Innovation and Commercialization Strategies: A Heinz Company Report

This report provides a comprehensive analysis of innovation and commercialization strategies within the Heinz Company. It begins by defining innovation and its importance, contrasting it with invention, and emphasizing its role in creating value. The report then explores the significance of organizational vision, leadership, and culture in fostering innovation, highlighting how these elements influence a company's ability to adapt and thrive. It delves into the 4Ps of innovation (product, process, position, and paradigm) and their application within an innovation funnel, providing insights into how Heinz can improve its products and processes. The report also examines frugal innovation, commercialization funnels, and new product development, offering a business case for innovation and exploring funding options. Furthermore, it covers tools for developing, retaining, and protecting knowledge and intellectual property. The conclusion summarizes key findings and recommendations for Heinz to enhance its innovation efforts.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Innovation and it's importance to organisation and comparison with invention...............4
P2 Organisation vision, leadership, culture and leadership....................................................6
P3 4P's of innovation and it's use in innovation funnel .........................................................8
P4 Meaning and developments in frugal innovation..............................................................9
P5 Importance of commercial funnel and application of New Product Development.........10
P6 Case for business to be innovative and how it can access funding to finance it's innovation
..............................................................................................................................................10
P7 Tools to develop, retain and protect knowledge and intellectual property.....................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION
Innovation is a process of innovating and creating new idea, method or device. In relation
with company, innovation mainly refers as a creation of more effective goods and services that
creates value for company. Whereas, commercialization is a process in which an organisation
create economic value. With the help of converting knowledge and inventions into significantly
improved goods and services in order to fulfil consumer needs and wants. In this report company
which is chosen here is, Heinz which is food processing industry founded by Henry J. Heinz in
the year 1869. Company is engaged in the process of salad cream, baked beans and tomato
ketchup. In this report discussions have been made on importance of innovation in organisation,
organisational vision culture and teamwork that can shape innovation and commercialisation.
4Ps of innovation development of frugal innovation has also include in this report. Different
tools that can help organisation to develop and protect their knowledge and intellectual property
and innovation business case is also made in this project (Chun, Chung and Bang 2015).
TASK 1
P1 Innovation and its importance to organisation and comparison with invention
Innovation: It is a process that can be used by organisations to add more creative values
and elements in their products and services in order to generate competitive advantageous.
Innovation is an overall result of invention and commercialism. Mainly, it is a procedure
through which modification of existing products and services has been done by introducing
something new in the production process. That change could be in their size or design. Main aim
of this technique is to provide extra benefits and pleasure to satisfy consumer needs and wants.
This process benefit organisation to expand their consumer base and increase profitability. With
the help of innovation Heinz can enhance their Return on Investment ( ROI). Heinz is doing
continuous innovation in their products some of these are, tomato ketchup, tomato soup, tomato
chutney and sweet pickles and many other innovations which provide consumer some extra
value added services.
Invention: Invention is an activity of bringing something new. It can be a new and useful
product, services, process or machine. It is mainly a process in which a total original idea,
method, composition or product are launched. In relation to company, this process means
featuring and invention that include technical and knowledge advantage as compared to existing

one. For organisation like Heinz, this process of invention is very beneficial that will drive them
towards more success. Heinz has been continuously involved in inviting new different products.
Some prominent example of invention in Heinz are their new sweet pickles which has been
created in order to increase consumer experience of having pickles.
Difference between Innovation and Invention is firmly evaluated below:
BASIS INNOVATION INVENTION
CONCEPT Innovation is a process of
adding more values in a
product and services. A
company implement
something creative in their
existing goods and services to
increase their competitiveness
in market and generate more
growth.
Invention is a procedure of
creating something totally new
product and services.
Company develop fresh new
goods and services that aims
towards creating a whole new
market of that product in a
marketplace.
SCOPE It is a wide scope in which
company undertakes all
activities related to overall
factors of market theme,
technology, innovation and
initiative cost (Abdul Razak, A
Murray,and Roberts 2014).
Invention is a narrow scope in
which company have
opportunity to undertake only
single goods and services into
consideration.
OCCURRENCE This process is essential for an
organisation when there is any
advancement required in
existing goods and services.
Scientists use unique ideas
which helps them in invention
of new products.
SKILLS REQUIRED In order to adopt various
techniques of innovation in
company, different types of
technical skills, strategies and
It is essential for a company to
have effective scientific skills
in order to invent something

marketing plan are required by
company employees.
new.
Importance of Innovation in Heinz
It is essential for every organisation, to adopt innovation in their company process in
order to achieve profitability and market competitiveness’s. As, in this dynamic world where
everything is continuously changing it is important for Heinz to take advantage of innovation to
sustain in this complex business environment. Innovation benefits this company to increase it's
return on investment and consumer base. Some major importance of innovation is mentioned
below:
 Enhance creativity of Employees: Effective and efficient techniques in
innovation not only benefits company but it also enhances creativity level of
employees. Heinz manufactures thousands of food products and one of the
famous brands in worldwide. With different innovation techniques Heinz can
increase productivity and efficiencies for their employees. Company can also
involve employees in the process of innovation which can increase their
indulgence in function of organisation process. This will benefit them to make
more committed towards company and increase their skills and productivity
(Sengoku 2015).
 Reduce cost: With the help of new innovative techniques and measures company
can reduce their cost which they spend on unnecessary inventions of different
products and services. Innovation helps Heinz to adopt new cost effective
techniques to create remarkable goods and services.
 Increase profit: This is an important factor for which every company run their
business, innovation benefits companies to enhance their earnings and consumer
base. Innovation helps organisations to add something extra to their products and
services which can help them to attract more attention of consumers in a market
place. Heinz can use effective innovative techniques in their production process
for example, they can use different flavours in their sauces and pickles to add
more values in their products to attract large amount of attention of consumers in
order to increase their return on investment.

P2 Organisation vision, leadership, culture and leadership
Innovation is an important part of business organisations to increase their creativity and
foster their growth. It is a process of creating new ideas. In context with a company innovation
benefits them to take advantage of useful ideas and then convert them into effective products and
services. Heinz can adopt different innovation techniques in all there process like, in product
development process and methods of management and their ways of working etc. to enhance
their creativity. There are mainly three types of innovation that are, technical, process and
administrative. Heinz can use various process of innovation in their culture for example, in
development of their business to business e-commerce sites they can take advantage of process
innovation. But for their growth and development they need to make continuous advancement in
their technical innovations in computer software and hardware system (Gulbrandsen and Aanstad
2015). One cannot adopt innovation in their working culture until their vision, leadership,
teamwork and culture supports that change. It is essential for Heinz to adopt modification in
their organisation practices in order to develop more creative environment. Some of the major
contribution done by Heinz in their leadership, teamwork, vision and culture are described
below:
Vision and Innovation:
It is essential for any company to spend their time, money and energy on innovation only
when they have effective vision strategy. In absence of vision team works in conflicting direction
that results in failure. Innovation only can become productive when leaders create systematic
vision and form appropriate strategy and communicate same with their employees. Vision of
Heinz is to be “ world's premier food company, offering nutritious, superior tasting foods to
people everywhere”. Being premier food company doesn't states that being biggest but is refer
towards being best in terms that it provide best consumers services, values, employee talent and
predictable growth. In order to accomplish this vision, company needs to implement effective
modification in their production process (Greenaway and Rudd, 2014). This will benefit
company to generate more competitiveness and profitability.
Leadership and Innovation:
For implementing various advancement techniques in innovation process of organisation,
it is basic responsibility of leaders to effectively guide and motivate their employees and team
towards effective performance. It is necessary for Heinz leaders to give some time and space to

their employees which benefit them to develop their skills and become more creative and
innovative. Employees are less innovative when they spend most of their time in day-to-day
business activities or to meet deadlines.
Culture and Innovation:
Culture refers to beliefs and value that is adopted by an individual or a company. There
different types of culture variability in an organisation that leads fragmentation of effective
innovation in their culture. For this is necessary for leaders to implement effective culture in their
environment to foster growth of company and leaders. In Heinz the basic responsibility of their
leader is to draw effective coordination in their culture value which allow employees to adopt
flexible environment of working and become more creative. It is essential for company to
develop chain of trust between their employees and management to think innovative. In order to
create this environment it is essential for Heinz to allow and give freedom to think, talk and try
different things to their employees.
Teamwork and Innovation:
To face challenge, it is essential for leaders to implement various techniques of
innovation to make their team work in collaborative manner and motivate them to face new
issues to work in effective manner. Leaders in Heinz need to make sure that their team members
meet on regular basis to share their ideas and information with each other to execute allotted task
in effective manner. Innovation can benefit company to sustain in tough condition. Teamwork in
Heinz will benefit them to increase their productivity and profitability.
TASK 2
P3 4P's of innovation and it's use in innovation funnel
4P's of innovation mix is a tool that that enables to discover the manner in which a
business can innovate certain steps to improve their product, process, position and paradigm.
This process provides an effective direction and area in which organisations need to implement
innovate steps. With help of these business organisations can develop efficient and new ideas.
These steps will benefit companies to achieve long term advantages. 4P's of innovations are
firmly described below:

(Source: 4P's of Innovation, 2018)
Product Innovation: In this various measures are created to innovate and improve
effectiveness of existing products. Heinz can implement new methods and advanced technology
to improve their existing process or product or create something new. They can also determine
some effective steps through which they can improve their food products in order to satisfy
consumers and increase profitability.
Paradigm Innovation: Paradigm include values, beliefs, theories and doctrines. Models
and theories included in this helps to understand manner in which world and market operate and
ways in which they can develop new paradigms with the help of innovation in order to enhance
their development process. Heinz with help of this process can determine effective manners
thorough which they can increase quality of their food products.
Process Innovation: It is a procedure in which organisation figure out new and
innovative measures to creates their value and improve their process in order to become more
efficient and create cheaper goods and services that also have better quality. It is an internal
process that will benefit Heinz to higher its profitability. Managers of Heinz need to evaluate
overall process of company which includes production of their food products and their
distribution process.
Illustration 1: 4P's of Innovation

Position Innovation:It includes new market segments for the product and services. In
this process organisations figure out various ways to find new market for their products and
services that is completely new for a company. With help of this Heinz can find new and
different market segments for their products. Position innovation benefits, Heinz to increase their
consumer base and gain long term sustainability for their organisation (Pellikka and Malinen
2014).
Use of Innovation Funnel
Innovation funnel is a measure that an organisation takes during a process of developing
their products and services. Main purpose of using this measure is to enhance and create
effective products and services that are preferred by consumers. It is essential for Heinz to
consider all steps persuasively to produce effective food products to their consumers in order to
satisfy their needs and wants. There are mainly three steps included in this process which is
necessary for organisation to firmly examine. First step include in this are making strong
information base that will benefit organisation to collect effective knowledge of market and
current trends in marketplace. Heinz can utilize this step to gather information about competitors
and consumers with the help of surveys and questionnaires.
Second step in this process is to effectively screening of company ideas. It is essential for an
organisation to implement competent ideas to generate more effective products and services in
market. Screening of ideas will benefit company to maximize their ROI.
At last, effectual idea which can serve overall objectives of organisation can only be
determined after critical evaluation. After that product is offered to consumers. Heinz need to
implement competent strategies to fulfil needs of organisation and consumers in flexible way.
Therefore, innovation funnel will benefit Heinz to maximise their overall productivity and
profitability also it will aid company to increase their return on investment (MacGillivray
2014.).
P4 Meaning and developments in frugal innovation
Frugal innovation generally refers to measures that are undertaken by companies to
reduce their complexity and cost of production. This innovation dramatically reduces cost of
products and services by removing non-essential elements from durable goods. This innovation
is generally affected by political, environmental and social factors for a country. Organisations

implement frugal innovation in their business to reduce cost of their products and make them
available in lower prices in a marketplace.
Frugal innovation can become very effective for Heinz to increase their return on
investment. This method is mainly adopted by firms when there is a scarcity in resources. This
will benefit company to reduce their cost in production process. Example of frugal innovation in
relation to Heinz is, that they can provide less carbohydrates and fat free food products. This can
benefit them to increase their consumer base in a marketplace because there is large amount of
health conscious population who want to associate themselves with organisation.
It is essential for Heinz to adopt frugal innovation technique in their regular process as it
will benefit them to enhance their profitability and maximize their Return on investment. Less
carbohydrates and fat free food products enable even obese and old age consumers to consume
their food products. Hence, it will provide an effective consumer base to Heinz. This will help
them to increase their effectiveness and quality to their products and services. In addition to this,
all these measures taken by company can build strong consumer relationships and enhance
consumer loyalty which will results in continuous growth for company.
P5 Importance of commercial funnel and application of New Product Development
Commercial funnel also refer to sales and revenue funnel. It is a graphical representation
of sales process a consumer goes through when they are buying a product. This concept is
mainly based on an idea that is, basically all consumer go through same phase when they make a
purchase. First step included in this process in awareness stage and last stage indicates towards
post-purchase evaluation (Sengoku 2015). It is an effective process of moving business units
from domestic market to international market. In relation with Heinz, company in order to
achieve more opportunities form market is required to increase their sales performance in
addition to this, company is also going to launch a new product. Reason behind launching these
fat free and less carbohydrates products is health consciousness prevailing in environment. This
will benefit company to increase their sales performance and achieve high competitive advantage
in marketplace. As company is moving their business units in global market, it will aid Heinz to
generate large amount of consumer base as their food products aims towards effective health of
population. Moreover, globalisation helps business to expand their operations in maximum

countries and grab more attention of audience while launching their new product successfully. It
is essential for Heinz managers to form appropriate guidelines and guide their teams and
employees towards effective job performance. Some important phases of commercial funnel for
product development are briefly described below:
Idea Generation: It is an initial stage of process in product development in which
managers of Heinz are require to develop effective ideas in order to improve their sales
performance. Less carbohydrates and fat free products helps in keeping in track with health
consciousness concern of people and dealing with latest preferences and requirements of
individuals.
Idea Screening: Here, in this step, managers of Heinz will analyse the feasibility of this
product in context of marketplace so that company can stay ahead of its competitors. This will
also help in ascertaining the possible areas where this product can fail and taking necessary steps
to overcome it.
Testing Concepts: In this step, research and development department of organisation
analysed the needs, demands and requirements of customers so as to gain loyalty and retain them
for a longer time. Also, this will ensure that less carbohydrates and fat free products get success
in market context.
Analyse needs of product development: This step is one of the most imperative steps
wherein strategies are developed to successfully launch the product in market. Also, this will
ensure that less carbohydrates and fat free products gain widespread acceptance from public and
assists the company in building a positive corporate image.
Commercialization: This is the final step wherein Heinz can finally introduce the product
in front of people with the aim to gain a large share in marketplace and enhance its current
profitability. This would ensure that less carbohydrates and fat free products are successfully
launched by making use of effective marketing and strategic techniques.
P6 Case for business to be innovative and how it can access funding to finance its innovation
Innovation helps organisations to satisfy demands of their consumer efficiently which
results in increase in their rate of investment. It also benefits company to gain competitive
advantages for long period of time. Heinz can implement innovation strategies to reinstate
themselves as a market leader in tomato ketchups and pickles. This will benefit them to increase

their reputation in market and in the minds of consumer as well (Dincer 2017.). Innovation
business case of Heinz are mentioned below:
STEPS DESCRIPTION
SUMMARY Heinz is a worldwide food processing company that indulge in
the process of manufacturing thousands of food products and
aims at providing best quality of tomato ketchup to their
consumers.
OBJECTIVES Objective of company is to increase their Rate of Return on
Investment( ROI) with the help of implementing various
innovative methods in their products and services.
SOLUTION To achieve organisational objectives and vision effectively,
company is planning to introduce less carbohydrates and fat
free food products to their consumers in United Kingdom as
well as in whole world.
INNOVATION IN
PRODUCTS
Products will be innovative as it is the first time Heinz is going
to engage in process of production of less carbohydrates and fat
free food products for their consumers. In order to achieve this
target, Heinz is taking advantage of Non starchy vegetables and
natural sugar to provide fibre and other necessary nutrients to
their consumers. With dynamic changing world towards health
consciousness company food products will benefit consumers
to take care of their health in effective manner (Fuertes-Callen
and Cuéllar-Fernández 2014).
RESEARCH Heinz is mainly focus on evaluating market and impact of their
products on consumers with the help of surveys and
questionnaires. Products introduced is totally as per accordance
of UK market and their consumer needs.
FUNDING To convert this ideas into an effective action, Heinz is planning