Unit 8- Innovation and Commercialisation

This document discusses the concept of innovation and its significance in business organizations. It explains the role of vision, leadership, culture, and teamwork in shaping innovation. The document also discusses the 4P's of innovation and the concept of frugal innovation. It provides insights into the development of new products and the use of intellectual rights in a marketplace.

Unit 8- Innovation and
Commercialisation

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Explain innovation and demonstrate its significance to business association........................1
P2 Explain how organisation vision, leadership, culture and teamwork could shape innovation
.....................................................................................................................................................3
P3 Discuss 4P’s of innovation and explain innovation funnel....................................................4
P4 Discuss development in frugal innovation.............................................................................7
P5 Discuss significance of commercial funnel............................................................................8
P6 Demonstrate an innovative business case.............................................................................10
P7 Evaluate different tools to protect several intellectual rights...............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is understood as the process of doing things in creative manner with the help of
new and innovative ideas as it promotes an enormous growth and provides vast opportunities to
the business (Anderson and Gallini, 2019). It also provides a cut throat competition in a
marketplace that boost the sales and productivity through advancement in innovations. On the
other hand, commercialisation involve the method of bringing the new and unique merchandise
within the market that involves production, distribution and marketing of products. This report is
based on Heinz. It is a food manufacturing firm in United Kingdom that deal with several
varieties of products such as ketchups, soups, beans and many more. The firm aims to provide
good quality of products so as to generate large access of customers from different parts of the
country. This report comprises of distinguish between innovation and invention and vision and
leadership of an organisation that could shape commercialisation and innovation. This report also
covers elements of innovation mix and frugal innovation in accordance of an organisation. this
also includes process of new product development and a business case to assess the source of
funding. At last, it includes various tools and techniques so as to provide intellectual rights in a
marketplace.
P1 Explain innovation and demonstrate its significance to business association
Innovation is understood as the process of making new and innovative things with the
help of advanced ideas that provide an enormous growth opportunity and adds value among their
customers (Festa and et.al., 2016). In a modern era, innovation is very necessary that provide
assistance to the organisation to make necessary changes in their workplace in order to sustain in
competitive era which improves the greater performance. The manager of Heinz is planning to
launch a chocolate that is completely enriched with dry fruits and contain low sugar context.
With reference to Heinz, the significance of innovation is prescribed below:
To gain rivalry edge: Innovation aids an organisation to beat the competitors so as to
contribute a significant position in a marketplace. By making something new with unique
features grab the interest of customers and persuade them to buy a new product which is possible
through creative ideas. Heinz would achieve a competitive advancement as it greatly focuses on
purity and excellent quality so as to enhance greater sales.
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Boost the confidence of customers: It is understood that customers are always
fascination for new products in a modern era so it enables the firm to make more innovative
merchandise so as to grab the interest of younger generations. Heinz would launch such
chocolates with less sugar content as this would grab the attention of users across the globe due
to the reason that it does not contain any preservatives (Hoffman, Opačić and Reilly, 2017).
Gain large share of market: Creativity in a new product or services emphasise on
gaining huge market ration which in turn improves the overall productivity in a marketplace.
Customer always prefer new and advanced products as they are change oriented in nature as well
as they are not stick towards particular thing and this emphasise the firm to conduct new
experiment in their products so as to win the hearts of individuals. Heinz always emphasise on
improving the large market share by focussing more on new and innovative products which meet
the expectations of customers at a global level.
Innovation provide an enormous opportunity to a firm which provide several prospects of
growth as in case of invention is considered as more time consuming and least cost.
Invention: It refers to as somethings which involve the process of developing a new
merchandise or services. The main motive is to provide something new and greater ease of
convenience among the giant group of individuals across the globe. In the context of Heinz, the
significance of inventions is given beneath:
The business environment is regarded as a dynamic which assist the manager of a firm to
adopt changes through creative ideas and bring new invention in merchandise or service.
Presenting new invention among the group of customers would assist it to gain a rivalry edge
over a marketplace (Kergroach and et.al., 2018). Also, this would attract more and more
customers from different parts of the country towards the product of company. Hence, this
generate a strong brand image across the globe and would help the company to boost the sales
and profitability.
Comparison of Innovation and Invention:
Innovation Invention
It is process of making further improvements
on well established products or services
through adding more characteristics and
features towards it.
It is an art of making or developing a new
merchandise that exist in a marketplace with
fresh idea for first time.
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Technical skills and knowledge are necessary
in case of invention.
Competitive spirit and advanced knowledge
are necessary in case of invention
It is concerned with combination of several
merchandises or processes.
It is concerned with only a particular
merchandise or process.
It emphasises on adding more value to already
established product.
It emphasises on making new product or
services by new and creative idea.
Less consume time and is cost efficient. Takes more time and require huge expenditure.
P2 Explain how organisation vision, leadership, culture and teamwork could shape innovation
Innovation and commercialisation are regarded as a core function of an organisation
which assist to gain maximum exposure by promoting new and advances products to boost the
sales at a global level (Leite and Braz, 2016). It faces various challenges in a prevailing situation
due to the reason of globalisation. So, it focuses on rendering an effective solution which help in
accomplishment of task within limited period of time. In the context of Heinz, the influence of
culture, leadership are prescribed below:
Vision: The vision of Heinz is to create product differentiation among the group of
customers by ensuring quality specifications so as to gain large access of customers across the
globe. Also, this could be possible by thinking in a creative manner as it enhances the greater
satisfaction and allows a firm to gain maximum exposure around the world.
Culture: It involves the assumptions, beliefs and thought that arise in an organisation
which assist the firm in fulfilment of requirements of customers. Also, the manager of respective
firm involves the ideas of many people both internally and externally so that it can take best
decision which ensure greater success and coordination in a workplace (Mattila, 2017). A good
culture creates a positive atmosphere and accelerates the productivity in an effective and efficient
manner.
Leadership: Leadership has the ability to influence the behaviour of others that share the
common vision of accomplishment of task in a respective time period. The leader of Heinz
provides proper guidance among their subordinates and assign the task in accordance to their
specialisation so that they could work with zeal and also it considers the opinions and
suggestions of employees so that they could make the best product and gain maximum
satisfaction of customers. Therefore, it accelerates the level of job satisfaction as well as
retaining employees for longer time as a result productivity raises.
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Teamwork: The manager of respective firm promotes the sense of team spirit among
them by providing effective training to them so as to inculcate confidence and determination
among them. Also, it encourages and motivates and appreciate the efforts of subordinates so that
they could generates greater productivity and ensure greater success in future. This help in
shaping a better innovation through introduction of new ideas which lead to attainment of goal in
a specified duration of time. This create healthy environment as they are capable of accepting
challenging positions which render growth and build a strong unity and cooperation among them.
Therefore, the influence of teamwork, leadership and culture help in shaping a better
innovation and commercialisation that develop a greater success in future.
P3 Discuss 4P’s of innovation and explain innovation funnel
With reference to Heinz, the four P’s of innovation are prescribed below:
Figure 1 4 P’s of Innovation
Source: Model of Innovation, 2013
Product: This is the most essential element of innovation mix as the firm emphasise on
making new innovations by adding advanced features in the product in such a manner which
develop a greater interest of buyers and thus gain rivalry position across the globe. The manager
of Heinz creates several new merchandises such as chocolates and baked beans as it uses
excellent ingredients which generates the maximum satisfaction of customers.
Process: there must be systematic working in a workplace as the manager adopt changes
in a dynamic environment which facilitate smooth operations of a business (Naughton and Foss,
2019). The senior authority of Heinz follows a proper hierarchy and improve the overall internal
operations and also it follows a proper code of conduct that ensure greater transparency and
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flexibility in a workplace. The manager of respective firm renders an effective solution and listen
the ideas of staff which assist in taking proper decisions and thus provide the overall growth in a
respective manner.
Position: It emphasise on creating a distinct image of product among the group of target
customers that help to enhance the sales and productivity. The manager of Heinz has improved
technology and create a new and unique product which is made of natural flavours and
ingredient by looking the awareness of customers towards their health as it aids in creating a
significant positioning of product at a global level.
Paradigm: This involve the method which assist the company to look into innovation
from various perspectives so that it could accomplishes business objectives. The manager of
respective firm considers the ideas from various sources like consumers, opinions of employees
and brainstorming sessions so that they could promote and introduce a new change that provide
vast growth of a firm and help in attainment of goal in a respective time period.
In order to survive in competition, the manager of firm uses these elements of innovation
mix so as to gain maximum exposure across the globe.
Innovation funnel: There are lot of innovation challenges and characteristics and also it
contains risk and each has its own features in their own aspect. Innovation funnel is used by
business which provide long term benefit to organisation and help in making proper innovation
planning so as to follow a systematic procedure and brings smooth flow of activities in a
workplace (Özilgen, 2019). Market evaluation is conducted so as to determine the feasibility of
product that help in attainment of goal in a focused manner. The stages of innovation funnel are
as follows:
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Figure 2 Innovation funnel
Idea: This is the initial stage of innovation strategy in which idea is generated through
various sources such as workshops, contests and while conducting a proper research. Also, the
idea is collected from employees and feedback of clients that provide various details regarding
the development of new product. Also, the manager emphasises on finding an effective solution
and decisions which is related with assessment of different ideas.
Concept: After the collection of idea, the emphasise is put on analysis in order to attain
business objectives. It is essential for the firm to determine the taste and preferences of
customers and determine the size of market and its attractiveness which provides product
differentiation so as to enhance the productivity and effectiveness in a workplace. It determines
the scope of project and solution for making a new merchandise that include specifications such
as target market, pricing approaches, segmentation and position in a marketplace.
Solution: It is important for the manager to implement the perfect solution though a
concept so that it could run smooth flow of activities in a proper time period (Pisoni, Michelini
and Martignoni, 2018). This involve the process of testing the product and various prototypes are
built that provide a competitive edge over the market.
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Market: This is most crucial stage as it involves the process of bringing the product
among the potential buyers. There is use of several promotional and advertising campaigns so as
to induce customer to acquire the product and also it covers various aspects like logistics,
channel of distribution and packaging so as to attract customers.
Post release phase: In this stage, the feedback from customers are taken so as to make
further improvements in the product or services.
P4 Discuss development in frugal innovation
Frugal innovation emphasises on eliminating unnecessary features from the product
which in turn minimise the cost of production so as to enhance greater sales in a marketplace
(Razak and Murray, 2017). The major aim is to avoid redundant materials that are not benefit for
the business as it provides systematic conduct of activities in an effective manner.
For example: Tata Nano is least expensive car in the world is a perfect example of frugal
innovation as the cost is minimised and concentration is more towards its core functions.
The process of frugal innovation are as follows:
Search for opportunity in case of adversity: This is the first step of frugal innovation in
which the manager identifies the opportunity in a prevailing environment or situation so that it
could make further improvements in their workplace. The manager of Heinz makes an
innovative product by keeping in mind the health of customers such as nutritious chocolate
which assist the firm to gain rivalry edge and thus achieve long term sustainability.
Think and act: The senior authority of concerned firm prepares a proper strategy and
satisfy themselves that everything is done in a systematic manner which ensure proper
coordination and cooperation in a workplace. This improves the overall effectiveness and
facilitate smooth flow of activities in order to achieve task.
Follows simplicity: The manager of Heinz follows a proper hierarchy and code of
conduct as well as define rules and regulation among the employees in an understandable
manner. It uses innovative and advanced technology in their operations which simplify the
working procedure and reduce the burden among customers.
Cover the margin: In this step, the manager of respective firm analyses the feedback
which is obtained from customers and ensure that it could fulfil the taste and preferences of
customers at a global level.
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Follow your emotions: The manager should undertake the business activities with all its
hearts and passion so as to produce a desired level of output. The manager of Heinz is passionate
of doing new things in a creative manner which aids in meeting the expectation of customers and
thus increase the market share across the globe.
P5 Discuss significance of commercial funnel
Commercial Funnel: It provide several areas of business to create awareness regarding a
merchandise among the group of target customers so that they could acquire the product (Relich,
and Pawlewski, 2018). It helps the business to generate greater and help in giving a strong
competitive edge in a market. the four aspects of commercial funnel are showcased below:
Figure 3 AIDA Model
Source: AIDA, 2018
Awareness: The manager of Heinz would create awareness of new product among the
targeted audience.
Interest: The manager of respective firm gathers more information regarding the product to
them and inculcate a great interest among them.
Decision: the potential customer would make a decision whether to acquire a merchandise
and the business aims to induce people to buy it.
Action: This is the final aspect of sales funnel in which the manager of concerned firm
seeks to take direct action by accomplishing the target in a limited time period.
New product development: In a changing era, it is essential for the firm to make new
merchandise which are different for customers. In the context of Heinz, the eight steps of new
product development are presented as follows:
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Idea Generation: This is initial stage in which company consider both internal and
external sources to collect ideas. The manager of Heinz considers brainstorming sessions so as to
get best idea as it allows thinkers to share their views and opinions which help in development of
new merchandise.
Screening of Idea: In this, the various ideas that are collected in previous step are analysed
and best ideas is selected which aids in taking a feasible decision (Rosca, Arnold and Bendul,
2017). The manager of Heinz creates a rough estimate of idea which include a broader term such
as sales, profit, production cost and many more and then it proceeds to another sage.
Development and Testing: In this stage, the most feasible idea that is selected in previous
stage is presented to customers, employees and suppliers so as to get feedback from them and if
required, proper correction could be done. This aids the manager of respective firm to make best
product in accordance to the demand of customers by avoiding and sort of defects or errors from
the merchandise.
Market strategy: While making a creative product, the manager of Heinz would laid down
a plan regarding the positioning, segmentation and its targeting strategy by considering elements
of marketing mix such as product, price, place and promotion which help in accomplishment of
task in a short span of time.
Business analysis: This is a wider step that involve lot of research and development to be
taken place and also various financial planning is done. The manager of Heinz conducts a market
research and determine several aspects and then make its own strategy by preparing an estimated
budget and cash flows so as to gain long term sustainability.
Marketing mix development: The marketer would take a final decision such as marketing
channels, distribution channels and many more and check the quality of products. The manager
of Heinz emphasises on making continuous improvements in products by removing defects in
order to satisfy the wants of customers.
Test marketing: This aspect focuses on trials of merchandise before it is launched in the
marketplace. The manager of Heinz would monitor the overall activities and try to know the
responses of customers.
Commercialisation: This is the final stage of product development in which company is
ready to launch the merchandise. The manager of concerned firm would launch chocolates which
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is enriched with dry fruits and is made up of natural flavours that adds more value to the
customers as they are more diet conscious in a modern era.
P6 Demonstrate an innovative business case
Business case aids the firm in promoting innovative ideas which lead to attainment of
objectives in a respective time period (Turker and Vural, 2017). In the context of Heinz, the steps
of business case are demonstrated below:
Executive summary: In a competitive era, the two concepts like innovation and
commercialisation play a significant role which determine huge success in an organisation. The
manager of Heinz uses several marketing tactics and ideas so as to accomplish targets within
limited time period.
Overview of company: Heinz is a producer of food in UK which deals with wide range of
excellent offerings such as ketchups, beans, soup and many more. The company is planning to
launch a chocolate that is made up of dry fruits as it does not contain any artificial flavour as
today customers are diet conscious which boost their confidence and maximises the sales within
a marketplace.
Vision: The vision is to be the most valued business and to develop loyalty among the
employees so that they could work with potential in order to achieve positive outcomes.
Mission: The mission is to provide quality specification with different varieties of
offerings by gaining giant customer base at an international level.
Target market: The manager of Heinz focus on providing its product or services to all
age groups of individuals as it makes use of natural ingredients and of low sugar content that
attract every individual across the globe.
Strategy: The manager would use competitive pricing strategy as it keeps its prices low
due to emerging competitors which boost the sales and productivity within the confines of food
industry.
Promotional event: The manager of respective firm would use social media platforms
such as Facebook, Instagram and other respective websites that persuades customers to buy the
products.
Funding: The manager of Heinz invites numerous investors to make investment in idea
so that it could generate a brand image across the globe. It promotes Foreign Direct Investment
so as to generate multiple streams of revenue and thus provide vast level of growth at an
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international level. There are several types of funds which the respective firm could arrange for
their new merchandise such as chocolate which are elucidated below:
Bank loan: The respective firm could obtain loan for a particular time period and pay
interest till the loan is repaid.
Crowdfunding: It could take help of online platforms by posting about its innovative
merchandise so as to get more funds.
The best method opted by Heinz is bank loan due to the reason that provides more safety
and security.
Monitoring: The top management of respective firm would emphasise on controlling the
overall activities of internal procedure of developing natural flavoured chocolate so as to make
ensure that they are manufactured in accordance to premium standards.
P7 Evaluate different tools to protect several intellectual rights
It is important for firm to provide protection of their business and data such as intellectual
rights and many more (Van Dijk, 2017). In the context of Heinz, the various tools of intellectual
rights are given below:
Patent: The government grant such rights to the firm like Heinz so that their ideas are not
imitated by the others. The concerned firm takes license so that they could get right to sell the
product in a marketplace.
Advantages: It does not allow the interference of its competitors to manufacture
chocolates without its permission.
Limitations: It require lot of formalities and time-consuming procedure as it takes more
than 3 years to obtain patent.
Trademarks: This involve the use of symbol or words that are registered through legally
to create a distinct image. The manager of concerned firm could use trademarks so as to create a
separate brand identity and thus create brand loyalty across the globe.
Advantages: This help in easy identification of merchandise due to its unique logo and
symbol which help customers to determine their product.
Limitations: In a most competitive era, there is chances of copying the logo and symbol
by illegal companies which tarnish the image of a firm.
Copyrights: This allows the firm to right to produce their own work without allowing it
to make copied to others. This improves the overall efficiency and productivity in the market.
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The respective firm would opt patent as the appropriate intellectual property as it create a
strong brand image and allow the firm to gain a prominent leader of market and thus increase
market share.
Advantages: The firm can file a suit against another firm if found its work or creative
merchandise to be copied.
Limitations: One of the greatest disadvantages is that it requires huge amount of investment
that consumes a lot of time and also there is chances of pirating which affect the effectiveness of
a firm.
CONCLUSION
From the above information, it can be comprehended that both innovation and
commercialisation are complementary towards each other and it generate a strong brand image
and help in achievement of business goals. Innovation provide a drastic transformation in
products through creative and imaginative ideas as it aids in gaining competitive edge over a
marketplace. Process of new product development, frugal and elements of innovation mix are
discussed in this report that meet the criteria and expectations of customers. The different tool of
intellectual property such as patent, copyright and trademarks are necessary for business so as to
create effectiveness and efficiency in a workplace.
REFERENCES
Books and Journals
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