Innovation and Commercialisation Report: Heinz Company Analysis, 2024

This report provides a comprehensive analysis of innovation and commercialization strategies, focusing on the case study of Heinz. It begins with an introduction to the concepts of innovation and invention, highlighting their importance for organizational success. The report then delves into the comparison of innovation and invention, followed by an examination of how innovation shapes leadership, teamwork, vision, and culture, referencing Tuckman's teamwork theory and Handy's culture model. It further explores the 4P's of innovation (Process, Product, Position, and Paradigm) and their application within Heinz, along with an evaluation of frugal innovation. The report also covers the significance of the commercial funnel and the development of an innovation business case, including ways to access funding. It concludes by discussing tools for developing, retaining, and protecting knowledge and intellectual property, offering a complete overview of innovation and commercialization within the context of a major food processing company. The report is a valuable resource for students seeking to understand the practical application of innovation strategies in a real-world business setting.

INNOVATION AND
COMMERCIALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1: Comparison of innovation and invention..............................................................................3
P2: Innovation shapes leadership, teamwork, vision and culture................................................4
LO2..................................................................................................................................................6
P3: The 4P’s of innovation..........................................................................................................6
P4: Evaluating the developments in frugal innovation and its use in an organisation................7
LO3..................................................................................................................................................8
P5: Importance of commercial funnel.........................................................................................8
P6: Innovation business case and ways to access funding..........................................................9
LO4................................................................................................................................................10
P7: Tools for developing, retaining and protecting knowledge and intellectual property.........10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
It is very essential for organization to get new ideas and creativity in the products and
services so that there is a better functioning and sales of the products in the organization.
Innovation is the changes which are made in the existing products and invention is when there is
a new product which is built by an organization. The methods which are used by organizations
for production and new products are known as commercialization. This is a very good factor for
the organization to get a competitive advantage in the market.
Heinz is from the food processing industry which has been in the market from over 151
years and was launched in 1869. The headquarters of this organization is in Pittsburgh,
Pennsylvania and is serving worldwide. There are more than 38,000 employees working in this
company and the net income is $1.94 billion.
The report would consist of the changes and innovations which have taken place in the
organization. There is a lot of improvement which Heinz is trying to make so that they can get a
larger market share and customer base for themselves which is going to be very good for a long
run. There are a lot of ideas, thinking and strategies which are being implemented from time to
time in the company for a better result.
LO 1
P1: Comparison of innovation and invention
The customer’s needs and demands are changing from time to time which has to be
matched by the organization so that there is a better competitive advantage. Heinz has a strong
research and development team in the market so that the organization can have a better
operations and productivity. There are a lot of artificial intelligence technological changes which
have come in the market so that there is a better functioning. The services for the customers are
also improved which make the standards of the organization better (Carayannis, Cherepovitsyn
and Ilinova, 2016). There are no default products which are reaching the customers and all the
products have good raw material which is being used in the company.
Invention Innovation

There is a competitive advantage which the
company gets in the organization and the profit
margins also increase. There is a loyalty of the
customers which can be increased and
invention always gets the best of attracted
customers which is a very good factor for
Heinz company for a long run in the market.
The customers lose interest in the same product
over a long time which is why there has to be
an improvement which has to be done by the
organization. The satisfaction of the customers
in Heinz is very essential which is why the
company is getting in a lot of variety in the
products for the customers and that is going to
attract other customers as well and increase the
sales (Scott and et.al., 2020).
There is a requirement by the organization to
have a skilled and experience research and
development team in the organization so that
there is a better functioning. Invention gets in a
unique advantage for a long run in the market
and the loyalty of the customers increases as
well (Badizadegan and et.al., 2020).
There have to be right skilled and loyal
employees in the organization which
understand the customers of the company.
There is a innovation in the existing products
of the company which can help the company to
have a better functioning. Improvement is
going to make the company have better
functioning.
PESTLE
Understanding the external factors which are not under the control of the company is
important. The company will have to make decisions according to the external factors so that
they are going to have a better functioning.
 Political Factors
Due to Brexit there are a lot of changes in the trading and import policies. There has to be a
good and stable government in the country for the organization to be able to function and make
decisions according to them which is going to be very helpful for a long run.
 Economic Factors
There is a stable economy of the business in market but the currency value and exchange of
currency is making the problem for the organization to be able to make higher profit margins.

There is a growth in the GDP of the country as well which is a great factor but the company will
have to make the use of it correctly otherwise they can lose their customers.
 Social Factors
The customers are in favour of the products and services which the company is providing
because this is a great advantage for the company to have. The people are ready to spend on the
products because of the quality which is being maintained by the organization from years of
experience.
 Technological Factors
There are a lot of technological changes which have taken place in the company which is a
great factor for the company to have. Technology has helped the company to be able to operate
in the market more effectively and efficiently which is a great factor for the company to have.
 Legal Factors
The company has to be improving on the safety and security of the employees and the
customers so that the products are going to have a larger capture of customers in the market. The
company has to be improving the salary and services so that they will be able to have a better
reputation in the market.
 Environment Factors
There are a lot of zero carbon footprint measures which have been taken up by the
organization and that is going to be very helpful for a long run. The waste is also being disposed
off well which is a great factor for the company to have.
P2: Innovation shapes leadership, teamwork, vision and culture
Bruce Tuckman has given a team work theory which is being used by Heinz organization
for having a strong innovation and functioning in the market. It is very important for the
organization to follow this strictly only then the changes are going to take place effectively in the
market. The five stages which are involved in this theory are going to be discussed in the further
report.
 Forming

The employees of all the teams should come together and discuss the tasks in hand. This gets
a transparency in the organization and that is good for the sense of direction which the
employees have to function within (Shakeel, Takala and Zhu, 2017).
 Storming
There are different ideas and creativity which is put forward in this step which is going to
create a lot of conflicts in the organization. The organization has to achieve their goals and
objectives from time to time of Heinz.
 Norming
The conflicts are solved and a sense of direction is given to the employees so that there is a
better functioning and operations which are taking place in the market.
 Performing
The employees have to understand each other’s drawbacks and support each other to grow so
that the tasks can be completed with all effort. This is going to help Heinz increase their sales as
well because the end product is going to be good.
 Adjourning
There is a victory celebration after all the tasks which are achieved in Heinz which makes the
employees motivated for the next task coming up for them.
There are a lot of elements which can help the company to get in changes affectively in
the market and that can make the company increase their sales and operations in the market. The
culture model has been given by Charles Handy which is going to be discussed further.
 Task
The tasks in the organization have to be distributed equally without any discrimination in the
organization so that there is a better functioning (Eberhardt and et.al., 2017). Training and
development is provided to all the employees of the organization so that there is a better
functioning of Heinz in market. The demand is increasing in the market which is why it is very
important for Heinz to make sure that they are having a good functioning and productivity.
 Person

There are people who feel superior and that creates a negative environment for the employees
to work in which needs to be maintained. There has to be sharing of knowledge and skills so that
the organization can benefit from it.
 Power
The power is in the hands of few people in the organization which can be de-motivating for
the other employees which has to be maintained and controlled by the management. There has to
be appositive environment for the employees of Heinz to work in which can make the changes
come in easily for better functioning.
 Role
The responsibilities and roles to all the employees have to be clearly given by the managers
and leaders so that the direction is there for them to work in. The objectives and goals will be
visible for the employees (Kelly and Kim, 2018). This is going to make the organization have a
higher profit margin.
Kaizen has also given an improvement model for the betterment of the company which is
a continuous improvement is a very essential factor for the company to have so that there is a
better functioning. There are going to be different values, beliefs and other psychological
differences between the internal factors but there must be a common ground for all to have so
that there is a better functioning for a long run which is going to be very helpful for the
reputation and brand image in the market.
LO2
P3: The 4P’s of innovation
Joe Tidd and John Bessant have given the 4P’s model for businesses to follow which can
help the companies to have a better innovation and production in the market. This model can
help the organization to understand the present and the future of the company in the market.
Heinz is having a smooth and effective functioning by using this model in the market. The 4P’s
are as follows.

Figure 1: Innovation space 4P's
(Source: Innovation management, 2020)
 Process
There is a requirement of a skilled and experienced workforce in the organization so that the
changes and innovations which are being done can happen smoothly (Scott and et.al., 2020).
Training is provided to all the employees and candidates for the functioning who can be useful
for the organization to be able to get a competitive advantage.
 Paradigm
There are a lot of conflicts and challenges which the company has to face which can help the
organization to meet the expectations of the customers and also met the trends which are shifting
and changing as well. This is good for the brand image and portfolio which can be used for a
long run in the market.
 Product

There has to be a strong understanding the product in the market so that the organization can
change it accordingly. The products have to be appealing and attractive for the customers so that
there is a greater sale of the company (Lim, Darley and Marion, 2017). Heinz is always
improving the quality of the product further more so that they can have a strong customer base.
 Position
There has to be a strong communication in the market so that the changes and expectation
can be met in the market. The product which the company has come up with has been positioned
well in the market which is a great factor.
Innovation funnel helps Heinz to have a better functioning and understanding of the
product so that the company can improve and function accordingly. There are a lot of cost
friendly methods which are investigated by the organization which can help the organization to
have a better functioning and make the profit margins increase for a long run in the market.
There is a lot of development which an idea needs which can be done with the help of this funnel
innovation and the organization is going to get a competitive advantage as well. There are a lot
of ideas which have to be screened and made sure that they are going to be applicable in the
organization for good and a long run in the market. Some ideas are not practical in nature which
have to be made practical and have to be screened properly so that there are less risks amore of
profitability for a long run.
P4: Evaluating the developments in frugal innovation and its use in an organisation
Frugal innovation is a productive strategic business process which reduces the cost and
underlying complexity within manufacturing operations of an organisation’s goods and services
in the terms of increasing their profitability and productivity in the markets, and also for
expanding operations through selling goods within new and global market places to achieve
optimum profitability and productivity. Such frugal innovation is operating usually include
companies removing the non-essential attributes from their manufactured products and services
in an effort for reducing costs, increasing their profitability and lastly reducing operational
complexity of producing the product.
Example: Apple Inc. has made use of different principles of the frugal innovation in its new
smartphone named 'IPhone SE' that was released in 2020 (Sepahi, Salimi and Sohrabpour, 2018).
For being able to sale this product at half price of the traditional IPhone, in which Apple Inc.

uncompleted its whole manufacturing procedure and eliminated non-essential specifications that
are involved in its flagship smartphone products such as the high quality art displays, high
capacity batteries and also all engineering innovations of producing a traditional smartphone
which significantly enhance its price within the market. There are Tata nano and GE’s Vscan
also good examples, because these both products also have been developed by their respective
companies on the basis of Frugal innovation’s concept.
LO3
P5: Importance of commercial funnel
The commercial funnel is very necessary to Heinz. Generally, commercial funnel is
known as sales funnel, so that this plays an effective role to an organisation within its NDP (new
product development) process. Nowadays top-level management of Heinz has decided for
developing and innovating new product named “Heinz’s Mango Ketchup”. The management of
Heinz has huge expectation from commercial funnel to productively develop its new product, in
which some is importance of commercial funnel has been mentioned below;
Supportive in choosing productive marketing strategy
Commercial funnel is too supportive in choosing many appropriate and productive
marketing strategies to effectively promote its newly developed and innovated product named
‘Heinz’s Mango Ketchup’ in various market segments. Basically, this role of the commercial
funnel will be contributed in Heinz to inform and aware many of people at the large scale within
the market about its new Mango Ketchup. According to many business experts, each business
always needs to use an appropriate and productive marketing strategy to enhance sales of its
newly innovated and developed product and service (Lopes, Farinha and Ferreira, 2018). That’s
why this feature of commercial funnel can positively affect to Heinz’s new product.
Supports in fulfilling demands of customers
Nowadays most companies in the market are investing huge fund to properly fulfil wants
and demands of customers in different market places. In this situation, commercial funnel plans
an effective role to Heinz for fulfilling different customers’ demands in the market. Before

producing mango ketchup, marketing team of this food company should be completed market
research, because then company can be understood that, many people in the market like to
consume ketchup. At the end, it can simply fulfil demand of various customers, in which this is
really an productive importance of commercial/sales funnel that Heinz’s management always
needs to be considered during innovating and developing its new product.
Enhance sales ratio
The commercial funnel is helpful in enhancing sales ratio of Heinz. Generally, enhanced
sales ratio is the prime way to this brand to generate high revenue within a financial year.
Nowadays there are high competition in the UK’s food industry, so that it is necessary to Heinz
for enhancing its sales ratio, because when the Heinz will be succeeded in enhancing its sales
ratio within the market with the help of commercial funnel, then this company can easily achieve
huge competitive advantage within the market (Lasambouw, Sutjiredjeki and Nuryati, 2020). By
enhancing sales ratio, Heinz will be able for maintaining its great reputation also in the UK’s
food industry.
On the basis of these all factors, upper management of Heinz highly need for considering
commercial funnel in its business operations. With the help of commercial funnel, Heinz can be
able to gain huge profit through selling its new innovated mango ketchup product.
ADIA Model
ADIA model is very helpful to different companies which can contributes in boosting
marketing functions. Currently many of businesses takes lots of advantages through this model,
so that Heinz also can take lots of advantages through this model. It generally indicates four
elements called; attention, interest, desire and action, in which these four elements have been
discussed below;
Attention: The management at Heinz should give full attention on its innovation aspect.
Interest: Personal interest is very necessary in the terms of innovation, so existing management
should take interest in innovating new things.

Desire: Desire generally motivate to anyone for innovating new products and services, so the
management of company should develop desire also to achieve something great.
Action: Quick and logical action should be taken by upper management of Heinz to gain
appropriate outcomes.
8 Steps of NPD (New Product Development)
Step 1: Generating: Generating is the first step where upper management of Heinz should
generate a productive idea for developing a new product.
Step 2: Screening the Idea: This is second step where company need to conduct screening of
that idea with its different stakeholders.
Step 3: Testing the Concept: Test of the concept is necessary to ensure that idea will provide
excellent outcome or not.
Step 4: Business Analytics: The Heinz’s management should analyse own business for knowing
who this idea will impact the business.
Step 5: Beta/Marketability Tests: This step generally contributes in providing a framework to
company about how product can be developed.
Step 6: Technicalities + Product Development: In this sixth step the company should use
modern technology for developing new product.
Step 7: Commercialize: In this commercializing step, company should take action towards
selling new developed product to different customers.