Innovation and Commercialisation

This report discusses the importance of innovation and commercialisation in the success of an organization. It explores the 4P's of innovation and the use of innovation funnel. It also delves into the concept of frugal innovation and its application in the organization. Additionally, it highlights the significance of commercial funnel and new product development.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1) Innovation and its importance in comparison to the invention............................................4
P2) Role of organisational vision, leadership and culture in shaping the innovation.................6
TASK 2............................................................................................................................................7
P3) 4P's of innovation and use of innovation funnel...................................................................7
P4) Development in frugal innovation and how it can be used in the organisation....................8
TASK 3............................................................................................................................................9
P5) Importance of commercial funnel and new product development.......................................9
P6) Innovation business case....................................................................................................10
TASK 4..........................................................................................................................................12
P7) Tools used to protect and retain knowledge and intellectual property...............................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation is a modern concept in which new ideas are implemented within the
organisation so that they can overcome the issues faced by them or with the help of which they
can enhance the value to the customers. Apart from this innovation enables in taking competitive
advantage over other as with this they can introduce new features in their existing products and
services or they can offer new range of product or service. Commercialisation is the concept with
the help of which new product is introduce with the motive of increasing the financial gain of the
organisation. This report is develop for better understanding of the concept of innovation and its
related terms for the induction of the new team members in Heinz, which is food processing
company having their factory in the north west of London. They have been offering various
products such as sauces, condiments etc. in different countries. In this report the importance of
innovation for the organisation is taken into consideration along with the 4P's of innovation and
how the leadership, culture and teamwork shapes innovation. Later in the report innovation
funnel and development in frugal innovation is discussed as well as the process of the
development of new product.
TASK 1
P1) Innovation and its importance in comparison to the invention
Innovation : Innovation is considered to be the concept with the help of which new and
innovative features are introduced in the existing products or new product and services are
offered so that value offered to the customer can be enhanced. Such changes are taken for
meeting up the changing expectation and preferences of the customers and for taking competitive
advantages (Yin And et. al., 2015). For example: Energy drinks launched by the Heinz will
offer the customers a better option for quality drinks under their trusted brand.
Importance of Innovation:
 Ensures growth of the company: As with the help of innovation the Heinz can ensure
the satisfaction and better value to the customers due to which they can becomes more
successful and profitable by making their customers loyal. Makes the organisation competitive: The innovation enables the organisation such as
Heinz in achieving differentiation with innovation as with this they keep on improving
their products and service. This enables them in brining technological changes and

managing digital disruption so that they can improves the trust of the customers in
context of quality and wide offering under on brand.
Invention : With the help of invention new product or service is launched by the
organisation for the first time which cam into existence for the first time so that the need of the
customers can be satisfied. For example: Tomato ketchup was invented by the Heinz with
special seasoning and the starch.
Importance of Invention: The invention facilitates discovery of new thought or idea with the
help of which the problem faced by the customers can be resolved as entirely new product or
service is introduced (Wieczorek and et. al., 2015).
Difference between Invention and Innovation
Basis Innovation Invention
Meaning Innovation is the concept with the
help of the impact of changes are
managed in the existing products by
implementing the idea for the first
time.
Invention is related with discovery
new idea that does nor exist so that
the problem can be resolved.
Skills required The skills that are required for this
includes strategic and managerial
skills, technical skills as well as
marketing skills.
Invention is based upon scientific
skills as with the help of research
and experiments are undertaken in
such a manner that understanding of
the issues can be developed.
Concerned with Innovation is related with changes
either in the product and service or
the process so that improvement is
made possible.
Invention is done for the product or
the methodology of undertaking any
activity.
Sources of innovation: Various sources of innovation for the business includes:
 Need of the process: The weak spots within the process need to be identified and
accordingly task oriented solution need to be introduced as per the existing capabilities

and ways of operating. Due to this they need to bring changes through innovation so that
improvement can be made (Rosca, Arnold and Bendul, 2017).
 Changes in the perception, meaning and mood: With the changes in the need and
expectation of the customers the innovation need to be introduced by the organisation as
this enables them in managing their offerings.
P2) Role of organisational vision, leadership and culture in shaping the innovation
Commercialisation: Commercialisation is considered to be the process with the help of
which new product or services can easily be introduced in the market and customers can be
attracted so that they can easily achieve the financial gains by improving the profitability.
Organisational vision: The vision of Heinz is to offer wide variety of products and
services with better quality as well as according to the needs and wants of the customers. For this
the organisation need to introduce the innovation within the products and services so that they
can enhance the value of their offerings with innovative features. The employees of the
organisation can be encouraged to adopt the vision of the organisation so that they can reduce the
chances of resistance.
Leadership: With the help of leadership style the employees within the organisation can
be encouraged to contribute to the goals and objectives of the organisation. The leaders in Heinz
uses participative style with the help of which they allow their employees to recommend the
ways with the help of which they can resolves the issues related to the customers satisfaction.
The ideas of the employees will bring in innovation and the leaders can support them in
accepting the changes due to implementation of innovation (Laihonen and et. al., 2015).
Culture: The culture consist of shared values and beliefs the regulates the behaviour of
the employees and develop the environment within which they work. The culture affect the
innovation as if the employees are not provided freedom to express their views and to
communicate effective they may resist to accept the change due to innovation. The leaders
within Heinz uses the Handy's model for identifying the type of culture within the organisation
that can be power culture or task culture. With the help of task culture the leaders in Heinz
defines the powers and roles of the employees.
Teamwork: The teamwork facilitate in accomplishing goals and objectives as the team
work with collaboration in collective manner so that they can utilise the competence of each and
every employees efficiently. With the help of Tuckman's theory of innovation the leaders

focusses upon development of better team that can contribute efficiently in introducing the
innovation.
Cross functional teams: With the help of cross functional interaction within the team
members the performance of the organisation can be improved. This will ensure that innovation
can efficient be managed as they have better interaction among them due to which collective
actions can be taken for desired outcomes.
TASK 2
P3) 4P's of innovation and use of innovation funnel
For implementing the innovative ideas it is necessary to understand various strategy and
the need of introducing change in them so that they can efficiently accomplish the objective of
innovation. 4Ps of innovation is a model that facilitate to identify the area where Heinz need to
bring innovation such as: Paradigm: With the help of this the innovation can be introduced in the underlying
mental modes within the organisation with the help of which they can improve their
functions. Heinz can improve their business processes by analysing them and with the
help of this they can bring efficiency in the operations of the organisation. Process: In this, the process that has been adopted by the organisation for marketing their
product as well as their manufacturing are analysed and improved so that they can
improve their other related functions such as delivery of the products and services,
availability of the material and many more. This will facilitate Heinz in managing their
overall cost of the business (Koirala and et. al., 2016). Positioning:This facilitate in determining that how the products and services can be
placed within the market so that they can create awareness among their targeted
customers for their offering. Heinz can bring innovation in their positioning strategy such
as they can promote through online sources and other advertising medium.
 Product: With the help of this the company can target the market as per their needs and
for this they need to analyse their expectations from the organisation. On the basis of this
they can introduce innovation within their existing product and services or Heinz can
launch their new products and services such as energy drinks as they are planning to
launch.

Innovation funnel includes various steps with the help of which the company can
identify different steps through which they can satisfy the needs of their targeted customers in a
profitable manner. With the help of this funnel the ideas are generated and out of the best one is
selected that can bring innovation within the organisation (Kerschke and et. al., 2015). The steps
related to the funnel are given below:
(Source:Innovation Funnel. 2019) Idea generation: In this stage the ideas are generated by the Heinz by way of their
employees and marketing as well as R&D department after the market research as per the
available opportunity. Feasibility study: In this stage the viability of the ideas so generated are analysed in
context of profitability and need of the market. Capability: The ideas are analysed on the basis of capability of the organisation in
context of their ability to achieve the desired outcomes as per the planned innovation.
 Launch : The ideas that are suitable for the organisation in all the stages will be selected
by the organisation and launched such as the ideas of energy drink which is profitable for
Heinz.

P4) Development in frugal innovation and how it can be used in the organisation
Frugal innovation is the process that are adopted by the company so that they can
eliminate the wasteful activities or non essential activities as this reduced their cost of operations.
It can be done with innovation within the processes and their offerings .
(Source: Frugal Innovation. 2019) Seek opportunity in adversity: This implies that when the company faces any adverse
situation they tends to bring innovation so that they can minimise its impact such as
Heinz introduced new product as per the needs of the target market. Do more with less: In this the limited resources are utilised in such a manner that the
desired outcomes can be achieved. Heinz managed their financial resources efficiently for
expansion. Think & act flexibly: In this the Heinz must promote their product with innovation so
that they can make their customers feel attracted towards their offerings. Keep it simple: It implies that all the activities must be planned so that they can be
implemented in such a manner that the benefits innovation are achieved. Include the margin: The cost of the innovation must be recovered from the offerings and
accordingly pricing strategy must be developed including the considerable margins.
 Follow your heart: With this the leaders must follow their passion so that they can
profitably bring innovation within the organisation and can accomplish the satisfaction
level of customers (Datta, Mukherjee and Jessup, 2015).

With the help of this frugal innovation Tata Nano has brought innovation in the cars by
eliminating the procedure that was non essential and unproductive with the help of which the
cost was reduced. Similarly Heinz can manage their cost and prices so that better satisfaction can
be offered to the customers.
TASK 3
P5) Importance of commercial funnel and new product development
Commercial funnel: The commercial funnel is the sales funnel with the help of which
prospects can be concerted into potential customers so that the sales of the company can be
increased. With the help of this Heinz can formulate their pricing strategy and promotional
strategy so that they attract the customers for their offerings. Heinz can bring innovative features
through commercial funnel as they are targeting the needs of the customers which can increase
their level of satisfaction.
Importance of Commercial funnel:
 With the help of this marketing strategy options are evaluated by Heinz so that customers
can be attracted.
 The relations with the customers can be enhanced by offering them better product and
services by Heinz.
New product development: With the help of new product development process
innovative products can be launched by the Heinz. The process for this includes the following
steps:

 Generation of ideas: This is the initial stage in which the the ideas fro the development
within the products are identified such as the needs of the customers for more healthy
drinks. Screening ideas: For this screening is done in which they analyse the ideas in context of
its viability for implementation and accomplishment of the desired objectives. Development concept: In this the ideas so selected in the screening is developed in
context of the concepts. Marketing strategy: At that level Heinz will formulate strategy related to marketing mix,
target market, financing strategy etc. so that they can efficiently launch their energy
drinks (Aloini and et. al., 2015). Business analysis: In this the analysis will be done on the basis of feasibility analysis so
that the profitability can be ensured. Product development: At that level, the energy drinks will developed by them as per the
planned innovative features of the products. Test marketing: At this the products will be tested in the market from the selected
customers and accordingly changes will be planned.
 Commercialisation: After completing all steps till Heinz will commercialise their
products i.e., energy drinks so that they can satisfy the needs of the target market.
P6) Innovation business case
Business case is a systematically written document that develop an understanding of how the
innovation can be introduced within the organisation. With the help of this various aspects such
as formulation of various strategies, identification of various funds etc. can be decided so that
they can accomplish their goals associated with the innovation. The managers of Heinz can
formulate business case by analysing various risk and sources. The business case for the Heinz
is given below:
 Executive summary: The planned strategy will enable Heinz in introducing innovation
within the organisation. For this they need to analyse the vision and mission statement so
that they can determine their objectives. Further they need top plan their sources of
finance as well as the target market so that they can commercialise their offerings with
innovation.

 Company Overview: Heinz is American Food company that has been offering various
products and services with the aim of better quality product and services. The company is
known for their consistent innovation and due to which they are planning to offer their
new product which is energy drink as with the help of this they can enhance the
satisfaction level of the existing customers as well as their market share.
 Vision and mission: The vision of the company is to be better company that can offer
food and to grow significantly. The mission of the company is to provide better quality
food with consistent innovation so that they can make the customers loyal.
 Need satisfied: With the help of the energy drink the growing need of the ready made
healthy food can be satisfied of the customers. They have been offering a wide variety of
foods and services where launching of these drinks will increase their market share as
well as the expectation of the customers (Bagno and et. al., 2017)..
 Stakeholders expectations: The expectation of the stakeholders includes that of the
shareholders is to increase the profitability so that their income can be increased while
that of the employees is to have better opportunity for the growth. With this launch they
can easily satisfy the needs of the stakeholders.
 Innovation opportunities: The opportunities with the innovation includes that the
demand for the products such as energy drinks has been increasing as the people are
becoming more health conscious.
 Target market strategy: The target market of Heinz for the energy drinks includes that
of the people who are involved in physical activities within the age bracket of 16 to 50.
 Pricing and promotional strategy: The pricing strategy that will be taken into
consideration for the products and services includes that economic prices as for their
other products also they have been following the same strategy. While for promoting
their energy drinks they will considering the advertisements through televisions, radio
and magazine so that they can create awareness among the consumers for their products
and services. Fixed cost is 15000 and variable cost is 5 rupees per unit. Selling price is 7
per unit. BEP for this is: Break-even point: Fixed costs/ construction margin per unit or
product = 15000/(7-5)= 7500 ans.
 Financing: Planning of the sources of funds is crucial as with the help of this the sources
can be identified such as Heinz can utilise their retained earnings for the launch of energy

drinks and in addition to this they can take loans from financial institution as the cost
associated with borrowings of the funds is low in comparison to other sources of
procurement. Further they can also take funds from the shareholders by issuing them the
shares of the company but it can affect the interest of the existing shareholders.
TASK 4
P7) Tools used to protect and retain knowledge and intellectual property
Intellectual property facilitates in protecting the ideas, discoveries and the inventions as
well as creative work that are developed by the individuals. As the information are easily
accessible through various online sources due to this it becomes important for the Heinz for
managing the retention of the knowledge and protection of their ideas and thoughts with the help
of following intellectual property.
Patents: With the help of patents the inventions can be protected by the organisation in
context of the machines used by them, processes that they follows and in context of the designs
of the products and services. Heinz can utilise the patent as it can provide them the exclusive
right for preventing from commercial exploitation (Jahn, 2016).
Advantages Disadvantages
This spark innovation and provides exclusive
rights which enables in protecting the rights
and easily commercialising the innovation that
can facilitate them in enhancing their
profitability.
The patents are difficult to acquire and are
issued for the limited period due to which they
have to be renewed frequently.
Trademark: It is a intellectual property right that can facilitate protection to the sign,
design and the expression that can create distinction among the offerings of the organisation.
Heinz can use this for protecting the symbol and design of their brand etc.
Advantages Disadvantages
The registration of the trademark is
economically simple and can easily be
renewed. This also facilitates in easily
promoting the brand as well as in creating
Due to trademarks the responsibility of the
businesses increase in context of better quality
and offering as per the expectations of the
customers other wise the brand fall

awareness among the customers. significantly.
Copyrights: Copyrights are considered to be collection of the right that enables the organisation
to protect their idea and creative work. With the help of this the right to reproduce the work can
be managed, to protect the work from the display etc. Heinz can use this to protect the idea of
different offerings with innovation.
Advantages Disadvantages
This provides the right to further produce and
reproduce the work and ensures that the work
of the organisation is not misused or stolen.
But this affect the ability to share the work due
to which the development of the particular
ideas is restricted.

CONCLUSION
It is concluded from the above report that the organisation need to bring innovation so
that they can accomplish the gaols and objectives as well as can satisfy the needs of the market.
For this the businesses need to determine the available opportunities and accordingly they bring
innovation. To ensure the protection of the innovation and creative ideas various intellectual
property rights are taken into consideration.

REFERENCES
Books and Journals
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impact of customer involvement on new product performance. Journal of the academy
of marketing science. 44(4). pp.516-538.
Jahn, B., 2016. The cultural construction of international relations: the invention of the state of
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Rosca, E., Arnold, M. and Bendul, J.C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services. Journal of Cleaner Production .162.
pp.S133-S145.
Wang, J., 2017. Structuring innovation funnels for R & D projects under uncertainty. R&D
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Yin, W.J. And et. al., 2015. Origin of high electronic quality in structurally disordered
CH3NH3PbI3 and the passivation effect of Cl and O at grain boundaries. Advanced
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Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of
technological innovation: taking stock and moving forward. R&D Management. 45(3).
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Kerschke, P. and et. al., 2015, July. Detecting funnel structures by means of exploratory
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Evolutionary Computation(pp. 265-272).
Laihonen, H. and et. al., 2015. Technological strategy, open innovation and innovation
performance: evidences on the basis of a structural-equation-model approach.
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Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
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Online
Innovation Funnel. 2019. [Online]. Available Through:
<https://www.toolshero.com/innovation/innovation-funnel/>
Frugal Innovation. 2019. [Online]. Available Through:
<https://zlearningjourney.wordpress.com/2015/05/09/jugaad-innovation-a-powerful-
growth-model-for-complex-times-part-2-of-3/>
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