Innovation and Commercialisation

This document discusses the importance of innovation and commercialisation in organizations. It explores the 4Ps of innovation and the use of the innovation funnel to shape innovative ideas. It also explains the concept of frugal innovation and provides examples of its application in an organizational context.

INNOVATION AND
COMMERCIALISATI
ON

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Elaborate innovation and identify its importance to organisations in comparison with
invention.................................................................................................................................3
Organisational vision, leadership, culture and teamwork and their involvement in shaping
innovation and commercialisation..........................................................................................5
TASK 2............................................................................................................................................6
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................6
Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................8
TASK 3............................................................................................................................................9
Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation..................................9
Build an Innovation Business Case for an organisation, including ways to access funding.11
TASK 4..........................................................................................................................................12
Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property....................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is changing regularly which also impacting on concept of
innovation. This is because regular changes in business environment, the scope of innovation is
increasing. Innovation in business can be defined as development of new idea or products for
satisfaction of customer needs. This also includes up gradation in existing products so that
services and satisfaction can be drive from their respective products. In this given report chosen
organisation is Heinz, it is food processing company situated in Britain. Company is famous for
its products like Heinz Beanz, Tomato Ketchup and Cream of Tomato Soup. In this given report,
beginning of this report is consisting of discussion related to innovation and determination of its
importance to organisation (Dincer, I., 2017). There is also discussion about various vision,
leadership, culture and teamwork which help in shaping innovation in organization. In middle,
there is explanation about four P's of innovation and explanation about funnel to examine
innovation. There is also discussion about frugal innovation in organisation. In end of this report
there is elaboration of various importance of the commercial funnel and the application of New
Product Development by identification of innovation case on selected organisation. There is also
discussion can use to develop, retain and protect knowledge and intellectual property.
MAIN BODY
TASK 1
Elaborate innovation and identify its importance to organisations in comparison with invention
Innovation: It is the process of improvement within existing products or development of
new products to satisfy need and requirement of customer. It involves improvements and
developing suitable contributions in existing goods and services. It includes various services
which are useful for Heinz to increase the market of organization by the way of innovation and
commercialism of company products.
Invention: It can be define as function of organisation to convert the ides of into a
process so that innovation and new product can be developed with the aim of satiating needs and
requirement of customer in target market. Manager also make a proper marketing research where
organisation in working. In context Heinz, there are various need and obligation which has to full
fill by organisation which working on invention. In present time it is working on particular
project where organisation is inventing new product.

Comparison among innovation and invention
Basis Innovation Invention
Purpose Most of the time this is related
to development of existing
product to stratify the needs of
customer and retain them for
long period in organisation
( Adelowo, 2017).
Invention has the main purpose
of proving new service to
customer an attracting them,
towards organisation by new
product and services.
Need Innovation is needed in
organization at the time when
customer is get bored by
consuming same product.
This is needed by organisation
at the time when it is planning
to expansion and wants to
bring competition in market by
lunching new product.
There are various kinds of risk which has to meet by organisation while operating activity
related to developing innovation concept in organization. Some of these challenges are
mentioned below:
Unique selling point (USP): This is the perimeter which is use by organisation to
identify the specification of product that makes it different from products of market. In relation
to Heinz, organisation is famous for its innovation product. This time organisation is
manufacturing innovative product “organic chocolate syrup”. The USP of this product is organic
ingredients which make it sugar free and friendly product to all health conscious people. This
help firm in marketing its products and attracting large number of customer (Razak and Murray,
2017).
Continuous Improvement: It is important for organisation to follow this concept
because it is helpful for organisation to use innovative ideas. This process enable organisation to
identify various aspects of related to product because it related performance of organisation to
product and will lead to successful accomplishment of organisational objectives. This will also
impact on performance of organisation which is directly associated with various kind of features.

Innovation in organisations directly linked to increase in the opportunity of the form where
form will get various opportunities in political environment social and legal factors which will
impact the organisation externally and can be delayed by the use of innovation. Innovation also
help form in managing the demands of the customer by the way of innovation organisation can
use to develop a product which will deliver different satisfaction to the individual and will satisfy
their needs and requirements related to product.
Organisational vision, leadership, culture and teamwork and their involvement in shaping
innovation and commercialisation
Innovation is important for organization as it will provide various kinds of benefits to
organisation. This also provides other kind of facilitates related to development and lunching of
new products. There is some factor which has there direct relation to innovation and
commercialisation in organisation. All these factors are discussed below:
Organisation vision: It can be defined as those pans of organisation which it wants to
achieve while working in business environment. There are various roles in firm which has to be
relating by vision in firm and innovations one of these thing which is related to development of
organisational function. In context of Heinz, it is performing its function global le level where
organisation has to deal with various situation in market related to development of their product
and achievement of firms objectives in real time. It always set a particular vision which is related
to performance of firm in global environment. This also promotes innovation in organization
where it can reach to global performance standards (Azarmi, 2016).
Leadership: Leadership can be defining as ability of individual to direct organisation
towards goals and objectives of organisation. In context of Heinz, company follow proper
leadership which is related to achievement of goals and objectives and using various other
functions. This leadership structure boosts performance of organisation and will lead to
achievement of organisational innovation. Leader in Heinz always think toward increasing
market of organisation by using innovative concept, this will led to increase productivity and
profitability of organisation.
Culture: Culture is also important factor in relation to innovation because it help firm in
working of organisation and implementation of innovative concept on organisational activity.
This will also help firm in management of its projects because cute influence behaviour of

different individual and develop sense of innovation in their mind. In references to Heinz,
manager in organisation maintain proper communication in organisation according to cultural
behaviour of individuals and also help firm in running business in smooth way. This will initiate
innovation in organisation as manager ensure better cooperation and help in building sound
image of business (Amponsah and Adams, 2017).
Team work: It is also important factor in determination of business objectives this is
because it help firm in increasing productivity by the management of work. In references to
Heinz, it is performer and following various models for effective team management in
organisation. This all will helpful for organisation identification of different strategy related to
innovation. This also helps manager in organisation to implement innovative concepts and
product development strategy on employee because of increase quality of employee. cross
functional teams. Cross functional team help the organisation in managing the collaborative
culture so that each and individual can work according to its skills and ability as well as perform
at fuller efficiency. this kind of team help in maintaining a learning process within the
organisation so that each and every member of the team can learn about the different member
and its culture for identifying the background and behaviour of individual within the team.
So, from the above information and analysis it can be seen that organisation is improving
its function and will get success by proper implementation of these concepts. these are also
helpful in bringing innovation and using it for organisational benefits.
TASK 2
Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and shape
innovative ideas.
4Ps of innovation
Product: It is basic principle in innovation which is related to product supplied by
organisation. According to this, firm has to use new and innovative product in target market
where it can attract customer by supplying product and delivering maximum satisfaction. Heinz
Company is offering various kind of product in market related to their main product line but now
company is going to offer a new innovative product which is organic chocolate syrup, this is
organic product which help firm in activating customer by serving tasty food. Use of effective

product development strategy organisation can use innovation within the product so that it can
satisfy the needs of customers as well as increase the sales of the product in a particular period of
time.
Process: in relation to Heinz, there are number of procedures in organisation which are
directly related to innovation this is because organisation can use new methods to process of
production marketing and many more where it can successfully lunch its innovation product and
achieve maximum share in market. Organic chocolate syrup is new and innovative concept for
Heinz which can impact on performance of organisation and will leads to changes in process of
production. This is because prior to this company never use organic products so it have to change
its process related to production and many other (Ahmadi, and O'Cass, 2016).
Position: This is the stage in innovation process which is related to positing of product in
market where organisation is trading. In relation to Heinz there are number of competitor in front
of organization to position its product in market and use information in relation to lunching
innovative product. Heinz want to position organic chocolate syrup in market and or this it can
use its existing chain which help firm in better positioning of product and achieving objectives
related to innovation. position is important factor in the innovation which will help the
organisation in implementing the organic chocolate syrup at the market by eliminating the
competition as well as increasing the sales of the product by attracting customers who are health
conscious.
Paradigm: This is can be refer to change and implementation of innovation in
organisation related to function of various departments. In context to Heinz, it can be said for
implementation of innovation concept on organisation for organic chocolate syrup Heinz has to
develop proper structure for production line where it can use organic ingredients in production of
this syrup. Use of effective strategy will help manager in development of this product and reduce
chances of error in production process by maintenance of quality (Medase and Barasa, 2019).
From the above this can be seen that P's of innovation has there great impact on
performance of organisation and will help in development of proper process related to
innovation. This also helps in achievement of various goals in organization so that it can perform
effective function in firm.

The innovation funnel: It can be define as that process or steps which are directly
related to performance of organisation in relation to innovation. In relation to Heinz, it can be
said that organisation using this concept for management of step by step innovation in firm so
that firm can achieve its goals and objectives related to function of organisation. This also help in
achievement of various objectives and can help in directing various activities (Ramljak, 2020).

Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation: It is that kind of innovation which is related to development of
organisational innovation by use of limited resource in organisation. This help firm in managing
its performance and business operation by use of limited and local available resource. In context
of Heinz it can also use this kind of innovation in organisation where it can mage chocolates of
organic chocolate syrup by use of local resource so it can be cost effective and self-sufficient.
Frugal innovation and organisation
Product development: Frugal innovation is directly linked with performance of
organisation because it help firm in development of product. This is because using this concept
will help Heinz in identification of various local products and resource which can be used by
minimising coat of product and achieving maximum benefit. This will also impact firm in
achieving its business objectives related to product development (Schot and Steinmueller, 2018).
For example, Tata use effective Product development strategy where it used to develop the Tata
nano. It is a budget friendly product which will fit to the every middle class individual. this

product is based on the frugal innovation where the organisation focus on using cheap resources
for making economic friendly car.
Market analysis: This concept also help organisation in analysing market related to
various factor such as marketing, product design and quality of other product in relation to
organisation product. Heinz can use this concept for identification of market related to its new
product where this concept will help organisation in maintain quality product on low prices in
comparison to its major competitor in market.
Use of resource: The main focus of this type of innovation is to use limited resource of
local available resource effectively. This will help organisation in development of various kind
of methods which are used by Heinz to make effective use of resource available in market. This
will also help in development of various other function by which firm can achieve its objective
by minimising its cost in relation to new and innovative project (Akinwale, Adepoju, and Olomu,
2017). For example, mitti cool use frugal innovation where use the local resources like sand and
handmade products so that it can produce the products which are friendly to the nature and are
cheap in prices.
This can be evaluated from above that frugal innovation play important role in
organisation as well as achievement of its objectives related to developing innovation in
organisation. This also led to run organisation in direction to achieve its business objective.
TASK 3
Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel: This can be define as that function in organisation which is used to identify
various steps prior to lunching new and innovative product by organisation. This will help
organisation in development of various function so that integration in different activity related to
product development can be establish in organisation. There are number of importance related to
this function in context of organisation, some of these are discussed below:
Idea generation: In reference to Heinz, company has an innovative idea which is directly
associated with productivity and management of various function. It includes developed of
organic chocolate syrup (Seclen and Barrutia, 2018).
Idea screening: This step is directly related to function in organization which are
associated to screening of innovative idea where organisation to perform function to various idea

which are in fro of it for using innovation in firm. In context of Heinz it also help organisation
screening various other ideas which are not effective for firm.
Identify needs of product development: this funnel will also help organisation in
identification of needs to develop product in market. This is because it identifies various factors
related to market condition and identify various functions which can impact on performance of
organisation give market condition.
New product development : It is that process which is related to function of organisation current
time and development of product for identification of factor affective decision related to new
product development. This will help organisation identification of needs of organisation and
developing new methods for identification needs of customer for products (Cheah, 2016).
Process of NPD Idea generation: This step is related to generation of new idea which is related to
development of new product. In context of Heinz, development of organic chocolate
syrup is innovative idea of organization. Concept definition: In this step Heinz is focusing on the concept of developing organic
chocolate syrup.

 Market analysis: In this step organisation has to identify marketing function which help
firm in implementation of strategy as well as identification of various other stagy for
developed of proper marketing plan in relation organisation innovative product. Product development: After fulfilling all the above mention steps now it is duty of
organisation and manager to start product development. This will help organisation in
attracting new customers and retaining old customer. This will lead to success of various
operations and stating innovation work.
 Commercialisation: This is the last step in process where company launch its product in
market where it what to sell its product and starts function of marketing there product.
Build an Innovation Business Case for an organisation, including ways to access funding.
Business case:
Steps Description
Executive summary This case defines that organisation is going to
launch new and innovative product in market
named as organic chocolate syrup.
Objectives  To increase market cover by 20% by brin
 TO facility good, taste and healthy product
to cytometer need chocolate syrup
Mission To reduce the consumption of sugar in various
chocolate base syrups and ailed products to target
health of customer.
Source of innovation and solution It will use organic production friendly methods for
suing this kind of innovation in organisational
context.
Innovation in product Major innovation in this product is that it will
provide benefits of organic food where any person
can consume this chocolate syrup without and
impact on health.
Sources of funding

There are number of sources which can be used by organisation to finance its various
operations and can manage its functioning related to development of new product. Some of these
sources are discussed below:
Bank loan: Bank loan can be defined as that loan which is taking by organisation from
commercial bank in area where organisation is working. These are both long term and short term
loans which are related to working of organisation in current time.
Government assistance: Some time because of various reasons and nature of industry
government provide assistance to organisation in way of finance. This will help organisation in
management of its funding for financing various activities.
These are some sources which can be used by organisation to funding its operation and
managing success to achieve all its business objectives.
TASK 4
Evaluate the different tools that organisations can use to develop, retain and protect knowledge
and intellectual property.
Intellectual property rights:
For maintaining innovation in organisation as well as saving it from being copied by
competitor of organisation. It is impacting for organisation to use the function of intellectual
property rights. This help organisation in development of various strategies related to saving its
interest in business environment. Some of these are mentioned below:
Patent: patents can be define as intellectual property right which helps business
organisation in saving its product and its innovation from being copied by its potential
competitors in market from by registering it to government institution or institution formed by
law of the area where organisation is working. This will restrict unethical persons from header
ideas of different in making and merchandising of related good and service. The patent of
company helps them in innovative existing products and services for achieving future success as
well as growth of business organisation (Mohalajeng and Kroon, 2016). \
Advantage:
 The major advantage of getting patent to the organisation is that it will provide the right
to the organisation to stop other competition of the firm to copying manufacturing and
selling the goods and services innervated by the organisation without the permission of
the firm.

Disadvantage
 Applying for patent right can consume long time to the organisation because it is a
lengthy process typically around four to five years which can result in changes within the
market technology and overtaking of the invention of the organisation.
Trademark: This can be evaluated as process which helps in making a business
enterprise unique to other businesses and facilitate it in differentiating in its products. This will
help the company in establishment of its separate identities by formulation of its logos and brand
name under common head. In relation to Heinz, it will help than in establishing there separate
legal existence in global market.
Advantage:
 The major advantage of trademark to the organisation is that there is no fix the life of
trademark because if the proprietor of The trademark will keep renewing the registration
of trademark it will proceed for longer time.
Disadvantages:
 High cost is a major disadvantage of trademark because due to involvement of regular
updating in trademark organisation has to spend the use amount on its maintenance which
can impact on the cost of product.
Copyright: Copyright can be defined as the legal right of the owner for intellectual
property. It can further define a copyright where the individual has a right to copy a particular
product or service which is offer to the end customers. It includes the original creator of the
product and anyone the give authority to copy their product in favour of some royalty.
Advantages:
 Copyright are reasonable prices and easy to control where a creator can secure a
proprietorship of all the copyrights and can easily get benefits in form of royalty.
Disadvantage:
 The major disadvantage of copyright is that the secure the statement of an idea not simply
the idea so that it is difficult to secure the typical ideas.
CONCLUSION
It can be concluded from above mentioned report that, innovation is important an part of
organisation function and will lead to success if follows in various function of organization . This
can also be seen that it help organisation in achieving its visions, aims and objective in

appropriate time so that firm. It is also identified that new product development and commercial
funnel is also helpful for organisation to lunch new products and maintain market conditions are
in favour of organisation by innovation. In the end this can be seen that there are various kind of
intellectual property which will help organisation.

REFERENCES
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