Innovation and Commercialisation in Heinz Company

This document discusses the importance of innovation and commercialisation in Heinz Company and how it shapes the organization's vision, culture, leadership, and teamwork. It explains the 4 Ps of innovation and the use of the innovation funnel to shape innovative ideas. It also explores the types of innovation and their advantages and disadvantages. Additionally, it provides insights into the market investigation and delivering products in the innovation process.

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, culture, leadership and teamwork that shape innovation and
commercialisation....................................................................................................................................5
LO2.............................................................................................................................................................7
P3 Explain 4 Ps of innovation and use of innovation funnel to examine and shape innovative ideas......7
P4 Explain developments in frugal innovation with examples in organisational context.........................9
LO3...........................................................................................................................................................10
P5 Importance of commercial funnel and application of new product development processing for
commercialization of innovation...........................................................................................................10
P6 Build innovation business case for organisation including ways of assess funding..........................12
LO4...........................................................................................................................................................13
P7 Evaluate different tools that protect retain and develop and intellectual property right....................13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Innovation and commercialization is the core substance of the longer sustainability in the
today’s market that also helps in enhancing the revenues with good image in the market. It also
helps in providing the new direction that can implement in the business model as per the demand
of the customers related to the goods and other offerings of the organisation that were sale in the
surroundings ecosystem. This project is related to Heinz Company that is a prominent brand in
the UK. It deals in thousand of food products in their six continents. now organisation need to
expand their revenues and profits so that they can focus on innovating their sauces so that they
can attract the large number of customers. This report inculcates innovation with their
importance and how to differentiate from invention. it also showcasing the vision, leadership,
teamwork and culture that helps in encouraging innovation and commercialization. in this
innovation funnel and new product development process assist in innovation in product and their
succession in market. at last it includes the intellectual property rights that helps in retaining,
protecting and developing the organisation innovation so that they can enjoy survival in the
market(Chun, Chung and Bang, 2015).
LO1
P1 Explain innovation and its importance to organisation in comparison with invention
Innovation and invention: Innovation defines as the activity of introducing and
improving the current product by making efficient contribution in the goods and services. it can
brings the varieties of change in the existing offering that can encourage the growth and
productivity within the firm. Whereas invention is the prominent framework that can create the
new and unique ideas and thoughts in a innovative way that can helps in overall growth of the
company and their offerings. In context of Heinz, Innovation refers to modification and
improvement in the existing product i.e. in their sauces improve it for enhancing growth on the
other hand invention is related to research the market and develops the ideas to do a innovation
in their sauce with added more new flavors that can attracts the people of UK(Dincer, 2017).
Commercialsation: It refers to the products and services with an innovative touch brings
to the market in a broader way that helps the company to enhance their marketing, customer
support and sales that helps in attaining the profits and commercial success in the marketplace

for the organisation products and services. In case of Heinz commercialsation helps in gaining
the financial resources that can expand the business and make the loyal customers for the
business enterprise.
Importance of innovation
For every organisation innovation place an important role and also creates the importance
by boosting the sales and attracting the customers so that firm may survive in the market for a
long time period. In context of Heinz some importance of innovation can be shown below.
 Beating the rival firms: It is a replenish importance of innovation because it assist in
gaining the competitive market. Because in food sector there are many competitors are
present who can offer the same products to their customers. in case of Heinz to increase
their sales and profits company can innovate their goods and services this can enhance
the sales and attracting the large base of customers due to this firm may enjoy large
amount of revenues and it can beats the competition in market. In this Heinz can innovate
their sauces with more different flavors because people of UK highly attracted with
this(Adelowo, Akinwale and Olaopa, 2017).
 Boosting brand image: It is an essential motive for the business to enhance their image
of brand in the customers mind so that they can retain with the company for a longer
period of time. In case of Heinz they can enhance their market share in UK for this they
can do innovation in their sauces that helps in attracting the people and encouraging to
buy the new and unique sauces.
 Fulfills customers demands: Customers are the prominent term to the organisation
because they are the only one from which company can sustain in the market with large
capital and financial resources. in case of Heinz they always focus on fulfilling the
demands of the customers by offering the new and innovative sauces and condiments so
that they can satisfy the people and earns a high amount of profits.
Comparison between innovation and invention
Basis Innovation Invention
Values It encourages the value of
doing the business.
It values the company in the
marketplace in front of

customers and other rival
firms.
Skills and activities Innovation required variety of
skills i.e. market, strategic,
human resource
skills(Pustovrh and et. al.,
2017).
It only requires specific skill
i..e scientific skill where they
do varieties of activities
related to the innovation.
Concepts Innovation refers to the
process of enhancing the
productivity of the
organisation for enhancing the
brand image.
Invention helps in recognizing
the business firm in front of
large number of other
companies in the same
industry.
Example Heinz can innovate their
sauces to attract the customers
by analyzing the market.
In invention Heinz can invent
their new flavors in the sauces
that need scientifically
research so that they can beat
the competitors in the
marketplace.
P2 Explain organisational vision, culture, leadership and teamwork that shape innovation and
commercialisation
Innovation and commercialisation can be affected by the company vision, its culture,
leadership style and their working team. If all this perform their task in appropriate way than
their innovation can be successful in the marketplace. In context of Heinz, they need to innovate
their sauce with organic plant based touch so that they can attracts the large base of customers in
this its vision, culture, leadership approach and team can play an important role that can be
shown below.
Organisational vision: Heinz vision is to become a best food company in the world that
grows better with innovation, integrity and quality. They also work dedicatedly to sustain in the
marketplace by focusing on the health of the people in the planet(Maritz and Donovan, 2015).

Culture- It defines the values, customs and behavior of the society people that can
influence the company to decide and follow the culture as per the satisfaction of the internal and
external human resources. In case of Heinz Company, manager follows the task and role culture
because it encourages the creatively with in the firm that helps in their innovation in products a
services. In this company can allocate the work as per the employee’s ability and capability so
that they can share their innovative ideas related to expand their profits and revenues. Follow the
effective culture helps in innovation and commercialisation of the goods and services with the
large base of customers.
Leadership: It refers to the style that provides direction, executing plans and
encouraging peoples and it helps in complete the task within a specified time period. In case of
Heinz, Leaders can follow the transformational leadership style where they can adopts the
changes in an effective way. in this leaders can provides their followers a chance to share their
ideas and thoughts related to product innovation so that company may enjoy the large amount of
sales and profits. in this managers can encourage their employees so that they can done their task
in an specified way and because of good leader employees are ready to accept the change and
challenges with a proper guide and employees so that innovation can be successful within
business venture.
Team work: It is an essential term for achieving the targets within a time. In this
organisation may develop the team according to the skills and knowledge of the employees so
that allocation of work can be easily done. In relation to Heinz, effective team helps in efficient
work because all the workers give their best to attain the predetermined objectives. Working in a
team helps in the proper working on the innovation in the product and services and also make
more profits and objectives. In Heinz, team work helps is significant to identify the ideas and
suggestion of different employees and select the appropriate one. it assist in supporting the
development of innovation and inventions in the working environment(Brix and Jakobsen,
2015).
Sources of innovation

There are various sources of innovation due to which company can focus on their product
and services to innovate for satisfying the needs of the customers and earning the higher profits.
In context of Heinz, some sources of innovation can be elaborated below.
 Demographic- It is the best source of innovation for the company because in this Heinz
can innovate their products and services by analyzing the demographic region according
to the market. In this people of UK are very attractive towards t5he use of Heinz sauces
due to which company can focus on innovate the sauces in their flavor in the UK market
so that they can earn high profits and revenues.
 Necessity- It describes the needs of the innovation in the products and services of the
organisation. In context of Heinz, manager can innovate the flavor in sauce as per the
demand of the market. in this people are more conscious about the taste and their health
due to this firm may focus on innovation in their sauces that contains good taste and
health(Collet, Hine and Du Plessis, 2015).
LO2
P3 Explain 4 Ps of innovation and use of innovation funnel to examine and shape innovative
ideas
4 Ps of innovation
It is proposed by the John Bessant and Joe tidd that shows four aspects of the innovation
that includes paradigm, product, process and position. in case of Heinz, these 4 Ps of innovation
can be shown underneath(Ahmadi and O'Cass, 2016).
 Paradigm- It is the first aspect of the innovation in which company can focus on
thinking the new idea that can helps in changes and innovation in the existing products. in
case of Heinz, manager can innovate the sauces by using organic flavor so that
customers are satisfy and employees are working effetely on their innovation to gain
more profits.
 Product- This aspect shows that how organisation can innovate their products and
services for earning higher profits by using innovative techniques and flavor. In this
Heinz Company, manager can innovate their sauce flavor with a organic touch by the use

of plant based products and effective techniques in making the products. This helps in
earning more revenues and longer survival of firms.
 Process- In this framework of innovation Heinz can use the various processes in their
innovation in sauce by hiring the expertise and provide training to their employees about
the innovation in products and services. if firm may follow proper process they can
attracts the large base of customers.
 Position- It showcases the promotional strategy that a Heinz can be adopted in their
innovation of their sauces in the UK market. it helps in retaining the bold customers and
attracting the new people by their vegan flavor in sauces.
Types of innovation
 Incremental innovation- It refers to an effective type of innovation where company can
modify their products with some little and few features. in case of Heinz, they mainly
focus on enhancing their sauces range with added more flavors so that company can earn
high amount of profits and revenues(Amponsah and Adams, 2017).
o Advantage- It helps in reducing the cost of production in modification of the
current products and earns high profits.
o Disadvantage- The major con of this type is that it is not appropriate when the
company need major changes.
 Disruptive innovation- It refers to that type of innovation in which business may focus
on innovating the products in the existing market and in this they can use new technology
and processes so that they can maximize their profits. In case of Heinz, they could focus
on the innovation in product within the current market that helps in earning more profits
and growth.
o Advantage- The major pros of this for the Heinz company is that it helps in
maximizing the revenues with more market share and growth that helps in longer
sustainability of the entity.
o Disadvantage- Using this approach in a firm is more expensive and costly with
more risk due to this small firm may not appropriately follow this.
Use of innovation funnel

 Investigation- Innovation funnel is used for investigate the market so that company may
innovate their products and services according to that and satisfy the needs of the
customers for earning higher growth. in this Heinz, can examine the market and innovate
their sauce with the name of ‘ Heinz Vegan Rose Breezy sauce’ that is suitable with most
of the food like pasta, pizza, noodles etc. and does not contain any artificial color with
plant based herbs.
 Market investigation- After innovating the product as per the demand of the
environment company Heinz may focus on analyzing the customers taste and reviews
about the innovative sauce so that they can easily target the audience and people.
 Delivering products- It is the last step of using the innovation funnel where Heinz can
focus on promoting the products and create awareness in the large base of customers so
that they can earn more profits.
P4 Explain developments in frugal innovation with examples in organisational context
Frugal innovation- It refers to the process of deducting the cost of manufacturing and
challenges in the goods and services in which innovation is done. It simply means to eliminating
the wastage in the offerings that is related to durable nature such as phone, car etc. that helps in
enhancing the profits and revenues of the firm and the country. In case of Heinz, frugal
innovation helps in reduction in the manufacturing cost with appropriate quality of goods and
services helps in earning more profits and also maximizing the share and growth of the firm. It
includes various principles that helps in developing the frugal innovation in an effective way
that shown below(Rietsch, Beaudry and Héroux-Vaillancourt, 2016).
 Do more with less- In case of Heinz this principle shows the manager use resources in an
effective way so that wastage can be removed and profits can be increased.
 Keep it simple- In this manager of Heinz use the effective application and techniques in
the production [process that is easily understood by employees so that they can provide
quality goods to customers.
 Think and act flexible- In this manager of Heinz present as a flexible nature that can
accept the change in organisation easily as per the demand of market this helps in
enhancing the profits.

 Seek opportunity in adversity- IN this situation Heinz can adopts the opportunity that is
beneficial for them in a way of enhancing the market share. at this time they can innovate
their sauces as per the people of UK demands so that they can earn high profits.
 Follow your heart- At this step Heinz manager can focus their vision that is satisfying
the needs of customers so that they become a prominent food company in market.
LO3
P5 Importance of commercial funnel and application of new product development processing for
commercialization of innovation
Commercialisation of innovation- It is also called sales funnel and the sale process and can
showcasing the purchasing of products and services of the organisation by the customers. It also
suggests the various activities that is related to the selling, finding and qualifying the goods and
services from the buyers side so that company mat earn higher profits and revenues. In case of
Heinz this funnel is very useful for attracting the customers and earning the revenues from
selling the innovation in the products and services to the customers. in this Heinz can do their
innovation in their sauce flavor i.e. ‘ Heinz Vegan Rose Breezy sauce’ that is free from artificial
color and preservatives they are full of plant based herbs that is beneficial for the people health.
This helps in attracting more new customers and maximizing the profits and sustainability in
marketplace. In case of Heinz it includes major importance that shows below(Monotti, 2017).
 Making strategy and tactics- Making appropriate strategy helps in earning higher brand
image and tackle all the problems in the market. in this commercial funnel helps Heinz to
use the innovative strategy for their products that attracts large base of customers.
 Determining switching behavior- In case of Heinz commercial funnel is very effective
to analyse the behavior of customers about the products an services they offered.

New product development process
It is an essential process that helps the Heinz to beat the competition in the marketplace
and gaining more profits while attracting large base of customers. In context of Heinz manager
plan to innovate the flavor in sauces because this products are very popular in the country. in this
they planning to introduce the ‘Heinz Vegan Rose Breezy Sauce’ that is free from artificial color
and flavor and healthy type of sauce because it is 100% fat free that is use in most of the food
like pasta, pizza, rolls etc. and also contain clean label that helps in securing the sauce in a
packed can. it includes various steps that elaborated below(Medase and Barasa, 2019).
 Generating ideas- It is a starting step that helps the manager of Heinz to evaluate the
market and internal capability by using SWOT analysis so that it is easy to understand the
customer’s needs and ability of employees to perform the task for earning growth and
profits.
 Idea screening- In this step manager of Heinz can select the appropriate idea that helps
in deducting the wastage and contains more benefits.
 Testing phase- at this aspect manager of Heinz can test the product that they were
innovate in a laboratory so that they know the pros and cons of the goods.
 implementing marketing strategy- After testing the product in company Heinz can
executing the marketing strategy by creating awareness about the innovation so that large
base of customers get attracted towards it.
 Business analytics- In this step manger of Heinz can examine the product in the external
market so that if there is a need of modification it can done easily.
 Product development- In this manager of Heinz can focus on developing the ‘Heinz
vegan rose breezy sauce’ so that they can earn high amount of revenues and market
growth.
 Commercialsation- In this process of NPD Heinz can launch their innovation in the
market that helps in attracting many peoples for buying that.

P6 Build innovation business case for organisation including ways of assess funding
Business case refers to the outline map that helps in making the proper analysation of the
facts and figures so that Heinz can enjoy large amount of profits and revenues with longer
sustainability of the firm.
Executive summary- Heinz is one of the iconic companies in UK that was operated in
1869 which deals in varieties of Tomato sauces, cream of tomato soup and baked beans that
provide the quality food with best taste to their customers so that it become a most trusted brand
in worldwide. to maintain their profit and sales margin manager of company thinks to innovate
their sauce with vegan and plant based herbs that helps in earning profits and large market
share(Ramljak, 2020).
Requirement- The major requirement of the company to innovate their sauces in UK
market is that they can enhance their profits and market share with large base of customers. and
all this done with this innovate product i.e. ‘ Heinz Vegan rose breezy sauce’ which is attrctsive
and innovative in flavors and quality.
Solution- The major reason to innovate the sauce by the manager of Heinz is that
because it helps to solve the problem of health related people as they want to eat varieties of food
that includes good taste so that company launch the vegan sauce that is good in taste and solev
the problem of eating pasta, pizza and other junk food.
Consumer analysis- In this manger of Heinz can evaluate their customers towards the
innovation in products. It is necessary to maximize the profits and revenues in the marketplace.
Sources of funding- There are various source of funding that helps the companies to
innovate their products and earns a high amount of profits such as Bank loan, crowd funding,
angel capital etc. in case of Heinz manger can adopts the bank loan for their innovation in sauce
because it is most secured type of loan and where firm invest their amount as per their own
requirements without interference of the third party. It helps in earning higher profits and
revenues with large market growth.
Benefits- To provide this innovate sauce i.e. ‘ Heinz Vegan Rose Breezy sauce’ to their
customers helps in attracting the large base of customers who are conscious about their health. It

is 100% fat free sauce and contains all organic plant based herbs that is very beneficial for the
health of the people(Rietsch, Beaudry and Héroux-Vaillancourt, 2016).
LO4
P7 Evaluate different tools that protect retain and develop and intellectual property right
Intellectual property right refers to an effective right that was imposed by government for
retaining protecting the innovation o9f the people from using the other person without
permission. it includes various terms that can be explain underneath(Kowang, Long and Rasli,
2015).
 Copyright- It is an effective right for the authors that protect the original work which
involves books, movies, literature, music etc. it is mainly suitable to protect the novelist
right.
o Benefits- The major pros of this intellectual right is that it helps the authors to
protect their original work from misusing by other peoples.
o Drawback- it cannot protect the right of the organisation that is the biggest
drawback of copyright and it consumes more time in issuing the process.
 Trademark- It defines the sign, symbol, expression, logo etc. that can helpful for the
customers to easily identify the products and services and distinct it from the competitors.
o Benefits- The major advantage of this it that it helps in identifying the products
and services with the distinct logo and symbol that helps in earning profits and
loyal customers.
o Drawback- The major con of this feature is that it consumes more time and cost
due to this small organisation cannot focus on this type of intellectual property
right.
 Patents- It defines the license that is imposed by government to protect the innovation
from the competitors to misuse, manufacturing and selling without taking the permission.
o Benefits- The major advantage of this is that it can protect, retain and develop the
innovation of the firm so that company may enjoy large amount of sales.
o Drawback – The main problem of this right is that it is more time consuming and
more cost efficiency.

 Industrial design- It refers to protect the color, symbol, shapes etc of the goods to
maintain the company image in the marketplace. it basically includes two category i.e.
registered or unregistered design.
o Benefits- It is helpful in adding the value of the commercial nature that helps in
enhancing the revenues.
o Drawbacks- The operating cost in this right of the machinery is very costly due
to this workforce can more focus on using this.
CONCLUSION
By using the above explanation innovation and invention both are an essential term for
the company because they can enhance the profit margin with more sales and attracting the large
base of customers with their loyal nature. This report gives the immense knowledge about the
innovation; invention and commercialsation so that a firm can take advantage of it and due to
this they can place their valuable image in the marketplace and also beat the rival company. It
also inculcates the 4 Ps of innovation that can show the process to production and selling the
unique good. It inculcates the importance of commercial funnel that can shows the behavior in
the market of the customers about the new product so that company can face large amount of
profits. at last business case helps in analyzing the best source of funding and what intellectual
property right helps in property the innovation in goods so that organisation may enjoy
maximum revenues.

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