Analysis of Innovation and Commercialization for Chilly's Products

This report provides a comprehensive analysis of Chilly's, a company specializing in reusable water bottles. It begins by defining innovation and commercialization, highlighting their importance and differentiating them from inventions. The report examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It then delves into the 4 Ps of innovation (Paradigm, Product, Process, and Position), the innovation funnel, and the development of frugal innovation, providing examples relevant to Chilly's. The report further discusses the importance of the commercial funnel, the application of the new product development procedure, and includes an innovation business case for Chilly's, addressing funding methods. Finally, it explores different tools and techniques used to develop, retain, and protect intellectual property, concluding with a summary of the key findings and recommendations.

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Meaning of innovation and its importance in respect of organisation and its difference
with the inventions.................................................................................................................3
P2 Organisation vision, leadership, culture and teamwork can shape innovation and
commercialization..................................................................................................................4
LO 2.................................................................................................................................................5
P3 Explaining 4 P's of innovation and use of innovation.......................................................5
P4 Development of frugal innovation and provide examples................................................7
LO 3.................................................................................................................................................9
Importance of commercial funnel and application of new product development procedure for
commercialisation of innovation............................................................................................9
Innovation business case for Chilly's including the funding ways ......................................11
LO 4...............................................................................................................................................12
P 7 Different tools and techniques which company uses to develop retain and protect the
intellectual property..............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is defined as the method of bringing in some new idea or any other product in
the market. In this competitive and globalized world where the competition is at its peak it is
very necessary for the different companies to time- to- time bring in some or the other
innovation. This is necessary because of the reason that there are many different companies
which deals in the same products and services. Therefore, the consumers need some or the other
points on which the company can differentiate between the different companies. On the other
hand, commercialization is defined as the process of introducing the new idea or product within
the market. These both looks similar but are different as innovation is the idea and
commercialization are the process through which the idea is brought in the market. Both these
concept goes hand in hand and compliments each other.
The present report is based on Chilly’s which was founded by Tim Bouscarle and James
Butterfield in the year 2010. The aim of providing this product that is cold water bottle was to
help the people to keep the water cold at time of long travelling. This bottle was a reusable water
bottle which are leak proof and are of stainless steel and double walled vacuum insulted which
keeps the water cold. The present report will outline importance if innovation and vision and
culture helps in shaping innovation. Next it will outline 4 Ps of innovation and development if
frugal innovation. Further, it will highlight the importance of commercial funnel and application
of NPD. In the end some intellectual property tools will be discussed.
MAIN BODY
LO 1
P1 Meaning of innovation and its importance in respect of organisation and its difference with
the inventions.
Innovation refers to bringing new ideas, thoughts and expression which is used in
changing the dignity of the existing products or bringing new products in market. Innovation
mainly came out from the demands of the customer in respect of meeting other competitor
strategy (Innovation, 2019). It also providing such products which results in enhancing the safety
and protection to environment and health related issues. In respect of chilly, the innovation is
done in respect of providing such bottle which keep the water cold for 24 hours and they are eco

friendly. Thus, in such business, innovation results in bringing various benefits to the
organisation which can be stated in respect of following aspects such as:
 Increase productivity: Through the aspects, the innovation is important in respect of
increasing the productivity in the business (Bernstein, 2015). As customer are attracted if
they find any unique and different products in market which is not brought before by any
company. Thus, their interest is developed towards the products. In respect of getting
higher positive response it results in increasing the productivity of the products in market.
 Creative development: In respect of bringing any innovation, it also results in motivating
other employees to being innovative ideas at work places. Through this aspect it results in
making creative mind and also sustain business for longer way.
Invention refer to the creating the products which not exit before and also its name and
procedure is heard for the first time (Inventions, 2019). Usually the inventions are patent as they
are new in market and also not known by any person. The importance of inventions are as
follows:
 It enhances the integrity in market through launching some new valuable thing which
helps people to reduce the day to day problems which is examined by person
 Invention are mainly done through bringing new identity to the products which enhances
the company reputation at global level.
The examples of invention are computer, telephone, light bulb etc.
The major difference between Innovation and Invention are
Factors Innovation Inventions
Meaning Innovation can be committed
on the bases of existing
products
Invention are done by bringing
new products in market. They
not carry any major link with
the existing products.
Patent Innovation are not patent. For
e.g. iPhone is one of the major
innovation which carry the
renowned brand name in
market.
Few invention which are
unique carry the right of
patents under the patent Act.
For e.g. Telephone, electricity

In respective of chilly, the innovation which they deal with is using the electronic bottle
which is specially designed for the traveller in respect of getting 24 hours cold water. As the
main advantages is to save environment from plastic bottle.
P2 Organisation vision, leadership, culture and teamwork can shape innovation and
commercialization
In respect of innovating new ideas by James and Tim regarding avoiding the usages of
plastic bottles, the results was that of chilly bottle. As to innovate any products in market, it
requires lot of management skills to innovate and furnished the final products.
Thus, in respect of identifying the Organisation vision regarding the new innovation which is
stated as Chilly bottles is this product had no comparative products in market. The performance
of this product is also increased as this product is highly adapted by the urban lifestyle people
(Arora, Cohen and Walsh, 2016). Thus, organisation vision to reduce the plastic bottle and also
increase the eco-friendly products so that they can protect the nature and environment with high
rating services.
Leadership: In respect of shaping the innovation in better way, organisation uses the democratic
leadership style in which they play the role of participative in which they motivate the staff to
present their ideas and thought freely and also implement them to bring useful things. Through
these aspects the risk also reduced and the chances of retention of employees are also increased.
Culture: As every person carry different culture in respect of availing the services. Thus,
innovation is to be done on the bases of keeping the views of the person in mind. In respect of
innovating the chilly bottles, the major things which is viewed is relating to applying the Handy
culture model in which four major classes are involved such as power, role, task and people.
Thus by keeping this four factor resulting in getting better results. In respect of applying this
model in innovating chilly bottle, helps organisation to reach at large customer base and attract
them with better marketing techniques.
Teamwork: The success of the organisation is mainly initiated by the effective team work. In
respect of applying the Tuckerman theory, in which the team handle all the matter regarding
development to adjourning the ideas to bring new innovation in products. As this procedure can
be initiated under the guidance of the leaders which results in getting positive reviews if they are
motivated on right way (Song, Park and Park, 2017).

Thus, through this aspects by applying all such factors in right way resulting in getting
better shape in respect of innovating and commercializing the new products in market.
LO 2
P3 Explaining 4 P's of innovation and use of innovation.
Innovation deals in different process which is help to create innovation and within the
organization. The 4 P's of innovation mix which is used by organization for develop new range
of products and services in effective manner. The 4 P's of innovation are as follows:
Paradigm:
This is more important and effective element of innovation which is help to create new
product chain within the company. This is the proper and effective planned process by which
organization manager is able to think for innovate product for lunching new product (Acemoglu,
and Cao, 2015). In that manager is face the various changes of being taken innovative thinking.
Product:
Product is the main elements of company which is help to increase sales of product and
services in effective manner by creating various goals. Organization deals in cold water bottle
which is keep cold water at 24 hours. This is modern and stylish product designed to combine
conveniences of plastic water bottle. James Butterfield and Tim Boucarle is use eco friendly
technology and raw material for produce this product.
Process:
Process is important think where company is implement raw material for produce
products and services at marketplace. This is effective and valuable for business and for its
growth factor. In case of organization, the process innovation refers to independent that tends to
work with the full freedom.
Position:
The position of innovation deals with the promotional activities for company. Through
that organization performed well and existence in the competitive advantage (Biemans, 2018). In
respect of organization company, position promotion is deals with advertisement on social media
and traditional methods.
Innovation funnel:

The innovation funnel is a mechanism which is enables a constant stream of idea that can
be screened for viability. This is best approaches which is help to innovate new product at
market place.
Application of innovation funnel:
In case of organization, innovation funnel covers different steps which are as follows:
 The first step, aim to collect as many ideas as possible regarding the specific concept.
 Next step, involves the process of screening in order to ensure about the idea too much
which innovative water bottle which keep water cool for 24 hours. That is match with
goals and help to achieving goals and objectives of company in effective manner.
 Third and last step, deals with the fact of selected idea to deliver the objectives set by
organization company.
P4 Development of frugal innovation and provide examples.
Frugal innovation is refers to the set of techniques which are applied to reduce
complexity and cost of good and its production. This innovation is help to eradicate non-essential
elements from production process and products. The frugal innovation is depends on economic,
social and political factors of customers demand. Through that, James Butterfield and Tim
Boucarle think more and more for innovate new products with extra benefits for people or
Illustration 1: innovation funnel
(Source: Innovation Funnel, 2018)

themselves. This help to satisfy needs of customers with eco friendly technology for more
growth and its effectiveness at market place is in the effective manner.
In respect to organization, the James Butterfield and Tim Boucarle marks the following
feature to reduce their complexity of investment opportunities for the practitioners. This includes
quality of product, distribution, affordability, adaptability and performance of product at
marketplace. For example: Now a day travellers are visit one place to another place for their
work and keep safe customers (Vargo, Wielandand and Akaka, 2015). In that they look for cool
water in summer for satisfy water need. Through that, James Butterfield and Tim Boucarle think
how to provide cool water to them for 24 hours. They think more and more and get idea about
innovate chilly water bottle with eco friendly technology to keep water cool for long time.
Application of frugal innovation by James Butterfield and Tim Boucarle:
By analysing market and travellers needs, James Butterfield and Tim Boucarle think to
introduce chilly water bottle which is keep cold water for longer time which is 24 hours. The
frugal innovation is smilier yo the existing products of company but little use of different
technologies with lower price (Weisburd and Braga, 2019). There are various people and
customers are like to drink cold water in the summer as well as in travel time. This creates more
benefits for people and James Butterfield and Tim Boucarle them.

LO 3
Importance of commercial funnel and application of new product development procedure for
commercialisation of innovation
Commercialisation-
It refers to the procedure of introducing new services or products in marketplace where a
lot of people are able to buy new things which is beneficial for business (Chen and et.al., 2015).
Production, sales, distribution, marketing etc. are the different types of activities include in
commercialization.
Commercial funnel-
It is very essential for commercialization of innovation which creates funnel like
structure, from lots of new ideas too few concepts. It is known as revenue funnel as well as sales
funnel. It defines the procedure of purchasing products from procedure. It plays vital role in
context of commercialization of innovation, commercial funnel helps to raise the awareness of
specific goods among number of population whether the product is new or older with innovative
feature. Commercial funnel include 3 phases for making the procedure of innovative product
effective.
Awareness-
This stage defines the procedure of promoting products through Chilly's, in order to
aware clients about creative and innovative goods, company need to make the best marketing
plan which helps to drive people towards buying and make them able to think to purchase goods.
Interest-
In this phase consumer will increase their interest towards new product and company
move people beyond purchasing limits. It only happens with the help of making some strategies
or tactics like discount, some cashback or prize offer (Bonazzi and Zilber, 2014). By applying
different types of tactics, organization will make their clients excited to buy new products which
is beneficial for business.
Decision-
when company apply tactics they will drive people towards purchasing and increase the
awareness that helps potential consumers to take decision to have goods or not.
Importance of new product development for commercialization of innovation-

It refers to the launch of new goods within existing or new market, new product
development is important for business as it helps to increase productivity and profitability of
Chilly's rather than before (Vendrell and et.al., 2015). Application of NPD is very essential in
context of firm, there are different types of stages which will follow by organization seeking for
more profitable.
Idea generation-
In this stage idea about innovating new products take place in which company think
about what need to be done or not.
Screening-
After generating ideas, management check its feasibility and then chose the best one from
list of many.
Concept development-
After getting approval in this stage the new ideas will be taken underdeveloped consist
with formation of final budgetary as well as theoretical constraints.
Development of business strategy-
After completing the new concept organization will plan for strategy development which
helps to turn idea into final action.
Product development-
In this level products is completely created and marked at few stages of improvement and
betterment.
Marketing test-
In this phase goods is provided for conducting marketing test in which management
determine popularity of this new product into current market.
Commercialization-
after passing above stages, company formulate for introducing product of firm into target
market.
Introduction-
Finally it will be launched successfully in front of potential consumers with set of
affordable price.
All the above stages is significant for commercialization of innovation, it helps to gain
competitive benefits into marketplace and generate revenue.

Innovation business case for Chilly's including the funding ways
Executive summary-
Chilly's plan for increasing their sales of goods and make strategies for same that has
been gain consumer attentions effectively.
Company background-
chilly' is well established firm they provide range of products and service to consumers.
Mission
To launch new and innovative goods within market that is cold water bottle.
Vision-
Company vision is to manufacture innovative product that will provide good experience
while using it.
Satisfaction of innovation-
the look and characteristic of products is innovative that will satisfy need of consumers.
Opportunity in market for New product-
People how like to travel across boundaries are more likely to buy this products.
Competitive edge-
Cold water bottle is different from other products as it keep water cold for longer time
with cooling elements.
Market opportunity-
it the sizing forecast for particular goods or services, the possibilities of growth is higher,
the feature of new water bottle is attractive prospect.
Target market-
Middles class people is the target market of Chilly's firm.
Marketing strategy-
TV advertisement and digital media is marketing strategy of company.
Need-
Firm introduce its new product because they want to overcome losses in business and
need to increase their client based.
Market research-
Organization conduct market research for collecting more information about new trends
in market and to understand the needs and preference of clients.

Investment cost needed-
In order to launch new goods into market company will require £400 along with entire
cost of essential activities.
Expected benefits-
Launch of new product with attractive features is quite beneficial for Chilly's company in
turn of success, high revenue and growth within marketplace.
Ways of findings-
For launching new product, Chilly' manager will take important stages to arrange funds
for promoting and producing new product. The money can be accessed by following ways:
 Bank loan: it is one of most the easiest way to get fund, company owner will get access
to bank for taking loan. Banks are financial institutes they cater financial support needed
by business, but this take a long process to be a legal. After funding loan from bank, need
to pay money in instalments with correct interest charges. But, against money, some
property or essential things is kept as a guarantee with bank.
 Friend and family- this is simplest and effortless way of funding, it will allow business
to take loan without keeping any property as guarantee. Friends and family members
provide funds to their closer one in order to help in their business growth .
Budget-
Particulars Amount (£)
Salaries of workers 200
Collecting essential resources 60
Conduct Market research 250
Marketing 200
Selling 150
Total 860
LO 4
P 7 Different tools and techniques which company uses to develop retain and protect the
intellectual property
The competition is very tough in the market and there is possibility that the other competitor can
copy the product and services of the company (Stim, 2017). Therefore, it is very necessary for