Innovation and Commercialization: A Business Case Study Report

This report delves into the multifaceted aspects of innovation and commercialization, providing a comprehensive analysis of their significance in a business context. The report begins by defining innovation and comparing it to invention, highlighting its importance for organizations. It then explores how organizational vision, leadership, culture, and teamwork can shape innovation and commercialization processes. The 4Ps of innovation (product, process, paradigm, and position) are explained, along with the use of the innovation funnel to examine and shape innovative ideas. The report also examines developments in frugal innovation and provides examples of its application. Furthermore, it discusses the importance of the commercial funnel and the application of New Product Development (NPD) for commercializing innovations. A key element of the report involves building an Innovation Business Case, including strategies for accessing funding. Finally, the report evaluates tools organizations can use to develop, retain, and protect knowledge and intellectual property, providing a holistic understanding of innovation management.

Innovati
on and
Commer
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cialisati
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Explain innovation and determine its importance to organisations in comparison with
invention......................................................................................................................................3
2. Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.................................................................................................................5
3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.................................................................................................................6
4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context..................................................................................................................8
5. Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.......................................9
6. Build an Innovation Business Case for an organisation, including ways to access funding. 11
7. Evaluate the different tools that organisations can use to develop, retain and protect
knowledge and intellectual property..........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Innovation defines the process of exploring and generating new ideas, innovative thought
and proposing approaches of life. It was best described as a method requiring multiple acts to
adequately reveal fresh insights or convictions for understanding objects (Afzal and et.al., 2018).
Commercialization offers a process by which the company creates commercially competitive
value systems. Using the acquired skills, the management could secure the build capital in
finished goods according to customer demands. Heinz’s UK aimed for a stronger grasp of this
definition of creativity. Company is going to introduce new product that is Mix Fruit Ketchup
that is healthy as well as taste and would be mostly liked by the children.
This is a UK based company that is very famous companies offering classic items like
tomato sauce, tomato soup cream etc. The creativity provides businesses with ad strategies,
consumer assistance etc. The study addresses the different issues such as creativity and the
distinction between innovation and development and the forms of innovation that companies
may consider. It also discusses the mechanism that is necessary for commercial innovation and
examines the variety of approaches that safeguard innovative ideas.
MAIN BODY
1. Explain innovation and determine its importance to organisations in comparison with
invention
Innovation: Organizations use that strategy to transform other concepts into income-
generating behaviour. If a company feels ready to develop innovative goods & services through
its organizational structures using another tool, creativity tends to produce fresh ideas. It is
achieved in such situations where different methods are needed to meet consumer needs. The
Heinz Company is carrying out the invention of Mixed Fruit Ketchup which provides great taste
to the customer.
Invention: It's all of a designed or built device or system, or the process of making or
improving it, or working out a strategy for doing so. A different type of product is one example
of an innovation.
Basis Innovation Invention
Concept Innovation is a strategy in which a Invention is often used to indicate a
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person launches new goods or another
manufacturer, such a condition can also
arise when improvements are
introduced in existing ones.
method that used in the industry to
launch something entirely different.
Scope Innovation seems to be something that
exists during its production and
formation.
There is development even until the
output is fully introduced
(Audretsch and Link, 2018).
Occurrence Although doing something innovative
or creating new product selection is
critical in Heinz’s context, this is a very
suitable method for businesses to
optimize their target market and long-
term company survival.
When an entity’s managers
continue their organizational
operations, even other new
technologies are introduced by a
handful.
Skills required Beyond the technical expertise, a range
of other capabilities are also important
in product development.
In an invention situation,
technological abilities and
competencies are required.
Activities Innovation is distributed through the
corporation's different business units.
Invention is usually limited to the
company's procurement and build
department.
Importance of innovation:
Frequent opportunities: Innovation provide more opportunity in comparison to invention
because it is less costly and less time consuming. It is essential for managers to innovate new
ideas and work on it to find the possible opportunities which they can grab or maximise their
company’s efficiency as well as effectiveness.
Increase profit margin: Heinz is a popular brand of food processing based in the UK.
Innovation is a device which company uses to maximize its revenues (Altaf, Hassan and Batool,
2019) (Clayton, Feldman and Lowe, 2018). Company introduce Mix fruit Ketchup which could
be used as an upgrade of their existing line of goods. That will allow for them to leverage
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modern market techniques from which they sell their goods. This will help organizations achieve
better efficiency too.
Creativity of business: It tends to help the Heinz to focus on improving their creative
thinking for the business. It is the most important outlet for companies providing competitive
innovation in the industry. Nearly all vibrant and imaginative will help make a business purchase
its products from potential customers. Despite this advancement the production of stock products
is on the rise.
2. Explain how organisational vision, leadership, culture and teamwork can shape innovation and
commercialisation
The business will gain unique rewards by launching new products and services which can
bring success on the international markets. 'With all the assistance of digital technologies and
Heinz launching new commodity that is Mix Fruit Ketchup that meets customers ' needs. Mix
Fruit Ketchup invention included many types of innovative technologies to allow them to access
a wide variety of business opportunities.
Innovation and vision: this has been established that if a firm has a positive aim, it can
use capital, time, ambition and expertise efficiently to deliver a product to the consumer.
Incapacity is often known to exist on the regulated market when a business has no clear vision.
The Heinz brand has a long vision of becoming the market leader and for this they are
introducing new recipe of the Mix Fruit Ketchup. It is critical that the company provides the
finest and most appreciated offerings to its customers.
Innovation and Leadership: It helps to constantly steer team leaders in a constructive
way, which also leads to their productivity gains (Chen, Liu and Zhu, 2018). Heinz Corporation
follows the concept of participatory leadership style where leader offers all participants
imagination. They have innovative approaches for this and they are able to incorporate
innovation effectively. Apply this idea to inspire all staff leaders, and build more efficiency. As a
response it aims to maintain competition in the market and boost the efficiency of all teammates.
Innovation and Culture: Demonstrates the chosen population of individuals and
celebrates an individual's history and traditions. Managers and employees from Heinz UK are
building an atmosphere within the business, and how they would finally create creative
technologies. To this end, trust building in team members and managers is crucial, so that they
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might make substantial changes. Cross-cultural communication is applied in their culture to work
on a team where every type of staff person is given the ability to engage in the creative process.
Innovation and teammates: The entity using different forms of innovative strategies that
can successfully carry out production processes. Sensitive information about the organization
culture is also very relevant, as it also helps participants to produce more good results for their
mission. Top management of the company have to hire professional players in this Ketchup
business listed by Heinz. Cross-functional teams are sending a message that employees should
invest their time on activities that maintain higher corporate goals, instead of on less relevant
projects or tasks that block the lines. This translates to a more effective utilization of time and
money.
3. Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
This methodology is the mixture of investment that demands creative thinking and general
market good and services modifications. It has 4 major elements including product, paradigm,
position and process (Hameed, Von Staden and Kwon, 2018). Innovation has become something
which can be carried out anywhere and it's a multidisciplinary method that at any stage company
owners should be utilizing easily. When it is achieved in a organization with the support of such
4Ps employees, they can instead decide on the plans of both but prepare best instead. 4P's of
creativity, in Heinz’s sense, explain below:
Product innovation: This element of innovation introduces methods of diversifying that
aim to improve productivity in the business choices available today. It is a technique in which
the company redefines its product or service using emerging technology and these innovations
are already offering to help to make real change all over industry. Selected organization already
involved in food ketchup service and further launches Mix Fruit Ketchup which is mainly
enjoyed by kids or adults. By presenting the Mix Fruit Ketchup, Heinz’s UK is able to increase
market demand for their product or expand the customer base. Innovation also aims to gain
strong consumer awareness and a wider food processing organization.
Process innovation: Ability to convert any idea into a real object under the process. It is
perceived as a technological advancement, and the organization will ensure that they
manufacture cost-effective goods to reduce prices, so that more buyers will shop at a cheaper
rate. Lower prices help maximize sales income, which therefore raise profit margin. Throughout
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the case of Heinz, the company would also make its core enterprise innovative, helping
organizations increase their result and also the efficiency of their products.
Paradigm innovation: The component of innovative thought consists of different
precepts, beliefs, theories, and experiences under which the organisation promotes creativity
(Kim and Kim, 2018). Heinz's invests in advances in emerging device architecture, and the
business is able to bring in the products.
Position innovation: It is connected with different sectors of culture that companies are
using to sell their products. There have been a few more ways to categorize or classify their
distribution network into distinct categories that businesses may use. Industries are actively
seeking to meet the demands of large consumer segments. In each of these companies, they help
to determine who may be possible consumers of their market segments and then focus and
distribute accordingly.
Use of innovation funnel:
Innovation funnel is a method that corporations adopt to develop or invent new consumer
products and services. The idea behind the whole move is that the company should boost the
entire business production and the overall performance. T here are practically three phases used
to contribute money or that further allows in shaping innovation and commercialization
of business idea.
 The initial push would be to build a knowledge pedestal which would enable businesses
to have sufficient visibility into changing consumer patterns. Heinz's also uses this
creative tool as a company to generate the creativity they wish to implement into their
goods and, at the very same time, it can also be a weapon they can use to compete with
their competitors through shaping their innovations and commercialize their product in
the market .
 The second stage of this cycle is to track the latest phenomenon the organization wants to
implement as regards innovation (Kelly and Kim, 2018). It further shapes the new
business idea and use effective promotional strategy for commercialization.
 In the last stage, managers assist the team members with proper planning which helps in
shaping innovation funnel. The client established a layer which defined all the steps they
are prepared to take throughout the full methodology production process. Innovation is
launched and it is handled by this process at the same time, and is widely known as an
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innovation funnel. Each firm has a specific direction of using innovation funnels which
can be altered according to the specifications.
Innovation funnel allows the new strategy of Heinz’s Company to shape their innovation and
support them into commercialization and will further boost market growth, competitiveness as
well as competitiveness.
4. Explain developments in frugal innovation and provide examples of how it is used in an
organisational context
Frugal method of innovation is being used to reduce both the difficulty and the cost of a
product and its implementation is frugal design or frugal engineering. This typically includes
extracting unnecessary features for sale in developed countries from a consumer product, like a
vehicle or a Smartphone (Li and et.al., 2019). It is among the companies' best options to
minimize their production costs by removing irrelevant actions that will not create any profits for
the organization. With the aid of innovation frugal creativity in Heinz’s UK Business,
management will recognize reducing the cost of the commodity that further helps to maximize
profit margin. This also offers some benefits that help the company extend its business activities
or increasing the competition for growth purposes for its goods.
In the sense of Heinz's Ketchup, the brand is launching a new item named Mix Fruit
Ketchup that is used instantly to make various types of sandwiches, also used to prepare pastas
and serve as a companion for snacks. The younger generations and kids are target audience for
the company. With frequent support in frugal innovation process and procedures, companies will
be able to achieve their mission efficiently and safely deliver tangible outcomes. Company
delivers high-quality goods along with excellent consumer service, meaning they can keep their
clients mostly on retail market properly.
The organization's strategic duty is to build productive and successful relations with its
customers and employers which will enable company individuals to acquire loyalty and trust.
This in fact increases the industry's corporate performance on the global market. Nearly all of the
organization will continue reducing their unneeded operations and the costs while retaining
profitability with the help of the innovation funnel. For example: Mitticool they use the Funnel
of Innovation or convert their idea into innovative products which are useful for people and it
actually needed. Mitticool innovate Clay Fridge which has 8 degree temperature that is lower
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than the room temperature. It helps the poor people to afford and keep their daily basis item fresh
and safe such as vegetables, milk etc.
5. Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation
A commercial funnel is a selling mechanism by which businesses discover, register, and
sell their products to customers (Laurell, 2018). It splits the customer path from understanding to
process of purchasing. It's a systematic method of recruiting buyers and attempting to persuade
them to purchase the goods.
Importance of commercial funnel:
 Provides opportunities for branding: Organization follows right strategy then they can
gain the customers that they seek. Integrating the sales process with the concept of a
company will contribute to the correct strategy to be followed in the sector as the work
conducted tells well the major decisions.
 Increases consumer relationships: Getting the right customer knowledge can help them
to create goods that please them. If the buyers are happy then the relationship with them
will increase and further purchases will be made.
 Gives incentives for business expansion: The commercial funnel provides valuable
knowledge on the customers. Associated with the design process, this data will make sure
customer requirements are met appropriately. If the customer is satisfied, greater amount
the products will be sold and probably more clients attracted and then sales will be
improved.
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In context of Heinz’s UK, while introducing new products in the market company follow the
new product development (NPD) process and it discussed below:
 Idea generation: In the initial stage of the production of new goods is to increase the
expectations for their goods or even boost financial results (Mat Jalaluddin, Othman and
Harikrishna, 2019). Business sells Mix Fruit Ketchup that can be paired with snacks to
make more tasty foods.
 Idea screening: Heinz's marketing department tests the viability of the new concept and
subsequently develops additional strategies that increase consumer demand.
 Testing concepts: At this point Heinz's R&D department assesses customer needs,
preferences and expectations to help them deliver products and services as required.
 Product development: This is the mechanism wherein the marketing department creates
plans and policies that help them to successfully bring new goods into the market. They
are trying to advertise tasty and innovative Mix Fruit Ketchup to put in line of products to
increase the competition to competitiveness of the company's goods.
 Market strategy: This influential framework forms the marketing strategy foundation for
a company to build awareness within the community of the existing brand. As well, this
strategy involved elements such as location, commodity, price and promotion.
 Testing marketing: Company must take input from customers or their opinions on their
goods and adjust more according to their preferences before launching maximum
selection on the market.
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 Product launch: Organization introduces physical products to the market at a reasonable
price at this stage. Be sure they often attract big consumers at once to increase their
profitability and profit margin.
 Commercializing: This move is the successful entry of Heinz’s latest product into the
market, such as an attempt to gain substantial market share. As a result, this begins to
establish the confidence that they can use productive strategies and practices to launch
their contemporary and stunning piece.
Commercial funnel important for the Heinz's to bring new ideas to the market through the
method of product production to successfully execute their proposal.
6. Build an Innovation Business Case for an organisation, including ways to access funding
In an organization, management go through with various concepts of innovation through
implementing modern innovation strategy and setting the company strategy and mission
accordingly. It is unique from other businesses as each company has different systems so adapt
the approach and methodology accordingly. It context of Heinz's, business case for the new
product includes vision, mission, financial projection, business research and many more.
Innovative idea: New innovation of Heinz's UK is Mix Fruit Ketchup which has different
taste from their precious ketchup range (Thakur and et.al., 2018). Their targeted audiences are
kids and young generate because they consuming more fast food and snacks. This ketchup
increases the taste of food as well as provides health benefits by consuming mixed fruit ketchup.
Vision: Has been to be the leader of UK's Ketchup production market and further expand
their reach into international market.
Mission: The Heinz stated mission is just to shape appreciation for goods used on a regular
basis. Huge numbers of consumers are particularly promoted to their company through this
assistance from a commercial project.
Market analysis: Heinz's Ketchup wants to determine industry dynamics and customer
appetite for such commodity. Furthermore, consistent review of business competitors was also
needed.
Financial projection: Heinz's Ketchup needed £50,000 to bring Mix Fruit Ketchup into
the market for the final product production and involves all operating or marketing expenses.
Activities Cost (£)
Raw material 18000
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