Innovation and Commercialisation

This study material explores the concepts of innovation and commercialisation. It discusses the importance of innovation for organizations, how vision, leadership, culture, and teamwork shape innovation and commercialisation. It also covers different sources of innovation, the use of innovation funnel, and the concept of frugal innovation with examples from organizational contexts.

Innovation and
Commercialisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Explain innovation and its importance to your chosen organisation in comparison with
invention......................................................................................................................................3
How the chosen organisation’s vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................5
Different sources of innovation and how your chosen organisation can foster a culture of
innovation....................................................................................................................................6
Use and importance of innovation funnel and the evaluating the concept of frugal innovation
with examples from organisational contexts...............................................................................6
PART B............................................................................................................................................8
Commercial funnel and the New Product Development process................................................8
Build a Business Case for Innovation, which includes measuring overall effectiveness using
appropriate techniques including sources of funding..................................................................9
An evaluation of various IP tools that your chosen organisation can use but you can also
provide examples of the use of IP tools from wider organisational contexts............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Innovation is defined as a complex procedure that mainly involves a various practices that
are diverse in nature for obtaining the specified results. Moreover, it is also determined that
innovation is a novel ideas which consist generation as well as perhaps this are performed to
make things simple and effective (Butticè and Noonan, 2020). On other hand, commercialisation
is essential as it is a source by which an innovation may be attained their anticipated social
advantage. As per the given scenario, the undertaken company for this report is Heinz which is
developed in year 1869 and considered as the most beloved Britain brands. It mainly produced
iconic products like Tomato Ketchup, Heinz Beans as well as Cream of tomato soup. This report
is divided into two parts. The topics which are covered in first part are innovation as well as their
effectiveness into firm, difference between invention and innovation, how leadership, vision,
teamwork and culture of company may shape innovation and commercialisation, 4P’s of
innovation and importance of innovation funnel. Moreover, in second part, commercial funnel,
new product development process, innovation business case and evaluation of various IP tools
are discussed in this report.
PART A
Explain innovation and its importance to your chosen organisation in comparison with invention.
Innovation is considered as the application of “new ideas, device or process”. It is often
also view as an application of effective solutions which meets new needs, unarticulated
requirements or existent marketplace. As various changing are occurring into market area as firm
react towards demand o customers. So, few changes are continuously as well as relatively small
in nature where as another includes giant steps forward. In past, the best as well as large firms
were those who have effective machinery and capital equipments. But at present ideas are
consider as most precious asset (Chrysaki, 2020). So, a effectual potential exist for a company
such as Heinz for exploring new opportunities and to market new products that can able to meet
the changing requirement of more sophisticated customers that is to deliver real step change
innovation. So, this is essential for an organisation like Heinz to perform innovation into their
business procedures and products as it will support to develop valuable goods. As per the
research of Heinz, it has been analysed that most of the people like beans and Shepherd’s pie but
no one likes to cook. Thus, respective company is introduced a new product named as ‘Baked
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Bean Cuisine’ which incorporating Heinz Baked Beans into a range of traditional recipes such as
Sausage Hot Pot, Cheesy Pasta Bake and Lamb Hot Pot. It is even possible to buy Baked Beans
Pizza. Also, it introduced a Barbie pasta shapes and for exploring the opportunities they are
planned to launches a new product called “Flavoured purified water for babies and Baby Basics
range of infant feeding accessories”.
Importance of innovation:
Innovation is vital at workplace as it assists to provide boundary into competitive market
simply and fastly. In context of Heinz, innovation is important as it helps them to expand their
opportunities and meet the changing demands of their sophisticated customers. In addition to
this, innovation into product may form an edge related to their development. Even an small
company can develop by leaps as well as restrict if they are making some advance products as
per the clients needs. It formed various opportunities rather than invention and also invention s
time taking and costly in comparison to innovation. Therefore, the effectiveness of innovation in
context of respective organisation is described underneath:
Obtaining competitive advantage: Innovation assist in getting competitive advantage by
rendering products based on needs of clients (Dutta and Rousseau, 2020). Heinz may gain
competitive advantage through introducing a new product called “Flavoured purified water for
babies” and Baby Basics range of infant feeding accessories to obtain competitive advantage in
marketplace.
Meeting the customer’s needs: Presently, most of children like to have flavoured things.
Therefore, Heinz introducing a “Flavoured purified water for babies” and Baby Basics range of
infant feeding accessories as this assists them to meeting the needs of their sophisticated
customers and also helpful in maximising profitability.
Invention: This is considered as totally new product which is different from any other
products into market. Moreover, it is transforming new ideas into product. Therefore, invention
is crucial for company like Heinz as the firm is performing same thing so the market get
saturated thus, they have to come up with new things which may cause a rebirth.
Difference between innovation and invention
As both innovation and invention are very much essential practices of business as well as
this support to increase firm’s operation. Also, differences between innovation as well as
invention within entity are discussed below:
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Innovation Invention
Concept It is not totally original ideas. This
is referring as the execution of new
idea in practical way.
It is totally original ideas to create
any product or services.
Occurs Respective concepts occur when
business felt that improvement is
required into existent product for
satisfying the consumer needs.
It occurs at the time creator
strikes with new ideas for
inventing something new.
How the chosen organisation’s vision, leadership, culture and teamwork can shape innovation
and commercialisation.
As there are many aspects that is helpful in rendering more returns and achievement of
vision, leadership and team work. These are requirement for accomplishing goals for its
enterprise development (Ellwood and Horner, 2020). So, all the aspects which can shape
innovation and commercialisation are described below:
 Vision: Vision is helpful in identifying the upcoming intent and target of company.
Within this, visions are established with assists of administrator manager. Heinz vision is
to provide quality products to consumer for meeting its requirements.
 Leadership: Both vision and leadership are very much linked. Moreover, the strong
leadership permit individuals for sharing a common objective and also it can motivate
individuals as well as drives towards application of its skills to invention and innovation.
So, the leaders working in Heinz applied participative style of leadership to develop
decisions for their members for creating innovative products. Respective style helps them
to manufacture new products in creative manner. With aids of leadership, productivity
and profitability may be maximised by leaders to obtain the attention of many people.
 Team work: This is referred as the individual’s action into group for doing work for
attaining goals by using their knowledge as well as competencies. It is beneficiaries for
entity as it aids them in transferring products to potential clients. For instance, the
employees of Heinz Company has to perform within a team as for performing innovation
and commercialisation various skills and competencies are required for the success of
new product development. Moreover, the cross functional team is important for
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respective organisation as it assists them to rearrange the structure of corporate. Also, this
enable new leader to emerge so that whole cork can be managed effective. In addition to
this, it is also helpful to attain results beyond the reach of personal existing sections,
quicker responses towards technological change, and developed reaction towards external
competition, resolve disputes and many more.
 Culture: This is referred as the values, beliefs and feeling of various clients towards
something. This is the knowledge as well as characteristics of particular individuals
group that includes religion, social habits and others. Therefore, management of Heinz
Company have to develop some empowering as well as forgiving culture and also cross
culture which will helps them manufacture products based upon consumer’s needs in
order to obviate differences related to culture. Hence, they has innovate products such as
“Flavoured purified water for babies” and Baby Basics range of infant feeding
accessories as per the desires of audiences.
Therefore, innovation assists Heinz Company to maximise their customer satisfaction and
attainment of competitive advantage into marketplace. Also, above elements helps them to shape
innovation and commercialisation.
Different sources of innovation and how your chosen organisation can foster a culture of
innovation.
There are numerous sources of innovation which are described below:
New Knowledge: This is regarded as sources of innovation. It involves collection of data
related to new market place so that Heinz may sustain their business through effective marketing
analysis.
Changing perception: This is considered as the sources that basically deal with client’s
perception towards organisation. This has been viewed that most of the people have its own
conceptions in respect of firm’s offerings (Mazzarol and Reboud, 2020). The Heinz must
consider the modifying perception of people for introducing their innovative products which is
“Flavoured purified water for babies” and Baby Basics range of infant feeding accessories.
So, the above provided sources of innovation are important for Heinz as it will foster them
for dealing with modifying perception and facilitate them all data which are important for
respective organisation to effectually implement process of innovation within business in order
to accomplish its goals.
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Use and importance of innovation funnel and the evaluating the concept of frugal innovation
with examples from organisational contexts.
In order to do the innovation, whole employees who work within organisation has to
perform their practices in appropriate way. It is vital for business to determine various aspects for
acquiring growth at marketplace which are described underneath:
Innovation 4’s
For effectual formation and achieving success, innovation is vital aspects which drive
towards business development and growth. So, 4P’s of innovation are discussed below:
Figure 1, 4 P’s of innovation.
(Source: 4 P’s of innovation. 2020)
 Product innovation: This is considered as the important P’s of innovation and brings
innovation in its end product that are ultimately utilised through clients. A new product
may be introduced or radical modification may be developed towards existent products.
This will support Heinz Company to launch “Flavoured purified water for babies” and
Baby Basics range of infant feeding accessories by determining modification into
perception of clients before launching new products.
 Process: It consists various steps such as planning, recruiting, training, and supplying and
many more. Ideas upon how to maximise various steps may be thought of which will in
turn drive to enhance organisational profitability. Latest trends may be applied towards
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these processes. It will assist Heinz Company to obtain effectual machinery as well as
produce good quality of products to individuals with innovation.
 Position: It is considered to where product or services is targeted at present time at
market segment. Innovation in position may be performed as well as goods can be
launched into new marketing segment in which product would not have been think
before. Therefore, this will assists Heinz Company to increase the margin of profit.
 Paradigm: This is something which forces an effective disruptive change into
marketplace. Moreover, it is whole about how innovative ideas are and is utilised into
distinctive ways for developing enterprises. The modification can whether be affirmative
or pessimistic. Modification could be such as developing innovations into business model
and so on. This will assists Heinz in maintaining sustainable level through ongoing
modification into their products so that needs of people may be satisfied.
Innovation Funnel
This is considered as process of funnel management that is a well known approach for
innovation; it may be applied by numerous organisations in order to formulate an innovative
products. It aids to explain step that is helpful in processing products (Megersa, 2020). Also, in
order to handle new produce development process Heinz is applying innovation funnel as this
assist them to evaluate their opportunities, insight based ideation, conceptualisation, evaluation
and benchmarking.
Uses of innovation funnel: This is utilised to explain the steps which consider for
product or process development. So, in order to screening and shaping the new product
development Heinz can use innovation funnel that are described below:
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(Source: Innovation Funnel, 2019)
 Investigation: Herein, Heinz will gather data which is needed to develop their new product
so that this will be created according to requirements.
 Market research: Herein, organisation will analyse their segment for this they has to launch
new product. As, this may assist them to attain their goal in more effective manner.
 Delivering product: This is regarded as the last stage in which management of Heinz will
formulate decision related to product delivering to customers effectively. Moreover, in this,
it has to clear about what they has to develop and how to deliver into potential market.
Developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal is regarded as the method to reduce as well as obviate the cost, issues and problems
appropriately. Mainly, this obviates useless components among durable products like phone, and
others for selling it into developing. Also, it design new product from several areas will
maximise cost as well as selling distribution cost of product also get maximised. Such as Heinz
is introducing new product which is “Flavoured purified water for babies” and Baby Basics
range of infant feeding accessories so adoption of frugal innovation that aids them concentrate
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upon effective quality of goods at reasonable costs. It decreases extra cots which affect
organisation revenue negatively. few examples are Tata Nano, Mittocool, GE’s Vscan and
others.
PART B
Commercial funnel and the New Product Development process.
Commercial funnel is also known as revenue and sales funnel. This is mostly used by
business in order to determine its each step success level within innovation funnel. It is a term
that is basically utilised by the department of sales for analysing its firm’s revenue and sales by
conversion of effective individuals into customers (Prifti2020). Moreover, it assists organisation
for advertising their products into competitive market. Heinz may maximise its sales and obtain
profit with the help of commercial funnel. This may be used by them consumers purchasing time
duration.
AIDAR FUNNEL COMMERCIAL
Figure 2, AIDAR MODEL
(SOURCE: AIDAR MODEL)
 Awareness: This is considered as the first step where entity want that, their brand get
observed by clients as well as it is like promotion. Therefore, for the company’s new
product, it may utilise social media as this aids them to create awareness within
audiences.
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 Interest: Herein, entity wants that audiences have interest into their goods. Therefore,
Heinz has to conduct some investigations that aid them in understanding their choices
where they have interest. So, from the research this has been analysed that they have
interested towards their children health.
 Desire: Herein, Heinz may become more practical related to paring product as well as
need to form some emotion connection with product brand and audiences.
 Action: For, its new product they form online stores, they ultimately be process of
shopping cart in which audiences leads towards conversion.
 Retention: Herein, It develops something new so that entity may retain its audiences for
longer duration. Within it new product “Flavoured purified water for babies” and Baby
Basics range of infant feeding accessories.
New product development process: It is considered as a procedure that is used for
launching new product into competitive marketplace based on customer’s need and their
changing preferences. Heinz has to opt this, as they planned to launch “Flavoured purified water
for babies” and Baby Basics range of infant feeding accessories. Herein, ides associated with
new product will be formed from numerous staff member suggestion, information accumulation
and from many sources.
Idea evaluation: herein, the overall ideas have been determined effectively and then among
all best are opted.
Concept development: Herein, Thoughts are converted practically in order to obtain
competitive advantage at marketplace. Heinz should analysis whole concept in effective way so
that they can able to provide meaningful information to its audiences.
Analysis business situation: Herein, Heinz evaluates environment condition in order to
operate business at market area. This assists them in getting knowledge about numerous
changing environmental aspects which takes place in company.
Product development: This consists determinate which product has been formed finally. In
this, Heinz must develop products for their clients with effective resource which is required for
new product formation. So, they will take materials from its suppliers in order to develop new
products.
Market testing: This consists development of sample product which is being created to test
either it is effective or not within marketplace and the issues which arise. It includes undertaking
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feedbacks from audiences regarding new products so that organisation can consider some
modification for obviating problems.
Commercialisation: This involves decisions about new product launch within competitive
market after it get tested.
Build a Business Case for Innovation, which includes measuring overall effectiveness using
appropriate techniques including sources of funding.
Business case or plan is referred as written document or blueprint that tells about the
overall business (Ramljak, 2020). Moreover, this is a factor that involves objectives, strategies,
sales and many more. So, this is needed by the Heinz manager for formulating effective business
case which will be helpful for them in taking appropriate decision while accomplishing the
project. Therefore, the business case for Heinz innovation is discussed below:
Executive Summary: the business for Heinz is to develop a unique and innovative idea that
is “Flavoured purified water for babies” and Baby Basics range of infant feeding accessories.
That will assist children parents to feed their babies in more easily and effective manner. And
also save their time as well.
Mission statement: the mission statement of Heinz is facilitates healthy and tasty water for
babies as well as also makes their parent work easier.
Resources: In order to deliver the product into competitive marketplace effectively, this is
vital for Heinz to determine the resources that will be needed. They have involved whole crucial
aspects so that its product or services would not get impacted in upcoming times. So, the
resource that is needed through respective organisation are described below:
 Market analysis: This is very much important for Heinz to determine the marketplace
where they will be introducing their new goods and also evaluate it in more effectual way
so that it may find its tough competitors, threats, opportunities and its potential purchaser.
This they can perform with the help of some marketing tools like SWOT and PESTEL.
 Cost and benefit analysis: The cost of Herinz new product that is “Flavoured purified
water for babies” and Baby Basics range of infant feeding accessories is determined
through performing respective analysis. As this assists them to identify its customer
preferences in respect of cost such as it should be reasonable.
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 Financial projection: In order to have “Flavoured purified water for babies” and Baby
Basics range of infant feeding accessories, this is vital for respective organisation to has
effectual funds as this helps them to launch its new product appropriately into
competitive market (Sanders and Havighurst, 2020). So, for instance they needs about £
30,000.
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Ways of funding: For launching a new product within competitive market, Heinz
required funds which may be obtained by numerous sources such as:
Banks and financial institutions: This is known to be an effective ways of funding so
Heinz can take loan from respective sources or way (Smith, 2020). It is also considered as the
safest manner of acquiring finance as it renders protection to Heinz in context of loan taking. But
they charged interest in respect of taken loan amount.
From friends and family: The company Heinz can take money from its family member
and friends as well. It’s essential advantage is that they does not have to pay any interest to them
only the amount which is taken will be paid. Also, i this there is not any specified time duration.
Thus, from above bank and financial institution is effective ways of funding in order to
launch new product into competitive market as it is safe and secure.
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An evaluation of various IP tools that your chosen organisation can use but you can also provide
examples of the use of IP tools from wider organisational contexts
Intellectual property is considered as a property which occurs from human intellect.
Basically, it is a product of human creation. It comprises two distinct kinds such as literacy and
artistic works as well as industrial property (Sun, Liu and Ding, 2020). The main objective of
intellectual property is to provide owner an appropriate time for exploiting its creations for
commercial return and to be as its owner. Moreover, the nature of this is generally intangible as
it can be sold, bought, may pass under will, may be assigned also. But its values become less in
case if firms are not any new inventions, design or procedures. So, there are some intellectual
property tools which can be used by Heinz in respect of protecting their new product that is
“Flavoured purified water for babies” and Baby Basics range of infant feeding accessories. All
these are discussed below:
Patents: This is considered as an invention for which inventor claims some kind of
exclusive right. Moreover, it permit holder to safeguard its new innovation generally for 20 years
and it may undertake some kind of legal action in any one tries to develop, utilise, sell or import
its invention without any kind of permission. So, Heinz can utilise for their new product that
is“Flavoured purified water for babies” and Baby Basics range of infant feeding accessories so
that no one can able to make the similar kind of product.
Advantage: It main advantage is, this prevent other firm or person from delivering as well
as formed imitation of similar things without undertaking authorization from developer.
Disadvantage: Its main disadvantage is, it is time consuming as 3 to 4 years for creating
patent.
Trademark: It is usually covered under the act of trademark. It is considered as a word,
logo, design, symbol, sound and other devices which is utilised for identifying a product or
enterprise into commerce. In addition to this, it is referred as a sign which is able to distinguish
the product of one firm from another one. So, Heinz can utilise respective intellectual property
rights for protecting their new products designs and logo in effective and effectual way.
Advantage: Its main advantage is that, this render protection to products as well as also
permits that in market audiences may determine specific goods effectively by analysing
trademark.
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Disadvantage: Its disadvantage is that, respective intellectual property right is known to be
the weak mark and may be easily copied by other illegal entity.
Copyrights: This is considered as a right that grants protection towards expression of
unique ideas. Also, it an legal term which is utilised for describing the rights that developer have
over its literacy as well as artistic works (Vertès, 2020). The works that is undertaken by
copyright are range from music, books, films, advertisement, sculptures and others. Moreover,
there things which are covered under this are facts, ideas, works lacking originality and many
more. Therefore, this can be utilise by respective company in order to protect their
advertisements related to its new products.
Advantage: The main advantage of this, is to safeguard creative work from being duplicity
by other individuals or firm without having any authority.
Disadvantage: Its disadvantage is that respective intellectual property right is approved for
particular period and very much costly.
Thus, all these intellectual property rights are very much advantageous for the respective
organisation as it assist them to safeguard its new product appropriately.
CONCLUSION
As per the above report, it has been concluded that organisation have to perform innovation
and commercialisation as it helps them to meet the changing demand of customers and the obtain
higher profitability effectively and efficiently. Moreover, there are some elements such as
leadership, vision and other elements that is helpful to shape innovation and commercialisation.
Business case assists organisation in taking appropriate decision while accomplishing the project.
Apart from this, there are mainly three types of intellectual property rights such as trademark,
copyright and patent are very much advantageous for as it assist them to safeguard its new
product appropriately.
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REFERENCES
Books and Journals
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quality after a crowdfunding campaign: A comparison between first-time and repeated
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Chrysaki, M., 2020. The Sustainable Commercialisation of Space: The Case for a Voluntary
Code of Conduct for the Space Industry. Space Policy, p.101375.
Dutta, D.K. and Rousseau, M.B., 2020. Alliance Experience, Industry Conditions, And External
Technology Commercialisation. International Journal of Innovation
Management, 24(01), p.2050007.
Ellwood, P. and Horner, S., 2020. In search of lost time: the temporal construction of innovation
management. R&D Management, 50(3), pp.364-379.
Mazzarol, T. and Reboud, S., 2020. Adoption and Diffusion of Innovation. In Entrepreneurship
and Innovation (pp. 165-189). Springer, Singapore..
Megersa, K., 2020. Innovation Value Chains in East and Southern Africa and the Key Gaps.
Prifti, R., 2020. Implementation of blended learning in a higher education institution in Albania:
an analysis of factors that affect students' learning experience. International Journal of
Innovation and Learning, 27(3), pp.233-253.
Ramljak, D., 2020. University as an Engine Transforming Science into Innovation and
Commercialisation.
Sanders, M.R., Kirby, J.N., Toumbourou, J.W., Carey, T.A. and Havighurst, S.S., 2020.
Innovation, research integrity, and change: A conflict of interest management framework
for program developers. Australian Psychologist, 55(2), pp.91-101.
Smith, H.L., Meschitti, V., Le Roux, J., Panton, M., Baines, N. and Poulovassilis, A., 2020.
Gender differences in the commercialisation of research: a study in UK universities.
In Gender, Science and Innovation. Edward Elgar Publishing.
Sun, Y., Liu, J. and Ding, Y., 2020. Analysis of the relationship between open innovation,
knowledge management capability and dual innovation. Technology Analysis & Strategic
Management, 32(1), pp.15-28.
Vertès, A.A., 2020. Innovation S-Curves in Living Drugs Development and Their
Commercialisation. In Second Generation Cell and Gene-based Therapies (pp. 3-14).
Academic Press.
Zhou, C. and Wang, R., 2020. From invention to innovation: the role of knowledge-intensive
business services in technology commercialisation. Technology Analysis & Strategic
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Online
4 P’s of innovation. 2020. [Online]. Available through:<
https://www.researchgate.net/figure/Model-4-Ps-of-innovation-Source-Bessant-Tidd-
2013_fig2_305310289>
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