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.

Step 8: Post Launch Review and Perfect Pricing: This is the last step where company need to
conduct post launch review, and also take step towards providing perfect and favourable pricing
to different customers.
P6: Innovation business case and ways to access funding
Innovation aspect is very important to Heinz, because innovation provides an appropriate
way to a venture for achieving huge revenue in this dynamic world. Day by day market
competition in the UK’s food industry is regularly increasing, so that the management of Heinz
highly need to innovate various new products and services to gain huge competitive advantage
within the market. Generally, innovation helps to Heinz for developing an exclusive range of
products and services. According to various market researches, most people in the marketlike to
consume exclusive range of product and services, so that Heinz can easily produce exclusive
range of products and services with the help of innovation.
Innovation business case
Top-level management of Heinz has decided for developing and innovating new product
named “Heinz’s Mango Ketchup”. It is the innovation idea of this company. There are five key
steps company needs to follow for perfectly building the innovation business case.
1. Confirm the opportunity: Firstly, company need to confirm the existing opportunities of
the market.
2. Analyse and develop shortlisted option: In this step, company need to properly analyse
and develop those options which has shortlisted for the innovation process.
3. Evaluate the options: Evaluation of options is the next step which provides different
aspects of these options.
4. Implementation strategy: In this step Heinz is required to implement appropriately
selected business strategy.
5. Recommendation: While preparing the innovation business case, company need to
systematically consider different aspects of business innovation.
Funding sources

The company always need to use various ways for accessing funding. Generally, without
proper funding source, no venture can innovate new products and services, in which some
appropriate ways for accessing funding has been mentioned below which can help to Heinz for
innovating and developing new products and services.
Investors: There are many investors exists within the market, so that the management at Heinz
need to convince various investors to invest in its project of innovating new products and
services (Olefirenko and Shevliuga, 2017). Currently lots of investors can be ready to invest
within this company, because Heinz is one of the most reputed companies within all around the
world.
Savings: Currently savings is another most appropriate way to Heinz to fulfil its funding needs
for innovating new product. The Heinz is a very big food company in the world, that’s why
company has the strong saving base. In this situation, upper management of Heinz need to use
fund from its savings for boosting processes of innovating new products and services.
Production Schedule
Activities August September October November December
Formulate idea
Presentation of
idea
Collect the
fund
Order raw-
material
Produce
product
Ensure quality
Proceed to sale
Financial Analysis
Particular Amount (£)

 Raw-Material 3000
 Production costing 4000
 Transportation 1500
 Salary and wages 3500
Total 12000
The company is aiming that it will be gained approx. £20000 profit margins through its
new product.
LO4
P7: Tools for developing, retaining and protecting knowledge and intellectual property
Currently there are many of favourable tools are existing within the market that Heinz
need to use to develop, retain and protect its knowledge and intellectual property. Generally,
develop, retain and protect knowledge and intellectual property is too necessary activity to
company, because by covering this activity, Heinz can be able to make a safe and secure area for
its various exclusive products and services, in which there are some effective tools has been
mentioned below which Heinz can be used.
Patent: Patent is a popular tool to different businesses and companies which supports in
develop, retain and protect intellectual property and knowledge of Heinz (Fechner and Shapanka,
M. 2018). Basically, when top-level management of Heinz want to protect its new specific
product for not to be copied through other companies or businesses, then it highly needs to take
patent from its country’s legal patent authority. In this situation after taking patent, no other
company can develop product as Heinz. Nowadays organisations within across the world are
gaining huge advantages by patent tool.
Copyrights: Copyright is generally a second version of patent, in which this tool is also too
productive in develop, retain and protect a specific intellectual property and knowledge. For
taking copyright on a new product of Heinz, upper management need to visit in governing office
of its home country that responsible for registering copyrights. There is copyright generally is a
legal term that gives facility to a business or person to protect their respective exclusive products

and services from such people and businesses which are mostly copying products and services of
original companies. That’s why this tool is very productive to Heinz.
Trademarks: Trademarks in the third most necessary tool to different companies for
developing, retaining and protecting their knowledge and intellectual property. Generally, each
business always has a trademark that generally supports in presenting their unique identity in the
market (Berggren, 2017). In this situation, the management at Heinz need to consider this tool as
well to make a safe and secure zone to its business within the market. Currently most customers
or people in market knows Heinz with its unique trademark, so with the help trademarks tool this
food company can be easily secured and protected its knowledge and intellectual property within
the market.
Advantages and Disadvantages
Advantages: These all tools help in protecting our new innovating idea or innovation.
Disadvantages: Procedure of registering different patents, copyrights and trademarks is
something complicate to different businesses.
CONCLUSION
Based on the report findings, it can be concluded that innovation of new products and
services is of immense necessary towards the sustained progressive operations of business
organisations in the different market places. This report has analysed the concept and importance
of innovation within Heinz. This report evaluates the actual impact of Heinz's organisational
vision, leadership, culture and teamwork on its innovation & commercialisation operations. Then
report has assessed 4 P's of innovation and examined the concept of innovation funnel for
shaping innovation ideas in Heinz (Brinegar and et.al., 2017). The report has analysed the
developments within frugal innovation with the use of various examples. This report has also
evaluated the significance of the commercial funnel and the application of New Product
Development (NPD) processing for the commercialisation of innovation in Heinz. Further this
report has discussed various ways to access funding. At the end, the report has assessed various
tools that Heinz can be make used of in the terms of developing, protecting and retaining its
intellectual properties and knowledge.

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