Innovation and Commercialisation in Heinz Company

This report discusses the importance of innovation and commercialisation in Heinz Company. It explores the concept of innovation and its comparison with invention. It also examines how organizational vision, leadership, culture, and teamwork can shape innovation and commercialisation. The report further explains the 4Ps of innovation and the use of the innovation funnel to examine and shape innovative ideas. Additionally, it discusses the developments in frugal innovation and provides an example of its use in an organizational context. Finally, the report evaluates different tools that organizations can use to develop and protect knowledge intellectual property.

UNIT-8
INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Explain innovation and its importance to organisation in comparison with invention........................3
P2 Explain organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation....................................................................................................................................5
LO2.............................................................................................................................................................7
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape innovative
ideas........................................................................................................................................................7
P4 Explain developments in frugal innovation and provide example of how it is used in organisational
context.....................................................................................................................................................8
LO3.............................................................................................................................................................9
P5 Explain importance of commercial funnel and application of new product development processing
for commercialization of innovation........................................................................................................9
P6 Build innovation business case for organisation including ways of funding.....................................11
LO4...........................................................................................................................................................13
P7 Evaluate different tools that organisation can use to develop and protect knowledge intellectual
property.................................................................................................................................................13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Innovation and commercialisation refers to an important term for an organisation because
it gives the new direction and helps in gaining the competitive market of the same industry. It is
a process of aiming that shows the feasible model for a company that is based on the goods and
services that is used to satisfy the customers. This report is based on the Heinz Company that is
the most loved brands in the Britain and those sales very iconic goods like Heinz beans, cream of
tomato soup and the Tomato ketchups. But now the manager of the Heinz wants to innovates
their products to enhance their sales and profits for this it is very essential to understand the
concept of innovation and invention and importance to organisation. It also shows the vision,
culture, leadership and teamwork that can helpful in shaping the innovation and
commercialisation. it also involves 4Ps of innovation and new product development process that
helps in setting the new launching in the organisation. at last develops a business case including
ways of funding and different tools of intellectual property rights that can helpful in securing the
innovation(Chun, Chung and Bang, 2015).
LO1
P1 Explain innovation and its importance to organisation in comparison with invention
Innovation and Invention: Innovation defines as a term that showcases new and
creative ideas in the different forms such as goods, processes, activities and methods. In is very
essential because it enhance the quality of the products as per the customer’s demands. In this
Invention refers to an activity that invents the processes and products that the manager of the
company is innovating to enhance their image. In case of Heinz innovation relates to the thinking
of new products and services that can attracts the customers and in this invention refers to
execute the innovation that can help in longer sustainability of the firm. Here the manager can
innovate their sauce with more new features that is beneficial for the customer’s even children
also(Gross and et. al., 2018).
Comparison between invention and innovation

Basis Innovation Invention
Motive The major objective of the
innovation is to develop more
profits and productivity by the
use of innovation in products
and services because it helps
fulfilling the goals of
satisfying the purpose of
gaining competitive
advantage.
The main motto of invention
is to producing the goods and
services according to the
innovation that can attracts the
large base of customers.
Activities and skills Innovation needs varieties of
skills like marketing finance
etc. and it can relate to the
diverse activities.
Invention needs engineering
skills that have major
knowledge of technology to
designs the products and it is
place for a limited activities
i.e. R&D departments.
Examples For example- Heinz manager
can thinks to create their
product varieties according to
the customer satisfaction.
For example- Heinz manager
can invent that innovation in
reality for attracting the
customers so that they can buy
the new innovation(Akinwale,
Adepoju and Olomu, 2017).
Importance of innovation
 Gaining competitive advantage: The major importance of the Innovation is to gain the
advantage in the competitive marketplace. When the company faces the issue to losing
the sales at that time they can focus on innovation that helps in beating the competition in
the same industry. For example- Heinz can explore their sales in the UK market with
their Tomato sauces and soup for this they needs to innovate their sauce as per the market
demands that helps in beating the rival firms.
 Enhancing the brand image: Innovation helps in increasing the image of the brand of
the organisation because of this competitors face major challenge in the marketplace. In

case of Heinz. Manager needs to innovate their products and services in order to enhance
their more sales that help in attracting the customers and increasing the profits(Beaudry,
Héroux-Vaillancourt and Rietsch, 2016).
 Satisfying the customer demands: The major benefits of the innovation are to satisfying
the demands of the customers and longer sustainability of the firm. In case of Heinz
manager can innovate their goods and services as per the demands of the customers so
that they can retain the large base of customers for a longer period of time.
P2 Explain organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
In every organisation invention, innovation and commercialsation are very significant
terms that can be used in the longer survival of the firm in the marketplace. In innovation and
invention organisation vision, culture, leadership style and teamwork plays an essential role and
helps in enhancing the profits. In case of Heinz these can be shown below.
Vision: The vision of the Heinz is to become a best food company in the growing world
and they provides the quality products to their customers so that they can attracts towards it more
and more that helps in longer sustainability of the organisation(Pustovrh and et. al., 2017).
Culture: It defines the terms which can evaluate the values, customs and behavior of
individuals in the working place of the business venture. To enhance and explore the innovation
in the firm, manager needs to follow the creative culture where they allow their employees to
participate in the decision making process. This healthy culture in the business helps in team
synergy and maintains the behavior of the employees. This helps in satisfying the consumers that
helps in earning more profits. in context of Heinz, managers follows the creative culture where
they can gives the right to their workers so that they can give their innovative suggestion that can
helps in innovating the products and this needs to be maintains the relations of the firm. Use of
effective culture helps in creation and sustainability of the firm.
Leadership style: It refers to that term which shows how to person influence another
person to respect their orders and fulfills the task as per the set guidelines. In this a leader is the
person who can influence and handle all the goals within the organisation in an effective way. In
context of Heinz, a leader can be a person who motivates their employees for effective work as

per their set vision so that developing the products and services in an effective way. In this
company leader follow the transformational leadership style that can helpful in making the trust
between the workers so that they can give the effective results. This style of leadership can
helpful in empowering the culture of organisation that can also encourage innovation.
Transformational leadership style helps in accepting the change which is very essential in the
terms of innovation and invention(Edler, Cameron and Hajhashem, 2015).
Team work: Within the organisation team work is highly encouraged by the effective
culture and prominent leadership style. If a business enterprise always does their work within an
effective team than they can earn high sustainability in market and also employees give
productive results without facing any conflicts. In Heinz manager need to make effective team
because in innovation there is very essential to complete the goals and objectives in an
appropriate manner that helps in attracting the customers towards the innovation without facing
any problem. team work also helps in supporting innovation and commercialisation in the
working environment which helps in accomplishing the objectives and targets in small period of
time.
Sources of Innovation
There are various source of innovation that can encourage Heinz manager to innovate
their products and services. Some of this can be shown below.
 Changes in perception: This is the main source of innovation as the demands and
perception of the customers in UK is enhancing and modern. They need varieties of
products that which are not affected their health also but contain good taste. In case of
Heinz, manager needs to innovate their sauce with a Moringa pepper jelly pasta sauce
which is very healthy for the people and contains a good taste. This helps in attracting the
large base of customers.
 Necessity: It is the another major source of innovation for the company like Heinz
because they need to enhance their profits and sustainability in the UK due to this they
can innovate their sauces which is most useful good for a consumers and they need with a
good quality that is not affected their health. it helps in increasing the profits and longer
survival of firms.

LO2
P3 Explain 4Ps of innovation and explain use of innovation funnel to examine and shape
innovative ideas
4 Ps of innovation – innovation is a prominent term that contains the four aspects such as
product, process, position and paradigm. In context of Heinz it can be shown below.
 Paradigm: It is the first aspect that is used to framing the innovation according to the
demands of the customers. in context of Heinz, this framework helps in improving the
products with the innovation so that they can earn high standard of the peoples.
 Product: It is the first aspect of the innovation that can show the innovation which is
done by the company to enhance their sustainability in the marketplace. In terms of
Heinz, they can innovate products like cream of tomato soup, Heinz tomato sauce, baked
beans etc. but they innovate their products in every few months so that their customers
will stay with themselves and now they need to innovate their Pasta sauce with new
vegan flavor i.e. “Heinz Moringa pepper jelly Pasts Sauce”. This helps in increasing the
sales(Tsai, 2015).
 Process: It refers to that framework which is used to show the use of process a manager
of Heinz can use in their innovation of products. In this they need to use updated
machines and software that helps in producing the quality product and manger can easily
monitor all the activities so that effectiveness can be maintained.
 Position: This term represents the advertising activities that is very helpful for the
innovative products to crate the awareness about the products in the customer’s minds. In
this manager of Heinz can communicate with their potential customers about the
innovation so that they get attracted towards it and buy that offering.
Use of innovation funnel
In the business world use of innovation is very prominent as it is very helpful in
enhancing the market share and profits of the firm. In can involves the various points in terms of
Heinz that can be shown below.
 Research: Innovation funnel is very useful in the process of research as it encouraging
the investigating process for enhancing the profits and revenues and maintain their image

in the marketplace. In case of Heinz, they can investigate the market and that helps in
innovating the products as per the customers demands this helps in earning more
proficiency.
 developments: it is the another use of the innovation funnel and it is presented after the
research in market where manger of Heinz can develops the awareness of their products
and services that will be innovate.
 Goods and services shipping: after completing above process it is the last stage where
manager of Heinz can shipping the goods and services to their customers in an effective
way so that customers cannot face nay problem. it is the best use of the innovation funnel
that helps in maintaining the relations of the company with the customers(Ismail, Nor and
Sidek, 2015).
P4 Explain developments in frugal innovation and provide example of how it is used in
organisational context
Frugal innovation- It is the process of removing the complexity in the cost of goods and
services and their manufacturing activities. it is the best way to manage and organize all the
resources in an effective and efficient way because it helps in removing the nonessential
processes in the products and services that helps in earning more profits and revenues. In terms
of Heinz this frugal innovation helps in eliminating the wastage in the production of goods and
services such as reducing the cost of production in their sauces and soup so that large number of
customers can attracted. In this Heinz can innovate the new variety of sauce that is Heinz
Moringa pepper jelly pasta sauce that is full of vitamins, iron and proteins which is very healthy
for the people and also for the children. This helps in earning high and high profits and also
longer sustainability of the firm(Brix and Jakobsen, 2015).
Developments of frugal innovation
 Developing the new features: It is the best aspects which show that adding the new and
innovative features in the company unique products that helps in making different from
their rival firms and also helps in gaining the competitors in the market.
 Application of use of new technology: It is the next framework that is useful in the
innovative of the products and their working process. In this Heinz can use the innovative

technology in making the “Heinz Moringa pepper jelly pasta sauce” that will enhance
their effectiveness of the Heinz.
 Reduction in cost of production: It is the best framework in the frugal innovation as it is
very helpful in reducing the cost of production so that Heinz can enjoy large amount of
profits and revenues.
LO3
P5 Explain importance of commercial funnel and application of new product development
processing for commercialization of innovation
New product development process:
It refers to a best and prominent process that is helpful in formulating the plan related to
the innovation in products that is based on external and internal factors. it includes various steps
that can be shown below(Collet Hine and Du Plessis, 2015).
 Generating idea: It is the primary step which is very essential into the innovation of
products because at this stage the idea related to innovation is products in generated. for
Heinz it can generate lots of opportunities as it is very effective for maintaining the brand
image in the market.
 Idea screening: After generating the idea manager of Heinz can select the best idea tat
can fulfills the demands of the customers and enhance their profit margin. this is the best
step for increasing the revenues according to the basis of reality.
 Testing phase: When selecting the best idea and implement that idea into process
manager of Heinz can focus on testing the condition that they can adopted the right and
suitable products that can fulfills the demands of the customers.
 Implementing marketing strategy: In this manager of Heinz can implement marketing
strategy for their innovative product i.e. ‘ Heinz Moringa Pepper Jelly pasta sauce’. they
needs to use various promotional strategy and analyse the market so that their innovation
in products does not face any issue and gain the competitive advantage(Ahmadi and
O'Cass, 2016).

 Business analytics: in this Heinz can use the varieties of skills and resources which is
useful to innovate the new products and services at the time of running a successful
business.
 Product development: It is the best step in the new product development process
because in this Heinz can use the variety of promotional activity so that they can promote
their offerings to their customers and enhance their sales and profits.
 Test marketing: In this step Heinz can test the market for their new and innovate
product i.e. ‘Heinz Moringa Pepper Jelly pasta sauce’ so that they can analyse the
condition and perception of the customers about the new offering of the company.
 Commercialisation: It is the last step of the new product development process because it
helps the Heinz to enhance their sales and revenues to fulfill their goals and
opportunities. In this firm can introduce their products in the marketplace for enhancing
the market share.
Commercial funnel: It refers to the sales that can suggest the buying process of the company
which is used to attract the customers and retains towards the company when they buy the goods
and services. It also represents as a process that is used by the firm that helps in finding,
qualifying and selling the goods to the purchaser. In context of Heinz, manager can use this
funnel for enhancing their sales and profits and also for longer sustainability in the marketplace.
In this concerned company can do some modifications in the current process so that their
innovation in sauce i.e. ‘Heinz Moringa Pepper Jelly Pasta Sauce’ can be shows in an effective
and efficient way. This is very essential in the dynamic business environment where company
can adopts the changes so that they can explore more and more market share and growth.

Importance of commercialization
 Enhanced brand image: The major importance of commercial funnel is that it helps the
Heinz to enhance their brand image as well as market share wby their effective use of
funnel process by removing the wastage in the production.
 Increased quality: It is a benefit of commercial funnel that it helps the manager of
Heinz to enhance the quality of products by adding the features in the making of
innovative goods and services(Do and et. al., 2018).
P6 Build innovation business case for organisation including ways of funding
Executive summary: Heinz is one of the famous brands in the UK that can deals in the Tomato
sauces, cream tomato soup and the baked beans. in this Heinz can offers the products that can
contains the good quality and greater taste that helps in becoming the valuable brand in the
Europe. As per current changing environment Heinz needs to innovate their products and
services and earn high amounts of profits so that they can sustain in the market for a longer
period of time.
Requirement: To innovate the sauce i.e. ‘Heinz Moringa Pepper Jelly Pasta sauce’ Heinz
require skilled and experienced workforce that can have a full knowledge about the market so
that they can produce and innovate the product in an effective and efficient way. in today’s
environment people of UK are very curious to move and use the innovate things that cannot
harm their health. because of this Heinz can innovate their pasta sauce with vegan
touch(Kergroach, Meissner and Vonortas, 2018).
Solution: This new product of Heinz is full of proteins, iron and vitamins that can beneficial for
the health of the people even when they eat the junk food. this will majorly attracts the customers
and helps in enhancing the image of the brand and also increase the sales of the company.
Consumer analysis: In this Heinz can analyse the demands and needs of consumers which is
more important for the goods and services that was introduce by the company. It helps in
attracting the large base of customers and retains them for a longer period of time.

Funding: There are various source of funding that a company can use to fund their innovation
and enjoys the creation that they have done in their products and services. it includes various
types of funding that can be shown below.
 Bank loan- It refers to that funds which is borrowed from the bank by the company for a
set amount of period for their innovation. it is most suitable for large organisation so that
they can enhance their profits. As it is also secured type of loan from the other source of
funding.
 Crowd funding: It is a source of funding in which company can raise a small amount of
money from a large number of people and in this firm can raise funds via internet. It is a
risky funds and not a secured type of loan.
 Venture capital: It is a suitable type of source of funds which is more suitable for the
start-up company where financial institution can provides the funds for their innovation
so that they can enhance their market share.
By analyzing the above source of funds, Heinz can use the bank loan for their innovation
because it is most secured type of loan and also flexible in nature in which a firm can the amount
at any time. it also helps in giving the tax benefits to the business venture but at the same time it
is a very lengthy process.
Benefits: The benefits of this innovation for the Heinz Company are that it helps in enhancing
the brand image with large market share and growth. it also helps in retaining the customers for
a long period of time. ‘Heinz Moringa Pepper Jelly Pasts Sauce’ helps in maintain the taste that
can attract the customers when they eat the junk food also as it is more preferable by the
children. this helps in earning more and more profits(Swart, 2015).
LO4
P7 Evaluate different tools that organisation can use to develop and protect knowledge
intellectual property
 Patent: it is a legal right that is taken by the innovator so that no other company can sell
manufacture; use that innovation without taken the permission. It can includes benefits
and drawbacks(Medase and Barasa, 2019).

o Advantage: It helps the company to secure their innovation from copying,
creeping and misusing so that business can enjoy high amount of profits.
o Disadvantage: it also contain drawback as they are very expensive to take and it
is not affordable to the small organisation.
 Trademark: It define the term that represents the sign, symbols, label etc. that helps in
differentiate the products from the rival firms. because of this firm can maximize their
revenues.
o Advantage: Due to this right company can enjoy the benefits of attracting the
customers as their customers are very easily identified the goods with the
trademark.
o Disadvantage: The major weakness of the trademark is that organization may
face many hindrances when they assign the trademark policy.
 Copyright: It defines that legal right that helps in saving the authors original work like
songs, websites, movie etc. in this a original author can earns a high profits by their
innovative work by selling them to other person by taking a interested amount of them.
o Advantage: It helps in eliminating the misuse of the original work if anyone can
misuse the authors work without their permission than they can face major issue
and large amount of penalty.
o Disadvantage: The major drawback of copyright is that it is not suitable for the
organisation because it can save the work for the authors and writers.
By above analyzing intellectual property right Heinz can use the patent right which is more
suitable for the innovation in the sauce i.e. ‘Heinz Moringa Pepper Jelly Pasta Sauce’ because it
helps in gaining the competitive advantage and stop the use of that innovation without the
permission of the firm so that no rival firm can misuse and stole the idea of this vegan
sauce(Medase and Barasa, 2019).
CONCLUSION
From the above analysis report it is to be concluded that innovation and
commercialisation is an significant term that can save the sustainability of the firm in the
marketplace and enhance the brand image of the organisastion. it inculcates the concepts of

invention and innovation and their difference with importance of innovation that helps in longer
survival of firm. It also suggest the 4 Ps of innovation and use of innovation funnel that helps in
examine the innovative ideas and development of frugal innovation. It also inculcates the NPD
and importance of commercial funnel that can helps in innovation and invention. All this term
helps in developing the business case where they assign the best source of funding i.e. bank loan
and also shows the intellectual property right so that firm may protect and retain their innovation
and gain competitive advantage.

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