Innovation and Commercialisation

This document explores the concept of innovation and its importance to companies. It discusses how organizational culture, vision, leadership, and teamwork shape commercialization and innovation. It also explains the 4Ps of innovation and the use of the innovation funnel to shape innovative ideas. The document further explores the development of frugal innovation and its utilization in an organizational context. It highlights the importance of the commercial funnel and the application of NPD processing for the commercialization of innovation. Additionally, it provides insights into tools that firms can use to develop, protect, and retain intellectual property.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1 ................................................................................................................................................3
P1- Concept of innovation and its importance to companies in comparison with invention......3
P2 Organizational culture, vision, leadership and team work shape commercialization &
innovation....................................................................................................................................4
M1 Varied sources of innovation and culture of innovation foster by Heinz UK......................5
LO 2.................................................................................................................................................6
P3- Explanation of 4Ps of innovation and use of innovation funnel to shape innovative ideas. 6
P4- Development in frugal innovation and utilized in organizational context...........................8
M-2 Innovation funnel in context of Heinz company...............................................................10
M-3 Role of frugal innovation in chosen firm..........................................................................10
LO 3...............................................................................................................................................11
P5- Importance of commercial funnel and application of NPD processing for
commercialization of innovation...............................................................................................11
P6- Innovation business case for Heinz including ways to access funding..............................13
M 4- Detailed innovative business case which includes ways many things.............................14
LO 4...............................................................................................................................................14
P7- Tools that firms can use to develop, protect and retain intellectual property....................14
M5- Evaluation of different tools in context of wider business environment...........................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is development, creation and implementation of new items, services or
procedures, with the goal of improving efficiency and effectiveness as well as gaining
competitive advantages within specific marketplace. While commercialization refer to the
process of running and managing something principally and ethically for financial gain. The
current study is based on Heinz, which falls under category of leading food manufacturing
organizations in the whole world. It was founded in 1869 by Henry J. Heinz, they manufacture
thousands of food items in plants on 6 continents and markets these goods in more than 200
nations and territories. This study will explain innovation and identify their significant to
companies in comparison with invention. It will justify leadership, organizational vision, team
work and culture shape commercialization and innovation.
Furthermore, this report will explain 4Ps of innovation, developments in frugal
innovation and importance of commercial funnel. It will clarify innovation business case and
varied tools that firm will used to retain, develop and protect knowledge as well as intellectual
property.
LO 1
P1- Concept of innovation and its importance to companies in comparison with invention
Innovation is key element of business success, it can be defined as procedure that
includes multiple actions to uncover new ways or ideas to do things which in return increase
profit margin and sales of any company (Karlsson and Tavassoli, 2015). For a company to
realize competitive benefits, it must be capable to adapt and innovate to changing new
generations and trends. It is not just represented by presenting or applying new concept or
approaches. In recent time, firms are positioned in fast paced environment where globalization is
increasing and technology is advancing.
While invention is new thing that an company has made for specific target market. It can
be something such as procedures or devices that has been made up or created by someone to
satisfy current market needs. It is novel or unique device, composition, method or process within
product development procedures (Derrida, 2017).
Innovation importance for companies in form of comparison between two concepts-
It can be said that innovation and invention are quite different from each other in many
ways. Invention is defined as creation of things or introduction of process for the first time

within particular target market. On the other hand, innovation occurs when firms like Heinz
improves their important contribution to an existing item or services. With the help of
innovation organizations gain the attention of target market even better and also drive new
consumers towards purchasing products. Inventions mean many things to make something new,
which may be successful, but innovation is always successful because it is done by considering
at the needs or requirements of the current market, which people prefer to purchase. Invention
give chance to gain attention of people but innovation provide the best opportunity as to retain
them for longer period (Lalic and et.al., 2017).
It is very essential for firm as it helps to retain consumers with them for long run and
allow company to sustain in marketplace. Innovation creates bigger chances and is critical for
success of business or a company. For example, it is also important for Nestle UK Ltd, as it help
organization to develop original products and drive their business towards long term progress. In
current business environment there are several factors accessible that forces companies to
innovate continuously which is very effective and helpful thing. It includes, political, social,
economic, environment, technological, legal as external factors. Moreover, in list of factors
consumers, intense competition and globalization also included.
Innovation is really very important in company as compare to inventions, because it save
time and money which can be consumed while inventing something new. It can be said that
invention takes a lot of time and require more money.
P2 Organizational culture, vision, leadership and team work shape commercialization &
innovation
Organizational vision-
Every firm has its vision which describes that which item is needed to be innovated and
in which ways commercialization of innovated goods is done. For instance, Heinz organization
vision is to the best food company in whole world. This vision drive them towards become an
innovator and permit innovating something different. It decides its business growth and
innovations range after that commercialization can be completed easily. With clear vision
company can innovate unique item.
Culture-
Along with above key element, creative culture in firm at workplace also help to share
innovation & commercialization (Naqshbandi and Kamel, 2017). With this culture employees do

their creativity and always thing quite different from other which in return make them able to
innovate something new. It defines that in what way items can going to be innovated and in what
term their commercialization gets influenced. Organizational culture like creative enhance the
productivity of applicants which in return bring innovative ideas in their mind that can be used to
produce innovative products.
Leadership-
Participative leadership style always help to shape commercialization and innovation.
With this style leader guide and direct team or other people how to become an innovative person.
It is the capability of leader to lead and influence their colleagues in Heinz company
(Naqshbandi and Tabche, 2018). It includes making sound and often important decision,
distributing and creating a clear vision as well as setting targets which can gained efficiently.
With participative leadership style leader and all workers work together to make decision related
to innovation. It shapes commercialization in term of taking effective decision to launch product.
Team work-
It plays an important role in shaping commercialization and innovation at workplace
which is beneficial for company in term of increasing their sales and revenue rather than before.
It contributes in commercialization of innovated items, with appropriate skills such as project
management team can manage work and enhance profit margin even better. With creative
thinking and good communication skills team work drive towards innovation where they can
think out of boundaries and then introduce new produce effectively. This force brings new and
innovative ideas and engage more people in more innovation.
M1 Varied sources of innovation and culture of innovation foster by Heinz UK
There are different ways of innovation available that can be used by company to gain all
the benefits including competitive advantages.
Demographic changes-
Changes in decision of people for purchasing products is one of the main source that
drive firm towards innovation.
Unexpected occurrences-
It is one of the simplest and easiest source of innovation, it can be said that unexpected
failure may be an same important source of thing chances. It is such productive innovation
source because most businesses dismiss them and even resent them.

Incongruities-
It means how Heinz can make sense to fit innovation system in their procedure and keep
it for long.
New knowledge-
It is about market gives ideas and concept about innovation of products or services for
specific target buyers.
Process needs-
This source of innovation describe the needs of something unique that is different from
other.
Industry or market changes-
Changes in food and beverage industry and market drive company to make innovation it
can be consider as another source of innovation.
Changes in perception-
Each person has different perceptions, according to their different thoughts innovation
tool are utilized.
From above discussion, it has been examined that Heinz company while operating their
business across UK can foster a culture of innovation by following all above seven sources in
effective manner. It can be said that this form of culture can be drawn out by practising it with
accordant to standards of market.
LO 2
P3- Explanation of 4Ps of innovation and use of innovation funnel to shape innovative ideas
Product innovation-
Goods or items within an company is the main component on which the future business
aims are highly dependent. However, there are companies that market their services as items
being served to consumers. In order to attract more buyers toward Heinz innovative components
of products, production department innovate and add new features such as pasta shapes in tomato
sauce that gain attention of children more than younger people.
Process innovation-
After dealing with product innovation P's, processing of goods supplying, workflow;
recruiting applicants are all included in this procedure. It includes all stages for products

innovation that is quite beneficial and important for any firm. It is the best way by which a thing
is provides to target consumers.
Position innovation-
Innovative product or brand positioning is the aims of commercialization procedure, by
which a company wants to achieve high position in market in which they are interested. For
example, Heinz wanted to achieve top position by offering the best and innovative products to its
consumers.
Paradigm innovation-
It is somewhat particular innovation category, paradigm innovation concerns chance in
way something is done in the company. For Heinz, it may be in way goods are designed and sold
off counter, to providing products or to selling on internet. In simple words', paradigm
innovation, is considered as planned procedure by which a firm faces modification of being
taken innovative ideas.
Innovation funnel-
It is mechanism that makes able a constant stream of ideas that can be screened for
viability (Wang, 2017). This concept is referred to as funnel management procedures that are one
of the popular approaches use for shaping innovation by Heinz and other companies to develop a
realistic or innovative action plan. It is utilized to describe the phases that take place in
developing a procedure or goods. The reason of all innovation is to develop items or systems that
meet market needs in economic as well as manufacturable forms.

It needed that each idea or concept be effectively and continuously compared against a
series of filters, rules & criteria. Innovation funnel includes three main phases in their journey of
changed services or products which is quite beneficial for company when they follow it
appropriately. The positive aspects of innovation funnel is that it help to generate innovative
ideas that can increase profitability of company. But some time it does not work effectively
because whole concentrate of funnel and its stages gate procedure is to whittle down a wide
number of ideas to a smaller number by removing off weaker ones and choosing winners more
than being constructive to issues each idea poses (Colakoglu and et.al., 2019).
P4- Development in frugal innovation and utilized in organizational context
In simple terms, frugal innovation is considered as procedure of eliminating the
difficulty, complexity and cost of a item and their manufacture. Usually it refers to reducing
unessential features from a durable product, in order to sell it in developing field or nations. It is
more than a tactic that can use by management of Heinz firm to drive their sales in competitive
environment (Weyrauch and Herstatt, 2017).
It is really very important for companies to adopt business principles of frugal innovation
as it give them chance to gain competitive benefits and become a market leader by removing all
Illustration 1: Innovation Funnel Procedure
(Source: Innovation Funnel, 2019)

unnecessary things that consume time, money and efforts as well. Tata nano is the best example
of frugal innovation.
It may not be good to make additional features for company because some people do not
like it, they prefer to keep with current design and quality of products.
Frugal innovation concept is use in context of Heinz company in effective manner, it can
be said that by following key principles of this strategy firm obtain several benefits. Some
principles of this process are-
Find chance in adversity-
Illustration 2: Frugal innovation development
(Source: Frugal Innovation, 2020)

Organization according to this principle reframe their issues, management must take
something that is threat or seems like adversity that turn into the best opportunity for them.
Do more with less-
Heinz administration must think about what they already have like resources in a new
way to develop even better solutions or products.
Think and act flexibly-
Before taking any decision organization management make a discussion with other
stakeholders then take action flexibly which means they can choose the option in which chances
will be done according to situations.
Keep it simple-
They do not make complex ideas because it causes issues that affect further process
negatively, management must chose the best idea instead in bulk.
Include margin-
To make an effective products and innovate something unique management know their
consumers, like and preferences and include them in decision-making by taking their feedback
about existing products.
Follow heart-
Workers must be passionate and utilize that to move innovative ideas like selling tomato
catchup in can, forward.
M-2 Innovation funnel in context of Heinz company
By following stage phases of innovative funnel organization can shape their innovative
ideas like Barbie pasta shapes, baked beans pizza and other. It is one of the best tool use by
company to priorities their innovative ideas and assure that the better will be fully created and
advanced goods or other innovations can be introduced. Firm can use it for long run because it is
not limited to basis innovation or procedures, it caters ideas according to the current needs which
must constantly be re-examined against same set of field to assure that they are optimal.
M-3 Role of frugal innovation in chosen firm
Frugal innovation plays important role in Heinz company operating in United Kingdom.
It is a concept that urges companies to respond to limitations in assets; whether material,
financial or institutional and turn these constraints into innovative ideas. For example, Heinz
company by using the principles of frugal innovation gain the attention of youngster, they deliver

more value at lowers costs to people, they create two to 5 goods over nine months which were
real innovations.
LO 3
P5- Importance of commercial funnel and application of NPD processing for commercialization
of innovation
Eight stages of new product development-
Idea generation-
In this stage, production department of Heinz company analyse current market needs and
then generate idea to satisfy it. It refers to systematic search for new product ideas.
Idea screening-
Idea screening means more than filtering concept to pick out better ones. Ideas generated
by management were screened by Heinz company authority to spot good ones and drop bad ones
as soon as possible.
Concept development-
Concept development and testing-
At this phase, Heinz production department manufactured a Heinz Barbie past shape in
Tomato sauce fortified with Iron and Vitamin, this idea has passed second stage and must now
Illustration 3: Stages of New Product Development
(Source: THE NEW PRODUCT DEVELOPMENT PROCESS, 2015)

be developed into a concept. Marketers tasks or role is to develop this new item into alternative
product concepts.
Marketing strategy development-
When a promising idea have been tested and developed by Heinz manufacture
department, it is time to create an initial marketing tactic for new goods based on product
concept for launching this good to market.
Product development-
NPD procedures goes on with real products' development. Up to this stage, for many new
concepts there may exist one words description, a rough prototype. According to this stage,
research & development units will test and develop one or more physical versions of product
concept.
Test marketing-
Second lasts stage before commercialization is market test, in this phase proposed
marketing programme are tested by management in realistic market settings. It gives Heinz
marketer experience with marketing good before going to high expense of full launching.
Commercialization-
After getting positive outcomes from above stage, it's time to launch new pasta into target
market place which in return increase profitability of company.
Commercial funnel importance-
Commercial funnel means listing more about consumers and then do marketing so that
Heinz achieved high point of their existing consumers and retain them for longer period (Knapp
and et.al ., 2018). It is very important in chosen company especially when it comes in regard to
healthy pasta which is leading in specific year of runway.

Figure 1The AIDA Model
(Source: AIDA Model, 2019)
Attention-
Creating brand awareness with services and products help in commercialization, it
increase profit margin.
Interest-
Increasing interest in benefit of things and sufficient interest to motivate consumers to
begin to research further.
Desire-
Organization desire for connecting and developing good relationship with consumers by
using digital market channels that increase commercialization even better.
Action-
After considering all above things, management can take action to increase brandf
awareness and profitability.
P6- Innovation business case for Heinz including ways to access funding
Executive summary-
Heinz is one of the best food manufacture firm in UK, they cater a million of people
across nation. Here, the case study is based on company in which its vision, mission and
objectives clearly mentioned. They want to retain clients and gain competitive advantages.

Vision-
To become market leader in industry with a billion of consumers who seek to purchase
their products.
Mission-
The mission of Heinz company is to cater the best services or products to customers and
offer it according to needs.
Objectives-
 To gain attention of new buyers
 To retain for long within marketplace
 To gain all competitive advantages
 To enter into new marketplace
Analysis-
It can be said that technological and political factors impact on current operations of
TESCO in negative or positive manner. Increase tax charges is one of the political factor that
affect negatively on business expansion operation of company.
Technology advancement is one of the technology factor that impact in positive manner.
Organization by implementing new technologies and system in marketing and production
operations enhance operational efficiency rather than before.
Discussion of possible options-
To expand their business and use the latest technology firm can use the best funding ways
because all these activities require higher investment. They can get funds from angel investors
which is one of the 5 ways of funding for business. Angel groups can be found in most places
and on internet, with clear description of their objectives and purpose (Drover, Wood and
Zacharakis, 2017). They will determine needs of business and then allot fund to achieve their
objectives. Another options, Heinz company can use that is bank loan, it is one of the most the
easiest way through which they can collect money and invest for making their dreams into real.
Suggestions-
From above discussion, it has been identified that Heinz to enter into new market place
with innovative product must take loan form bank as funding source which make them able to do
want they need.
Financial analysis-

It is procedure of examining businesses, budgets, projects and other finance related
transactions to identify their suitability and performance.
Basis Cost
Labour 300
Training 250
Resources 350
Total 900
M 4- Detailed innovative business case which includes ways many things
It can be said that by setting clear objectives, vision and mission organization achieve
long run success. Bank loan is the best way which allow company to expand business with all
essential resources. They can improve current business practices by using benchmarking which
is quite beneficial for them.
LO 4
P7- Tools that firms can use to develop, protect and retain intellectual property
Intellectual properties refer to the creations of human brain such as innovation, designs,
images, names and other things utilized in business world.
Patents-
Heinz can use this tool because it unable them protect their products, plans and other
things effectively. Application of patent would aid them to protect their individual innovation or
inventions and further improve to current inventions as well.
Trademarks-
It is the best sources of recognition being marked among Heinz potential consumers.
There are names, logos, words or symbols that are applied to goods.
Copyrights-
Heinz can marked the application of copyrights to protect expression of ideas in artistic
and literacy works.
Basis Patents Trade marks Copy rights
Advantages With this tool,
company obtain right
One of the main
advantages of this
This tool is beneficial
because it gives sole

to stop others from
manufacturing and
importing their
products without
approval.
intellectual property
tool is that it helps to
build trust.
authority to owner to
reproduce or products
to of piece of actual
work or items.
Disadvantages It can be costly
procedures when it is
unsuccessful.
This tool consume a
allot of time and
money.
It does not permit any
one to openly allow
others to utilize other
work.
M5- Evaluation of different tools in context of wider business environment
From above made analysis, entire tool considered is beneficial for company. As for
example, patent when applied within workforce aid firm to stay protected from their innovative
things. But the negative thing about patent is that is disclosed the details about innovation
publicly. On the other side, through trademarks, company generates their logo that can be make
them differ from others. The negative thing about trademark, is that its registration procedures
may cost more.
CONCLUSION
From above analysis, it has been concluded that innovation is one of the elements that
help Heinz company to gain competitive benefits and also aid in gaining attention of new
consumers. By following and implementing the above norms of frugal innovation and focusing
on sources of innovation organization had made many products in just few months and that is
the real examples of innovations. Furthermore, it has been summarized that by using patient,
trade marks and copyrights Heinz company secure their products or intellectual property from
being stole or copied by other who can be their competitors running in same sector.

REFERENCES
Book and Journals
Colakoglu, S.S and et.al., 2019. Reviewing creativity and innovation research through the
strategic HRM lens. In Research in personnel and human resources management.
Emerald Publishing Limited.
Derrida, J., 2017. From Psyché: Invention of the other. In Acts of literature (pp. 310-343).
Routledge.
Drover, W., Wood, M.S. and Zacharakis, A., 2017. Attributes of angel and crowdfunded
investments as determinants of VC screening decisions. Entrepreneurship Theory and
Practice, 41(3), pp.323-347.
Karlsson, C. and Tavassoli, S., 2015. Innovation strategies and firm performance. Centre of
Excellence for Science and Innovation Studies Working Paper Series. 401. pp.1-31.
Knapp, M and et.al ., 2018. Use of predatory mites in commercial biocontrol: current status and
future prospects.
Lalic, B and et.al., 2017. Open innovation in developing regions: an empirical analysis across
manufacturing companies. International Journal of Industrial Engineering and
Management. 8(3). pp.111-120.
Naqshbandi, M.M. and Kamel, Y., 2017. Intervening role of realized absorptive capacity in
organizational culture–open innovation relationship: Evidence from an emerging
market. Journal of General Management, 42(3), pp.5-20.
Naqshbandi, M.M. and Tabche, I., 2018. The interplay of leadership, absorptive capacity, and
organizational learning culture in open innovation: Testing a moderated mediation
model. Technological Forecasting and Social Change, 133, pp.156-167.
Wang, J., 2017. Structuring innovation funnels for R & D projects under uncertainty. R&D
Management, 47(1), pp.127-140.
Weyrauch, T. and Herstatt, C., 2017. What is frugal innovation? Three defining criteria. Journal
of frugal innovation, 2(1), p.1.
Online
AIDA Model. 2019. [Online]. Available through: <https://www.smartinsights.com/traffic-
building-strategy/offer-and-message-development/aida-model/>
Frugal Innovation, 2020. [Online]. Available through: <https://blog.idexlab.com/frugal-
innovation>
Innovation Funnel. 2019. [Online]. Available through: <https://upboard.io/innovation-funnel-
management-process-online-software-tools-templates/>
THE NEW PRODUCT DEVELOPMENT PROCESS. 2015. Available through: https://marketing-
insider.eu/new-product-development-process/