Report on Innovation and Commercialisation for Hummingbird Bakery

This report explores innovation and commercialisation within an organisational context, focusing on the Hummingbird Bakery. It discusses the meaning and importance of innovation, how vision, culture, teamwork, and leadership shape innovation and commercialisation. The report examines sources of invention, the 4Ps of innovation, and the innovation funnel. It also explains the use of frugal innovation, the commercial funnel, and the New Product Development (NPD) process. Furthermore, the report outlines how to shape an innovation business case, including ways to raise funds, and evaluates tools for protecting intellectual property. The analysis provides insights into how organisations can foster innovation and successfully commercialise new products and services.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
P1 Discuss the meaning and importance of innovation in context to organisation........4
P2How the vision, culture, teamwork and leadership of the company shape the
innovation as well as commercialisation.............................................................................6
M1. Various Sources of invention and how businesses foster and create an environment
and culture of innovation.....................................................................................................8
D1. Innovation is developed, embedded and measured....................................................8
P3 Discuss the 4Ps of innovation and how innovation funnel use to examine and shape
advanced ideas......................................................................................................................8
M2. Analyze and apply innovation funnel.......................................................................11
P4 Explain the use of frugal innovation in relation to an organisation.........................12
M3. Review the effective role of frugal innovation in an organisation...............................12
D2. Produce the financial reports.........................................................................................12
P5 Discuss the significance of the commercial funnel and the process of New Product
Development (NPD in relation to commercialisation of innovation: -...........................13
P6 Shape an Innovation Business Case for a firm which comprises of various ways to
raise funds...........................................................................................................................16
M4. Develop a detailed innovation business case............................................................17
P7 Evaluate the different tools that organisations can use to protect the intellectual
property...............................................................................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Innovation may be referring as a suitable way or process which are used by the
organisation to create new thoughts of ideas. In the field of marketing innovation plays a very
important role, this comprises several set of new products and practices which are developed
with unique application by the organisation (Hahn and et. al., 2019.). The following report is
based on the Hummingbird Bakery which is situated in London. It provides varety of balery
products to the customers at affordable price. The following report is going to cover the
importance of the commercial funnel which provide the solution of this problem. In addition to
this the analysis of the frugal innovation has also been covered in this report. The importance of
innovation and invention has also been discussed in this report. This report also covers that how
vision, culture, leadership and teamwork shape innovation and commercialisation. Along with
this a summary has been developed in this report which help in meeting the stakeholder need.
This report also covers the NPD process and including ways to access funding for the innovation
in the respective business. Furthermore, this report covers the various tools which can be used by
the respective company to protect the intellectual property and the rights for launching new ice
cream.
TASK
P1 Discuss the meaning and importance of innovation in context to organisation
 Innovation: - The term innovation may be defined as the process of presenting new
ideas and thoughts in relation to the development of the new product and the services in
the market. With the help of innovation, an organisation can effectively connect with
their consumer, as innovation within the product fulfil the need of consumer consumer
in a very effective manner. (Ho, 2019.) . In context to the Hummingbird Bakery, the
company will advertise their new product tofu icecream, which is developed with fresh
tofus and offer their consumer according to their requirement of healthiness. When the
goods and services has been developed with different set of applications then in the field
of marketing it acts as a challenge for the other company. With the help of innovation
within the management the organisation can effectively enjoy the competitive advantages
and benefits.

 Invention: - Invention may be defined as a suitable key for the organisation in order to
increase the product range. Invention may be defined as the process of making new item
or developing new ways of producing the item. (Hussain and et. al., 2018.). In order to
expand the business in the global market, invention also plays a very important role. In
the business organisation each individual presents their own ideas and thoughts in order
to developed the business strategies. The invention which is done by an individual are
basically unique because these are not demonstrate by any other in the market.
Importance of innovation and invention:-
In business organisation both the innovation and invention plays a very significant role.
With the help of this all the function and working can be done in a very effective manner. This
allow the management to maximise their productivity and help them in enjoying the
competitive advantage in relation to the stock invention which is directly connected with the
creating of the new products. The respective company is going to promote and advertise their
product name as tofu ice cream in the competitive market in a very effective manner which
ultimately help them in targeting new base of consumer. Along with this, this also help the
organisation in solving the issues and problem which is related to the advertising of the product.
As the ice cream which is developed by the company is made up of fresh tofus, this impact on
the consumers in a very effective manner which ultimately increases the productivity as well as
profitability of the Hummingbird Bakery.
Comparison between invention and innovation: -
Basis of comparison Invention Innovation
Meaning Invention may be defined as
the method of generating
original and unique thoughts
which help in developing
the new goods and services.
Innovation may be defined as
the process modernising the
goods and services of the
company or developing new
and innovative resources
within the firm.

What is it? This is related with the
development or creation of
the new and exclusive idea
in term of goods and
services.
This is related to the
implication of new idea on
the existing product or the
items which are in invention
process (Kanojia and et. al.,
2021.).
Concept The concept of invention is
totally related to
development of new ideas
and thoughts which are not
developed and created by
any other person.
The concept of innovation is
related to making changes in
the existing product of the
company. The idea of
innovation set the
organisation in a different
paradigm.
P2How the vision, culture, teamwork and leadership of the company shape the innovation
as well as commercialisation.
Commercialization may be defined as a process which help the organisation in bringing
the new goods and services in the competitive market. In simple term commercialization means
managing and running something properly for achieving the financial gain. The process of
commercialization comprises the implementation of the production, marketing, sales, customer
support and many more for the establishment of new product and service. This is totally different
form innovation, as in innovation changes have been made in the existing product whereas in the
process of commercialization a new product has been launched in the market. The shaping of
innovation and commercialization has been discussed below: -
 Vision:- The vision of the every company is to expand their business functions in the
different parts of the country. In context to the Hummingbird Bakery, a managerial vision
has been created by the company by developing a healthy tofu ice cream in the market.
With the help of vision, the organisation is able to think of its future along with this, this
allows the firm to set their goals (Lobo and Samaranayake, 2020.). As per their vision

statement the company is ready to bring innovation in the product which is very
beneficial for their success and growth. In order to innovate they are planning to
introduce tofu ice cream, which help them in providing varieties to their consumers.
 Leadership: - The leaders may be defined as those persons which motivates and
encourage the employees in order to achieve all the set objectives of the company. Along
with this, resolve all the problems and difficulties which are faced by them in the field of
marketing. It is very important for a company to have a good leadership. The
Hummingbird Bakery is going to launch new product named as tofu ice cream in the
market for their consumer. The taste of the tofu ice cream make their product completely
different from their rivals products. It is very important for an organisation to have a
leader because in innovation and commercialization process leadership is very crucial.
The leaders of the company utilize the resources at optimum level and define the role of
the employees towards the vision of the company that has been developed. An important
role has been played by the leaders of the company at the time of innovation.
 Culture: - the culture is totally related to the values and norms of the company according
to which the organisation works(Ma and et. al., 2018.). In context to the Hummingbird
Bakery, the management of the company always maintain a positive working
environment within the surrounding of the firm which motivates their workers. The
working environment of the company is being considered as the one of the most
important factor which shape the innovation and commercialization. With the help of
effective culture an organisation can grow in the competitive market in a very effective
manner.
 Teamwork: - teamwork may be defined as the cooperative efforts which are done by
employee of the company in order to accomplish all the target in a very effective manner.
In context to the Hummingbird Bakery, the leaders of the company develop efficient
culture within the company which motivates the teamwork and develop the team spirit
between the employees. It is very important for the management of the firm to motivate
the team work, it is very advantage for them. All the employees of the company work as
team within the workplace according to the set objectives of the organisation. In order to
achieve these objective efforts has been made by them.

M1. Various Sources of invention and how businesses foster and create an environment
and culture of innovation.
Some major sources of innovation are as follows-
• Demographic: by the way of this the product is ascertain as to its modification and its target
market.
• Market structure: it states the process as to how product is Commercialized in market.
• Changing perception: with respect to the Hummingbird Bakery, various innovative tools are
used to meet the perception of customers.
D1. Innovation is developed, embedded and measured.
The respective company has been in business for over two years and management plan to
develop advanced goods in their organisation (Barnett, 2021). The founders of the organisation
want to introduce new products over existing products in order to increase sales, rather than
switching existing products to new products. When looking at their business goals, they need to
discover some activities that will lead their business to success.
P3 Discuss the 4Ps of innovation and how innovation funnel use to examine and shape
advanced ideas.
The 4p's of marketing comprises those feature which help the firm in identifying that how
the management of the company bring innovation so that they can enjoy the competitive benefits
over their challengers and make their position better in the field of market. The 4P' s of
innovation has been discussed below: -

 Paradigm Innovation: - Paradigm is totally related with the changes in the managerial
techniques, procedure and concept in order to generate new and innovative sections. In
context to the Hummingbird Bakery, the company change their thinking in respect to
their potential buyers. (McCoy and et. al., 2020.). The paradigm innovation is being
considered as the changes which are responsible for underlying the mental models along
with this, in this innovation organisation also frame what is doing and how it is doing.
The customers of the respective company thinks that this is an ice cream company but
they innovate their product by adding healthy products which completely change the
thinking of the consumer.
 Product innovation:-. In context to the Hummingbird Bakery, a new product has been
launch by the company with all modification and excellent quality according to the
requirement of the consumer. In the product innovation changes has been done by the
organisation in product and services. The respective company are trying to diversified
their ice cream by adding or innovating some new flavours.
 Process Innovation:- if the management of the company wants to brings new product in
the field of market then then they need an innovative procedure in order to develop
goods and services. (Min and et. al., 2019.). The Hummingbird Bakery include and
exclude some product which change the flavour and attracts the consumer.

 Position innovation:- position innovation is also known as evaluation. The management
of the Hummingbird Bakery will provide high quality of products to their customer's
which help in developing a good brand image and positioning in the competitive market.
As respective company is not going to chose this method innovation as they focus on
whole population.
From the above discussion of 4 ps it has been analysed that the option is totally depend on the
company. What type of innovation they want in their business organisation. It is very important
for Hummingbird Bakery to understand the importance of innovation funnel. This help them in
implementing their ideas into reality.
Use of Innovation funnel in shaping and examining ideas:-
The innovation funnel is used by the organisation when they want something new within
the business. In context to the Hummingbird Bakery, this mechanism has been effectively
discussed below :-
Ideas & Conceptualisation
This is the first stage of innovation funnel the Hummingbird Bakery have to develop
some new idea for the purpose of innovation. In this stage organisation invite the different
members of the company in order to give new ideas. For the purpose of idea generation
brainstorming is needed.
Feasibility analysis
In this stage Hummingbird Bakery need to check the flexibility feasibility of the collected ideas.
They have to check whether the idea matches the set goals and objective of the company. The
ideas which are not matched need to be eliminated.
Development of new raw materials

Most appropriate ideas has been selected in this stage. The selection process is not easy
first they have to analyse all the collected data and the chose the best from the pool. For the
development of the new material the selected idea need to be converted into reality.
Customer approval & Trade
In this stage approval has been taken from the consumer by the organisation about their
innovative product. If approval has been received from the company then they start trade in that
particular good.
M2. Analyze and apply innovation funnel.
It is a measure by which the product and services of the company are promoted while
aiding the process of manufacturing within less prices. By the way of this there takes places the
rise in profitability as well as the sales of the company. With respect to Hummingbird Bakery, it

delivers affordable products while making the use of technologies which also results in low-cost
implementation.
P4 Explain the use of frugal innovation in relation to an organisation
Frugal innovation may be defined as that type of innovation which help the organisation in
reducing the unnecessary cost in a very effective manner. This innovation is related to the
production of the valuable goods. With the help of this process the organisation is able to reduce
the complexities in the innovative methods. Frugal innovation is a process help the organisation
in efficiently dropping the production so profit margin may be enhanced. Some important points
need to be considered which have been discussed below :-
Examples of frugal innovations used in the company: -
 they purchase the raw material from local supplier. These raw material have been use
by the Hummingbird Bakery in order to developed new product which decreases the
cost of production.
 For example like the respective company finds sustainability in the market. They
innovate their in a very effective manner which is economically as well as
environmental friendly. This innovation is very beneficial for the nature as well as for
the company.
M3. Review the effective role of frugal innovation in an organisation
The creator of Hummingbird Bakery is more tilted towards the way of low-cost investment
which also stands appropriate for the case of making the nutritional ice cream. Here the
techniques are used in a way which aids in minimizing the overall cost of the product while also
producing the several varieties of product.
D2. Produce the financial reports.
Requirements Cost
tofu cost 4000
Equipment’s 2000
Employees 1000
Cost of production 2000