Innovation and Commercialisation Strategies for Heinz: A Report

This report examines innovation and commercialization strategies within the context of Heinz, an American food processing company. The report begins with an introduction to innovation and its importance to organizations, followed by an analysis of how vision, culture, leadership, and teamwork support innovation and commercialization. It then delves into the 4Ps of innovation, the use of innovation funnels, and the application of frugal innovation. Furthermore, the report explores the importance of the commercial funnel, new product development, and the formulation of an innovation business case. Finally, it discusses tools for developing, retaining, and protecting intellectual property. The report provides a detailed overview of Heinz's approach to innovation and commercialization, offering valuable insights into the company's strategies and practices.

Innovation and
Commercialisation

Contents
INTRODUCTION..........................................................................................................................3
TASK 1...........................................................................................................................................3
P1 Innovation and its importance to organisation .................................................................3
P2 Explain how innovation and commercialisation are supported by vision, culture, leadership
and teamwork.........................................................................................................................5
TASK 2...........................................................................................................................................7
P3 Explain the 4P’s of innovation and explain use of innovation funnel for shape of
innovative ideas......................................................................................................................7
P4 Development in frugal innovation and example to use them in organisation context......9
TASK 3.........................................................................................................................................11
P5 Importance of commercial funnel and application of new product development for
commercialisation and innovation .......................................................................................11
P6 Formulation of an innovation business case for an organisation....................................13
TASK 4.........................................................................................................................................15
P7 Different tools that organisation used for developing, retaining and protecting knowledge
about intellectual property ..................................................................................................15
CONCLUSION.............................................................................................................................16
REFERENCES ............................................................................................................................18

INTRODUCTION
The term innovation and commercialisation can be defined as the process for formulating
and transforming the invention and ideas that are new and creative in market. The main motive
to implement innovation and commercialisation in organisational products is to attain better
position in market and innovation also aids organisation to earn more profits. This report is
written from perspective of Heinz which is an American food processing organisation and it’s
headquarter is situated in Pittsburgh, Pennsylvania. Moreover, the well-known products of Heinz
are sauce and condiments (Atkins, 2016). In the present scenario, Heinz UK is a successful
strong asset for organisation which accomplishes high excellence in manufacturing and
developing the brand image and Heinz it one of the trusted brand of UK. Moreover, this report
highlights on innovation and determine its importance for organisation and also on innovation
role that are shape through vision, culture, leadership and teamwork. 4P’s of innovation and the
use of innovation funnel to shape innovative ideas will focus in the upcoming report.
TASK 1
P1 Innovation and its importance to organisation
The term Innovation is defined as a concept by which the transition are formulated and
implemented among existing products of the organisation. The main aim of innovation is to add
more new features among products to satisfy needs and wants of customers in an appropriate
manner. In context of Heinz innovation is used by management to overcome from rapid
competition that exists in market and industry.
Invention relates with development of fresh and creative item or product in order to
increase product portfolio (Behsnilian and et. al., 2014). Along with this invention also helps an
organisation to enter into market for the sale and distribution of products. Invention is a process
in which organisation generate more profit by fulfilling demand and need of customers.
Basis Innovation Invention
Concept The process of innovation is
defined as a process that
engaged in business to modify
new product for matching
product value with existing
With invention process an
organisation develop a new
product that is launched newly
in market. Moreover, invention
also develop positive impact

demand of customers. on business by generating new
customer base.
Skills Strategic skill as well as better
training is required by
business to add more value
among all products by
learning innovation method.
Research skill is required by
the workforce or department of
business to implement
invention method for
developing new product.
Occurrence Innovation methods take place
or occur when there is a
change in the trend of
products.
Invention occur when there is
requirement is raised in market
for developing new product.
Invention and innovation both are different from each other but sometimes it overlap
each other by making changes. This governs that innovation is totally depend on invention as
innovation only take place when there is change required among current products (Elmes,
Mendoza-Abarca and Hersh, 2016). Further, it is also monitored that many times organisation
face challenges because innovation reduce product quality. Example- If innovation is
implemented without understanding market and customer requirements than it is difficult to
satisfy needs of customers.
Importance of innovation
With understanding globalisation aspect it is identified that innovation refer to generate an
effective process that is utilised by Heinz management for improving current products and it also
work as a catalyst which make business grow through adopting new marketplace. As comparison
to invention some aspect that demonstrates importance of innovation is mention as follow:
 Solve problem easily- In the present scenario, competition among all organisation and
industry is too intense due to which it is recognised that management of Heinz must
develop innovation method for satisfying needs and wants of customers by improving
products on constant basis (Handford and et. al., 2014). This results that Heinz make a
creative solution for satisfying customer needs and as compare invention with the
innovation it is identified that innovation is a low cost and fast method for satisfying
customer needs.

 To attain market opportunity- In the present scenario, there are different opportunities
relates with business and its exits due to dynamic environment conditions. Like,
globalisation aids individuals for selecting different option to buy a product. So
management of Heinz adopt innovation methods in order to add more value in products
which is leading company to enhance opportunity.
 Increase in productivity- With the analyses of macro environment factors by use of
PESTLE it is identified by Heinz management that through improving organisational
productivity sale and profits for organisation both are increased. Moreover, by comparing
invention with innovation the better option is innovation because it helps to develop
product according to market requirements.
P2 Explain how innovation and commercialisation are supported by vision, culture, leadership
and teamwork
Vision, culture, teamwork and leadership are most important aspect because they support
management to shape innovation and commercialisation. In context of Heinz methods which are
used by organisation are mention as follow:
Leadership style- Participative leadership style is implemented by management that is used by
organisation for improving their work possibilities. This result it is easy for organisation to
accomplish organisational goals and objectives because participative leadership style engage all
employees or workforce among organisational operations (Hoenig, 2014). This shape
commercialisation and innovation to perform all work in an accurate manner.
Creative culture- Most of the business expand their business from static environment to
dynamic environment. Similarly, Heinz management also start their operations in global
environment. In order to shape innovation and commercialisation creative culture generate sum
among dynamic parts of organisation that directly improve quality of product. Culture also
specifically modified by environment through generating healthy and dynamic environment in
internal premises of organisation.
KAIZEN- The word Kaizen stand for improvement that means continue improvement in
personal life and working life of an individual (Krishnan, Blumstein and Nehlsen, 2018). When
Kaizen is implemented among Heinz it is easy to improve work culture by improving workforce
skills with the help of organisation. This also results innovation leads management to gain
effective and desired results through encouraging employees to work with similar culture.

Teamwork- Heinz is performing their operations and functions at global level by recruiting
diverse workforce in organisation. So it is essential for management to implement right
teamwork techniques for adopting innovation method in an organised manner. Cross functional
team refers to a group of individual with different persons or individuals that are expertise for
performing their role. Heinz shape innovation and commercialisation by involving individuals
from all departments including marketing, financing, human resource and operations it results all
persons work for achieving a common goal.
Vision- Heinz work with vision of formulating products that match with existing requirements of
customers. This refers the main vision of respective organisation is to accomplish company goals
and objectives relates with sustaining in market for longer period. Further, vision formulates
innovation and commercialisation is shaped by vision through involving individuals to work with
new techniques to add more value in the offering products (Lewis and Deylamian,2016). This is
also identified by management that make long term results through implementing
commercialisation in organisation. For this management implement skill that are financial
control or project management to complete all work with innovation methods.

TASK 2
P3 Explain the 4P’s of innovation and explain use of innovation funnel for shape of innovative
ideas
There are four different P’s of innovation exists in market that are required by organisation
for completing all work in an effective manner (Miltenburg, 2015). Along with this the selected
framework leads management to understand innovation aspect. Some of them are mention as
follow:
Figure 1Source(https://knowledge-innovation.purot.net/dimensions-of-innovation)
 Paradigm- This is more related with the owner and for this Heinz management is
performing their work with involving innovative aspect. It results all task are completed
by management with the help of involving creative aspect. Product quality is also
improved to get modification in products.
Positive aspect- Person engage all employees to work with more efficiency through aware
all individuals for work in company.
Negative aspect- Only an individual is responsible if innovation not take place in an
appropriate manner which is a negative aspect for Heinz.

 Process- This P of innovation includes overall process for organisation in which
products are formulated with more efficiency. Moreover, Heinz management also utilise
process system for generating better thought process that make new arrangement for
performing organisational work (Sinapuelas, Wang and Bohlmann, 2015).
Positive- New and creative methods are implemented by Heinz that aids to overcome from
problems in a sequential manner.
Negative- Sometime to work with new process organisation need to invest more time which
show negative aspect for completion of project.
 Product- New products develop by management by utilising new process that improves
product quality. Along with this market area is also enhanced by organisation by
improving product quality.
Positive- The positive point for product aspect relates with increase in market area by using
creative process.
Negative- Heinz already manage large product portfolio so sometimes it is complex for
organisation to satisfy individual needs.
 Position- This defines the environment under which an entrepreneur performs their
work and it also includes both conducive as well as prohibitive innovation types (Smith
and Offodile, 2016). This is also utilise to work with more efficiency.
Positive- Heinz develop internal environment similar to external environment in which
management operate business. So it creates positive point that helps to complete task
properly.
Negative- With concern of negative aspect it is analysed by management press generate
long term challenge because environment conditions are too dynamic.
Innovation funnel
The term innovation funnel refers to a procedure which get utilise by organisation for
performing work with more effectiveness. This also result by performing all work according to
decided agenda Heinz is able to improve customer satisfaction. Some essential points of
innovation are mention as follow:
 Assessment for opportunity- In the early stage for adopting innovation Heinz
department conduct market research. So all essential relative information is gather b
management that is required to introduce innovation aspect.

 Ideation process- With this stage several ideas are process that relates with opportunity
and it is also capitalised by organisation for performing work with implement of
brainstorming ideas (Stierand, Dörfler and MacBryde, 2014).
 Conceptualisation- With adoption of conceptualisation stage overall concept are
designed that generate better ideas such as to promote Heinz new product in dynamic
environment.
 Benchmarking- While working with innovation aspect it is identified by management
to work with right agenda and it also lead Heinz to maintain quality of products. It
results organisation is able to forecast and earn more revenue to work with business
techniques.
P4 Development in frugal innovation and example to use them in organisation context
Frugal innovation is defined as a reverse innovation that describes an innovation method in
which technological products is customised with low price. In the context of Heinz frugal
innovation is implemented by management to complete all work with innovation aspect. But this
process also lead to work at the bottom of pyramid due to which Heinz face difficulties to work.
Some principle of frugal innovation is mention as follow:
 Engage and iterate- Research and development department perform work that is used
for engage interactive and prototype results through completing task in an organised
manner (Stratakos and Koidis, 2015). Example- Heinz engages individuals to work with
new techniques in order to gain better and effective results.
 To flex asset- With this principle organisation flex all asset to get use them for working
with more efficiency. Heinz management utilise this as a social principle that is used for
performing work with collaborative approach. Example- To work with principle of Flex
asset Heinz management complete all work with right steps.
 Create sustainable solution- With principle of sustainable solution better results are
gained by management through achieving its goals in specified time period. Moreover,
sometime it is difficult to implement sustainable principle because individual are not able
to develop innovation methods (Syifaa and et. al., 2016).
 Shape customer behaviour- With implement of shape customer behaviour it is easy for
management to accomplish better results that make visualisation and social comparison
that lead to generate business according to customer requirements. Example- Heinz

implement shape customer principle by making tool that is care for today and it design
strategy according to current work.
 Co-generate value- The term co-creation phase relates with discovery, design,
development and marketing. In context of co-create value principle frugal innovation
method is complex to implement. Example- Frugal innovation makes result that leads to
generate value with help of stakeholders but it is a complex task for organisation.
Figure 2 Source(https://www.umdaschgroup-ventures.com/en/magazine/frugal-innovations-for-
a-sustainable-growth)
TASK 3
P5 Importance of commercial funnel and application of new product development for
commercialisation and innovation
Commercial funnel play an important role and it is used by management for applying new
product development. Along with this it is also identified that frugal innovation leads
organisation for selection of right tools that reduces cost of company operations. This determines
management is leading company for offering products at low cost. Example- Tata is an Indian
company which develops budget car. For formulating this company implements frugal

innovation to minimise its operational and functional cost. In context of Heinz frugal innovation
implement by management for reducing cost but also ensure that its product quality in not
impacted. Heinz work with process of commercialisation for developing a transparent process
that allow management to complete project properly with using eight different stage that are
mention as follow: Idea generation- This work as initial stage in which new product development is started
with collecting various new ideas. Research department work with new ideas in which
management add more value by selecting new ideas. Idea screening- With the second stage of ideas screening organisation only select new
ideas that work for selecting right and better option. It also leads individual gain better
results. Concept testing- The concept make adequate results which is used for generating right
result that make better ideas to improve all products (Troch and De Ruyck, 2014). Heinz
utilise concept testing method for accomplish of target in minimum time period. Business analysis- After performing all work according to product concept which make
better marketing strategy. This also refer more individual are selected for accomplish of
company objectives that work with accomplish of all goals by engaging individual. Product development- According to product development stage all products in which
Heinz make wider range for improvement of work. This also refers individuals
management use performance criteria by testing all product. Test marketing- Balance scorecard is implemented by management to make test new
products. Heinz utilise test marketing methods for making essential modifications in
organisation products. Commercialisation- This stage implements techniques for making new range of products.
It result commercialisation select criteria which satisfies needs and wants of customers. It
is also used to make necessary elements for accomplish of organisational goals. Review of market performance- Heinz and all other organisation perform their work with
motive of completing task that leads to review different products and it also lead
management to compete with market.
Importance of commercialisation

Commercialisation is an important aspect for organisation that is leading business for
completion of all tasks with more efficiency. The first task which enhance management to make
important decision that also use to explain different class because it is important to work with
proper research for sustaining longer period in market (Syifaa and et. al., 2016). Another
importance relates with managing work with better value chain which make applied research to
deliver better products towards end user. AIDA R model is implemented for understanding
importance of commercial funnel and its importance is mention as follow:
 Awareness- This is the first aspect which is used to make brand notice in the market and
this refers to promote company products. In simple terms awareness undertakes steps of
promotion.
 Interest- It is the second stage which boosts customer interest with help of promotion
activities. Heinz generates interest among individuals by using market activities because
it helps to understand consumer or buyer requirements.
 Desire- In this steps organisation inter-relates their thoughts with practical training so it
is easy for management to being pair with practical training of product. Heinz utilise
desire stage to generate longer results.
 Purchase- According to research it is identified by management that purchase is an
important aspect for organisation. Therefore, Heinz focuses on customers in order to
promote products with mouth publicity as individual is more influenced to buy products
if it is recommend from relatives or friends.
 Retention- With generating opportunities it is identified that management creates long
term relationship with customers for retaining longer period in market. Once customers
are satisfied than it is easy to make them loyal customers for long period.
P6 Formulation of an innovation business case for an organisation
Innovation business case is developed by Heinz for working with techniques that make
management more organised for completion of organisational work in an appropriate manner.
New idea is generated by Heinz to manufacture onion sauce and paste which leads organisation
for completion of task by increasing their product portfolio. Along with this it is also identified
by management that new product is leading organisation to accomplish better results through
which improvement is constantly monitor within company premises. The new idea of respective