Innovation and Commercialisation in Oven-fresh Bakery

This report explores the concepts of innovation and commercialisation in the background of Oven-fresh Bakery. It compares innovation and invention, discusses the role of organisational vision, culture, and teamwork in shaping innovation and commercialisation. It also examines the 4Ps of innovation and the use of the innovation funnel. The report further explores the developments in frugal innovations and their impact on the bakery. Additionally, it highlights the importance of the commercial funnel and the process of new product development.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparison between innovation and invention.....................................................................3
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation...4
TASK 2............................................................................................................................................6
P3 4Ps of innovation and use of innovation funnel.....................................................................6
P4 Developments in frugal innovations......................................................................................8
TASK 3..........................................................................................................................................10
P5 Importance of commercial funnel and the process of new product development...............10
P6 Innovation business case for organisation involving various source for funds...................12
TASK 4..........................................................................................................................................13
P7 Different tool to retain intellectual property for longer period............................................13
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Commercialisation is the process which is used for launching new product, service or
process in the marketplace. Innovation is treated as subset of commercialisation in which
changes in existing products are inhaled so as to make changes in them and to launch same in the
market for attaining higher base of customers (Ales, Cho and Körpeoğlu, 2017). Higher risk is
involved in the process of commercialisation as this deals with new market area. On the other
hand process of innovation is lesser risky in which only modifications are introduced within
existing products in the same marketplace. This report is explaining detailed analysis regarding
innovation and commercialisation in the background of Oven-fresh bakery which is a bakery
founded by Mr. Wilbur and the company is selling only a single type of white bread to their
customer from last 5 years. The major objective of making this report is to examine concepts of
innovation and commercialisation process by upgrading features and product in direct manner.
Besides this the report highlights regarding process of innovation and usage of innovation funnel
in order to meet significant changes in the product.
TASK 1
P1 Comparison between innovation and invention
Invention: This is a process in which fresh ideas are being propounded and implemented
by the organisation. This enable the organisation to adopt various changes in order to intensify
their chances of survival within marketplace. Invention is the process of developing new product
by which ideas are gathered in order to attract new customers. For example Oven-fresh bakery is
introducing cookies in which the company is trying to grab new market opportunities
Importance of invention: Invention is helpful for the organisation in order to bring new
feature in the products. So this becomes easier for the management to satisfy needs and demands
of customers. The demand for healthy food are increasing in regular manner so by preparing
healthy cookies Oven-fresh bakery can attain competitive edge within marketplace (Teece and
Leih, 2016)..
Innovation: Innovation is one of the prominent activity which is used by organisation in
order to attain better position in the market. The major objective of innovation is to understand
needs and demands of their customer by which sustainability of the organisation within market

get enhanced. For example: Oven-fresh bakery is making cookies which are made up of oats ad
their major ingredient so this may improve overall market position of the company.
Importance of Innovation: For Oven-fresh bakery management is required to implement
innovation in their current offering in order to boost their sales and attain distinct position in
competitive market.
To gain competitive edge: With the help of innovating Oven-fresh bakery can attain
competitive edge as by expanding their product line the company can enhance position in
competitive market.
Fast recognise of customers’ expectations: Innovation is helpful for businesses to
satisfy needs and demands of their customers. This becomes easier for the organisation to make
customer prone products so that to enhance profitability (Byun, Sung and Park, 2018).
Comparison between innovation and invention
Invention is defined as the prominent function in which new product or process is being
introduced. The major benefit of invention for Oven-fresh bakery is to deal with needs and
demands of their customer in appropriate manner.
Innovation is the process in which modification are introduced within existing product or
process in order to boost productivity and overall efficacy of the business. This may help Oven-
fresh bakery to enhance their productivity and efficiency as well.
P2 Organisational vision, culture and teamwork to shape innovation and commercialisation
Commercialisation: Commercialisation is defined as the process under which new
product and services are being represented within marketplace. For implementing
commercialisation process Oven-fresh bakery is using prominent strategies so that to
successfully represent their products into market.
Vision of Oven-fresh bakery: Oven-fresh bakery is a engaged in manufacturing of
white bread from last 5 years to their customers. So the vision of the company is to enhance their
sustainability within marketplace and retain invention in their products so as to attain top
position within marketplace (Uyarra and Ramlogan, 2016). By using specific changes the
company can utilise strategies in such a way that they can meet with their primal objective of
enhancing customer value and sales as well.
Leadership: Leadership is defined as the ability which can be used by business manager
and leaders in order to guide and influence people in such a way that organisational goals and

objectives can be attained by putting collaborative efforts. For Oven-fresh bakery the leaders are
using effective style to manage organisational operations in a way that overall objectives can be
emphasised. For proper management this is necessary that effective managerial practices are
used so that overall operations can be completed in significant manner.
Types of leadership
 Autocratic leadership: Leaders are treated as most significant part of the organisation as
they are trying to influence subordinates in a manner that motivation can be rendered to
them. Autocratic leaders takes decisions without asking their subordinates and they forces
them to follow managerial decisions taken by the leaders and management (Dincer,
2017).
 Democratic leadership: Democratic leaders are having quality to enhance morale of
employees in a way by associating employees in process of decision making. This results
the organisation to enhance their effectiveness and productivity as well.
Illustration 1: Source(https://www.acudemy.com/culture-
management/)
Culture: Organisational culture is defined as involvement of assumptions and beliefs
which are used by employees so as to finish up their work. Under this various elements are
undertaken such as purpose, community and leadership style (West, 2014). Therefore this is
significant for Oven-fresh bakery that they lead effective motivation in their products so that
efficacy can be enhanced. In the context of Oven-fresh bakery Handy's model of organisational
culture is used by the organisation and the same is being implemented. Types of Handy's culture
are elaboarted as under:

Power culture: In power culture authorities of decision making is held by some
individual they are controlling and managing the whole organisation.
Task culture: The major objective of task culture is to divide tasks or project in
employees as according to required level of completion.
Clan culture: Working environment is playing significant role in culture as this
generates positivity within organisation. This aspect is helpful for Oven-fresh bakery so as to
align goals and objectives of the company as accordance with organisational working.
Market culture: This culture is helpful for the management in performing work in a
manner that efficacy and productiveness can be obtained in effective manner. By implementing
market culture better results can be obtained by the organisation in which succession
opportunities can be enhanced (Expósito, Fernández-Serrano and Liñán, 2019).
In the reference of Oven-fresh bakery task culture is being followed within organisation
as this is helpful in managing the whole task and projects in minimum frame of time. Under this
equivalent responsibilities are being provided to all the employees in order to motivate them and
manage effective working in them so that to render effectualness in tasks and operations.
Teamwork: Teams are defined as group of people those helps the organisation to manage
their task and operations in effective manner within given period of time. The major aim of
teamwork is to perform collaborative working so that project or task can be finished by the
management along with proper managerial practices. Teams are integrated and communicate in
effective manner so that to obtain higher quality and proficiency in Oven-fresh bakery.
All these factors are leading the organisation to use innovation and adhere to market
demand in such a manner that uniqueness can be obtained within products of Oven-fresh bakery.
The vision of Oven-fresh bakery is to diversify their production by inhaling innovation and using
several practices as well in order to accomplish objectives of the tasks.
TASK 2
P3 4Ps of innovation and use of innovation funnel
The mix model within innovation is used to understand process of 4P's by which
procedure of innovation can be improved.
Product: The product is helpful for the organisation to examine those methods on which
innovation can be implemented and used. This is helpful in meeting needs and demands of

customers in effective manner. Process of innovation is helpful for Oven-fresh bakery in making
changes within existing products so as to align the same with market trends and demands.
Position: This aspect is focused over those market segment at which interested customers
can be determined which are inclined towards buying products or services of the company.
Under this aspect Oven-fresh bakery is required to bring higher innovation in their product so
that to attract customer in such a way that due to new feature higher customer can be attracted.
Process: Process is related with the aspect by which product and services of the
organisation is being delivered to their customers. This is helpful for the organisation in
managing their cost in such a way that it can be reduced and efforts can be made to satisfy
customers as well. Within integral process management is putting efforts for completing work in
such a manner that profits and productivity can be enhanced (Lenzi and Perucca, 2020).
Paradigm: This is associated with the aspects under which manager can perform their
task in easy manner by inhaling innovation in product and services. The model of paradigm is
helpful in helping the organisation to complete their work by examining various ways which can
be adopted by management to finish the same.
Figure 1: Innovation funnel
Source: Innovation funnel, 2019

Innovation Funnel: Innovation funnel is defined as the method and steps which are used by
businesses in order to develop new product and process. Almost all the organisations are meeting
with their long term objectives by using innovation funnel through which innovative and realistic
plan can be created in order to perform varied operations. Besides this, the model is helpful in
controlling and managing R&D department so as to examine before launching the product into
market. Some of stages within innovation funnel are elaborated as under:
Idea generation: This is the activity which is executed by R&D department by
understanding and monitoring market needs or people so as to grab market opportunities existed
within marketplace. This stage is helpful for the organisation in finding out better solution within
offerings so that opportunities of market expansion can be grabbed.
Concept investigation: The concept of innovation is propounded by examining different
steps those are aligned with goals and objective of the organisation. On the other hand this
concept is examining resources and number of customers which are potentially going to be
converted into loyal customers. This concept is leading the organisation to implement ideas in
such a way that efficacy can be attained.
Feasibility study: In this stage evaluation is performed which is based on technical,
economical and analytical aspect . The major objective of feasibility test is to recognise plans
and objective and to test that new product or service is having calibre to sustain and earn profit in
the market. Under this loopholes within product or service can be analysed so before launching
the same can be modified (Li, Gagliardi and Miles, 2020).
Development stage: Under this stage new product and services are being launched within
market as by understanding market development opportunities.
Post release phase: Under this stage, feedbacks are taken from customers and
improvements are undertaken in order to improve further product and service.
P4 Developments in frugal innovations
Frugal innovation is defined as the process which is used in order to minimise challenges
which are arising during production of any good and rendering services. The major objective of
using frugal innovation is to minimise cost of the product so that production process can be
improved and wastages within products can be minimised. Besides this, frugal innovation results
in improved product and services as by eliminating those aspects which are drawing
unfavourable results. The process of frugal innovation is explained as under:

Find opportunity in adversity: This process is associated with conversion of problem
into opportunities so as to get assistance over improvement of performance of the organisation.
In the context of Oven-fresh bakery, frugal innovation is helpful for them in enhancing their
product line so that different products can be manufactured by them. Resultantly, management of
the organisation is making continuous efforts in order to enhance organisational performance.
Oven-fresh bakery is in high need of updating their products by enhancing their product line.
Use less perform more: This elaborates regarding lesser use of resources and taking out
high results. This could be helpful in recognising needs and demands of customer in such a way
that the same can be fulfilled in order to gain fuller efficacy. Oven-fresh bakery is using various
features in order to monitor organisational performance in regular basis and to enhance the same
in prominent manner. Besides this under this process Oven-fresh bakery is required to use
recyclable or reusable material so as to enhance production level.
Think and act flexibly: This examines the level of flexibility existed within used
strategies of the organisation. So this is hard for the organisation that processes needs to be
changed as in respect of market demand (Molnar, 2018).
Use simple methods: This governs that all the operations are required to be undertaken in
effective way so that simplicity can be maintained. In order to approve constant modifications
simple methods are required to be used so that efficacy can be maintained and adhered. The
management of Oven-fresh bakery may easily determine area in which needs are arising within
products by customers.
Include the margin: This steps examines inclusion of customer within processes so that
needs and demands of customers can be understood in better way and in the same manner
product or service can be rendered.
Follow your heart: This is referred as working style in which management is required to
work with more passion. For the management this is required that they make changes in existing
products in continuous manner so that customer base can be enhanced. For Oven-fresh bakery,
the company is required to innovate their product as according to needs and demands of their
customers.

TASK 3
P5 Importance of commercial funnel and the process of new product development
Commercial funnel: Commercial funnel is defined as sales funnel in which their primal
aim is to convert all potential customers into real customers. This is helpful in maximising gross
and net revenue as by introducing new feature within product, new customer line can be made.
Commercial funnel is defined as the journey in which efforts and time is being exerted into
potential customer in order to make them real customers. Besides this commercial funnel is
assisting management of Oven-fresh bakery in take decision regarding pricing of new products.
This may results in enhanced sales and overall profit as by introducing innovation, new
customers can be pitched and direct impact can be seen over profit and market prominence
(Moreddu, 2016).
Illustration 2:
Source(https://www.sciencedirect.com/science/article/abs/pii/S0048733318302464)
New Product Development: The process of new product development is associated with
introducing new product within market in successful manner. This examines importance of

developing new product by using developmental process. This enables the customer to get
product according to their needs, steps of NPD are elaborated as under: Idea Generation: This is the process under which new product developing process get
started by conception of idea. This results in drawing effective results as the process is
related with systematic idea generation and recognisance of new product.
 Idea Screening: Under this all the germinated ideas are filtered in a way that goals an
objectives can be attained. Under this approach the best ideas which is suitable for
achieving goals and objectives is being selected.
 Development Concept: Under this aspect activities are initiated through which product
can be developed and selected for market commercialisation. This is helpful for the
management in order to intensify overall productivity and render possibilities of
enhancement (Öberg, 2016).
 Marketing Strategy: Marketing strategy is helpful in attaining competitive advantage as
this enables the organisation to recognise their target market and other aspect such as
product, price, delivery, production procedures and many more. Marketing strategy is
very prominent to be developed in appropriate manner so that new launching of product
may be effectively executed.
 Business Analysis: In order to test effectiveness of the new product or service in the
market feasibility test is being performed by the organisation. This is helpful for the
management that they determine capabilities and effectiveness of their products so that
market trends can be adhered. In the context of Oven-fresh bakery before launching
feasibility test is required so that to determine profitability statement within marketplace.
 Product Development: Products are defined as essential part of the organisation which
enable the management to develop effective ideas and to use the same in marketing
efforts as well.
 Test marketing: After product development testing for new product is being performed
in which various strategies are used for examining inclination of customers. This stage is
helpful for the management in order to recognise their target market and position of their
product within marketplace by using various channels such as marketing, advertising and
forth.

 Commercialisation: This is regarded as the final step of new product development
process in which marketing department gathers information from marketplace in respect
or product. This is helpful for Oven-fresh bakery in grabbing market opportunities
through which product can be launched in the market.
P6 Innovation business case for organisation involving various source for funds
Business case: Business case is defined as a well structured document in which task and
other related activities of the project is being mentioned. In current scenario Oven-fresh bakery is
manufacturing a single product which is white bread and the company is willing to expand their
product line and unleash another segment of product (Park and Lee, 2015). For this the company
is developing a business case in order to successful develop a product and commercialise the
same. The company is facing problem of falling business and in this context the company is
introducing new product range of cookies in which numerous verity of cookies are introduced by
them for health conscious people such as chocolate, coconut, tiramisu, butter, jelly and many
more. These biscuits are made up of oats for target customer for the same is health conscious
people.
Executive summary: Under business case plans are included and developed in such a
way that management receive high assistance in developing organisational policies. The target
market for the process is used so that the same can be concentrated within development phase of
the product.
Background of Oven-fresh bakery: Oven-fresh Bakery is managing their business as
manufacturer of white bread. The company is solely manufacturing white bread and in current
time founder of the organisation Mr. Wilbur is willing to expand their product line by
introducing cookies for health conscious people which are made up of oats.
Vision: Vision of Oven-fresh Bakery is to enhance their product line by diversifying
their line of product.
Mission: To get entered into every class of market segment and to enhance market share
as well.
Satisfaction of need from innovation: The company is facing problem in meeting needs
and demands of their customers and by their new product line they can involve more buyer in
their portfolio.

Opportunity in market: The company is having opportunities to enhance their market
share and stop business turnover as well.
Competitive edge: This is composite for the organisation to invest in R&D activities as
this leads in increment in overall costing.
Size and growth possibilities: For this the management of Oven-fresh Bakery is planning
to increase their product line and within this high growth possibilities are being seen by Oven-
fresh Bakery.
Target market: Target market for Oven-fresh Bakery in their new product line is those
customer who are health conscious.
Strategy: Price skimming strategy is being used by Oven-fresh Bakery in order to place
their new product into market.
Promotional strategy: Print media advertisements are used by Oven-fresh Bakery in
order to promote their products (Rasiah, 2018)
Funding: This is one of the crucial aspect in which funds are required to be collected by
Oven-fresh Bakery in order to attain proper working within new project. The company is using
bank loan for collecting funds and to enhance their new product line as well.
TASK 4
P7 Different tool to retain intellectual property for longer period
Intellectual property: This is defined as the aspects by which rights and ideas of the
organisation can be protected. There are some methods which can be used by Oven-fresh Bakery
in order to protect their product from their competitors.
Patents : This is a significant tool which can be used by businesses in order to protect
their product or ideas from getting copied. Patents are required to be renewed after a period of
time. The primal advantage for patent is that it safeguard business and business idea from getting
copied by their rivals.
Trademarks: These are regarded as symbol, signs which are used by businesses in order
to differentiate their products from their competitors. The advantage of trademarks is that it
provides separate identity to the organisation and in terms of disadvantage, patents may enhance
overall cost of the business.

In the terms of innovation of Oven-fresh Bakery the company is suggested to use trade
mark so as to provide differentiated identity to their product. This provides higher productivity
and distinct place in competitive edge to Oven-fresh Bakery (Servajean-Hilst and Calvi, 2018).
CONCLUSION
From the above report this can be analysed that innovation is defined as one of the
integral part of the business in which new and unique idea in terms of product or services are
being introduced within marketplace. Innovation plays significant role in attaining competitive
edge within marketplace as needs and demands of customer can be satisfied by innovation and
by making improvements in products new insights of market can be examined.

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