations and how the changes are pushed
within the organisation. Chilly's manager must consider effective process and channels for their
business so that the effective delivery can be assured. For example, they should focus on online
trading where customers can easily order and pay for their purchasing products.
Paradigm: This depicts as the ways and manner which help the business in bringing the
innovation in their products and services. In this aspect, the manager of Chilly's must inspect all
their business procedures so that they can implement some changes as per prevailing market
conditions. For example, in Chilly's, if the organisation produce products by using recycling
material then it can produce reusable products as per consumers. For example, in Chilly's, if the
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organisation produce products by using recycling material then it can produce reusable products
as per consumers.
Position: Here, it is related to the own conceptualization that what value of the firm
towards their products and services so that they can determine their position in the marketplace.
For instance, in order to maintain the higher position Chilly's must consider the effective size and
design of their products in order to attract the customers and get higher position (Polzin, von
Flotow and Klerkx, 2016).
Innovation Funnel
It is an effective model which helps an organisation to incur more effective ideas that will
help them in implementing innovation successfully. It consist all the paths that assist in
developing a process or product which able to meet the customers demand and expectations.
Chilly's organisation can use the stages of innovation funnel in order to improve their existing
products or launch a new product. Chilly's can use the stages of innovation funnel to improve
their existing products which are describing as follow:
 Idea generation:. Herein, the R&D department plays an important role as ideas related to
innovating a new product is formulated by them by evaluating all opportunities and
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threats of business environment. For example, Chilly’s R&D will determine here
innovative product idea and find appropriate solution for their problems.
 Concept investigation: In this stage, management of Chilly’s will examine the ideas that
they are able to meet the business goals and objectives or not. For example, for screening
their ideas they will utilise the resources and customers base.
 Feasibility study: In this stage, the profitability, economic reliability as well as risk with
the new product will evaluate by Chilly’s so that the succession of the product can be
assured.
 Development stage: The idea related to new product will develop here and new product
release in market. For example, Chilly’s will come up with new product i.e. Silicon
bottles in the market.
 Post release phase: Here chilly’s will take feedbacks and reviews from the customers so
that they can ascertain that they are able to satisfy the customers’ needs or not.
P4. Development and frugal innovation
Frugal Innovation
The term Frugal innovation is also known as Frugal Engineering which is depicts as an
effective process that helps an organisation to decrease their manufacturing cost and eliminate all
the defects or complexities from the production process. This process is very appropriate and
suitable for the Chilly's as it will help them in removing unnecessary features from the product,
simplifying the production process and increase the product evolution efficiency. This will plays
a huge role in operating all the business operations appropriately without any crisis. This process
consist various principles which are described below:
Find opportunity in adversity- This will allow the organisation in getting various
opportunities in the complex situations so that they can take advantage of it in their business. This
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Illustration: Frugal Innovation

will help the various organisations in coping up from their various difficult conditions and can
reduce their overall cost so that the overall profitability of the business can be increased. For
instance, this is huge opportunity for management of Chilly's to attract heath conscious people as
they will easily purchase the Silicon bottles so that the overall expenditure of the operations can
be reduced and profitability can be enhanced (Sonne, 2012).
Source: Frugal Innovation, (2019).
Do more with less- In this aspect the business organisation will identify the more working
ways to create better solution for their problems. As it will helps the organisations to find the best
option for operating all the business operations or functions in order to enhance the productivity
and profitability of the firm can be increased. For example, the management of respective
company will utilise the benchmarking technique as it will enables the manager to compare their
product from their rivals so that they can made some effective strategies for themselves which
will minimise their cost and maximise their profitability.
Thinks and act flexible- This principle define that the management of the company must
be improvisational not rigid in the nature as it will enables them to maintain proper flexibility in
the operations as per the market situation. Also, it depicts that an organisations must adopt
changes as per the current market situations so that they will be able to meet the customers
requirements on time and can open up the paths of their success. For example, if the
administration of Chilly's will remain stay on the one method then it will decrease the chances of
their succession whereas, if they give their focus on collecting the information related to current
market segments then they will be able to offer the products accordingly which results higher
success and growth of the company (MacGillivray and et. al., 2014).
Keep simple- The management must consider the simplicity concept either it is in their
strategies or solution of the problem so that they can attain their desired outcomes with higher
efficiency.
Follow your heart- It refers to that individuals who is passionate and are able to
accomplishing their work with great efficiency to achieve the organisational aims in limited
period of time.
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All the above mentioned principles are advantageous for the company to minimise the
cost and maximise the higher profitability (Youtie and et. al., 2012).
TASK 3
P5. Importance of commercial funnel and the application of New product development
Commercial funnel- It is also famed as sales funnel which indicates that process which is
utilising by the company to engage more customers and create more leads towards the
company(What is a Sales Funnel?, 2019.) This has great importance for the Chilly's organisation
as it will enhance their productivity and profitability by exaggerating their customers list which
renders huge contribution in growth of the business. It also helps them in launching new products
which help them in increasing their sales as they will be able to drive the customers attention
towards the features of new products. It consist various steps which is helpful for the company in
developing new product. These are as follow:
New product development process:
It is cite to that process which helps the organisation in ascertaining the core methods
which is necessary for successfully launching a new product and services in the marketplace. It is
helps the organisation in coming up with that products which can easily meet the customers
preferences and can get higher competitive advantage in marketplace. From this process, new
opportunities and new markets can be captured. This process comprises some certain stages
which are as follow:
Idea generation-It is the first stage in which the management of the business will give
their focus on creating new ideas and strategies related to their products and services by analysing
all the internal and external sources. In order to retain the customers the administration of Chilly's
must focus on producing Silicon bottles as per the demand of the current generation so that they
will be able to satisfy their needs and demands effectively.
Idea screening- This is the next step of develop a new product in which the management
will concern towards that the ideas which has been formed in first step will be able to meet the
objectives and aims of the business or not. This stage allows the manager of Chilly's to make
some necessary changes in their decisions which ensure the success of the organisation
(Kutvonen, Savitskaya and Salmi, 2014).
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