Higher National Diploma Innovation and Commercialization Report

This report delves into the concepts of innovation and commercialization, using Heinz as a case study. It explores the importance of innovation, differentiating it from invention, and analyzes how organizational vision, culture, leadership, and teamwork shape innovation and commercialization. The report examines various sources of innovation, including demographics and customer behavior. It also covers the 4Ps of innovation, the innovation funnel, and frugal innovation, appraising their roles within an organizational context. Furthermore, it assesses the development of new products, innovative business cases, and tools for protecting intellectual property, while also addressing challenges in innovation. The report provides a comprehensive overview of innovation and commercialization strategies, offering insights into fostering an innovative environment and achieving business success.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Innovation and determine its importance to organization in comparison with invention. 3
P2 Organisations vision, culture, leadership and teamwork shaping innovation and
commercialisation...................................................................................................................5
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation...................................................................................7
TASK 2............................................................................................................................................8
P3 4P’s in innovation and innovation funnel.........................................................................8
M2 Analyse and apply the innovation funnel in an organisational context...........................9
P4 Development of frugal innovation....................................................................................9
M3 Appraise the role of frugal innovation in an organisational context..............................11
D1 Critical analysation on how innovation is developed, embedded and measured in an
organisational context...........................................................................................................11
TASK 3..........................................................................................................................................11
P5 Commercial final and development of new products......................................................11
P6 Innovative business case.................................................................................................13
M4 Detailed Innovation business case.................................................................................14
TASK 4..........................................................................................................................................15
P7 Evaluation various tools to protect intellectual property................................................15
M5 Different tools for wider business environment.............................................................16
D2 Ways for overcoming challenges in innovation.............................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Innovation is used by different companies in order to make sure that they are developing
new products and services in order to bring new advancement for the customers. They make sure
that the changing needs and requirements of customers are met by the products they are
innovating. This will also help them to increase their market share by grabbing the attention of
their customers and bringing in revenues and profitability for the organisation (Ranjdoust and
Bakhtyari, 2018). Innovation can further be defined as a process in which alteration as well as
development of new products and services are done. There are a number of different marketers
who are innovating products and services in their already existing organisation in order to
increase the level of satisfaction of the consumers. On the other hand, commercialisation can be
said to be a process in which different products and services are launched in the market. In the
following report Heinz is considered for learning about innovation and commercialisation. The
company was established in the year 1869 and deals with different food products. There are a
number of people areas in which the company is situated including Ireland and United Kingdom.
The following report discusses about various innovation brought by the company through their
new products in order to attract more consumers and increase their consumer base.
TASK 1
P1 Innovation and determine its importance to organization in comparison with invention
It is considered as a process by which the organisation focuses on conversion of the
business plan into realism for achieving favourable outcomes. They emphasised on using
different to tools as well as techniques in order to grab opportunity for accomplishing objective.
Therefore, innovation as well as invention is important for Organisation. In context of Heinz the
innovation helps in providing appropriate services to its user. Therefore, there is a different point
that is going to be mentioned below:
Boost productivity of Organisation. In today's business environment innovation is
necessary in order to provide good services to its customer. And therefore, the Heinz Company
focuses on bringing some Innovation and also modifies or alters the traditional form of providing
services in relation to catch up or any other products. Therefore, in past time ketchup is bring in
heavy bottles and it is considered as a quite Complex but nowadays the organisation offer
catches up in squeeze bottles that offer to its customer for satisfying them (Abdul Hamid, 2017).

Enhancing better services there are different kind of opportunities which is providing
by organisation due to globalisation. The Heinz Company focuses on production of tomato
ketchup as well as soups and also modifies the traditional recipes such as cheesy pasta bake,
lamb hot pot and many more.
Effective utilisation of resources Innovation is considered as a most important part of
the organisation therefore it assists the organisation in appropriate use of resources without any
kind of wastage.
Offer competitive advantage the organisation focuses on bringing innovation at
workplace in order to achieve favourable outcomes. It helps in achieving competitive edge
during the particular phase of time period and also it is necessary for organisation to provide the
product as per the taste and preferences of its user. Therefore, on the above-mentioned strategy it
has been analysed that there are differences among innovation and invention that is given below:
Difference between innovation and invention
Basis Innovation Invention
Meaning Innovation means introducing
or launching something new
and makes modification in
existing things that provide
value to its user (Mawaddah,
Huang and Chang, 2020).
Invention is done for fulfilling the
need of its user as per their needs such
as invention of mobile phones.
Purpose The primary purpose of
innovation is to provide extra
value to the organisation for
boosting sales as well as profit
margin.
On the other hand, invention means
launching completely innovative
product which was not introduced
earlier.
Skills required There are various skills which
must be available in individual
person for innovation such as
If it is talk regarding invention then it
is necessary to have expertise in a
specific field for invention that help in

expertise in manufacturing
process, design as well as
many more.
achieving favourable outcome and
reduce the error.
P2 Organisations vision, culture, leadership and teamwork shaping innovation and
commercialisation
Innovation and commercialisation is important concept for the organisation as it aid
organisation various kind of benefits which are directly related to the performance within the
market as well as increasing its market share. There are various factors like vision culture
leadership and teamwork within the organisation which have their direct impact on the
innovation and commercialization of the organisation activities as well as achievement of goals
and objective by the help of innovation and commercialization. The detailed description is
mentioned below:
Organisation vision: Organisation vision have directed its impact on the performance of the firm
as well as Innovation and commercialization within the organisation because it will lead the
organisation to increase its value within the market and by the help of innovation it can directly
achieve its visions within the market. This can be seen in the example of Heinz, where
organisation has a vision to increase its market share in every year and for this organisation
prefer the policy of developing new products within a year and number of 2 to 5 (Tian, Deng and
Wu, 2020). This directly led to innovation within the organisation because it cannot produce the
same product and cannot launch that product within the market because it will decrease the
marginal utility of the product within the market and will lead to dissatisfaction among the
customer of the organisation. This version directly helps the organisation in increasing the
innovation within the organisation as well as commercializing its products and services from
achievement of its goals and objectives.
Leadership: Leadership is also an important factor for Innovation and commercialization
concept within the organisation because it directly helps the firm in increasing its effort toward
the innovation because of leadership style which it follows. In relation to Heinz, it follow
transformational leadership concept which directly help the innovation and commercialization
within the organisation because under transformational leadership leader of the organisation need
in the way of transformation where it change old concept by bringing new ones as well as

improve the old ones to perform at better level and increase the profitability and productivity of
various resources including human and financial resources. this leadership style directly
influences the innovation within the organisation we are the chances of innovative ideas and
commercialization increased because of regular changes and continuous improvement process
followed by the leader in the firm. This also help in increasing the motivation of the employees
because of continuous development and building your ideas to the firm. Leadership also enable
employees to suggest the views and innovative ideas to their superiors so that that technology
can be bring to the organisation.
Culture: Culture also influence the innovation and commercialization within the organisation
because adoption of proper culture within the firm will lead to increasing satisfaction with the
employees and decreasing the chances of conflicts within the firm. This will also influence the
behaviour of individuals to word shifting their mind innovative ideas where they can increase
their personal growth as well as achieve the organisation objective by using innovative ways to
produce different products. In Context of Heinz, organisation performs mixed culture and
environment where it follows cultural diversity within the firm. This help organisation in
management of the conflict which save different resources within the firm and these resources
can be used for further research and development programmes for bringing innovation within the
firm. Company also use strict policy regarding non innovative ideas and conflicts by which it can
reduce the chances of delay in information as well as improve its working structure by regular
changes and continuous improvement processes. Company also follow democratic environment
where each and every individual have equal opportunity and write within the firm which promote
effective culture and innovation because of effective use of resources.
Teamwork: Teamwork is also path of innovation and commercialization within the organisation
where effective teams within the form always lead to innovative work and achievement of goals
and objectives by combining different resources and using them in an appropriate manner. In
context of Heinz, organisation always use effective teams within the firm where management use
TUCKMAN theory of team development to develop effective team which can perform various
tasks according to the requirements. this always initiate innovation within the firm as well as
implementation of functions related to innovation is also easy to the manager. This is because
effective team always lead to use resources in appropriate manner where the different resources
can be saved and used for research and development processes. Because of property management

organisation can easily implement innovative ideas as well as commercialization techniques
which will help company in achieving its market value and increasing the chances of innovation.
It can be concluded from the above-mentioned information that vision leadership culture
and teamwork within the organisation have their direct influence on the innovation and
commercialization of the organisation Heinz. This is because they are directly impact on the
profitability and performance of the organisation as well as helping in motivating the employees
to work and use innovative concept within the firm.
M1 Analyse different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation.
It is concluded from the above discussion that innovation and commercialization are two
important factors which the company has to do for meeting the organisational targets and rules. It
is very essential for the company to another list the various sources of innovation that will
provide guidance in order to develop innovative culture as well as environment within business
functions. It is also important to manage the various sources so that it will be for managing the
following factors
Demographics - this is known as the way by which proper resources can be managed of
innovation which will provide the company to have good innovative products and services
provided to the customers. It is also seen that innovation is required for the company to increase
the sales and profit. Demographics is known as the source of innovation which is used for
managing the increase in sales of the product. Demographics consists of managing the various
factors that include income level of individuals, modification in population, human capital that
can be used for developing innovative and attractive services and offerings. These are dependent
upon desire and need demand as well as requirement of people who are living in business
environment.
Customer perception and behaviour - it is also required by the company that while managing
the innovation in product or service, the main thing which has to be considered is the perception
and behaviour of customer. It is required by various employees and individuals that innovation
done within the company is able to increase the customer perception as well as behaviour. It is
also important for the company that it is able to attract customers by innovative new products
and services. In context of food company, this is important to manage the food products so that

people who are health conscious are also attracted towards the products offered by this
organisation.
TASK 2
P3 4P’s in innovation and innovation funnel
There is a total of four different components which are included in innovation. All these four
components help for the growth and development of an organisation. Below mentioned are these
four components of innovation for Heinz Co.:
Product: Product is an important and essential factor which helps to bring innovation and
development in an organisation. It becomes necessary for a company to continuously bring in
various type of innovation in the products and services. It is necessary in order to make sure that
the customer of the company is always satisfied by its services. Heinz organisation have brought
up a number of new products and services regarding their ketchup and baked beans.
Process: Processes in an organisation refers to all the operations which are taking place in an
organisation through which the products and services are usually manufactured in a
manufacturing organisation. Heinz organisation is also manufacturing organisation which
requires to manufacture various food components which are sold by the company. The process in
innovation will include the development of new products, research and development department
along with marketing of new products in the market (Mollick and Robb, 2016).
Position: Position is an important factor in developing and innovating new products in our
organisation. It is required by organisation to make sure that they’re developing a product which
will help them in creating a position in market in a position to their competitors. In order to bring
up a new product Heinz organisation make sure that they are targeting the potential customer for
their product and also properly using various tools of communication for their products so that
the information about the product is reaching the customers and also it will help them to drive a
competitive advantage against their competitors (Hohenberg and Homburg, 2019).
Paradigm: Paradigm is the last stage which includes all the challenges that can be faced by an
organisation while they are typically developing a new product or service for their customers. It
is often seen that when Heinz is developing a new product or services there are different barriers
which include the time barriers along with a number of food rules and regulations which are
needed to be met by the organisation. It is necessary that the company is doing a proper research

about various techniques which can be used to develop new products for their customers and also
the needs and requirements of the customer so that their product and service is accepted by the
market.
M2 Analyse and apply the innovation funnel in an organisational context.
Innovation funnel is defined as the important way which is used by the companies for
managing the innovation with them business environment.it is very important for the companies
to regularly innovate the services and products so that it will be easy to attract customers because
when customers are board of St August existing product state and shift to another companies
products. The main objective for the innovation funnel is that it helps in increasing the brand
reputation of company in the competitive marketplace. It is also required that innovation funnel
is applied within the company while awaiting your service or product as if it had been assisting
and enhancing the overall sales as well as productivity of the company. In context of science
company, it is helpful to reach the sales target by innovating new and effective products for the
customers. It is helpful for the company to manage the overall productivity and efficiency of the
organisation.
P4 Development of frugal innovation
Commercialisation is a concept which means making the best utilisation of all the
resources which are available to the organisation in order to make sure that innovation is brought
in the organisation and frugal innovation can be developed for the customers of the company.
There are a number of different methods in order to develop frugal innovation which can be
positively used in the company. Heinz uses a number of these innovation processes for the
company. Development of frugal innovation is done in the below mentioned four steps by the
organisation:
Identification of frugal innovation: It is required by Heinz organisation to make sure that they
are properly identifying all the needs and requirement of their consumers in order to develop a
frugal innovation. It is necessary that company is also mentioning all the resources which are
available with them so that the costing of the product can be managed. Frugal innovation is used
by company to manage innovations effectively (Rasmussen and Eliason, 2017)
(Behrns, Gingles and Sarr, 2018).
Reducing problem: There are only limited organisational resources which are used by company
in order to make sure that companies facilitated by project which is to be started. It is necessary

to make sure that all the innovations are done identifying various problems which can be brought
in organisation.
Reducing patterns: In this step it is necessary for Heinz to make sure that they are cancelling all
the innovations which are not feasible with the available resources and funds to the company.
The only innovation will go forward which are most suitable for all the resources and funds
which is available with the company.
Reducing system: This is the final step in which it is required by the company to make a proper
system which can be applied and used by the company. In this process the innovation which can
be brought to the companies finally executed to bring benefits for Heinz.
Frugal innovation and organisation
There are a number of different ways through which innovation can be brought in Heinz
Co. Below mentioned are various ways used by the company to bring in such benefits:
Product development: Product development refers to developing different products for the
already existing products in order to support the market share of the company. Different products
developed by Heinz include various variants of baked beans which have help the company to
utilize their resources in a better way (Yu, 2018).
Market analysis: Market analysis is a step which is necessary for every organisation in order to
properly do innovation. Market analysis however requires huge funds so that the current needs
and requirements of the customer can be analysed by the company and the product can be
developed for them. Heinz analyses the market and all the potential customer which might help
the company to generate revenues as well as profits with the help of the new products.
Use of resources: There are usually huge funds required in research and development
department by the company in order to bring in new innovation. It is necessary for Heinz to learn
about all the resources which is available for the company so that they can effectively use
innovation to bring benefits for them.
Generation of ideas: The company here uses information from their employs and the managers
in order to make sure that new ideas and innovation can be brought by the organisation.
Employees in the organisation are supported in order to come forward and provide the
management with various ideas in order to do new development in the products. This is a great
way to increase employee involvement and also bring in innovation for the customers by Heinz.

M3 Appraise the role of frugal innovation in an organisational context.
It is important for the company to manage the frugal innovation effectively so that frugal
engineering is done in effective manner. Frugal engineering is defined as the planning as well as
procedure that is used for minimising complexity within the cost of production that is incurred
by the company. This is considered as one of the major targets that the innovation company has
to conduct by managing the overall pricing of services and products offered by the company. It is
also essential for the company to manage its working by reaching the innovative products and
services effectively within the business environment. It is concluded that companies are able to
manage novation properly if the planning and procedure of innovative products is managed in
effective manner. It is required by the company that the process of frugal innovation is managed
property and it is assisting the company to manage unnecessary cost that a company has to
enquire by innovating products and services.
D1 Critical analysation on how innovation is developed, embedded and measured in an
organisational context
It is important for the company to manage the innovation so that it is easy to increase the profits
and sales of the company. Measurements can be significant switches of advancement – for
driving conduct, just as assessing the consequences of explicit activities. Organizations like 3M
and Google have had advancement measurements for quite a long time – the most significant
that 10% of representatives' time is devoted for experimentation with new chances. A few
organizations like 3M have attempted to command that 35% of the enterprises' incomes should
originate from items presented inside the previous four years.
TASK 3
P5 Commercial final and development of new products
New product development
In order to new product development in an organisation it is necessary for the organisation to
identify various techniques which will be used to develop a new product. The techniques must be
such which can be used as a competitive advantage for the organisation to stay in the market.

Heinz Co uses continuous innovation in order to manage the development of new products. The
stages of development of new products are mentioned below:
Idea generation: This is the first step in which the idea for a new product is generated by the
company. It is often assumed as this idea will help in increasing the revenues for the company.
Concept definition: The next step is used by the organisation to make sure the concept of the
management of innovation is understood by the company. The major reason so that company can
effectively use this development is to make sure that it brings competitive advantage for the
company.
Analysis of market: It is required by the company to analyse the market. Heinz is analysing the
market productively in order to understand the needs and requirements of the potential customer
to develop the product (Gong and Peng, 2018).
Developing product: This is the new step in which the product is finally developed in the
organisation in order to launch it in the market.
Commercialization: This is the last step in which the new developed product is processed to the
market and the customer are provided with the products and services of the company.
Commercial funnel
Commercial funnel can be said to be a process in which reduction as well as launch of new
products and services by the management of the company is done. Below mentioned are the five
steps of commercial funnel:
Generation of ideas: The first steps include development of various new products and services
by company. There are a number of customers who have different needs and requirements and
by studying those needs and requirements Heinz Co is developing various new ideas which can
be managed by the company to increase their product line.
Screening of ideas: It is necessary for the company to make sure that they are screening all the
ideas which are related to generation of ideas. The feasibility of the ideas is measured in this
step. It is measured that whether the resources present with the organisation are able to develop
these products and new ideas in the organisation or not.
Testing of concept: This is the step in which the screen and ideas which are possible and feasible
for the organisation attested (Gebhardt, 2017). The company is investing in development of new
products and the quantity of the products are kept low so that they can be first tested in the