Innovation and Commercialisation Report: Heinz Case Study, Semester 1

This report provides a comprehensive analysis of innovation and commercialization, using Heinz as a case study. It begins with an introduction to innovation, its importance, and a comparison with invention. The report then explores how organizational vision, culture, leadership, and teamwork shape innovation and commercialization. It delves into the 4Ps of innovation (position, process, paradigm, and product) and the use of the innovation funnel. Furthermore, it examines frugal innovation with examples, the importance of the commercial funnel, and new product development processes. An innovation business case is developed, and the report concludes with an evaluation of tools for developing, retaining, and protecting intellectual property. The report covers various aspects of innovation, providing a detailed overview and valuable insights into the subject.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explanation of innovation & its importance to company in comparison with invention......3
P2. Explanation of how vision, culture, leadership and teamwork of an organisation shape
innovation & commercialisation..................................................................................................6
TASK 2............................................................................................................................................7
P3. Explanation of 4Ps of innovation and use of innovation funnel ...........................................7
P4. Frugal innovation along with examples ................................................................................9
TASK 3..........................................................................................................................................10
P5. Importance of commercial funnel and new development process.......................................10
P6. Innovation business case .....................................................................................................11
TASK 4..........................................................................................................................................12
P7. Evaluation of Different tools to develop, retain and protect intellectual property..............13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation is defined as the process of translating an invention as well as idea into products
and services, which develop value for customers in an appropriate manner. In addition to this, it
refers as a path to which an entity attract large number of people and enhance its performance as
well. It is determine that nowadays people like to consume those things that is innovative and
new in market as well (Akhundjanov, 2020). In the present report, Heinz is taken into
consideration. It is one of the Britain's brand which offer product such as Tomato Ketchup,
Heinz Beans, Cream of Tomato soup and many more. The company was established in the year
1869 and its main factory is situated in UK and Ireland as well. In earlier, its Ketchup contain
glass bottle that have a risk to break and is also inconvenient for customer also. For this, the
higher authorities of Heinz is planning to bring an innovation that is to replace glass containers
by squeeze vessel that is convenient and easy to carry for customers. The present report will
cover importance of innovation along with its comparison with invention. In addition to this,
there is discussion about how organisational culture, vision, teamwork and innovation shape
innovation as well as commercialisation. Moreover, 4Ps of innovation and development in
frugal innovation along with examples is described. Furthermore, the report will going to cover
the significance of commercial funnel along with application of new product development. Later,
an innovation business case is develop that consist of various ways of access funding in a proper
manner.
TASK 1
P1. Explanation of innovation & its importance to company in comparison with invention
Innovation: It is consider as a process of make changes in the existing product or bring
something new in terms of product, field or idea as well. Innovation help an entity to capture
large market share and develop a unique image at marketplace. In context to Heinz, It is a
renowned and for it is important to bring innovation in order to retain in market and to enhance
its customer base level. The company bring innovation that is replacement of glass containers of
sauce to Squeeze vessel.
Invention: It is defined as an act of bringing objects or ideas together in a unique way in
order to develop something which did not exist before (Altaf, Hassan and Batool, 2019). In many
organisations, invention take place when they have new idea that is totally different and unique

in market and has the ability to attract people and enhance its market share as well. For instance,
development of electric vehicles is totally a new concept in market that ensure growth as well as
success.
Importance of innovation:
Innovation plays vital role for every organisation as it help in attracting people and
develop a unique image in market as well. It is determine that it is important for a company to
ensure that innovation that is bringing by them is as per the market trends and fulfil requirements
of customers as well. The significance of innovation is given below:
Helping in growth of company: As per the viewpoint of experts, it is determine that
innovation help an entity to expand its operations in an effective way, which has positive
influence on the overall growth and success of company. In addition to this, innovation assist in
gaining eyes of people towards brand and develop positive mindset of customer that directly
leads to growth and development of an organisation.
Reinforce Brand: One of the most essential factor that plays vital role in gaining success
and growth as well is development of positive brand image at marketplace (Awni, 2019). It is
analysed that innovation process aid an entity to develop unique image in market that supports
in developing value for customers and set a brand image in mind of customer in a positive
manner.
Creating of USP: Bringing innovation directly mean of providing unique features and
attributes in market. It is determine that innovation help in developing a distinct image at
marketplace which in turn assist in attaining competitive advantage at marketplace. It will
directly leads to increase in performance and profitability level of an organisation in an effective
manner.

Responding to competition and trends: Innovation assist an entity to gain knowledge
about what opportunities they cab gain by their existing products and services. It is determine
that innovation help in fulfilling current needs of customers, deal with new market trends and
cope up with new technology. By this way, an organisation can respond to current trends and
remain n competition at marketplace.
Continuous improvement: It is analysed that innovation provides organisational
sustainability when an entity continuously make improvements and re-branding its products as
well as services. Making improvements help in attracting large number of people towards brand
that has a positive influence on sales and profitability level of a company.
Difference between Invention Innovation
Basis Invention Innovation
Meaning It is defined as bringing
something totally new in
market which does not exist
earlier as well. The companies
focuses on binging completely
new in order to increase its
product line and capture large
market share in an effective
manner.
This process is associated with
the development of new idea,
features, attributes within the
goods and service which is
already offered by company.
Bringing innovation help in
increasing consumption
product and services that leads
to increase in sales as well as

profitability in an appropriate
manner.
Concept This concept is mainly adopt
in order to give better service
to customers prevailing within
the society (Bond-Smith,
2019). It is determine that
invention take place for
different customer segment so
that there is proper utilisation
of new products as well as
services.
This concept is associated with
the development of value of a
specific product and service as
well. It help in providing
unique features and develop
brad image at marketplace in a
positive manner
Activities It is determine that invention is
limited with the practice of
research & development.
It is determine that innovation
cannot have limited access as it
spread at all the departments of
an organisation.
Innovation plays vital role as it assist in gaining business growth and development in an
effective manner. In addition to this, bringing innovation help an entity to attract more number of
people towards that has positive influence on sales as well as profit margins of company.
Moreover, innovation assist in raising market share and effectively respond to the disrupters
prevailing in the industry. Innovation allow an organisation to gain success and attain
competitive advantage at marketplace in an effective manner.
In addition to this, it is analysed that innovation is more effective as compare to the
invention. Innovation provide more opportunities an organisation for attaining growth in market
whereas invention occur high cost to company due to which overall profitability and revenue
level is declined (Zimmermann, Ferreira and Moreira, 2019). It is determine that innovation
takes less time as compare to the invention and also there is probability of acceptance of
innovation of products and services at marketplace.

P2. Explanation of how vision, culture, leadership and teamwork of an organisation shape
innovation & commercialisation
One of the main objective of every organisation is to gain growth as well as long-term
survival at marketplace. It is determine that there are several factors that help an entity in
achieving its desired goals in an effective manner. These factors are teamwork, vision,
leadership, culture of an organisation. It is analysed that all this factors shape innovation and
commercialisation that is given below in relation to Heinz:
Organisational vision: It is consider as an action which help an entity in bringing out an
innovative idea for an organisation that directly leads to attainment of desired objectives within
stipulated time period. It is determine that managers develop new ideas and strategy by
considering its vision and communicate it to all the staff members. In context to Heinz, its vision
is to offer some different taste and quality of product and packaging to its customers so that they
can grab attention of people and develop value for them in an effective manner.
Leadership: It is defined as a process of guiding and instructing people in order to
achieve desired goals in an effective manner. In addition to this, it is stated that an effective
leader is one who has the ability as well as potential to influence and motivate employees
towards attainment of objectives (Brem, Bilgram and Marchuk, 2019). With reference to Heinz,
it is determine that its leader make use of transactional and transformational leadership as it help
them to make employees conveyance to adopt changes in a timely and appropriate manner.
Moreover, it is significant for leaders of Heinz to make use of effective leadership style so that
innovation take place effectively and efficiently as well.
Culture: This factor include background, religion, language, values, beliefs and opinions
of staff members that is prevailing within the company. In case of Heinz, its higher authorities
ensure that requirements of its overall employees is fulfilled so that they can work with full
potential towards attainment of objectives within given time period. In addition to this, it is
analyse that company allow all the staff members to participate in the process of decision making
which help in bringing new idea and innovation in an effective manner.
Team work: One of the key factor of meeting with the targets and attain success is
Teamwork. It is determine that team working is more effective and productive as compare to the
individual performance. In relation to Heinz, it has teams that perform different functions such as
marketing, finance, operations and many more. All such teams help organisation to develop

some unique idea and implement them in market in an appropriate manner that directly leads to
raise in performance and productivity level of Heinz effectively (Chou, Hu and Shih, 2019).
Importance of cross functional teams
Cross functional teams are those wherein team members have different set of skills and
capabilities and is working to attain a common goal. It also consist of people belong from
different backgrounds and is performing so that organisational objectives is attained within given
time period (Laurent and Leicht, 2019). There are various benefits of development of such team
that is development of management skills, improvement in communication skills, development
of team building skills and sole. This teams plays vital role as organising cross functional teams
develop good relationship, motivate employees and improve confidence level due to which staff
members is retained for longer time with the organisation.
TASK 2
P3. Explanation of 4Ps of innovation and use of innovation funnel
Innovation is basically a procedure which is adopt by companies for the development of
products as well as services that is already existing in market. Heinz is redesigning its packaging
of ketchup glass containers to squeeze vessel that help company to provide convenient and easy
consumption of its product. For the implementation of such innovation and attainment of positive
results, it is determine that company can make use of 4Ps of innovation that is position, process,
paradigm and product as well. All this is described below in context to Heinz:
Paradigm – It is consider as identification of various ways by which company is
implement all the functions associated with innovation. In relation to Heinz, it is determine that it
make use of systematic innovation that help in gaining knowledge about the various innovation
ways and implement activities in an effective and best manner as well.
Product – It is determine that one of the innovation that comes in the mind of employees
or top level management of an organisation is product innovation. It is basically adding some
new feature, attributes within the product in order to make it attractive and enhance its
consumption level in an effective manner (archow and Röhm, 2019). With reference to Heinz, it
brings innovation within the packaging of Ketchup containers so that its consumption is
increases that has positive impact on sales and profitability as well.

(Source: Innovation space 4P's, 2016)
Position – It is basically alter the context of the goods and services and introduce it in an
effective manner. In addition to this, this factor basically take place in order to develop positive
mind set of people that is target market in an effective manner. Heinz is launching a new design
of Ketchup packaging that is handy and convenient for customers and for this, it make use of
promotional tools in order to develop position in market and enhance its acceptance level in an
effective manner.
Process – It is basically defined as the way of how innovation is delivered in market. It is
essential for higher authorities of Heinz to make use of proper and effective tools at the time of
production of products as it help them to create and delivered innovation in an effective manner.
In addition to this, it is determine that top level management of Heinz make use of performance
analysis tool in order to ensure proper im0plementation of activities and attainment of positive
results in an effective manner (Liyanage, 2019). Moreover, this innovation is delivered in
market by the assistance of marketing tools as it help them
Illustration 1: Innovation space 4P's

(Source: Innovation space 4p's , 2015)
Innovation funnel
Innovation funnel is mainly used to describe the steps which take place in the
development of process or product as well. It is also termed as Funnel management procedure
that is mainly adopt by entities in order to develop a realistic as well as innovative action plan.
Innovation funnel mainly consist of three major steps that is given below in context to chosen
organisation:
 Investigation – It is consider as the initial stage of innovation funnel and herein an entity
collect as many ideas as possible in order to bring innovation. It is determine that more
number of ideas aid companies to gain quality and better solution as well. If it is talking
about Heinz, it is identified that company has separate research team that examines and
conduct detailed study about the market scenarios along with the competitors action
which will help Heinz to make effectively bring innovation and new plan in market.
 Development – Herein, all the ideas which are create at the first stage is screened and
those idea is selected which is matching with the organisational goals (Ruposov, Belikov
and Urintsov, 2018). In relation to Heinz, its bring innovation of squeeze vessel that help
Illustration 2: 4p's of innovation

in attracting large number of people towards brands as it is easy to handle and use as
well.
(Source: Innovation funnel,2016)
 Product Delivery – It is consider as the last stage of innovation funnel and herein the
final product that is decided to bring in market is getting launched in a proper manner. In case of
Heinz, it is going to launch Squeeze vessel packaging of Ketchup and it is important for
company to bring such innovation in a proper manner so that people can attract towards it that
leads to increase in profitability of Heinz.
P4. Frugal innovation along with examples
Frugal innovation is defined as the procedure of declining the level of complexities &
cost of production as well as goods in an effective manner. In simple terms, it is using for
removing non-essential features from the products that has positive influence on performance of
an organisation. It is determine that Frugal innovation help an entity to convey things without
any obstacles and imperfections as well (Mat Jalaluddin, Othman and Harikrishna, 2019). It is
considered as an important tool as it help an organisation to deliver more value to customers at
lower cost without compromising the quality. Fir instance, General Electrics VSCAN make use
of principle of frugal innovation. In 1980, General Electrics healthcare was a leading provider of
traditional ultrasound machines globally. The demand of its product is getting high but after
penetration with Chinese market, it is required to replace expensive hardware of traditional
ultrasound machines and replace it with cheaper software in order to retain in the Chinese
market. There are various principles of frugal innovation that is given below:
Illustration 3: Innovation funnel

Principle 1: Engage and iterate: It is determine that old models of research and
development is time consuming and inflexible. Customer engagement and development of good
relationship with them help an organisation to gain better understanding about customer
requirements.
Principle 2: Flexibility: It is analysed that frugal approach is applicable to the asset
chain that consist of distribution, manufacturing, services, people and so on. For example, BMW
make use of light-weighting approaches for its electric cars that involve carbon fibre and
aluminium irrespective of steel.
Principle 3: Development of sustainable solutions: With the change in environment, it
is important for an organisation to develop those products and services that is sustainable and
offer is recycle in a proper manner. For instance, MacBook 2018 of Apple are produced with
100% recycle aluminium.
Principle 4: shape customer behaviour: This principle states that increase in awareness
and motivation as well help in shaping positive customer behaviour. One of the example is
Care4Today application which aid patients to stay on time table with their medication.
Principle 5: Make innovative trends: Another principle of Frugal innovation is hyper-
collaboration with suppliers, government, partners and competitors as well. For example,
General Electrics partnership with Quirky (a crowdsourcing platform) in order to develop
products such as Aros air-conditioner.
One of the example of frugal innovation is TATA Nano car that is world's cheapest car.
Most of the engineers working on Nano and used high-quality plastic panes for increase
structural stability. In addition to this, Nano has a seat with an integrated headrest, its frugal
engine and its easy shift mode. All such features assist TATA to bring out car at an economical
price in market.
TASK 3
P5. Importance of commercial funnel and new development process
Commercial funnel is consider as a marketing tool by which an entity find, trade as well as
qualify its products as well as services to customers. In addition to this, commercial funnel
breaks down customer journey from awareness to the buying stage. Moreover, it is a systematic
procedure of attracting customers towards goods and services & imposes then to buy it. For this,