Innovation and Commercialization Strategies for Heinz Food Company

This report provides a comprehensive analysis of innovation and commercialization strategies within the context of Heinz, a prominent UK food manufacturer. The report begins by defining innovation and contrasting it with invention, highlighting the importance of innovation for competitive advantage. It examines how organizational culture, vision, leadership, and teamwork shape innovation and commercialization efforts. Various sources of innovation are explored, along with methods for fostering an innovative environment. The report delves into the '4 Ps of innovation' and the significance of the innovation funnel in shaping ideas. Furthermore, it discusses frugal innovation, providing examples of its application in an organizational context. The report also addresses the commercialization funnel, new product development processes, and the development of an innovative business case, including funding sources. Finally, it covers techniques for testing, improving, and iterating business cases, as well as tools for protecting intellectual property. The analysis emphasizes the practical application of these concepts within Heinz, offering valuable insights into how the company drives growth through innovation.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................2
Innovation and their importance to company in comparison with invention..............................2
Organizational culture, vision, leadership, and team work shape commercialization and
innovation....................................................................................................................................3
Different sources of innovation and how company can develop & foster an innovative culture
and environment..........................................................................................................................4
4 Ps of innovation and use & significant of innovation funnel to shape innovative ideas..........5
Development in frugal innovation and examples of how it is utilized in an organizational
context..........................................................................................................................................8
Innovation funnel in organizational context of Heinz...............................................................10
Role of frugal innovation in regard to company........................................................................10
Critically examine how innovation is embedded, developed and measures in business...........11
PART 2..........................................................................................................................................12
Explain importance of commercial funnel and new product development processing for
commercialization of innovation...............................................................................................12
Innovative business case for a company, including ways to access funding.............................14
Appropriate techniques use to test, improve and iterate overall effectiveness of business case
...................................................................................................................................................14
Several tools that company can utilize to protect retain and develop knowledge and intellectual
property......................................................................................................................................14
Evaluation of different IP tools use from wider organizational contexts..................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Innovation and commercialization are the key elements of business growth and success.
Commercialization is procedure of converting knowledge, concepts, ideas and inventions into
greater wealth for businesses, individuals or society at large, it is subset of wider procedure of
innovation. After creating any innovation or creation, a company start commercialization process
that is quite important for long term success. The current study is based on Heinz manufacturing
company, which falls under list most loved brands in the UK. This assignment will explain
importance of innovation to company as compare to invention. It will also justify how firm
vision, culture, leadership and team work shape commercialization and innovation. Furthermore,
it will describe varied sources of innovation and culture of innovation foster by organization.
This study will explain significance of innovation and evaluate concept of frugal innovation with
appropriate examples from business context.
It will explain commercial funnel, NPD process and business case development for
innovation. Moreover, it will clarify funding sources, different IP tools and use of these things in
company.
PART 1
Innovation and their importance to company in comparison with invention
Innovation refer to process of change of inventing services and products, no invention
takes place in this concept, only current items gets improved especially for potential consumers.
In modern term it is known as a new idea, new imaginations and creative opinions in form of
method or device (Tidd and Bessant, 2018).
Significance of innovation in regard to Heinz-
In organization innovation play vital role, it is quite beneficial and essential in term of
gaining competitive advantages. Heinz Company with this concept is able to gain all competitive
benefits; it helps them to gain attention of new consumers and retain potential buyers with them
for longer period. They should integrate to remain innovative because it aids them to reinforce its
brand, having a unique selling point, and better quality products for target market.

Comparison based on importance of innovation with invention-
It can be said that innovation as compare to invention is much better in context of Heinz
organization, because when company innovate something in existing products they can drive
new customers towards them, which is not possible when invention concept occurs (Tong and
Xiao, 2019). Invention is developing or manufacturing something that has not exited before,
while innovation is combining or modifying things usually for commercial benefits according to
consumer’s needs and demands. Heinz is a food organization in United Kingdom, when firm
innovate new ideas within their current items then it will ultimately get benefits of market
competition while invention process does not lead this advantage. Invention is procedure of
actualize competitive advantage into actual action, because innovative goods like Baked beans
and Barbie shape pasta with tomato sauce are helpful to be success in market.
Organizational culture, vision, leadership, and team work shape commercialization and
innovation
Commercialization-
It deals with financial gains by introducing new services and goods with business market.
It includes marketing, accounting sales and consumers support, it helps firm in dealing with
planning and marketing status.
Innovation is must required for an company to grow because Heinz that produces best
and quality innovative food items, consumers get more attracted towards ventures and it is highly
valued. There are varied types of factors available in business environment that help to shape
innovation & commercialization.
Leadership-
It is very basic process in any firms every leader and specialist leads their team for some
particular purpose (Li and et.al., 2018). With good leadership styles, leaders in Heinz and other
companies by directing and negotiating workers can effectively shape innovation and allow
management to drive towards commercialization after obtaining innovative products, which in
return increase profitability rather than before.
Vision-

Every organization has their vision like Heinz has, which describes that which item is
need to be innovated and in which manners commercialization of innovated good is done. Vision
of companies effectively shape above two elements and also decides growth as well as
innovations range and after that process commercialization can be done efficiently and easily.
Team work-
With above components, team work also play vital role in shaping commercialization and
innovation within Heinz and other brands in UK. This factor leads firm growth increase
productivity. While working in team applicants share innovative ideas with each other that drive
people towards innovation and it contributes in commercialization of innovated item like Bake
beans. Team work effectively brings new ideas and more candidates engage in more innovation.
Organization culture-
Different firms have different culture like in Heinz as organic food products brand where
they have tasty and quality food items for their consumers (Naqshbandi and Tabche, 2018).
Organizational culture defines that in what manner item will going to be innovated. For example,
when company has adhocracy culture they can encourage workers to innovate something new
and then drive team towards commercialize it in target market.
Different sources of innovation and how company can develop & foster an innovative culture
and environment
Unexpected occurrences-
Innovation concept is found to be the best when it is considered as unexpected and
unpredicted from company and management thoughts. This source creates more profitability for
Heinz and other and help to increase their growth (Schweisfurth, 2017).
Process needs-
When market demand for something new and different from other brands products which
never introduced by any one, it drive company towards innovation which is quite beneficial for
them in term of building strong brand image in market place. It clearly describes the need of
innovation of foods items like Bake beans with tasty tomato sauce.

New knowledge-
Another source consider in context of innovation is new learning and understanding
about market which gives idea about making some innovative products that effectively satisfied
consumers needs in ethical manner.
Change in perception-
When perception of target market is change, it drives management towards different
thoughts and innovation tools which they can use for commercialization.
Industry & market changes-
When people demand for new items according to market trends that change buying
behaviour of people, it requires bringing innovation concept at workplace.
Demographic modification-
This source decides that which and where items should be innovated in target market.
Incongruities-
Within logic and business functions incongruity is the only one element out of which
innovation chances may arise.
It can be said that Heinz can develop culture and environment of innovation by following
above seven sources of innovation. It analysed that culture of innovation at workplace can be
drawn out by practicing it with accordant to standards of market in which company operate.
4 Ps of innovation and use & significant of innovation funnel to shape innovative ideas
Paradigm-
This P of innovation established what organizations must do to make modification and
innovation in existing products which makes them more popular in market and also makes able
to gain competitive advantages.
Product-

Product innovation exhibited that how organizations make their items better by utilizing
innovation tools and techniques. Incremental in goods successfully added productivity of firms
in innovation goods.
Figure 14Ps of Innovation
(Source: Implementing the 4 “Ps of Innovation, 2019)
Process-
This innovation can mean introducing greater automation in production procedures,
rethinking the best actions in operations management or how betterments are measured. After
dealing with above Ps of innovation, procedure of item supplying, workflow and recruiting
applicants are all included in this process, it also included all phase for innovation of items.
Position-

With above Ps of innovation, positions is also beneficial element, it is the main areas of
product innovation sector. Position innovation decides that how firms frames goods in front of
market. All components like workers, consumers and other stakeholders.
Above four Ps of innovation build items and their enhancement in better manner. In fact,
this symbolises all questions and their responses in one frame. These elements covered all
concerning areas that happen in procedure of innovation.
Importance and use of innovation funnel-
Innovation funnel is utilized to describe phases that take place in creating a product or
procedure (Yun, 2017). As their name indicating funnel describes entire procedures to create and
meeting marketing demands of services or products. It is act as refinery system in product
innovation and their advertisement.
Figure 2Innovation Funnel
(Source: Understanding the innovation funnel, 2020)
It makes ideas able to be evaluated for viability through a procedure of gates, filters and
rules. It can be said that innovation funnel is beneficial and important for company because it
help to increase profit margin after marketing and launching new innovative items. It shapes
innovation when company follow its steps illustrated in above diagram. It is the best tools to
prioritise idea of innovation and assure that the best will be fully created and advanced items or

other innovations can be promoted. Idea of innovation is not enough to achieve business
objectives, it require appropriate framework like Innovation funnel. It guide right way to
innovate new food products and then launch in market. From this statement, it can be identified
that innovation funnel is important to shape innovations.
Development in frugal innovation and examples of how it is utilized in an organizational context
Frugal innovation refers to elimination of unessential cost and manufacture of valuable
items in order to achieve higher profitability (Weyrauch and Herstatt, 2017). It eliminates
complexity of innovation or creation of products. It aids organization in different ways, and
caters maximum income from few assets to attain sustainability and remove voids of business.
Frugal innovation within Heinz Company works on bottom to high approach in contrary to top to
bottom method of standard innovation. It is so because it gives much reliability of items and firm
attain higher number of consumers form less resources, it is totally different from all other
process of innovation.
Figure 3Frugal Innovation

(Source: Frugal Innovation For Sustainable Development, 2019)
It simply modifies strategy of product development, to make more items with less. It is in
line with reducing consumption because fewer assets will be used in production chain of Heinz,
but smart development will continue. This concept is effectively use in chosen organization in
order to deliver the best and quality goods to buyers. For example, production management by
monitoring and analysing manufacturing process identify needs of resources and also determine
unnecessary things that can consume time and money as well, which is not worth it at all. It
names as frugal because it is not confined with specific group of consumers but pick up wide
range of buyers from lowest assets. The main goal of frugal innovation is that is utilize less
resources and manufacture wider quantity and better quality of food products by reducing
unnecessary cost of things, but is does not mean that it generates low quality of items for
people’s. Tata nano is one of the biggest examples of frugal innovation concept that has been
adapted by Tata Company.
Innovation funnel in organizational context of Heinz
Above concept can effectively use organization when management follow overall stages
included within it. Innovation funnel includes three main phases in journey of changing items,
produced by Heinz Company. For example, first phase includes wide mouth of funnel, which
means that firm can gather and collect the more and more data about items innovation and
gathering more ideas opens and creates many chances for product innovation. Second step
concern about segmentation of gathered ideas that means screening of collected concepts.
Moreover, the major phase of innovation funnel is that chosen idea by management of company
must deliver services appropriately and meet their all business objectives and goals for which
firm establishes.
To take an idea from concept to reality by converging to specific item is goal of any item.
In economical and manufacturable form, item can meet a market needs. It is one of the best way
can use by Heinz to shape innovation ideas for products, manufacture for target market. It is
utilized to describe phase that take place in manufacturing procedure of organization. Product
development, cost savings, process improvement and workplace experience makes innovation
funnel unique. By using this concept organization can obtain several benefits such as increasing
profit margin, consumer’s base and also achieve greater success. With innovation Funnel

Company can grab competitive advantages, which is the main objective of its business. It makes
firm able to build strong brand image and increase develop their position at global level which is
really very important.
Role of frugal innovation in regard to company
Frugal innovation has different names which depicts their working like frugal
engineering, resource constrained innovation, reverse innovation and cost reduction. All such
defined as concept criteria and its working (Prabhu, 2017). Many of organization whether it is
MNC’s or local using form of innovation to attain high profit and revenue for their business.
Frugal innovation plays vital role in Heinz organization, as it helps to save money and extra
efforts of their workers. It urges companies to respond to limitations in assets; whether material,
financial or institutional and turn these constraints into innovation concepts and practical
solutions. Frugal innovation role in company is to delivery more value to target market at lowest
costs more than current number of consumers. It helps to increase brand value in market and
financial budget of firm rather than before. It enhance design thinking at service or product level,
systems thinking at macro degree, new ways of item design & creation and leveraging modern or
latest technologies to deliver low cost suggestion.
It is needed for different reasons, for instance fastest growing markets, new technology
platforms, environmental constraints and caring for rapidly developing societies. It is not a code
word for outsourcing or cheap, it is all about understanding how to innovate new things within
existing item under resource constraints and turn adversity into progress chances by offering
solutions that can be termed as reasonable excellence. With this model company can sustain for
longer and retain people in systematic and ethical manner.
Critically examine how innovation is embedded, developed and measures in business
Innovation concept or process can be developed, embedded and measured in Heinz
business by applying new and unique ideas into actual world. However being an innovation
company first creativity is introduces and applied in existing products and at lest it is measured
in commercialization phase so that firm gets more profit from it. It can be said that development
of above concept depends on form of economic activity that is created by firm and interactions it
has with both external and internal environment. They innovate concentration for meeting needs
of consumers and needs observed in target market.