Innovation and Commercialisation

This document discusses the concept of innovation and its significance to an organization in terms of invention. It also explores how vision, leadership, culture, and teamwork can shape innovation and commercialization. The document further explains the 4Ps of innovation and the innovation funnel, along with examples of frugal innovation.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation of innovation & its significance to organisation in terms of invention............1
P2. Explanation of how vision, leadership, culture & teamwork of an organisation can shape
innovation & commercialisation ................................................................................................3
TASK 2............................................................................................................................................4
P3. 4Ps of innovation and explanation of innovation funnel in order to examine innovative
ideas.............................................................................................................................................4
P4. Explanation of frugal innovation along with examples........................................................5
TASK 3............................................................................................................................................6
P5 Significance of commercial funnel & New product Development process for innovation...6
P6 Innovation Business Case......................................................................................................7
TASK 4............................................................................................................................................8
P7. Evaluation of Different tools to develop, retain & protect intellectual property..................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is defined as a procedure by which an entity seeks to bring changes within the
existing products and services as well. The main motive of bringing innovation is to attract more
number of people towards brand and enhance its performance level in an effective manner. In
addition to this, it take place in order to achieve positive results for the organisation in terms of
sales, efficiency, profits and so on (Akhundjanov, 2020). On the other side, commercialisation is
a process by which particular goods and services is introduced in market to gain attention of
customers prevailing at marketplace. It is determine that Innovation & commercialisation plays
vital role for companies across the globe. Along with this, both process help an organisation to
bring positive change that has influence on performance as well as productivity. For the present
report, Heinz is chosen as a base company. It is an American food processing company and offer
products such as Tomato Ketchup, Beanz, soups, pasta sauce and so on. The company was
formulated in the year 1869 and its head office is located at Pittsburgh, Pennsylvania. The higher
authorities of Heinz is bringing innovation in market that is offering Potato smiles with
Mayonnaise and Ketchup. It is a ready to fry product that consist of small of small pack of
Ketchup and Mayonnaise with it. The report will cover the concept and difference of invention
and innovation along with its importance for organisation. There is further discussion about
innovation funnel and 4Ps of innovation as well. Furthermore, the report will discuss about
frugal innovation, new product development process in context to company. Later, an innovation
business case is developed and intellectual property tools are covered.
TASK 1
P1. Explanation of innovation & its significance to organisation in terms of invention
Innovation: It is a process of making changes in the existing goods and services of
company in order to increase demand at marketplace. In addition to this, it is determine that
herein creativity, unique thinking of staff members is consider as an important aspect (Awni,
2019). It is important for an entity to gain a understanding about market conditions and
requirements and then bring innovation as it increase the chances of acceptance and raise overall
performance of company.
Invention: It is a different concept as compare to innovation that is the procedure of
coming with new products as well as services for disrupting the marketplace. Invention is mainly
1

take place when an employee bring new idea that is supported by high authorities in order to turn
into reality. It is important for an organisation to conduct an extensive research on the product
and service that is being introduced by them.
Differentiation between innovation & invention
Basis Innovation Invention
Aim The main objective of innovation is to
enhance value of present or existing
products as well as services at
marketplace.
The motive is to launch something
attractive, new and creative for the
customers in order to develop unique
image and to attain competitive advantage
at marketplace.
Occurr
ence
It take place when an organisation
identifies that their existing product
lacking relation with its competitors and
its demand is declined in the market
(Badizadegan, 2020).
Invention take place when a new and
creative idea is comes in mind of a
personal and is support by managers to
satisfy requirements of customer.
Importance of innovation for Heinz
Innovation plays vital role in every organisation as it help in gaining success and growth
in the market. In addition to this, it also develop value for customers and attract them towards
brand in an effective manner. Innovation increase the demand of a product that has positive
influence on sales as well as profitability level of a organisation. The significance of innovation
is given below in context to respective organisation:
Continuous Improvement: One of the most important factor that occurs due to
innovation is continuous improvement. This assist in increasing quality as well as characteristics
of company's offerings (Beynon, Jones and Pickernell, 2019). In context to Heinz, innovation
allows them to stay aligned with demand & needs of market and implement a set of action that
aid in attaining competitive advantage. For this, it is important for companies to introduce or
bring changes within the offerings of company.
Unique Selling Point (USP): By gaining an understanding about competitors within the
food industry, Heinz can bring up with innovation at regular intervals of time. In addition to this,
2

such innovation assist company to develop unique image at gain eyes of more number of people
towards brand. It also help company to enhance its customer base level and raise the overall
performance in an appropriate manner. By introducing new product that is Potato smileys with
Mayonnaise and Ketchup, Heinz can raise its market share level and gain profits effectively.
Response to competition and trends: In this preset scenario, competition in market is increasing
rapidly with the change in trends as well as patterns. Innovation help Heinz to deal with such
competition and gain success and retain in market for longer-time (Brem, Bilgram and Marchuk,
2019). In addition to this, it also assist company to deal with current trends and develop value for
customers in an effective manner.
P2. Explanation of how vision, leadership, culture & teamwork of an organisation can shape
innovation & commercialisation
Innovation plays an important role in an organisation as it help in attaining objectives ans
fight with the rivals prevailing at marketplace. It is determine that there are different sources into
which innovation owes its occurrence and emergence as well. The sources are given below:
Vision:
It is a longer-term objective of an organisation that is aligned with characteristics &
patterns of employees in an effective manner. Vision plays vital role in bringing innovation
within the organisation. In context to this, it is analysed that innovation is involved within the
vision of Heinz. Along with this, such innovation motivate employees of respective company to
come up with unique offerings that can disrupt the overall marketplace.
Leadership:
Leadership is defined as the process of instructing and supporting staff members in order
to attain objectives and goals effectively. In context to this, it is determine that leaders of Heinz
align the characteristics and behavioural pattern of all the staff members towards innovation in
the products as well as services (Bond-Smith, 2019). Moreover, it can help company to shape
innovation and commercialisation in an effective manner.
Culture:
It mainly involve customs, ideas, values, beliefs, opinions, ideologies and traditions held
by a company. It is determine that considering all such factors by Heinz assist in bringing of new
and creative idea by employees in an appropriate manner. Along with this, it is analysed that
3

culture of Heinz is focuses on bringing of innovation that aid in gaining high market position and
share effectively.
Teamwork: It is analysed that development of teams is more effective in working as compare to
the activities implement by an individual. It is essential for an entity to develop a teams by
analysing their characteristics and behavioural patterns as it help them to bring new idea and
implement them into the reality. With reference to Heinz, it is analyse that its mangers developed
teams in such a manner which facilitates innovation at workplace. Moreover, it is identified that
efforts of staff members in working together aid Heinz to bring innovation and enhance its
performance level and market share in an effective manner.
TASK 2
P3. 4Ps of innovation and explanation of innovation funnel in order to examine innovative ideas
This model was proposed by John Bessant & Joe Tidd and is also known as innovation
mix. It assist companies to gain an insight about procedure of innovation that can be enhanced. It
is determine that this four elements aid an entity to raise its position at which the company is at
present to the organisation want to achieve in future (Guerrero and Urbano, 2019). Moreover,
4Ps of innovation motivates an organisation to implement the idea generation process in order to
bring innovation at workplace.
Positioning innovation: It is basically developing a positive image at marketplace about
the new offerings of company so that there is increase of effectiveness and performance level of
an organisation. With reference to Heinz, it would be adding new offerings that is potato smiles
with Ketchup and Mayonnaise attract more number of customers and enhance its market position
in a appropriate manner.
Process Innovation: It is defined as the process that take place in order to incorporate
innovation or to turn the idea into reality. Herein, the managers is mainly emphasis on the
methods that is consider by them in order to produce goods and services as well (Helm, Endres
and Hüsig, 2019). In case of Heinz, it is analysed that company is implementing innovation
process by adopting different tools and automating the process. It assist in declining the cost of
organisation by removing unnecessary elements in an appropriate manner.
Product Innovation: This element of 4Ps of innovation focuses on incorporation of new
idea that is formed by company within the products as well as services. In relation to Heinz, it is
4

determine that company is bringing innovation in the food in order to attract people towards
brand and to increase sales and profitability level.
Paradigm innovation: It is analysed that this element of 4Ps of innovation is focuses on
integration of innovation within the system by which activities are implemented in the company.
In relation to Heinz, it is determine that it can transform its model of business so that it can easily
deal with rapid changes and properly appeal to employees prevailing at workplace.
Innovation funnel
Innovation funnel is defined a a mechanism which enable an idea to be screened for its
viability. In addition to this, it is analysed that this tool assist an entity as well as individuals to
innovate successfully. It is also known as funnel management process for innovation that is
adopt by organisations to develop an innovative plan and concert them to action plan. This tool
consist of three stages that is discussed below in relation to Heinz:
 Investigation – The first and foremost stage of innovation funnel is investigation. In this,
companies gather ideas for bringing innovation that assist in determining best idea and
solution at marketplace. With reference to Heinz, it is analysed that it has a separate team
of research who conduct market studies in order to gain understanding about customer
needs and competitors strategies that will assist in making effective strategies and
bringing of innovation in an effective manner (Holloway and Herder, 2019).
 Development – At this stage, screening of all the idea is take place from the ideas that is
collected at the initial stage of innovation funnel. In context to Heinz, it bring innovation
that is offering of potato smiles with Mayonnaise and Ketchup in order to increase its
offerings and enhance its customer base level in an effective manner.
 Product Delivery – It is undertaken as last step of funnel process and at this stage, an
entity decides what is to be bring at market in order to attract people towards brand and attain
competitive advantage as well. If it is talking about Heinz, it is going to launch a product that is
potato smiles with Mayonnaise and Ketchup. This idea take place by analysing the market
scenario that will assist in raising customer base as well as profitability of company in an
effective manner.
P4. Explanation of frugal innovation along with examples
Frugal innovation is a process of reducing cost of production and level of complexities in
an appropriate manner. This tool is mainly adopt by companies to remove unnecessary features
5

within the products as well as services which has positive impact on the overall performance
level. It is analysed that this tool assist companies to convey this by removing obstacles and
imperfections. Further, it is deciphered as an essential tool which help an entity to deliver high
value to customers at reasonable price and of good quality as well. There are some principles of
frugal innovation that is defined below:
Principle 1: Engage and iterate: It is analysed that old concepts and models of research
& development is inflexible and time consuming as well (Hsieh and Wu, 2019). In order to
engage customers, it is important to develop good relation with customers and to analyse their
requirements that directly leads to customer retention and satisfaction as well.
Principle 2: Flexibility: It is determine that frugal approach is practical to the asset chain
which include manufacturing, distribution, people, services and many more. For instance, BMW
uses light-weighting approaches for electric cars which include aluminium & carbon fibre
instead of steel.
Principle 3: Development of sustainable solutions: Due to the changes take place in the
external environment, it is essential for companies to develop those goods as well as services
which is sustainable and can be recycle in an effective manner. MacBook 2018 of Apple is such
an example of this as it is produced with 100 percent recycle aluminium.
Principle 4: shape customer behaviour: This principle signifies that increase in
motivation & awareness assist an entity to shape customer behaviour towards positive side. For
instance, Care4Today is an application that help patients to stick on their time table along with
medication.
Principle 5: Make innovative trends: It is the principle of frugal innovation that states
hyper-collaboration with partners, competitors, government and suppliers as well. For instance,
General Electrics has a partnership with Quirky that is a crowdsourcing platform. The objective
to build a partnership is to produce goods like Aros- air conditioner.
TASK 3
P5 Significance of commercial funnel & New product Development process for innovation
Commercial funnel is basically an overall journey of customers that is associated with
buying of company offerings. Acquisition of such tool will assist Heinz to attract large number
of people towards brand & impose then to buy its product as well as services (Jarchow and
6

Röhm, 2019). This tool consist of various stages that is opinions, preferences, awareness,
purchase and consideration as well. All this stages are followed by company in order to influence
consumer decision making. In addition to this, it assist Heinz to develop effective strategies and
to build good relation with customers so that they can retain with them for longer-time period.
New product development is defined as a procedure by which development of an
innovative product is take place. In addition to this, it is a process by which raise in profit and
revenue earned by an entity. The new product that is going to be developed by Heinz is Potato
smiles with Mayonnaise and Ketchup. The steps to implement and bring new product is
mentioned below:
Idea Generation: It is the stage of NDP process and herein ideas associated with
innovative offering emerges. By carrying out brainstorming session, Heinz came up with an idea
of Potato smiles.
Idea evaluation: Herein, the idea in relation to its capability is analysed in order to gain
positive outcomes. The idea developed by Heinz is effective and assist company to enhance its
customer base level.
Development of Concept: At this stage, the transformation of idea into a product is take
place by the higher authorities of Heinz (Link, 2019). In context to Heinz, the idea of launching a
new product would be tested on a particular customers that help in gaining understanding about
their reactions.
Marketing Strategy: This stage is associated with the development of advertisement and
promotional strategies that help Heinz to create awareness in market about its new offering. In
this, the company is going to make use of social media application as it assist in reaching large
number of people within given time frame.
Business analysis: Herein, estimation of cost, sales and expenses that is occur of new
product is take place.
Test Marketing: Herein, various test is take place in order to know the feasibility of new
innovative product at marketplace.
Commercialisation: It is consider as the last stage of NPD process. Herein, the product
that is Potato smiles is launch in the market in an effective manner.
7

P6 Innovation Business Case
Executive Summary: Heinz is a renowned company that is operating in the food
processing sector.
Problem: In the present time, company is facing issue as it sales is declined. It is
important for Heinz to develop a new product that attract more number of people and strengthen
its market position.
Solution: One of the solution to increase sales is adoption of cost leadership strategy by
Heinz. In addition to this, it can decline its level of cost by reducing human intervention and
adopting artificial intelligence.
Innovation: For dealing with such issue in an appropriate manner, Heinz is bringing
innovation in its product as it help them to attract more number of people and increase its sales
and profitability level. Therefore, Potato Smiles with Mayonnaise and Ketchup is being
introduced by Heinz and is ready to fry product.
Sources of Funding: There are various sources of funding that can be adopt by company
in order to gain funds and implement activities in an effective manner. In context to Heinz, it is
making use of Bank loans in order to gain funds. It is determine that banks grant loans by proper
paper working and charge interest from companies along with the principal amount.
Monitoring and Control: In order to produce or launch a new product, it is significant for
companies to check & monitor performance of employees with the expected performance. With
reference to Heinz, it is adopt two techniques that is benchmarking and KPI (Yin, 2019). It assist
company to gain an understanding about the extent to which new product launch activities is
performed by employees in meeting with the objectives in an effective and timely manner as
well.
Sources of funding
Bank loan: one of the most secured as well as systematic way of sources of funding is
bank. It grant loans with a proper documentation and in return charge interest along with
principal amount by companies.
Government assistance: The government provide funds to companies that is present in
their own country. It is determine that government charge less interest amount if it is compare
with other sources of funding.
8

TASK 4
P7. Evaluation of Different tools to develop, retain & protect intellectual property
It is essential for companies to undertake various measures by which innovation is
protected, retained and developed as well. The important tools is given below:
Patents
It is defined as a set of rules that is formed by government for companies and is
associated with the time period. In addition to this, it protect invention or innovation take place
by an entity in order to being copy by others (Yin, 2019).
Advantages: This intellectual property gives protection to innovator till the statutory
time of patent.
Disadvantages: IN order to acquire such intellectual property, it occur high cost to
company. Along with this, it is determine that time of patent is less and in maximum, it is only
20n years.
Copyrights
It is similar as patents, the basic difference is copyright is associated with works of a
source whereas patent emphasis on innovation. By the assistance of this tool, development of
concept as well as idea can attain restriction for all organisation in order to be able to invent for
particular time period.
Advantages: It is determine that the life of copyright is more and is equal to creators life
with addition to 70 years.
Disadvantages: It is essential to own the copyrights as it able to enjoy rights that it
grants.
From the above discussion, it is analysed that Heinz innovation should be protected by
intellectual property that is copyrights (Min, Vonortas and Kim, 2019). It is because of more
statutory life as compare to other intellectual property rights.
CONCLUSION
From the above study, it has been analysed that innovation and commercialisation plays
vital role in every organisation as it help in attracting large number of people and increase
performance and profitability level in an effective manner. In addition to this, commercial funnel
and innovation funnel is consider as keys of launching new product effectively in market. There
9

are various intellectual property that aid company to protect, retain its product from market and
these are trademarks, copyrights and so on.
10

REFERENCES
Books and Journals
Akhundjanov, and et. al., 2020. Commercialization of a demand-enhancing innovation: The
release of a new apple variety by a public university. Economic Modelling, 86, pp.88-
100.
Awni, and et. al., 2019. Influences of buffer material and fabrication atmosphere on the electrical
properties of CdTe solar cells. Progress in Photovoltaics: Research and
Applications, 27(12), pp.1115-1123.
Badizadegan, K., and et. al., 2020. The potential role of using vaccine patches to induce
immunity: platform and pathways to innovation and commercialization. Expert Review
of Vaccines, 19(2), pp.175-194.
Beynon, M. J., Jones, P. and Pickernell, D., 2019. The role of entrepreneurship, innovation, and
urbanity-diversity on growth, unemployment, and income: US state-level evidence and
an fsQCA elucidation. Journal of Business Research, 101, pp.675-687.
Bond-Smith, S., 2019. The impact of compatibility on innovation in markets with network
effects. Economics of Innovation and New Technology, 28(8), pp.816-840.
Brem, A., Bilgram, V. and Marchuk, A., 2019. How crowdfunding platforms change the nature
of user innovation–from problem solving to entrepreneurship. Technological
Forecasting and Social Change, 144, pp.348-360.
Guerrero, M. and Urbano, D., 2019. A research agenda for entrepreneurship and innovation: the
role of entrepreneurial universities. In A Research Agenda for Entrepreneurship and
Innovation. Edward Elgar Publishing.
Helm, R., Endres, H. and Hüsig, S., 2019. When and how often to externally commercialize
technologies? a critical review of outbound open innovation. Review of Managerial
Science, 13(2), pp.327-345.
Holloway, K. and Herder, M., 2019. A responsibility to commercialize? Tracing academic
researchers’ evolving engagement with the commercialization of biomedical
research. Journal of Responsible Innovation, 6(3), pp.263-283.
Hsieh, Y. J. and Wu, Y. J., 2019. Entrepreneurship through the platform strategy in the digital
era: Insights and research opportunities. Computers in Human Behavior, 95, pp.315-
323.
Jarchow, S. and Röhm, A., 2019. Patent-based investment funds: From invention to
innovation. The Journal of Technology Transfer, 44(2), pp.404-433.
Link, A. N., 2019. An assessment of the small business innovation research fast track program in
southeastern states. In The Social Value of New Technology. Edward Elgar Publishing.
Mat Jalaluddin, N. S., Othman, R. Y. and Harikrishna, J. A., 2019. Global trends in research and
commercialization of exogenous and endogenous RNAi technologies for crops. Critical
Reviews in Biotechnology, 39(1), pp.67-78.
Min, J. W., Vonortas, N. S. and Kim, Y., 2019. Commercialization of transferred public
technologies. Technological Forecasting and Social Change, 138, pp.10-20.
Yin, X.,and et. al., 2019. Dithieno [3, 2‐b: 2′, 3′‐d] pyrrol‐Cored Hole Transport Material
Enabling Over 21% Efficiency Dopant‐Free Perovskite Solar Cells. Advanced
Functional Materials, 29(38), p.1904300.
11

12