Innovation and Commercialisation Report: BTEC HND in Business - Unit 8

This report provides a comprehensive analysis of innovation and commercialization, focusing on key concepts and practical applications within a business context. It explores the differences between innovation and invention, emphasizing the role of organizational vision, culture, leadership, and teamwork in shaping innovation processes. The report delves into the 4Ps of innovation (product, process, position, and paradigm) and examines the innovation funnel, highlighting the importance of new product development. Furthermore, it discusses frugal innovation strategies and the commercial funnel. The report also covers the protection of intellectual property, including various tools and methods. Real-world examples, such as the case of Heinz, are used to illustrate the concepts. Finally, the report concludes with a discussion of the advantages and disadvantages of different intellectual property protection methods.

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.........................................................................................6
P5 Commercial funnel and development of a new production...................................................7
P6 Innovative business case.......................................................................................................9
TASK 4..........................................................................................................................................11
P7 Evaluation of various tools for protecting intellectual property..........................................11
CONCLUSION .............................................................................................................................12
REFRENCES.................................................................................................................................13
Books and Journal.....................................................................................................................13

INTRODUCTION
Innovation means having new idea or developing the product by adding something new
in that. It is very essential to innovate a product as it helps to compete in the market. Innovation
attracts customers and increase the customer base in the organisation. By altering the existing
product and service the innovation takes place. A good understanding of marketing is required to
make innovation and a proper research is to be made that helps to understand the wants and
needs of customers to make innovation in the product and service. By commercialisation the
organisation launches new product and service in the market. The report talks about Heinz and
the innovation taken by the organisation (Anttiroiko, 2016) . Heinz was founded in 1869 and has
its operations in around 200 countries and territories the company deals in thousand of food
products and provide quality services to attract customers. In this report there is discussion about
the importance of innovation and invention and how the culture, teamwork and leadership of
organisation has impact on the innovation process along with the 4P's of innovation are
described. The importance of product development in processing commercialisation and
innovation. Th3e advantages and disadvantages of methods for protecting ideas. In the end
various tools that can protect intellectual property and knowledge are mentioned.
TASK 1
P1 Innovation in comparison with invention
Innovation: Innovation is the process of making changes in already existing products and
services to carter the present needs and wants of customer. In relationship with Heinz, the
company is planning to change the working culture and alteration in physical appearance in
already existing goods and services (Appio, And et. al.,2017).
Invention: This is the process by which an organisation launches something new that does not
exist in the market. In relation to Heinz, they invent new products in around 9 months to attract
more customers.
Comparison among innovation and innovation
Basis Innovation Invention
Purpose The main motive of
innovation to a company is to
increase the profitability by
The main purpose behind
invention is to launch a new
product or service to

making small changes in the
existing products or services.
increase the market share in
the marketplace.
Requirement Innovation in the business is
required when the
organisation has competitors
and it wants to attract more
customers (Barros, Temple,
and Dixon, 2019) .
Invention takes place when
any employee and people
that are working in the
organisation get new idea
and that can be practically
made to generate into a
profit-making product.
The risk involved while innovating a new product and service are mentioned below:
Dinner is improvement: The problem that is faced by company while innovating a product is to
make continuous innovations in that product. In relation to Heinz they continually change the
ways of serve baked beans to the customers.
Unique selling point: The market is turning competitive but should have something unique that
it always offers and Heinz should offer unique selling proposition in each of its invention of its
products. In relation to the company is creative idea is one of its unique selling proposition.
P2 Organisations vision, culture, leadership and teamwork shaping innovation and
commercialisation
Innovation is required by an organisation to achieve its goals and objectives, the factors that help
in bringing innovation are as follows:
Organisational vision: Every organisation has vision that it has to achieve. In relation to Heinz,
the main objective of company is to invent 2-5 new products in every nine months to increase the
market share and by making innovations it wants to become the best food company and attain a
good image in the market (Di Sia, 2017).
Leadership: There are number of leadership styles that are followed by companies to lead their
organisation and manage their teams. In context to Heinz, the leadership style followed there is
democratic and it helps the employees and executives to take part in decision making process.
And this gives rise to new idea development, as all the employees have right to give ideas they
can provide innovating ideas and the organisation listen to their plans and also implement them

that brings innovation in the organisation. The better the leader more the employees get rights
and comfortable while conveying their ideas in the organisation.
Culture: Every organisation has different culture and have different norms and values that they
follow. The culture impacts the employees and their working. In relation to Heinz, the culture of
the organisation is to generate new ideas and attract moire customers by offering them with what
they want. Sometimes there are problems in organisation that need to be tackled and the
employees are always motivated and their ideas are respected so they can work effectively there
(Gabrielsson and et. al., 2018). The culture has influence on the employees working there and
they get motivation from the environment there.
Teamwork: For smooth achievement of goals of an organisation it is important to work in team.
The organisations that believe in teamwork are able to survive smoothly in this dynamic and
competitive environment. Heinz works and believes in team spirit as the ideas are generated with
discussion, they discuss the problems and then find solutions to achieve the goals of the
organisation. The clearly mention the roles and responsibilities of the team members that help
them to gain the set objectives in time. Teamwork helps the company to achieve the goals in
specified time and help each other while working, this increase the engagement of employees in
their work and they work with more dedication that helps them to be successful.
TASK 2
P3 4P’s of innovation and innovation funnel
The four P's of innovation to increase the growth of Heinz are mentioned below:
Product: the organisations offers its product to the customers and in context to innovation the
product can be innovated by developing it and making some changes in that. So as to improve
the value the organisations innovate the product. In context of Heinz the company offers a wide
range of products and options to its customers and make regular innovations to satisfy the needs
and wants of customers and satisfy them (Gentile-Lüdecke and et. al., 2020).
Process: The process followed by the company to innovate its product or service. It is important
for company to follow a good process and make time to time innovations to compete in the
market. In relation with Heinz they take ideas from all the employees and follow only those that
helps them to make innovation and carter the needs of customers in a effective and efficient way.
It is the process that helps the comp-any to achieve success and gain the importance in market by

introducing the goods and services that have something new to offer. The process that is
associated with innovating a product should be identified earlier.
Position: Setting a image of its product in the market means positioning it mainly focuses on
gaining competitive advantage in the market by creating a positive image in the market. For that
it is important to identify the target audience of the product by the organisation and offering them
what they want and positioning the product to gain the customer base in the market (Holgersson,
and Granstrand, 2017). Heinz positions it self as best food company in the market and then when
it launches new product it creates awareness in the marketplace to boost the sales of the product
in the market.
Paradigm: In this stage challenges are faced by the organisation while they are innovating there
products and services. In relation to Heinz, they face a lot of challenges while making changes
in their product and introducing new product. The chefs face barriers and have to learn new
things while they work on new product. There is need of creativity to compete in this business
environment and to face the hurdles that came in the process of innovation (Hossain and et. al.,
2016).
Innovation funnel is used as most efficient way to innovate and develop a product. It
helps to understand the needs and wants of customers and then developing the product. It helps
the organisation to gain market share and become more successful by making suitable
innovations on time.
P4 Development of frugal innovation
Frugal innovation is a tool which describes procedure of cost reduction of goods in
effective manner which organisation are keen to adopt at their operations. This innovation is
way to get desired results through using frugal tools. Business organisation adopt various type of
these tools of investors. Commercialization is the best and innovative way to utilize these
techniques by engaging available resources in order to create and develop new way of serving
products and services. This innovation has positive impact on Heinz operations. People will
experience quality services at their own convenience. There are four steps in this procedure
which is used by the chosen organisation are mentioned below:
 Identification of frugal innovation: there is first need to identify he need of
development into the organisation and identify its cost, in rising cost the frugal
innovation tool will be taken into consideration.

 Reducing problem: There is need to gather all the available resource for the company so
that , desired change can be achieve.
 Reducing patterns: under this step, necessary idea of innovation will not be taken into
consideration.
 Pattern system: under this last step, final outcome of innovation ideas will be
considered after analysing all the above steps.
These four steps are required for getting effective and innovative techniques, research
and development department has to focus these steps and make appropriate decisions at
marketplace.
Frugal innovation and organisation
this step include significance of innovation as per the locations, this would shows
various ways to make effective strategies:
 Product development: these innovations are used by producing large varieties and new
product for Heinz by utilising its resources.
 Market analysis:in order to develop new product, frugal innovation is used to to reduce
the cost of new product by analysing the market requirement.
 Use of resources: this innovation idea will be beneficial in utilizing the resources into
full extent and leads the organisation to the innovative success.
 Generation of ideas:: Heinz requires to adopt new idea through their employee
perspective by motivating them and enhance their critical knowledge at workplace. These
frugal innovation make it possible in positive way.
TASK 3
P5 Commercial funnel and development of a new production
New product development (NPD)
in order to survive in competitive market where flows of new product is continuously rising,
organisation has been trying to find the innovative idea to make their product more feasible and
able to give competition to other product. It requires development of effective strategies by
managing innovation into new product and its segment. In context with Heinz, they are highly
focus on being innovative at their new product segments with full effectiveness. There are some
stages in new product development which are mentioned below:

Idea generated: it is the first procedure which requires in developing new product to
create idea of its texture, taste and visibility by analysing innovative techniques. In this regard,
finance department play crucial role.
Steps of the new product development
Analysing the concept: The first step to analyse the definition of concept and idea of
innovation which includes collection of market preferences and customer demand. After that,
they could easily evaluate where to use innovative strategies.
Analysing market: Heinz company analyse its market demand through customers feedback and
requirement of changes in products. From this perspective, new launch of product will be
successful at marketplace.
Developing product – after analysing the market demand, development of new product
would be the next step within specified time before consumer change their taste or preference
and organisation can gain profit through it (Sorenson, O., 2018).
Commercialization: it describes the process of initiating new product to the customer by
promotion to marketplace. It derives innovative aspects of new product launch.
Commercial Funnel
commercial funnel is a concept of stating new product launch though market segments in
order to attain profit at efficient level. This process indulge innovative and critical understanding
of good and services exposure. It derives four steps in the context of Heinz company:
Generation of ideas: this idea cretes the procedure bad anhylsing claeraioty nad cioncept of
new product. This will enhance the profitability and productivity of the organsiation.
Screening of ideas: this included identifies the relevance and benefit of the idea created. It can
be done by analysing new product advantages and disadvantages. Heinz company manage their
new product by evaluating its essential factors.
Testing of concept: After anylying the pros and cons of the idea, it is essntil to test the product
into practical manner so that popel will not get suffer from unreklevnat products.

Analysing need for product development : the next step is to analyse Heinz company
launching the right product so that is could give postitve responese. This could be done by
customers feedback.
These abovbve mentiones steps needs to be uses in effective terms so that innovation take
place into the Heinz company. Thi shows graphicla representation of the facts of tits
significance.
P6 Innovative business case
Business case:
Steps Description
Executive summary Heinz company is a well maintained company
in London, which is specialize in providing
food products with high quality(Smirnova and
et. al., 2018).
Mission The mission of he company is to involve
innovative ideas into the company by
providing quality and quantity products for
large number of customers.
Innovation in product The main of the company is the innovation in
product to higher its sales and turnover of the
company it require for unique and ideas and
concept into the market. Innovation could be
done by digital sources and e-
commercialization which enables huge
opportunities in the global market
(Ravichandran, 2018). The company have to
search for the best one a and make it
implemented
Target market Target market evaluates the concept of
marketing strategies. the Heinz company
mainly target of middle and high age people

who could utilize their products and demand
for more. As the company serves the best taste
in its serving.
Sources of funds The company has good position of its financial
funding which creates opportunities for them
to be innovative and launch their new product
in order to make expansion into the market.
Also in need of extra funds, they could acquire
various sources of fund.
Benefits The benefits of launching new products are for
social services by recycling the plastic
products into their packaging which intern
serve the reliable value in economy. Customer
will be more desirable to buy products with
them (Prentice and et. al., 2018, June) .
Monitoring and controlling This plan is the last but the most important one
which enables to check on performance for
effective new product launch, by controlling
the task of their operations and employees will
get clear vision on how to be productive.
Sources of funding
Heinz company could acquires various sources of funding to fulfil its requirement
of financial support as discussed below:
Bank loan : it is the most reliable source of funding. To get amount and pay it with
interest at the time of its maturity.
Government assistance: this source refers to use government rebates, subsidies and
funds which it distribute to he companies for economic welfare (Kodama, 2017).
Crowdfunding : this source involves management of funds through inviting small funds
through various people.

Mostly, Heinz company opt banking institutions to raise their funds as it is an easy and
appropriate sources which is secure and less complex. Through which it could make their
desirable contribution in new product segments.
TASK 4
P7 Evaluation of various tools for protecting intellectual property
Intellectual property rights:
these rights involves the fact that the product company is serving is over the right of
respected company brands which cannot be named by other business or brand, these right are
imposed on the assets of the company. Heinz protect their right sober the company assets
whether its goodwill and patent rights. Any avoidance if these right by anyone will lead to court
procedure and liable to pay fine.
Patent: this property involves right over the product and services innovative ideas by which, no
other firm could utilize its materials and resources to make the same product (Kharb, 2018,
January). The chosen company has other competitors which provide same products but with
other matériels like Nestle and Hershey's
Trademark: these rights are affected towards the product decision criteria. Which involves
particular strategies and use of product segments. These right are associated with Heinz company
as they have unique product design and innovative aspects into every quality and taste of the
product. These trademark are said to be very essential for their brand name goodwill.
Copyright – It is a intangible asset that is used by company to make its own product and don't
let anyone else to make the same product in its own name. Heinz company makes all its
products under its copyrights that helps to safeguard its products and innovate the product as and
when required (Wang and et. al., 2016).
Basically their are two approaches that are used by higher authorities that is patent and
copyright as they help them to safe there product against imitation. As thy keep on innovating no
one else can copy there product and they have there idea safe. Both of them help in gaining profit
and increasing the sales in marketing while creating a good image of brand and attract customers.
It vis important to use both to be successful and gain competitive advantage in the marketplace.

CONCLUSION
From the above file it can be concluded that innovation is important for every
organisation to compete in this environment and achieve its goals and objectives. Success of the
organisation is also dependent on its use of new ways to serve the customer. In relationship to
Heinz it is a famous food company and regularly innovates its product to attract more customers
and gain loyal customer base. The difference between invention and innovation is mentioned and
the importance of culture, leadership and team work on the organisation along with 4P's of
innovation are mentioned to examine the innovative idea. The process for developing new
product through commercialisation is also discussed. In the end different tools are mentioned that
help in protecting the knowledge and intellectual property are mentioned.