Report: Analyzing Innovation and Commercialization Strategies at Heinz

This report provides a comprehensive analysis of Heinz's innovation and commercialization strategies. It begins by defining innovation and comparing it to invention, emphasizing their importance to organizations. The report explores how organizational vision, culture, leadership, and teamwork contribute to successful commercialization. It then delves into the 4Ps of innovation (product, process, position, paradigm) and the use of the innovation funnel for shaping ideas, including examples of frugal innovation. The report examines the importance of the commercial funnel and new product development process, along with a discussion of innovation business cases and funding access. Finally, it evaluates various tools organizations can use to retain, protect, and develop intellectual property. The report provides a detailed overview of Heinz's approach to innovation within the context of its business operations and the competitive landscape.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................................3
Part One......................................................................................................................................................3
LO 1.............................................................................................................................................................3
Innovation and its importance to organizations by comparing it with invention......................................3
Organizational vision, culture, leadership and teamwork helps to shape commercialization and
innovation................................................................................................................................................5
LO2..............................................................................................................................................................6
Explanation of 4Ps of innovation and use of innovation funnel in order to shape innovative ideas.........6
Explanation of developments in frugal innovation to provide examples in context of organization........9
Part Two....................................................................................................................................................10
LO3............................................................................................................................................................10
Importance of commercial funnel and new product development process for commercialization of
innovation..............................................................................................................................................10
Innovation business case for organization and ways to access funding.................................................11
LO4............................................................................................................................................................12
Various tools that organizations can use to retain, protect and develop the intellectual property..........12
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Innovation refers as introducing new ideas, imaginations, creative thoughts and methods.
It is often view as providing effective solutions in the business to meet the organizational
objectives. It is related with the new product development in the market for gaining competitive
edge. Commercialization is termed as the process and marketing strategies which are used to
launch new product in the marketplace. The report is based on Heinz. The company is
established in the year 1869. It is a Britain's one of the most loved brand. The main factory of
Heinz in UK is near to Wigan. The company deals in the products like Heinz beans, tomato
soups and Ketchups.
The report will cover explanation of innovation and will determine its significance by
comparing it with invention. It will further explain organizational vision, teamwork and culture
shapes the innovation and commercialization. It will give explanation of 4ps of innovation and
will use innovation funnel to shape and examine innovative ideas. Furthermore, it will determine
developments in frugal innovation and provides examples about its use in organization. Then the
importance of commercial funnel will be explain and its application of new product development
process will be determine. The study will provide ways to access funding. Lastly, it will evaluate
various tools that an organization can use for protect, retain and intellectual property.
Part One
LO 1
Innovation and its importance to organizations by comparing it with invention
Innovation - It refers as generating creative for introducing a new product or service in the
market. It helps in organizational success as it gives competitive advantage to firm. By
introducing innovative products in the market the customer’s satisfaction get increased (Thakur,
Cabrera and Boni, 2018). It helps to make improvement in existing products of the organization.
It is done to introduce new ways in business and for achieving something better.

Invention - Invention refers as process of manufacturing or producing new product in the
market. It is the creation of the product for the first time in the marketplace. It can be also termed
as introduction of a process. It is the process of bringing a past driven idea (in innovation) in the
marketplace.
Difference between innovation and invention
Basis Invention Innovation
Meaning It is occurrence of process for
creating a new product for
very first time.
It refers as bringing a creative
idea, knowledge or method in
an organization.
What is all about It is creation of product for the
first time
It adds value to existing
product of organization by
implementing new idea in
product development.
Concept Working on the theory of
original idea
Practical implementation of
creative idea in the business
(BadizadeganGoodson and
Thompson, 2020).
Required skills Scientific skills are required
for doing invention
Marketing, Strategic and
technical skills are required
for doing innovation.
Occurred when When the idea about invention
is strike to scientist.
When the employees or
manager of an organization
feels there is need for
improvement in existing
product.
Related with Related with single process Related with multiple process

and product. and products.
Activities Invention is done by doing
heavy research and
development. It is only
restricted to research and
development department
It is not restricted to research
and development department
but spread across organization.
Importance of innovation in comparison to invention
Innovation helps in growth of a business. By introducing innovative products in the
market a firm can increase its customer satisfaction but in invention it is only done once not on
regular basis. The organization is able to meet the customer’s desires and needs through doing
innovation. Heinz is also planned to do innovation from the year 1997. There new products have
been launched which are baked bean cuisine. There innovation also includes flavored purified
water in the baby range products. Thus, through this they are able to increase profitability. When
an organization does innovation they are able to attract talented candidates or people in their
organization (Zahedi, Mirghfoori and Morovati Sharif Abadi, 2018). During recruitment and
selection process the company is able to hire and recruit the top talent.
Heinz has introduced Barbie pasta shapes in pink packets to attract the girls up to 10
years. This is not end yet as the product has launched with very attractive offer like when the
tokens is being collected the company will provide a Barbie watch. Thus, through this innovation
large numbers of customers gets attracted towards the products of Heinz. Hence, company's
sales get increased. This means that innovation gives a competitive edge in the marketplace.
There are few factors that can be included to know about importance of innovation as compared
to invention of products in international market such as:
Political factor: There are several changes in policies and procedure of government such Free
trade regulation that have provided opportunities to Heinz to innovates its products and service to
attract new customers.

Economic condition: People have less disposable income due to economic slowdown and high
rate of unemployment within UK. So Heinz by using innovative method in order to reduce cost
of production is able to gain competitive advantages.
Social factors: There are continuous changes in preference and demand of customers and level
of competition in industry so Heinz by making innovative products or method to deliver services
can influence existing as well as new customers to prefer products of firm.
Technological: Rapid globalization has lead to transformation in technologies thus Heinz can
easily innovates its products rather than innovation of new products to cater needs of various
individuals.
Therefore at last it can be stated that Heinz needs less time and cost to invent products
rather than innovation of new products and services to meet customer’s expectancy. So invention
is more effective to cater requirements of individuals.
Organizational vision, culture, leadership and teamwork helps to shape commercialization and
innovation
Organizational vision - Vision of Heinz is to provide quality food and beverage products to its
customers. There vision implies on to provide nutrition and delicious products to the customers,
by this they are able to increase customer satisfaction and can retain them for long term basis.
Hence vision and mission statement of an organization drive a path on which employees and
workers of the company can succeed. The employees and manager of the company produce the
products as per the organizational vision. One of the visions of the company is to increase
customer satisfaction by introducing and launching innovative products in the market
(Damanpour, 2017). Vision of firm helps in deciding various strategies that can be used to
achieve target of firm and identifying key challenges in achievement of vision. Thus, it can be
said that organizational vision is helpful to shape innovation and commercialization in a
business.
Leadership - It refers as a method to organize the people and employees of an organization.
Leadership helps to guide and direct them to achieve a particular task or common goal of the
business. Human resource department of Heinz has also put efforts to bring innovative products
in the business. For this they have organized leadership programmes that help to identify

approaches that encourage, recognize and develop the skills for delivering successful
innovations. Leader always seeks for a change in an organization. Thus, the leader wants to bring
innovative product in an organization. For this effective leadership is needed so that employees
of the company can commercialize new product in the market. Leader is responsible for
communicating vision of firm to various individuals or employees so that they can feel valued
and motivated to perform their best to render services to customers.
Culture - In Heinz the culture of innovation has started in the year 1996. They have introduced
innovation in their organizational culture (Hund and Wagner, 2019). They believe that by
introducing change they are able to survive for longer period in the market. Also they have
pointed that innovation protects them from the threat of competitors. This culture encourages for
the development of creative and new ideas. In this culture the employees are able to give there
innovation ideas while formulating strategies. All the suggestion and advice are welcomed from
externally and internally both. The prime motive of this culture is to understand and meet the
needs of customers. Good working environment and supportive culture of company such as
encouraging employees so share their creative ideas helps in brining innovation within firm.
Teamwork - It is required to accomplish organizational targets and tasks on timely basis. When
employees work on together basis and as a team they are able to complete the tasks on time and
also requires less efforts as everyone work as a team. Hence, the work is distributed among them
equally. For implementing and commercializing new product in Heinz the employees and
workers of the organization has worked as a team. Team efforts always lead an organization
towards success. Thus, Heinz is able to innovation in its products with the help of team efforts.
Diverse individual share their respective skills and knowledge with each other thus it helps in
finding new and innovative ideas that can be used by firm to gain competitive advantages.
LO2
Explanation of 4Ps of innovation and use of innovation funnel in order to shape innovative ideas
4Ps of innovation -
 Product - It is the main item that is offered for sale to the customers (Innovation
management, 2019). This is the most valuable to the organization. In case of Heinz, if it

will launch a new product and will guarantee to provide best services to the consumers
then it will be able to generate competitive advantage for the organization. So product is
the main source among the 4P’s of innovation.
 Process - It is the way by which product is sold in the market by which a product reaches
to the ultimate consumer this is an essential element because if the delivery process is
longer than the possibilities of success are very less. The delivery process if will be short
than the possibilities of growth will be maximum and Heinz process of delivery will
become an element of success.
 Position - These are the goals of specific Innovation and commercialization process. In
simple words it is the process by which an organization wants to achieve a reputable
position in the market. Heinz Company wanted to achieve this position by providing the
best quality of customer service and best after sales service.
 Paradigm - It is considered as planned process by which an organization faces positive
and negative impacts of the change made by innovative ideas, thinking and the process of
how the Heinz Company will achieve its target. To perform the job while facing new
challenges and threats, the organization has to think on how the business will continue in
a changing situation and changing environment, for this Heinz must provide new type of
products to the consumer.

Figure 1 4Ps of innovation (Source: Innovation management, 2019)
Innovation funnel of Heinz - It is a process of developing new ideas by analyzing and
evaluating different steps by which this idea can be tested in the real world for providing better
services to the consumers (Innovation Funnel Management, 2020). There are different types of
innovative ideas and thinking, also there are different types of innovative funnels by which that
idea can be processed and will be helpful in maximizing the profit of the organization. The first
step of innovation funnel in the case of Heinz Company is to collect information to estimate
customer needs and demand. The second step is to analyze this idea with others to evaluate the
negative and positive points in each. The last step is to decide how this idea will be finally
implemented in the actual world to grab new opportunities in the target market.

Figure 2 Innovation Funnel (Source: Innovation Funnel Management, 2020)
Explanation of developments in frugal innovation to provide examples in context of organization
Developments in frugal innovation
Frugal innovation develops strategy for making more new and innovative products by
using less business resources. The frugal innovation supports economy by encouraging investing
without doing wastage in production process (Pandher, Mutlu and Samnani, 2017). This
minimized the use of business resources. It is done to provide sustainability in the economy. It is
more than a strategy, it seems resource constraints but it is not a liability, it is an opportunity. In
this organization not seeks for impressing the customers but to introduce a quality product which
gives greatest value to consumers in considerably lower prices or cost. There are various aspects
of frugal innovation which are related to servicing, performance, input costs and scale up
functions in Heinz. Frugal innovation is generally practiced in emerging markets. This helps to
increase business profits from BOP consumers. For example, Samsung has used frugal
innovation. They are selling the innovative products in the UK market but like emerging markets
such as India, Brazil, China, Poland they have innovative the products which are considerably of

lower price than UK. Thus, this benefits the consumers of emerging markets and also increased
brand loyalty for Samsung products. Thus, frugal innovation helps to retain customers as well as
increase business profits. Such as frugal innovation has been used by both GE Vscan and tata
nano to develop their products and reduce overall cost of firm for earning more profitability.
Part Two
LO3
Importance of commercial funnel and new product development process for commercialization
of innovation
Importance of commercial funnel -
Commercial funnels are responsible for representing the customers taste and preferences
thereby depicting their sales process (LiedtkaSalzman and Azer, 2017). They act like a revenue
funnel thereby depicting the various Innovation and ideas that are related to the beginning of a
sale. Where a huge proportion of customers are related and how they intend to get smaller in the
time of purchase. One of the main importances is related to how awareness of the customers and
how it helps in identifying their problems thoroughly. These commercial funnels are also
involved in finding respective solution to specific problems by use of different networking sites.
Also, efforts are made to boost the interest of the consumers to ensure that when there is a
decrease in the customer prospects it may not affect the sale.
This leads to more engagement of the consumers with the firm in the form of information
and questions. This finally leads to a close understanding of the process of commercialization
and innovation which provides a competitive advantage in the market (Zarka, Kochanovskaya
and Pasmore, 2019). There are several survival tools and techniques that can be used in this
process, which further makes these commercial funnels effective and important. The employees
are only responsible to adopt the innovative techniques and ideas as done by Heinz Group. The
company will be able to adopt commercial funnel concept to increase the efficiency of the
subordinates which helps in production of better quality products at low cost. This at last will
increase their staff retention and increase the efficiency of their work environment and

employees will be able to take right decisions at right time to increase their customer base and
sales.
Heinz group has developed the concept in such a way so as to obtain new ideas and
innovative techniques in the product development. With the adoption of new product
development (NDP) and commercialization funnel the Heinz group is able to increase the sale of
products in the market which ultimately builds innovation in the business (Stankosky and
Baldanza, 2018).
Commercial innovation
Idea Generation: First Heinz get ideas to launch new products in order to attract new
customers range to prefer products and services of company as compared to other
competitors in market.
Idea screening: Then Heinz screening best possible ideas from various alternatives so that
best way can be used to cover large market area and earn more profitability.
Concept development and testing: Also, the market testing and the market entry routes will
now be given a due importance in the process thereby leads in building a successful target
market.
Marketing strategy development: Heinz manager have planned in advanced the way its
innovative products will be promoted such as use of social media, personal sales promotion
to induce individual to make purchased for satisfaction of their needs.
Business analysis: In this stage management of Heinz find overall increase in sales, actual
operating expense that needs to be incurred by firm to bring innovative products within
firm. On basis of previous sales, profitability and market research manager have decided
to innovate new products for achievement of goals.
Product development: Heinz manager have develop new and innovative products which
can meets needs of various individuals thus motivate them to be part of firm.
Test marketing: It have test marketing strategies by analysis number of people that have
influenced to make purchased from specific medium.