Unit 8–Innovation and Commercialisation

Unit 8- Innovation and
Commercialisation
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
P1 Explain innovation and determine its comparison with invention.........................................3
P2 Discuss culture and vision of innovation plus commercialisation.........................................5
P3 Describe 4P’s of innovation and innovation funnel...............................................................6
P4 Explain Frugal innovation......................................................................................................7
P5 Significance of commercial funnel and new product development process..........................8
P6 Innovation for business case.................................................................................................10
P7 Discuss several tools to protect intellectual rights...............................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12
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INTRODUCTION
Innovation is described as the production of goods or services in a different manner and to
provide them among their customers in a creative way (Anderson and Gallini, 2019). This
involve the process of generating new and emerging ideas which provide an excellent growth
and develop a greater success. Commercialisation involve the process of bringing merchandise
or services among the buyers with the help of marketing strategies and tool which create an
awareness of brand. This report is based on Heinz which is food producing company in UK as
provide several varieties of merchandise such as soups, creams, beans etc. This report comprises
of comparison of innovation and invention and also it consists of vision, mission and culture of
an organisation. This report also includes several types of innovation and process of new product
development. It also includes overall business case and various intellectual tools which protect
and retain business in a concise manner.
Main Body
P1 Explain innovation and determine its comparison with invention
Innovation is something in which an organisation come with new and creative
merchandise by thing something different which makes it unique from others (Anning-Dorson,
2018). This provide a competitive edge as innovation greatly adds value among their customers.
This allows to gain maximum revenue and productivity over a marketplace. As changes are
taken place at a fast rate which assist the company to make modification and also it follows a
current trends and new emerging pattern in their workplace which boost the overall productivity.
For example, Heinz is planning to launch cookies which is sugar free and is completely enriched
with dry fruits. The significance of innovation is elucidated below:
To gain competitive advancement: Innovation provide assistance to company to come up
with advanced ideas and offer a unique solution among their clients. They prepare an appropriate
strategy to beat the competitors by making modifications in product or services as it grabs the
interest of customers across the globe. Example: Heinz is coming up with new product which is
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unique such as cookies which consist of less sugar content and are specially benefitted for
diabetic patient.
Maximise the market share: Making a product which has not existed earlier by looking
towards the awareness the market scenario would prove to be advantageous and help in
achieving maximum share of market. There is always in demand of new and advanced
merchandise as customers always prefer that type of product which provide them with
satisfaction and also it is likely to provide benefit in future (Correa, 2020). The top manager of
Heinz uses advanced technology in their workplace which help in conducting fast operations of a
business and thus generate a maximum exposure at a global level.
Boost customer satisfaction: This factor is utmost priority of every firm so the firm
conduct proper research in a market so as to identify the nature of competitors and determine the
taste and wants of buyers and emphasise on meeting their requirements in a marketplace. By
making product in accordance to customers would assist Heinz to create a prominent position
and also it aids in accomplishment of targets within set time frame.
Invention: It is an art of developing new product or services which has not existed earlier
bring new plus creative merchandise in a marketplace. With reference to Heinz, the importance
of invention is underlined below:
Invention has placed more importance nowadays as it assists a firm to contribute towards
the growth as this is possible due to the reason of globalisation (Festa and et.al., 2016). This new
concept of globalisation facilitates several changes in a workplace as it helps in achieving a
rivalry edge and provide a maximum exposure within a marketplace. Heinz introduces cookies
by looking towards the awareness of consumers towards their health as it generates productivity
and exposure in different parts of country.
Contrast of innovation and invention:
Innovation Invention
It means that modification or improvement has
taken plan in respect of merchandise or
services which is already available in a market.
It refers of creating and developing advanced
merchandise which appear in market for the
first time.
It is necessary to have to have essential skills
such as competency, financial and strategic
marketing skills in case of innovation.
It is important to have technical skills in case
of innovation.
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This involve implementation of idea which is
generated in a coordinated manner.
The concept arises from new and original idea
as well as its working procedure in a company.
This is expensive method and contain fewer
risk.
This is regarded as less costly method as it
possesses more risk.
Invention consumes more time and incur heavy expenditure while in case of innovation is less
time consuming which requires least cost.
P2 Discuss culture and vision of innovation plus commercialisation
Innovation and commercialisation are two different terms as they are just like two sides
of coin such as head and tail but at the same time these are core function of a corporation
(Hoffman, Opačić and Reilly, 2017). As innovation involve the process of making new
merchandise or service while commercialisation is understood as making available the developed
goods in a marketplace. It involves preparation of an appropriate strategy and tactics in order to
bring product within a marketplace. As it faces several challenges as well as measures so as to
gain competitive advancement in a modern era. In the context of Heinz, the vision, teamwork
and culture is described as follows:
Vision: The main vision of Heinz is to render excellent quality of food as it mainly uses
natural ingredients so as to grab the attention of clients. They also promote proper health and
safety measures by developing the interest of workers and also this aid in improving the overall
performance of corporation.
Culture: It includes beliefs, assumptions, norms, values and ethics which are important in
an organisation. The manager of Heinz promotes an excellent culture as it builds great unity and
provide the value to their employees and stakeholders and also to investors. It also invites and
consider the opinions of subordinates so that they could feel that they have value and could work
hard so as to reach beyond their potential.
Leadership: Leadership play an important role as it has power to influence the behaviour
of others and also it motivates and encourage their team members to work with potential and
efficiency so that they could accomplish the task within limited time. The leader of Heinz advice
and trained their staff and make them capable of facing complicated issues and obligations
towards their duties as it ensures growth and sustainability in a long run.
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Teamwork: Hiring best and capable employees would prove to be advantageous for
company as it aids in achievement of targets (Kocak, Carsrud and Oflazoglu, 2017). The senior
authority of Heinz promotes new and creative ideas of employees so that they could take a best
decision and help in running business smoothly. They also provide specialised training among
their staff so as to develop confidence and determination among them. This generate more sales
and increase the overall performance in case of confectionary sector. In addition to this, it is
important that cooperation and coordination is to be taken place which ensure greater prospects
of growth.
P3 Describe 4P’s of innovation and innovation funnel
There are four P’s of innovation as each element are interrelated to each other and also it
provides a specific area of an organisation which measure the overall efficiency of a firm are
showcased below:
Figure 1 4 P’s of innovation
Product: This involve a tactic of making new goods with several modification by looking
towards the current and emerging trends as it helps the firm to become a leader in a market. The
manager of Heinz emphasises on developing quality goods with attractive packaging which
make customer happy and delighted (Lii and Kuo, 2016).
Process: The second mode of innovation mix such as process which involve the method
or way of making products or amenities available amongst their customers. The top manager of
Heinz should greatly emphasise to make highly standardised products by making goods timely
available to their buyers. This ensure a greater degree of control and promote flexibility in a
workplace that adds value and provide a systematic procedure and coordination in a respective
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place. They maintain cordial relation both internally and externally so as to gain maximum
efficiency and exposure.
Position: It involve the method of perception of customers towards the product and also
determine the behaviour and attitude of them towards characteristics and attributes of company.
The manager of Heinz may could focus on strong marketing campaigns such as promotions,
advertisements and many more and also it maintains mutual relation with suppliers so as to gain
a unique and prominent positioning of product within a marketplace.
Paradigm: This is last element of innovation mix in which focus is put on radical
improvements in a marketplace as it makes the process of innovation simpler. Brainstorming is
another effective technique which provide assistance to Heinz to provide with effective and
advanced method for attainment of business objectives in a shorter time period.
Innovation funnel: This mechanism renders multiple streams of ideas or methodology
which is considered by firm so as to introduce new merchandise or services (Mattila, 2017). This
is undertaken by research and development which provide an evaluation of implementing an
action plan in order to generate feasibility and develop potential base of customers with an
innovative product or services. The manager of Heinz follows proper process and systematic
procedure so as to meet the needs and criteria of customers in a manufacturing and economic
forms which aids in implementation of ideas in a proper period of time. The stages of innovation
are prescribed beneath:
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Figure 2 Innovation Funnel
Development of idea: The marketing department would conduct research and
development so that they could generate more ideas about several trends and aids in gaining
competitive advantage. Also, the firm would identify several opportunities present in a market
and prepare a strategy by combatting threats in a prevailing environment.
Investigation: this emphasise on finding the root cause of problem and make an effective
solution with the help of new and advanced idea. This emphasise the corporation to investigate
more ideas through several modes such as employees, stakeholders, customer and so on that
prove to be advantageous for company.
Feasibility: This consider the study of market through several means such as technical
aspect, economic and social feasibility of project. Business entity consider a particular idea after
it analysing and evaluation as it helps in achievement of targets.
Development stage: In this, the new and creative merchandise is developed in a best
possible manner and is ready to enter into market.
Post release: For this, feedback is most important as it help in rendering a valuable
suggestions and opinions that give a drastic idea to firm to make modifications or improvement
in future.
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P4 Explain Frugal innovation
Frugal innovation is the process of minimising the complexities of production and create
durability and production of product in a marketplace (Mu and et.al., 2017). The main motive is
to eliminate the overall cost of operation ant to make proper distribution of products. This
emphasise on decreasing those unnecessary features which are considered as inappropriate
according to the terms and conditions of market. The arrival of globalisation may drive a success
so as to accelerate the durability and maximise the profit margin in case of frugal innovation.
Example: Tata Nano is least expensive car as the cost of operation is minimised due to the
reason that its resources are properly utilised and emphasise is more on its core functioning and
also it satisfy the requirements of every segments of customers.
The process of frugal innovation is given beneath:
Define opportunity in case of adversity: In this case, the manager aims to find out a best
opportunity in a prevailing market so as to improve the overall organisational performance. The
manager of Heinz makes optimum utilisation of resources by rendering quality products as it
helps in achieving sustainability and long-term objectives within a marketplace. The concerned
firm have minimised their overall cost by making use of natural flavours in their products.
Use less but perform greater: This emphasise firm to make utilisation of scare resources
so as to decrease the cost of production. In addition to this, Heinz make utilisation of exiting
resources so as to work better and in an innovative manner as it brings proper coordination.
Think and act accordingly: The senior executive of concerned firm prepares an
appropriate strategy and planning by deciding a best course of action so that they could achieve
the task in a predetermined manner and facilitates smooth flow of activities. They try to
overcome the issues associated with it and render an effective strategy by studying the prospects
of market.
Use most suitable method: The top manager of Heinz implements the principle of total
quality management so as to make continuous improvement in their product and minimising the
chances of defects or errors present in product. By using simplest method would assist the firm
to make follow a simple and systematic procedure as it ensure transparency and accountability in
Heinz (Özilgen, 2019).
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Ensure proper margin: The manager of respective firm analyse proper feedback of
customers and track plus monitor the overall activities which create an optimum balance between
authority and responsibility and thus boost the maximum exposure.
Do the work with heart: The management of Heinz manage all activities and working
procedure with its heart and passion as it produces desirable output. This maximise the overall
market share and thus satisfy the meets and criteria of clients within a marketplace.
P5 Significance of commercial funnel and new product development process
Commercial funnel: This engage a marketing tool which provide companies several
ways to create awareness of its merchandise among their customers (Pisoni, Michelini and
Martignoni, 2018). They focus on providing and convincing customers to buy merchandise so as
to boost the sales and profitability. This is also termed as sales funnel which uses an innovative
promotional campaign in order to generate more sales and enhance the greater productivity
within a marketplace. The top authority of Heinz uses AIDA model which are described as
follows:
Figure 3 AIDA model
Source: AIDA model, 2018
Awareness: This emphasise Heinz to create awareness of merchandise among their
clients and provide necessary information to them.
Interest: In this stage, potential customers need to gather more and more information
regarding the products or services and start develop interest among them. Furthermore, they tend
to take advantage and avail all the offers which provide them to gain a unique position.
Decision: The audience would make decision whether to acquire products or not from the
marketplace and would make comparison of its services from other competitors present in the
market.
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Action: At last, they would implement a final action on the basis of marketing strategies
which boost the sales. The consumers get attracted towards the promotional campaign and make
purchase of merchandise in accordance of their requirements as the goal of firm is fulfilled by
bringing customers in action in case of sales funnel.
New product development: A product is said to be new when it come with new
functions and also it has complete improvement in its present functionality. The senior authority
of Heinz makes an appropriate planning to launch cookies which has low fat and sugar and is
enriched with dry fruits. The process of new product development is presented as follows:
Idea generation: This involve the germination of ideas from various sources such as
focus groups, brainstorming, customers and employees and other internal plus external sources
of idea. They have to make various decisions related to channel members, websites, through
primary and secondary sources of data as it provides a competitive advantage and allow thinkers
to share their ideas and opinions (Relich and Pawlewski, 2018). The manager of Heinz would
collect more and more ideas that assist group members to focus on selection of best idea.
Screening of idea: In this step, the ideas which are generated in previous step are
analysed and discussed and provide feasibility of study to evaluate an appropriate idea. The
manager would select an appropriate idea and reject other ideas and then move on new stage of
product development.
Concept development: Once the idea is finalised, the manager of concerned firm would
show a rough estimation of product on the whiteboard to their customers, personnel and
distributors so that could obtain a feedback from them.
Marketing strategy: An idea of launching the new merchandise in the market is
considered in this stage. They would make a planning related to segmentation, targeting and
positioning and determine an expected sales and profitability by studying the structure and
behaviour of product in the market.
Business analysis: In this stage, the top manager of Heinz would conduct an extensive
research so as to find out the viability of product and also it makes estimation of operational
predictions, financial performance. It also scrutinises the performance of cash flows, cost of
production, share of market and lifecycle of product as it involves lot of discussions.
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Marketing mix development: This involve the development of prototype among the
target audience and lastly customers would make final decisions by taking into consideration
needs and wants of customers.
Test marketing: This stage involves testing or examination of product in the market. The
director of Heinz focusses more on this stage regarding the demand, nature of competitors and so
on. It also monitors the overall marketing strategy and elements of marketing mix such as
product, price, place and promotion and also, they track the overall activities of marketing.
Commercialisation: At last, this stage finally is prepared to launch merchandise in the
market both at national and international level by managing the entire production activities so the
manager of Heinz would introduce its newly developed cookies within a marketplace.
P6 Innovation for business case
The business case involves the overall study of market and perspective as the main motive
is to attain business objectives successfully (Rosca, Arnold and Bendul, 2017). In the context of
Heinz, the steps are given as follows:
Executive summary: The concepts such as innovation and commercialisation are
complementary towards each other which ensures greater growth and success. It follows proper
tactics and strategy in order to achieve targets within respective time period.
Overview of company: Heinz is a food manufacturing company in UK that provide
different varieties of products such as beans, vegetable ketchup and so on. It is planning to
introduce cookies which is made of dry fruits and is less sugar content. This maximise the sales
and productivity in a marketplace.
Vision: The vision is to be the most valuable business and to serve its customers and
employees in a best possible manner which develop loyalty among them.
Mission: The mission of Heinz is to ensure quality specification in their goods or services
and provide fast and efficient services among their clients so as to generate more satisfaction.
Target marketing: They emphasise on selling the product among the target audience
especially diabetic patients as cookies are so healthy and consist of dry fruits which grab the
attention of customers.
Strategy: The company would use penetration strategy in order to capture more market
and thus accelerates the profit margin.
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Promotional event: It uses marketing campaigns such as social media platforms like
Facebook, Instagram as it incurs less cost and create more awareness of product in a
marketplace.
Funding: The manager of Heinz make would invite various investors to raise the level of
capital so as to generate greater return on investment. Foreign Direct Investment render an
excellent opportunity to firm to generate more revenue which in turn create a positioning in
different parts of the country. There are several sources of funds which are available to a
business such as bank loan, crowdfunding, angle investors and many more. But in this case, the
respective firm would opt bank loan as an appropriate method of raising finance as it provides a
safety and security and also it has very low rate of interest.
Monitoring: The senior executive of Heinz would evaluate and scrutinize the overall
activities so as to make assure that the cookies would meet the requirements of buyers.
P7 Discuss several tools to protect intellectual rights
Government has taken several steps so as to provide protection towards data and
emphasise on maintaining confidentiality of information (Torremans, 2019). With reference to
Heinz, various tools to protect intellectual rights are as follows:
Patent: This involve the right of authority which is allowed to Heinz that its ideas and
other articles are not easily copied by others. For this, the approval of government is necessary as
they are unique in nature which make them differentiated from others.
Advantages: The interference of its competitors is minimal which provide an opportunity
to firm to enjoy uniqueness and to become a prominent leader.
Limitations: It is mostly costly process and cumbersome procedure which takes more
time.
Copyright: This right emphasise on giving the right of intellectual rights to others to
reproduce right of creating work to others so the manager of respective firm could use this
method to follow moral obligations through intellectual property.
Advantages: The company would suit a case if found any other party would produce such
cookies without its permission of copyrights.
Limitations: There is chances of fraud and misrepresentation due to easy copied of
products which result in loss suffered by firm.
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Trademark: This represent a symbol, image or logo that emphasise on creating specified
products as it helps in easy identification of merchandise. Heinz could use this right so as to
create brand loyalty and also it uses differentiation strategy to achieve maximum satisfaction of
customers at a global level.
Advantages: The logo and certificate marked in merchandise would give an assurance to
buyers about excellent quality which builds trust among them.
Limitation: One of the greatest drawback is that there is chances of leakage of trade
secrets which tarnish the overall image of a company and minimise the productivity which in
turn lead to chances of lagging behind its competitors.
The respective firm uses patent as an appropriate strategy as it helps in granting rights
that provide protection of information and maintain proper confidentiality which boost the
productivity and accelerate the exposure and develop brand image across the globe (Van Dijk,
2017).
CONCLUSION
From the above information, it has been depicted that both innovation and
commercialisation are opposite to each other as it helps in accomplishment of targets within
limited time frame. It provides assistance for firm to think creatively and produce new and
innovative ideas which provide growth and generates greater productivity. Four P’s of
innovation such as product, process, paradigm and position is also included in this report and
also process of frugal innovation is also discussed in this report. Various intellectual rights such
as patent, trademark and copyrights is also included in this report which provide greatest
advantage and help in achieving a prominent position within a marketplace.
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