Innovation and Commercialisation

This document discusses the concept of innovation and its value to a company in relation to invention. It also explains how vision, leadership, culture, and teamwork shape the process of innovation and commercialisation. The document further explores the 4Ps of innovation, frugal innovation, and the importance of the commercial funnel and NPD process. The case study used in this document is Heinz, a British brand dealing in soups, ketchups, and related products.

Innovation and
commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explanation of innovation & its value to company in relation to invention....................3
P2. Explanation of how vision, leadership, culture & teamwork of an organisation shaping of
the process of innovation & commercialisation....................................................................5
TASK 2............................................................................................................................................6
P3. Explain the 4Ps of innovation & usage of innovation funnel .........................................6
P4. Frugal innovation ............................................................................................................7
TASK 3............................................................................................................................................8
P5. Importance of Commercial funnel & NPD process.........................................................8
P6. Innovation business case ...............................................................................................11
P7. Evaluation of Different tools to develop, retain and protect intellectual property.........14
CONCLUSION..............................................................................................................................16
REFERNCES.................................................................................................................................17

INTRODUCTION
Innovation is a process that is related to translation of invention or a idea for a existing
product or service for the purpose of developing high value for their customers. It is a path that
can be used for purpose of increasing the attractiveness of present position of a organisation. In
present report there is discussion of Heinz that is a Britain brand dealing in soups, ketchups and
these related products (Ciriello, Richter and Schwabe, 2018). It was started in year 1869 and has
presence in Ireland & UK, present report is based on the analysis if a new innovation that is
being brought up by Heinz where they are launching a new range of product in beans category
where there has been a market research conducted for determining the variant type and most
customers have given their preference towards veg chilli beans that will be complete new from
the existing product range of Heinz. For this there is use of certain tools like 4Ps of innovation,
frugal innovation and a business case in order to develop a new innovation product.
TASK 1
P1. Explanation of innovation & its value to company in relation to invention
Innovation can be defined as application of a new device or a new method that is
application of a better solution to meet the requirements of unarticulated needs of existing market
scenario.
Commercialisation is regarded as a process where a new innovation of process, product
or services is done in the market.
Invention: It can be regarded as a process of driving period and not related any existing
product or services there is a complete development of new product that takes place (Cantwell,
2017). It takes place when a organisation is trying to come up with some new ideas and create a
special space in market.
Importance of innovation:
Innovation is a very important aspect for every organisation that is helping in attracting more
customers so that there is a unique brand identity that is created in the market. It can be said that
innovation can be helpful in fulfilment of all marketing trends according to customer
requirements:

Continuous growth: Innovation is very helpful in process of growth for a organisation. It
is a process that assist in increasing the brand value and development of a positive brand image
that can help in growth for a organisation (Azar, and Ciabuschi, 2017).
Reinforcing brand: It is one of the most important factors that helps in gaining success
as existing users have something new & innovative.
Creation of USP: Innovation is very helpful in creation of a definite USP in the market.
It can be said that innovation helps in development of a distinct image in market that can affect
the profitability of organisation.
Difference between Invention Innovation
Basis Invention Innovation
Meaning Invention is defined as
launching of something new in
the external market that will
help organisations to enhance
their market share and
capturing larger share of
market (Schilling,. and
Shankar, , 2019).
Innovation is a process that is
having association with
developing of new features,
new ideas in the existing
products & services of a
organisation.
Concept It is a concept that is helping in
giving better services to
customers. It can be said that
invention helps in launching
completely new segment of
product & services.
It is a process that helps in
development of new &
innovative features to existing
& services.
Activities Invention is always limited to
using of a completely new
procedure for the purpose of
development in a organisation.
Innovation may have a have a
limited access and it is spread
across different departments in
a organisation.

P2. Explanation of how vision, leadership, culture & teamwork of an organisation shaping of the
process of innovation & commercialisation
Main objective of a organisation is attain growth that can help in surviving for a longer
duration of time. It can be said that there are some factors that will be helpful in achievement of
desired objectives. These factors are vision, leadership, teamwork and organisation culture.
These factors have helped in shaping process of innovation & commercialisation in Heinz:
Organisation vision: Vision is is considered as a action that can help a organisation in bringing
up of a innovative idea so that there can be attainment of objectives in a specified time period.
Managers can develop some strategies and new ideas that has to be communicated to overall
staff (Lukes, and Stephan, 2017). In Heinz vision of organisation is to offer a innovative taste to
their existing products by making continuous modifications in order to help their customers in
having long term association.
Leadership: It is a process that is use for providing guidance & instructions in order to help in
achievement of desired objectives (Weisburd,and Braga, 2019). In Heinz leader is using
transformational & transactional style of leadership so that their employees can
vision and leadership are having close association with each other. Strong leadership is helping
ins haring of common objectives and clear vision for a organisation.
Culture: There is a need to embrace a culture of innovation in a organisation that requires rusr
building up between management and overall staff. Innovation culture will be developed only if
managers will be allowing people to manage the work and think about adoption of more
creativity at workplace (Kahn, 2018).
Team work: It is one of major factors that can help in meeting of targets & attainment of
success. It can be determined that Heinz teams have been formed to help in process of
development of new ideas and then adopt in precess. Such as there is a innovation made in terms
of development of new product that is veg chilli beans in their existing range of beans.

TASK 2
P3. Explain the 4Ps of innovation & usage of innovation funnel
There are four main dimensions of “Innovation space” that are commonly known as 4Ps of
Innovation: Product: There are changes that are made in existing product & services that a
organisation is offering. In Heinz there is a new innovation of veg chilli beans that is
being made by the organisation. Process: It is a related to the changes in ways that can be done in the way products are
being created and delivered in by a organisation. In case of Heinz there will be a new
innovation in their existing beans range (Olson, and Cohen, 2019). Position: There are some changes that are made in the context and way products &
services are being introduced by the organisation. The new product will help in
improving the present market position of Heinz.
 Paradigm: This segment is related to the changes that are made on the underlying
business models that can change the frame of a organisation. In Heinz it is related to
using of a systematic innovation that can help in gaining more insights and
implementation of activities.
Innovation funnel: There are three main steps that are part of Innovation funnel that form part
of development or making some relevant changes in existing product by a organisation. Funnel
management is a process that can be used by organisations for development of a innovation
action plan. It consist of three main steps that are applied in context of Heinz:
 Investigation: It is the introductory stage of innovation funnel where large number of
ideas are developed by a organisation in terms of options so that most suitable can be
selected (Mat Jalaluddin, Othman, and Harikrishna, 2019). In Heinz there is a separate
research team that is working towards understand the external market scenario and there
was a online survey conducted with help of a questionnaire in order to understand
expectations of their target customers that can help in getting consumer insights. There
was a outcome that are people are having a preference for chilli veg beans that is not part
of present category of Heinz.
 Development: In this stage there is a detailed screening of all ideas that is matched
according to main objective of organisation. In Heinz, the innovation of veg chilli beans

was a most preferred option and hence, it was selected by the organisation for its further
implementation in the process.
 Product delivery: It can be considered the last innovation stage where the final product
is launched in market. In Heinz the new veg chilli beans will be launched and will be
available on both offline and online.
P4. Frugal innovation
Frugal innovation is consider as a process of reducing the level of cost and complexities
occurred at the time of production of products and services. IN addition to this, it is basically
removing out non-essential features within the production process in order to improve
performance in an effective manner (Thakur, 2018). There are various factors that is involved in
the frugal innovation is waste reduction, economies of scale, increased production and so on.
Further, it is undertaken as an important tool that assist company to deliver more value as well as
high experience to customers along with the good quality. One of the example of frugal
innovation is TATA Nano car that is world's cheapest car. The things that make Nano care cheap
is plastic & adhesive replaces welding, no air bag, no air conditioning and many more. Another
example of frugal innovation is MITTICOOL fridge, which dos not need electricity and is made
of clay. The fridge is at reasonable price and also improves food quality as well. All such
example states with the help of frugal innovation, the overall cost is decline and improvement in
quality take place. There are various principles of frugal innovation that is given below: Do more with less: This principle of frugal innovation states that an individual and entity
is required to focus more on their existing products as well as services in order to develop
better solutions. Keep it simple: It is stated that more complexities within the process arise more issues so
develop it as simple is effective. Think & act flexibly: This principle states that an organisation is required to think once
and should be dynamic instead of rigid. Seek opportunity in adversity: It is analyse that sometimes threats turns into an
opportunity, if the problem is reframe in a proper manner.

 Follow your heart: This principle imposes that passionate towards working and use that
to develop new ideas assist in declining complexities and improves the overall
performance in an approbate manner.
By following all such principles, it is stated that Heinz can easily bring innovation in market and
increase their performance level as well. In addition to this, it also help them to cutting down
cost that has positive impact on the profits earned by company. It is determine that company is
focuses on making improvement by removing threats and complexities within the productions
that will leads to increase in profits and revenue level of Heinz properly.
TASK 3
P5. Importance of Commercial funnel & NPD process
New product development process:
It is consider as a series of steps which help an organisation to bring innovation or
launching new product in an effective manner. The process of New product development in
context to Heinz is discuss below:
Idea generation: It is define as one of the foremost step of new product development
process which states that every new product as well as services is taking place by an idea. There
are various sources of new product ideas that is market research, brainstorming, customer

suggestions, learning from failure, customising, observing rivals and many more (Weng, 2018).
With reference to Heinz, the idea of lancing veg chilli beans is coming through brainstorming. It
will help company to add new offerings for customer and attract them towards brand.
Screening: It is important for higher authorities of Heinz to screening the idea that is
going to implement by considering factors such as acceptability, suitability and feasibility as
well. The new innovation of Veg chilli beans is offering some new taste to customers and is
acceptable in market as Heinz is a renowned brands which has already developed brand image in
market.
Concept development & Testing: herein, the selected idea is moved up to a concept
development & testing. In relation to Heinz, it is essential for managers to moved the idea of veg
chilli beans into a product concept and then test it on the basis of designing, technical feasibility
and many more.
Marketing strategy: In this step, the respective company is focuses on developing an
effective marketing strategy so that it can promote products in an appropriate manner at
marketplace. In relation to the new product innovation of Veg chilli beans, the market strategy is
given below:
Segmentation: Herein, an entity decide a group that they target from the whole population
and it is done on the basis of demographics, geographic and so on. The new product is segment
on the basis of demographics that is age factor.
Targeting: It take place after the segmentation process and herein company decides its
potential customers in which they are require to target (Zhou, 2018). For the new innovation, the
target market is people belong from age group of 16-30 as it is determine that this segment is
mostly like to consume spicy products and prefer to buy new products as well.
Positioning: It is defined as developing positive mind set of people towards brand, it is
determine that Heinz is a renowned brand that has large number loyal customers. For positioning
new product, the company can make use of social media application as it help in reaching large
number of people within short span of time and increases the customer base of company.
Herein, an effective marketing strategy is developed with an aim to promote innovative idea in
market. It is determine that Heinz make use of marketing promotional tools such as social media
application in order to aware people about its new brand.

Business analysis: Herein, the higher authorities of Heinz examine the production and
marketing cost of the innovative product against the profits earned in future.
Product Development: After testing the product suitability, feasibility, product
development is take place. In this,, the full specification and information of product is defined
and production starts manufacturing.
Test marketing: After the development of product, the new product is tested on limited
customers in order to gain insight about customers reaction, opinions in order to make decision
about final product.
Commercialisation: Herein, the final product is launched in market and it consist of
various activities that is product launch, product advertisement, product distribution of Veg chilli
beans at marketplace.
Commercial funnel
It is defined as a tool by which a company search, trade & qualify new product and
service to users. Along with this, such tool breakdown journey of customer from awareness to
purchasing stage. There are various stages involved in commercial funnel that is defined below:
Awareness: It is consider as foremost part of commercial funnel that involve people who
have the knowledge about your product. Heinz can widen the awareness of its new product by
making used of social media applications that is Facebook, YouTube and so on.
Interest: Herein, Heinz can focus on the people who ha visited on their website or the
lead that show interest in innovative product.

Decision: At this stage, people who are interested take decision whether to buy product
or not. In addition to this, they also focuses on offers provided by company, so it is essential for
Heinz to offer discount and give attractive vouchers in order to increase price of its new product.
Action: Herein, the potential users are now customers of the company by purchasing the
product offered to them. It is important for Heinz to ensure that requirements of its customers is
fulfilled and they get product on time period as it will help in retaining customer for longer time
period and earn higher profits in an effective manner.
From the above discussion, it is analyzed that commercial funnel plays vital role in
delivering new product effectively in the market sue to which there is attainment of higher sales
and profit take place in the company.
P6. Innovation business case
New idea: The new idea is to bring innovation of Veg chilli beans that take place by
Heinz in the market
Opportunity: Heinz is a renowned brand and thus company have the opportunity to
launch new product in market that attract large number of people and performance of
organisation in an effective manner.
Resources required: The resources that is required in order to bring innovation in
market is machineries, people, money and time management.
Risk and potential benefits: The risk that is associated with the launching of new
product is time investment risk and longevity risk. In order to launch this product, the company
has several advantages that is increase in number of offerings, raise in performance level,
enhance in customer base level that has positive impact on the sales as well as profit ratio of
company (Kelly and Kim, 2018). Moreover, launching of this unique and innovative product
help Heinz to attain competitive advantage at marketplace.
Technical feasibility: The new product that is launch is is deliver by using both online
and offline channels. For this, the respective company has the technical team who handle
websites, online orders of products of company.
Market needs & interest: By conducting the survey, it is analyse that people are
interested in the new product as many of the youth belong from age group 16-30 prefer to
consume spicy product.

Financial management (Cash flow):
Below discussed are the cash flow activities and BEP point related to launching of new product
by Heinz.
How market will capture: Market will be captured by Heinz by using of the innovative
approach where the newly launched product will help in satisfying the requirement of
prospective customers. This approach will also in fulfilment of the requirement of younger
generation that is the target segment of Heinz and according to their demands that has been
analysed as a outcome of the online survey that was made for collecting information with regards
to launching of a new product that is chilli veg beans.
Sources of funding

Bank loan: One of the most secured form of funding is bank loans. It is analysed that
bank grant loans with a proper documentation process and charge specific interest rate along
with the principal amount from entities (Zhou, 2018).
Business agents: This are those individuals who are looking for investment opportunities
and spent money on companies if they find benefits and in return they take shares of that
particular company.
From the above sources of funding, banking loan is consider as suitable for Heinz
company in order to gain funds in a secured and effective manner.

P7. Evaluation of Different tools to develop, retain and protect intellectual property
It is very crucial or a organisation to always protect their innovation with the help of
different intellectual property rights is that it cannot be imitated by any other competitor and can
help in development of a competitive advantage for a longer period of time period (Chou,Hu,
and Shih, , 2019). Some of the intellectual property rights that are available for Heinz and can be
adopted for purports of launching their new products is mentioned below:
Patents:
Patents are exclusive rights that are provided by government to a organisation. It is used
for describing a invention that can be used for a inventor to claim their exclusive rights . A
invention can be patented if it is new, not obvious, useful and is pertaining to a patentable subject
matter.
Advantages:
Patent can help a patent holder in protecting their new innovation for a period of 20
years. It provides a right that patent holder can take a legal action against anyone who is using
the invention without prior permission.
Disadvantages:

Patents are very expensive to be acquired by a organisation. The list offered to a inventor is
always very less in just only limited options are available for a organisation.
Copyrights:
Copyright are similar to patents but they are different as patent is having complete focus
on innovation and copyright is associated with source of work. It grants the right of protection
for unique expression of ideas. (Bond-Smith, 2019). It is a legal term that helps in describing the
rights of creators and work can be ranging from music, books, sculpture to computer programs,
adventures and technical drawings.
Advantages: It is helpful in getting the right of intellectual protection for a period of more than
70 years.
Disadvantages: It is not the ownership and copyright does not allows others to distribute the
work in public & this can lead to slowing down of the published work or may be it is not
published at all.
Trademark:
It is a symbol, word, logo, design, colour or any other device that can be used for identification
of a product or business in commerce (Akhundjanov, and et. al., 2020). These symbols are used
for filing of products and as a registered trademark.
Advantages: it is very helpful in differentiating a product with the help of identification of the
symbol by customers that helps in making a complete differentiation.
Disadvantages:
Trademarks are of dangerous in case of genericised if consumers start connecting it with
ordinary products (Sorescu,2017).
From the above discussion it can be said that most suitable IPR for Heinz is copyright as
it will help in connecting the new invention that has been made by this brand for a longer
duration of time.

CONCLUSION
From the above made discussion it can be concluded that innovation is very important for
any organisation to prevent their Present loyal base of customers in switching to any other brand.
4Ps of innovation is also very helpful in understanding of the process of implementation of
innovation in a organisation. Commercial funnel and innovation funnel is very helpful in the
process of making innovation and launching of new product in the market. All these tools can be
very helpful in development of a innovation business case. Further there can be evaluation of
various tools in order to protect the intellectual property rights by a inventor.

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