TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 LO 1.................................................................................................................................................3 P1: Comparison of innovation and invention..............................................................................3 P2: Innovation shapes leadership, teamwork, vision and culture................................................4 LO2..................................................................................................................................................6 P3: The 4P’s of innovation..........................................................................................................6 P4: Evaluating the developments in frugal innovation and its use in an organisation................7 LO3..................................................................................................................................................8 P5: Importance of commercial funnel.........................................................................................8 P6: Innovation business case and ways to access funding..........................................................9 LO4................................................................................................................................................10 P7: Tools for developing, retaining and protecting knowledge and intellectual property.........10 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION It is very essential for organization to get new ideas and creativity in the products and services so that there is a better functioning and sales of the products in the organization. Innovation is the changes which are made in the existing products and invention is when there is a new product which is built by an organization. The methods which are used by organizations for production and new products are known as commercialization. This is a very good factor for the organization to get a competitive advantage in the market. Heinz is from the food processing industry which has been in the market from over 151 years and was launched in 1869. The headquarters of this organization is in Pittsburgh, Pennsylvania and is serving worldwide. There are more than 38,000 employees working in this company and the net income is $1.94 billion. The report would consist of the changes and innovations which have taken place in the organization. There is a lot of improvement which Heinz is trying to make so that they can get a larger market share and customer base for themselves which is going to be very good for a long run. There are a lot of ideas, thinking and strategies which are being implemented from time to time in the company for a better result. LO 1 P1: Comparison of innovation and invention The customer’s needs and demands are changing from time to time which has to be matched by the organization so that there is a better competitive advantage. Heinz has a strong research and development team in the market so that the organization can have a better operations and productivity. There are a lot of artificial intelligence technological changes which have come in the market so that there is a better functioning. The services for the customers are also improved which make the standards of the organization better(Carayannis, Cherepovitsyn and Ilinova, 2016). There are no default products which are reaching the customers and all the products have good raw material which is being used in the company. InventionInnovation
There is a competitive advantage which the company gets in the organization and the profit margins also increase. There is a loyalty of the customerswhichcanbeincreasedand inventionalwaysgetsthebestofattracted customerswhichis a very good factor for Heinz company for a long run in the market. The customers lose interest in the same product over a long time which is why there has to be an improvement which has to be done by the organization. The satisfaction of the customers in Heinz is very essential which is why the company is getting in a lot of variety in the products for the customers and that is going to attract other customers as well and increase the sales(Scott and et.al., 2020). There is a requirement by the organization to have a skilled and experience research and development team in the organization so that there is a better functioning. Invention gets in a unique advantage for a long run in the market and the loyalty of the customers increases as well(Badizadegan and et.al., 2020). Therehavetoberightskilledandloyal employeesintheorganizationwhich understandthecustomersofthecompany. There is a innovation in the existing products of the company which can help the company to haveabetterfunctioning.Improvementis goingtomakethecompanyhavebetter functioning. PESTLE Understanding the external factors which are not under the control of the company is important. The company will have to make decisions according to the external factors so that they are going to have a better functioning. Political Factors Due to Brexit there are a lot of changes in the trading and import policies. There has to be a good and stable government in the country for the organization to be able to function and make decisions according to them which is going to be very helpful for a long run. Economic Factors There is a stable economy of the business in market but the currency value and exchange of currency is making the problem for the organization to be able to make higher profit margins.
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There is a growth in the GDP of the country as well which is a great factor but the company will have to make the use of it correctly otherwise they can lose their customers. Social Factors The customers are in favour of the products and services which the company is providing because this is a great advantage for the company to have. The people are ready to spend on the products because of the quality which is being maintained by the organization from years of experience. Technological Factors There are a lot of technological changes which have taken place in the company which is a great factor for the company to have. Technology has helped the company to be able to operate in the market more effectively and efficiently which is a great factor for the company to have. Legal Factors The company has to be improving on the safety and security of the employees and the customers so that the products are going to have a larger capture of customers in the market. The company has to be improving the salary and services so that they will be able to have a better reputation in the market. Environment Factors There are a lot of zero carbon footprint measures which have been taken up by the organization and that is going to be very helpful for a long run. The waste is also being disposed off well which is a great factor for the company to have. P2: Innovation shapes leadership, teamwork, vision and culture Bruce Tuckman has given a team work theory which is being used by Heinz organization for having a strong innovation and functioning in the market. It is very important for the organization to follow this strictly only then the changes are going to take place effectively in the market. The five stages which are involved in this theory are going to be discussed in the further report. Forming
The employees of all the teams should come together and discuss the tasks in hand. This gets a transparency in the organization and that is good for the sense of direction which the employees have to function within(Shakeel, Takala and Zhu, 2017). Storming There are different ideas and creativity which is put forward in this step which is going to create a lot of conflicts in the organization. The organization has to achieve their goals and objectives from time to time of Heinz. Norming The conflicts are solved and a sense of direction is given to the employees so that there is a better functioning and operations which are taking place in the market. Performing The employees have to understand each other’s drawbacks and support each other to grow so that the tasks can be completed with all effort. This is going to help Heinz increase their sales as well because the end product is going to be good. Adjourning There is a victory celebration after all the tasks which are achieved in Heinz which makes the employees motivated for the next task coming up for them. There are a lot of elements which can help the company to get in changes affectively in the market and that can make the company increase their sales and operations in the market. The culture model has been given by Charles Handy which is going to be discussed further. Task The tasks in the organization have to be distributed equally without any discrimination in the organization so that there is a better functioning(Eberhardt and et.al., 2017). Training and development is provided to all the employees of the organization so that there is a better functioning of Heinz in market. The demand is increasing in the market which is why it is very important for Heinz to make sure that they are having a good functioning and productivity. Person
There are people who feel superior and that creates a negative environment for the employees to work in which needs to be maintained. There has to be sharing of knowledge and skills so that the organization can benefit from it. Power The power is in the hands of few people in the organization which can be de-motivating for the other employees which has to be maintained and controlled by the management. There has to be appositive environment for the employees of Heinz to work in which can make the changes come in easily for better functioning. Role The responsibilities and roles to all the employees have to be clearly given by the managers and leaders so that the direction is there for them to work in. The objectives and goals will be visible for the employees(Kelly and Kim, 2018). This is going to make the organization have a higher profit margin. Kaizen has also given an improvement model for the betterment of the company which is a continuous improvement is a very essential factor for the company to have so that there is a better functioning. There are going to be different values, beliefs and other psychological differences between the internal factors but there must be a common ground for all to have so that there is a better functioning for a long run which is going to be very helpful for the reputation and brand image in the market. LO2 P3: The 4P’s of innovation Joe Tidd and John Bessant have given the 4P’s model for businesses to follow which can help the companies to have a better innovation and production in the market. This model can help the organization to understand the present and the future of the company in the market. Heinz is having a smooth and effective functioning by using this model in the market. The 4P’s are as follows.
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Figure1: Innovation space 4P's (Source: Innovation management, 2020) Process There is a requirement of a skilled and experienced workforce in the organization so that the changes and innovations which are being done can happen smoothly(Scott and et.al., 2020). Training is provided to all the employees and candidates for the functioning who can be useful for the organization to be able to get a competitive advantage. Paradigm There are a lot of conflicts and challenges which the company has to face which can help the organization to meet the expectations of the customers and also met the trends which are shifting and changing as well. This is good for the brand image and portfolio which can be used for a long run in the market. Product
There has to be a strong understanding the product in the market so that the organization can change it accordingly. The products have to be appealing and attractive for the customers so that there is a greater sale of the company(Lim, Darley and Marion, 2017). Heinz is always improving the quality of the product further more so that they can have a strong customer base. Position There has to be a strong communication in the market so that the changes and expectation can be met in the market. The product which the company has come up with has been positioned well in the market which is a great factor. Innovation funnel helps Heinz to have a better functioning and understanding of the product so that the company can improve and function accordingly. There are a lot of cost friendly methods which are investigated by the organization which can help the organization to have a better functioning and make the profit margins increase for a long run in the market. There is a lot of development which an idea needs which can be done with the help of this funnel innovation and the organization is going to get a competitive advantage as well.There are a lot of ideas which have to be screened and made sure that they are going to be applicable in the organization for good and a long run in the market. Some ideas are not practical in nature which have to be made practical and have to be screened properly so that there are less risks amore of profitability for a long run. P4: Evaluating the developments in frugal innovation and its use in an organisation Frugal innovation is a productive strategic business process which reduces the cost and underlying complexity within manufacturing operations of an organisation’s goods and services in the terms of increasing their profitability and productivity in the markets, and also for expanding operations through selling goods within new and global market places to achieve optimum profitability and productivity. Such frugal innovation is operating usually include companies removing the non-essential attributes from their manufactured products and services in an effort for reducing costs, increasing their profitability and lastly reducing operational complexity of producing the product. Example:Apple Inc. has made use of different principles of the frugal innovation in its new smartphone named 'IPhone SE' that was released in 2020 (Sepahi, Salimi and Sohrabpour, 2018). For being able to sale this product at half price of the traditional IPhone, in which Apple Inc.
uncompleted its whole manufacturing procedure and eliminated non-essential specifications that are involved in its flagship smartphone products such as the high quality art displays, high capacity batteries and also all engineering innovations of producing a traditional smartphone which significantly enhance its price within the market.There are Tata nano and GE’s Vscan also good examples, because these both products also have been developed by their respective companies on the basis of Frugal innovation’s concept. LO3 P5: Importance of commercial funnel The commercial funnel is very necessary to Heinz. Generally, commercial funnel is known as sales funnel, so that this plays an effective role to an organisation within its NDP (new product development) process. Nowadays top-level management of Heinz has decided for developing and innovating new product named “Heinz’s Mango Ketchup”. The management of Heinz has huge expectation from commercial funnel to productively develop its new product, in which some is importance of commercial funnel has been mentioned below; Supportive in choosing productive marketing strategy Commercial funnel is too supportive in choosing many appropriate and productive marketing strategies to effectively promote its newly developed and innovated product named ‘Heinz’s Mango Ketchup’ in various market segments. Basically, this role of the commercial funnel will be contributed in Heinz to inform and aware many of people at the large scale within the market about its new Mango Ketchup. According to many business experts, each business always needs to use an appropriate and productive marketing strategy to enhance sales of its newly innovated and developed product and service (Lopes, Farinha and Ferreira, 2018). That’s why this feature of commercial funnel can positively affect to Heinz’s new product. Supports in fulfilling demands of customers Nowadays most companies in the market are investing huge fund to properly fulfil wants and demands of customers in different market places. In this situation, commercial funnel plans an effective role to Heinz for fulfilling different customers’ demands in the market. Before
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producing mango ketchup, marketing team of this food company should be completed market research, because then company can be understood that, many people in the market like to consume ketchup. At the end, it can simply fulfil demand of various customers, in which this is really an productive importance of commercial/sales funnel that Heinz’s management always needs to be considered during innovating and developing its new product. Enhance sales ratio The commercial funnel is helpful in enhancing sales ratio of Heinz. Generally, enhanced sales ratio is the prime way to this brand to generate high revenue within a financial year. Nowadays there are high competition in the UK’s food industry, so that it is necessary to Heinz for enhancing its sales ratio, because when the Heinz will be succeeded in enhancing its sales ratio within the market with the help of commercial funnel, then this company can easily achieve huge competitive advantage within the market (Lasambouw, Sutjiredjeki and Nuryati, 2020). By enhancing sales ratio, Heinz will be able for maintaining its great reputation also in the UK’s food industry. On the basis of these all factors, upper management of Heinz highly need for considering commercial funnel in its business operations. With the help of commercial funnel, Heinz can be able to gain huge profit through selling its new innovated mango ketchup product. ADIA Model ADIA model is very helpful to different companies which can contributes in boosting marketing functions. Currently many of businesses takes lots of advantages through this model, so that Heinz also can take lots of advantages through this model. It generally indicates four elements called; attention, interest, desire and action, in which these four elements have been discussed below; Attention:The management at Heinz should give full attention on its innovation aspect. Interest:Personal interest is very necessary in the terms of innovation, so existing management should take interest in innovating new things.
Desire:Desire generally motivate to anyone for innovating new products and services, so the management of company should develop desire also to achieve something great. Action:Quick and logical action should be taken by upper management of Heinz to gain appropriate outcomes. 8 Steps of NPD (New Product Development) Step 1: Generating:Generating is the first step where upper management of Heinz should generate a productive idea for developing a new product. Step 2:Screeningthe Idea:This is second step where company need to conduct screening of that idea with its different stakeholders. Step 3:Testingthe Concept:Test of the concept is necessary to ensure that idea will provide excellent outcome or not. Step 4: Business Analytics:The Heinz’s management should analyse own business for knowing who this idea will impact the business. Step 5: Beta/Marketability Tests:This step generally contributes in providing a framework to company about how product can be developed. Step 6: Technicalities + Product Development:In this sixth step the company should use modern technology for developing new product. Step 7: Commercialize:In this commercializing step, company should take action towards selling new developed product to different customers.
Step 8: Post Launch Review and Perfect Pricing:This is the last step where company need to conduct post launch review, and also take step towards providing perfect and favourable pricing to different customers. P6: Innovation business case and ways to access funding Innovation aspect is very important to Heinz, because innovation provides an appropriate way to a venture for achieving huge revenue in this dynamic world. Day by day market competition in the UK’s food industry is regularly increasing, so that the management of Heinz highly need to innovate various new products and services to gain huge competitive advantage within the market. Generally, innovation helps to Heinz for developing an exclusive range of products and services. According to various market researches, most people in the marketlike to consume exclusive range of product and services, so that Heinz can easily produce exclusive range of products and services with the help of innovation. Innovation business case Top-level management of Heinz has decided for developing and innovating new product named “Heinz’s Mango Ketchup”. It is the innovation idea of this company.There are five key steps company needs to follow for perfectly building the innovation business case. 1.Confirm the opportunity: Firstly, company need to confirm the existing opportunities of the market. 2.Analyse anddevelopshortlisted option: In this step, company need to properly analyse and develop those options which has shortlisted for the innovation process. 3.Evaluate the options: Evaluation of options is the next step which provides different aspects of these options. 4.Implementation strategy: In this step Heinz is required to implement appropriately selected business strategy. 5.Recommendation: While preparing the innovation business case, company need to systematically consider different aspects of business innovation. Funding sources
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The company always need to use various ways for accessing funding. Generally, without proper funding source, no venture can innovate new products and services, in which some appropriate ways for accessing funding has been mentioned below which can help to Heinz for innovating and developing new products and services. Investors:There are many investors exists within the market, so that the management at Heinz need to convince various investors to invest in its project of innovating new products and services (Olefirenko and Shevliuga, 2017). Currently lots of investors can be ready to invest within this company, because Heinz is one of the most reputed companies within all around the world. Savings:Currently savings is another most appropriate way to Heinz to fulfil its funding needs for innovating new product. The Heinz is a very big food company in the world, that’s why company has the strong saving base. In this situation, upper management of Heinz need to use fund from its savings for boosting processes of innovating new products and services. Production Schedule ActivitiesAugustSeptemberOctoberNovemberDecember Formulate idea Presentation of idea Collectthe fund Orderraw- material Produce product Ensure quality Proceed to sale Financial Analysis ParticularAmount (£)
Raw-Material3000 Production costing4000 Transportation1500 Salary and wages3500 Total12000 The company is aiming that it will be gained approx.£20000 profit margins through its new product. LO4 P7: Tools for developing, retaining and protecting knowledge and intellectual property Currently there are many of favourable tools are existing within the market that Heinz need to use to develop, retain and protect its knowledge and intellectual property. Generally, develop, retain and protect knowledge and intellectual property is too necessary activity to company, because by covering this activity, Heinz can be able to make a safe and secure area for its various exclusive products and services, in which there are some effective tools has been mentioned below which Heinz can be used. Patent:Patent is a popular tool to different businesses and companies which supports in develop, retain and protect intellectual property and knowledge ofHeinz (Fechner and Shapanka, M. 2018). Basically, when top-level management ofHeinzwant to protect its new specific product for not to be copied through other companies or businesses, then it highly needs to take patent from its country’s legal patent authority. In this situation after taking patent, no other company can develop product as Heinz. Nowadays organisations within across the world are gaining huge advantages by patent tool. Copyrights:Copyright is generally a second version of patent, in which this tool is also too productive in develop, retain and protect a specific intellectual property and knowledge. For taking copyright on a new product of Heinz, upper management need to visit in governing office of its home country that responsible for registering copyrights. There is copyright generally is a legal term that gives facility to a business or person to protect their respective exclusive products
and services from such people and businesses which are mostly copying products and services of original companies. That’s why this tool is very productive to Heinz. Trademarks:Trademarksinthethirdmostnecessarytooltodifferentcompaniesfor developing, retaining and protecting their knowledge and intellectual property. Generally, each business always has a trademark that generally supports in presenting their unique identity in the market (Berggren, 2017). In this situation, the management at Heinz need to consider this tool as well to make a safe and secure zone to its business within the market. Currently most customers or people in market knows Heinz with its unique trademark, so with the help trademarks tool this food company can be easily secured and protected its knowledge and intellectual property within the market. Advantages and Disadvantages Advantages:These all tools help in protecting our new innovating idea or innovation. Disadvantages:Procedureofregisteringdifferentpatents,copyrightsandtrademarksis something complicate to different businesses. CONCLUSION Based on the report findings, it can be concluded that innovation of new products and services is of immense necessary towards the sustained progressive operations of business organisations in the different market places. This report has analysed the concept and importance of innovation within Heinz. This report evaluates the actual impact of Heinz's organisational vision, leadership, culture and teamwork on its innovation & commercialisation operations. Then report has assessed 4 P's of innovation and examined the concept of innovation funnel for shaping innovation ideas in Heinz (Brinegar and et.al., 2017). The report has analysed the developments within frugal innovation with the use of various examples. This report has also evaluated the significance of the commercial funnel and the application of New Product Development (NPD) processing for the commercialisation of innovation in Heinz. Further this report has discussed various ways to access funding. At the end, the report has assessed various tools that Heinz can be make used of in the terms of developing, protecting and retaining its intellectual properties and knowledge.
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