Unit 8–Innovation and Commercialisation

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation in comparison with invention..........................................................................3
P2 Organisations vision, culture, leadership and teamwork shaping innovation and
commercialisation...................................................................................................................4
TASK 2............................................................................................................................................5
P3 4P’s of innovation and innovation funnel.........................................................................5
P4 Development of frugal innovation....................................................................................7
TASK 3............................................................................................................................................8
P5 Commercial funnel and development of a new production..............................................8
P6 Innovative business case.................................................................................................10
TASK 4..........................................................................................................................................12
P7 Evaluation of various tools for protecting intellectual property.....................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is used by a number of companies so that they can develop new products and
services and also bring innovations in their already existing products and services so that they
can grab attention of customers and increase profitability for the company (Naughton and Foss,
2019). A process which is defined by alteration and development of new products and services is
called innovation. There are a number of marketers who are involved in innovating a number of
products and services for the company in order to make sure that they are increasing customer
satisfaction level. Commercialisation means the process in which a new product or service is
launched in the market. The company taken for this report is Heinz. Highest was established in
1869 which deals in a number of food products. The major factors of the company situated in
UK and Ireland. There is new innovation brought by company in a number of their products in
order to attract more customers.
TASK 1
P1 Innovation in comparison with invention
Innovation: Innovation refers to altering the already existing product or services of the company
in the market. This means an improvement in the already existing group. When taking Heinz into
consideration the company is focusing on a shift of working culture in the company along with
change in physical appearance of their already existing product (Ramljak, 2020).
Invention: invention of a product refers to an innovative idea which is change into action. There
are a number of ideas which are immersed in the people working in a company for a product.
Invention usually refers to the products which are first of their kind for the market. Heinz is
working on creating 2 to 5 products in every nine months which are its inventions. The Heinz
baked beans, Heinz Barbie pasta shaped in tomato sauce and also its invasion.
Comparison among innovation and innovation
Basis Innovation Invention
Purpose The major purpose of
innovation in a company is to
make more profits by making
little changes in the already
existing products or services.
Major purpose of invention for
a company is to bring in new
and fresh products or services
in the market in order to
increase their market share.

Requirement Innovations in a business
usually take place when a
business is free from
competitors in the market
(Pynnönen, Hallikas and
Immonen, 2019).
Invention in a company
usually takes place when an
employee or the manager of
the company comes up with a
new idea which can be worked
upon and generated into a
profit-making product.
There is a major role played by innovation in development as well as growth of a
company. There are also a number of risk which are involved while making innovation
decisions. Below mentioned are some of those risk:
Dinner is improvement: The major barrier which is seen with innovation in the product is seen
that the company needs to continuously improve the product for that. The baked beans which is
sold by hands in the market is continuously changed according to the market so that the
customers can except those changes. This includes bringing in different recipes such as sausage
hotpot, cheesy pasta Bake as well as lamb hotpot.
Unique selling point: it have been noticed that the competition in the marketplace is continuous
in nature. There are a number of innovations which have been adopted by Heinz. It is necessary
for the company to make sure that the unique proposition of the company is included in each of
its product. Creativity time as well as creativity idea is one of the major unique selling points of
company which should be incorporated in all of its products.
P2 Organisations vision, culture, leadership and teamwork shaping innovation and
commercialisation
For an organisation to attain all the objectives and goals in the given time period innovation is an
essential element. There are different elements and factors which helps in company in bringing
in innovation. Those factors for hindsight mention below:
Organisational vision: and there are predetermined goals as well as objectives of every company
which are required to be attained in a given period of time with the help of organisational vision.
When taking into consideration Heinz organisation it is required by the company to make its
objective in advance. The major objectives of companies are creating 2 to 5 products in every
ninth month (Mazzarol and Reboud, 2020). And another version of companies to bring new

innovators and new processes so that the culture of the company can be innovative itself. These
innovations are important for company leading it to brighter future.
Leadership: There are a number of different leadership techniques provided by management
which can be used by leaders in an organisation to lead their subordinates. I’m taking Heinz into
consideration there are a number of duties as well as responsibilities which are to be managed by
a leader in our organisation. The leaders in the company use democratic style of leadership so
that they can efficiently carry on in innovating a number of product. In order to make sure that
employees are bringing forward new ideas they motivate employees with the help of autocratic
leadership. In this way they also delegate a number of works and responsibility to their
subordinates. This is a great way to bring in new innovations in the company and motivate the
employs.
Culture: Culture in an organisation is the depiction of personal identity of a company. Heinz
focus on creating an innovation culture in the company. The new ideas which are brought in to
tackle a number of issues or experimented continuously. Ideas and innovations are always
welcome Delhi company and it is made sure that customers are the major source for generating
ideas. They focus on creating a culture of change by doing. In this they involve as many as
participants in the organisation so that innovation can be brought in successful in the company.
Teamwork: Teamwork is an important factor for a positive working environment. It is necessary
that organisations work on the team and make sure that my working together. When taking Heinz
into consideration it is seen that the management of the company believes in developing her
efficient team. All the roles and responsibility of each team member is determined by the leader
of the team. It is necessary that all the members are known about the vision and the objective of
the team and the work towards productivity. It is also necessary to motivate the employs in a
team so that their productivity can be increased leading to a number of new innovations in the
company.
TASK 2
P3 4P’s of innovation and innovation funnel
There are four different type of component which are used by company in order to bring in a new
innovation. This helps in providing various growth market for the company. The 4P’s of
innovation and Heinz are:

Product: Product is the major factor which brings in innovation in the company. It is necessary
that the product which are provided to the customer out of value to them and a satisfying their
needs and requirements. In order to bring innovation Heinz organisation is providing their
customers with a number of different options of ketchup and baked beans.
Process: Process refers to the steps which are managed by an organisation in order to produce a
new and innovative product or services. In Heinz organisation the process includes generating
ideas from the company and also taking advices from all the employees in the organisation. In
this way company is generating an innovative environment (Vertès, 2020).
Position: Position is a step which include setting a position for the product in the market in
comparison with the competitors. It is necessary for the company to 1st identify the target
customers for the product. When Heinz is coming up with new products they make sure that the
targeted customers and potential customers of the product or identified earlier. This helps them
in generating a proper market communication plan for the product.
Paradigm: Paradigm is at a stage in which all the challenges which are being faced by an
organisation while they are innovating a new product or services. When Heinz is developing a
new product or services there are a number of different barriers which includes the time taken by
the chefs to work on a new product. The working environment of the company which is to be
conducted with more creativity. The consumer research techniques used by company are also
necessary barriers which lead to problems during bringing innovation in the company.
It is said that innovation funnel is one of the most effective tool which can be used by a
business entity for further developing as well as innovating the services & products as per the
needs and requirement of customers. Along with this, it has been said that the main principle of
this procedure is that it help a business organisation in order to develop formative rise in the
market share which leads towards the enhancement of profitability as well as maintaining long-
term sustainability.

P4 Development of frugal innovation
According to the frugal innovation it is termed as the combination of all frugal results,
frugal mindset as well as process. It has been said that there are usually three kind of frugal
innovators whcih are MNC- subsidiary level, domestic-enterprise level as well as grassroots-
level. In addition to this, it has also been said that it can also be defined as one of the most
effective tool and techniques which will assist in reducing the overall costs of goods as well as
services at different level of stages of production procedure. Commercialization refers to making
best utilization of all the resources in order to benefit population with the help of frugal
innovation. There are different methods developed in frugal innovation which have been
positively affecting Heinz. Development of frugal innovation is done in four steps in the
company:

Identification of frugal innovation: Heinz is first required to identify the need of development
of frugal innovation. This is used in a company when all the resources available to company are
costing high in the products. In such situation frugal innovation can be used.
Reducing problem: The limited resources which are present with the company are collected
together so that the changes in the company can be facilitated and the project can be started. The
needs for various local innovation and identified in this process (Zhou and Wang, 2020).
Reducing patterns: In this step Heinz throws away the ideas of innovation which are not
feasible. Only the ideas which are suited the most for the company are selected.
Pattern system: The last stage of local innovation in which a proper system is juiced and
applied. This is final process with local innovation is used and applied on the company.
The above mentioned stages are required to be adopted by higher authorities of the
business entity in order to introduce new and unique innovation at the competitive marketplace.
These steps need to be followed by business organisation in an effective manner so that they will
be able to gain positive results by using all these factors appropriately.
Frugal innovation and organisation
There are different ways in which location is brought in fines. A number of ways are used
to benefit the company some of which are mentioned below:
Product development: Product development can be done by an organisation in order to support
the super innovation in company. This is the best way for Heinz to develop a number of new
products which will help in utilization of its resources.
Market analysis: Often seen that frugal innovation in an organisation requires huge investment.
Frugal innovation can be used to maintain the cost and ideas in the organisation. Heinz analyses
the market and its potential customer effectively so that they might generate a new innovative
product.
Use of resources: this also makes effective use of resources for the company. It is beneficial for
fines as time taken to generate a new innovation is a lot.
Generation of ideas: A number of different ways are used by the company through which ideas
can be generated for frugal innovation. Heinz uses their employs and motivates them to bring in
new ideas for frugal innovation which will give them a number of opportunities with low-cost
(Grace, 2019).

TASK 3
P5 Commercial funnel and development of a new production
New product development (NPD)
The new product development process is defined as technique used by various companies
for managing innovation which is done among the products in order to sustain competitive
advantage within market. It is seen that different companies are involved in managing innovation
within the services and products offered to customers so that it will easy to enhance the sales and
profit earned by the company. In the present context of this file, it is seen that Heinz company is
involved in continuous innovation for managing the effectiveness of new product development.
Some of the stages of new product development process is listed below
Idea generation - this is known as the first step which is used for managing the idea of making a
new product or service. Finance company is always involved in generating new ideas so that it
will be easy to attract the customers and increase sales of company (Rotstein, 2019).
Steps of the new product development Concept definition - it is seen that the next step is to manage and define the concept
which is used for managing innovation in the company and in context of the following
file which includes hands company it is very important to grab information about the
choices and preferences of customers. The main reason by which these companies able to
manage a competitive advantage is that it is involved in continuous development and
innovation. Analysing market - it is very important for the company to analyse the whole market for
managing and launching the new product within market. HEINZ company always market
the new product by grabbing information about the needs and perspectives of customers.
this is helpful for managing the launch of new products and achieve success within
organisation. Developing product – analysis of market is done effectively then next step is to develop
the product is actively. It is seen that the development of product requires the
management of customers as well as analysis of market effectively so that it is easy to
achieve profits within the market. Commercialization - this is defined as the last step of new product development process
and it is seen that when the product and service is launched within market it is more

important to manage selling and bringing the product within market to the customers
(Çengel, 2019).
Commercial Funnel
Commercial funnel is defined as the process which is used before the production and
launching of new products in market and managing sales and profits of the company for stop this
is known as a graphical representation of a new product in which various goods and services are
produced and this includes the following five steps – Generation of ideas – is defined as managing the development of new products and
services for the Heinz company so that it will be easy to attract a greater number of
customers and in this way the company can also increase the sales and profits. This is
also important for the company that it is manageable for generating the new ideas that
can be used for managing the market value of the company. Screening of ideas - this is defined as the generating of the screening which is associated
with it idea which is analysed in step 1. Heinz company has to evaluate what are the pros
and cons of innovating the new product and service within market. It is very important
for the company to manage the effectiveness and value of the new innovative products
that it will be easy to analyse whether this product will be able to make profits and sales
for the company or not (Mazzarol and Reboud, 2020). Testing of concept – this is known as a step in which there is involvement of testing of
products which can be offered by finance company for increasing the profits and sales.
Message very important for the Heinz company so that it will be easy to manage the
various production steps that can be used for managing the performance of company. Analysing need for product development - it is very essential to analyse the need for
developing product and analysing it in a proper manner. In context of Heinz company, it
is analysed that what will be the effect of the new innovative product on the customers.
 Commercialization - this is known as the final step that can be used for promoting the
product and starting the company's launch after new innovative product. there is need of
managing the promotion of products by advertising it on television and some other social
media platforms.

Above mention steps help in launching new product at the competitive marketplace if
adopted and implemented in an effective and appropriate manner. These are the steps which are
commonly used to show a graphical presentation of the process of their new product and services
which is being launch by the higher authorities of Heinz.
P6 Innovative business case
Business case:
Steps Description
Executive summary Heinz is a strong and reputed company of UK.
It is involved in managing excellence and
functioning by providing ketchup products to
the customers.
Mission The mission statement of this company is to
provide satisfaction to customers by providing
the good and quality products and services.
Vision of the company is to manage the
effectiveness of working and business process
of company (Yeo, 2019).
Innovation in product Innovation is the key concept that is helping
this company to manage the sales and profits of
the company. It is seen that it is very essential
for the company to manage the functioning so
that it is easy to manage the sales and profits of
the company.
Target market The target market is known as the number of
potential customers. The target market of Heinz
company are the people of age more than 5
years. Ketchup I used by all kind of people and
thus, it is known as the best taste maker in
various dishes.

Sources of funds Heinz company is having enough funding so
that there is no problem in managing the work.
Bank is the easiest way that can be used by
Heinz for managing the process and tasks of
innovation.
Benefits The main benefit that a company will have
after introducing the recyclable plastic bottle.
This is helpful in managing the work
effectively and achieving success in company's
vision and mission. When there is increase in
number of satisfied and happy people, then
profits can be increased and market share can
also be increased.
Monitoring and controlling This is known as managing and controlling the
activities and tasks that are involved in
preparing innovative products. There is need of
cooperation and collaboration of all
departments so that new innovation is done
successfully (Zarrouk and Ouerghemmi, 2019).
Sources of funding
It is concluded that funding is defined as the most essential feature which a company uses
for innovating the new product and service within market.it is concluded that all the companies
should have sufficient amount of money and funds which can be used for innovating the new
product and service. It is also required that all the money which the company is using for
innovating the product can be effectively used for managing the increase in sales and profits. Bank loan – what is known as the source which is used by the companies to manage the
funding. Is very important for the companies to manage all the processes used for
innovating the product effectively so that it is easy to achieve the organisational targets

and goals. Taking loan from bank is the easiest way which can be used by Heinz to
manage the sales and profits. Government assistance – this includes the managing of finding which is given by the
government authorities to companies which are private in order to motivate the new
techniques and thoughts which are used by the companies. New business projects are
helped by such kind of assistance.
 Crowdfunding – this is defined as the way in which money is received through the crowd
sourcing. It is concerned with the money or fund which is collected by giving invitations
to various people and managing small funds in order to do the business projects.
Higher authorities of Heinz adopt Bank Loan sources of funds which is quite safe and
effective method help in gathering money for performing their business functions in an effective
manner. This is one of the best and safety method of getting funds for conducting their business
operations at the competitive marketplace in an effective manner.
TASK 4
P7 Evaluation of various tools for protecting intellectual property
Intellectual property rights:
Intellectual property right is defined as the property which is having no physical presence
but it is used by the companies in order to manage the assets. The intellectual property consists
of various factors such as trademark, patents, logo, etc. All these rights provide the company to
have control over managing the intellectual assets which are very important and precious for the
company. This is required by the companies to manage the intellectual assets and having full
control over threats which a company is having against a competitor firm (Morrish, Whyte and
Miles, 2019). It is required that all the companies specially heinz is taking full care for managing
d rights which this company is having in order to have unique recognition within market.
Patent – this find is intellectual property right which is associated for the company and
protecting the products and services which are associated due to the innovative ideas. it is
essential to manage a competition against various companies which are also producing same
kind of product. In context of Heinz association, it is seen that it is having great competition
against other catch-up companies like Nestle, Hershey’s.

Trademark – this is associated with the management of intellectual property right which is
concerned with the logon, product design. This is helpful for the company to manage the
reputation and image which the company is having in front of the customers. In context of this
company is very important to manage the brand and increase the competitive advantage within
market for sustaining in the market for longer period for longer period.
Copyright – this is defined as the intangible assets which the company is using and it is also
helpful for the company to make the product and services which are used by the companies for
managing the products and services offered by the company. Heinz companies having all the
copyrights properly so that it is easy to have a special assistants and safeguard which is needed
by the new innovative product (Jafery and et. al., 2019).
It has been identified that there are usually two main approaches which is adopted by the
higher authorities of the business organisation which are copyright as well as patent. Both of
these techniques help in enhancing the profitability as these tools assist in giving benefits along
with the safety of their new & unique creation. Therefore, adopting both the techniques help in
raising the profitability and market growth of the company along with security and protection of
their new products and services launch by them at the competitive marketplace.
CONCLUSION
From the above discussion it is analysed that innovation is the most important factor which
helps the company to increase sales and profits. There are various techniques and methods that
can be used for managing the innovation among products. This is known by the company that it
is very important for managing the effectiveness so that new innovative products are able to
attract new customers towards the new and innovative products offered by the organisation.
Commercial funnel is defined as the method which is very essential for a new innovative product
and managing the different activities and processes used by incorporating the product or service.

REFERENCES
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