Innovation and Commercialisation: A Comprehensive Report on Heinz

This report delves into the concepts of innovation and commercialization, using Heinz as a case study. It explores the importance of innovation for organizations, differentiating it from invention. The report examines how organizational vision, leadership, culture, and teamwork shape innovation and commercialization. It discusses the 4Ps of innovation, the innovation funnel, and frugal innovation, providing examples of their application. Furthermore, it explains the commercial funnel and the New Product Development (NPD) process. The report includes the building of an Innovation Business Case, including ways to access funding, and analyzes methods for protecting intellectual property. The report aims to give a comprehensive overview of innovation and commercialization strategies for business success.

Innovation and
Commercialisation

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................4
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation............................................................................................................6
TASK 2............................................................................................................................................7
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................7
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................8
TASK 3............................................................................................................................................9
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation..................................9
P6 Build an Innovation Business Case for an organisation, including ways to access funding.
..............................................................................................................................................11
P7 Analyses of various methods or techniques for Protecting Intellectual Property...........12
CONCLUSION..............................................................................................................................13
REFERENECS..............................................................................................................................13

INTRODUCTION
Innovation refers to a process in which a new ideas or any product or any new service
gets create. Innovation brings ease into the lives of people by satisfying their problems or by
making their work an easy task to perform. In this competitive world where all the company is
striving to gain competitive advantage through by bringing new and innovative services or
products into the market. Innovation is the key for the success of any organisation. To survive
into the market an organisation needs to bring new products or services which can satisfies the
needs of the targeted market. For reference this report has taken an example of a company,
Heinz. It is a British multinational company which engages in the selling of beanz, ketchup,
tomato soup crème and the like. The company is considers as Europe largest food factory. Apart
of this the Heinz company has become one of the trusted brand into the market, customers can
easily rely upon it.
This report discusses about the innovation and its importance into organisation. The report also
discusses about how the culture, vision, leadership can help the organisation in shaping the
innovation and commercialisation. Apart from this, the report also covers the NDP and the
importance of commercial funnel.
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Innovation: Innovation refers to a process of translating any idea or thought into reality.
Transferring the ideas and thoughts into reality is considers as innovation. Through innovation
the lives of people become very much easy and as their work gets done through innovative
technology (Baycan and Stough, 2013). Innovation plays a vital part in any business and
organisation. The changing time and increase in competition is forcing the organisation to bring
innovation into their workings, products or services which they got to offer.
Differentiation between innovation and invention:
Basis Innovation Invention
Meaning Innovation refers to bringing a
new and innovative change in
the things or the idea which is
Invention refers introduction
of a total new concept into
market. That concept or

already exists into the market. product or service has never
being brought into the market
before. It is totally new to the
people.
Presence Innovation majorly takes place
in companies or the
organisation. The innovation
helps the organisation in
bringing the required changes
into the product or services
they are indulge in.
There is a very less scope to
bring invention in an
organisation. Any new
invention is usually brought by
a totally new enterprise. They
have an idea, they convert it
into reality and then they sell
their idea into market and
earns money by creating a
niche market.
Frequency The frequency for Innovation
is much higher than the
frequency for invention.
Mostly every industry or
business focuses upon
innovation rather then bringing
invention.
The frequency for invention is
much less as inventing a
product or service is much
time taken. Performing the
invention is also a costly affair
for only company.
Types of Innovation: There are in total 4 types of innovation, and these are as follows-
Incremental innovation: This type of innovation is very much used by the companies. In
incremental innovation, the organisation brings changes into their existing products and targets
in existing market. Innovation could be brought through bringing any change into the product
which can be adding some features, changing the design for the product, changing the packings
and so on. Through this the organisation gains competitive advantage into the market place so
that their customer gets stick to them (Do, 2014). As in the case with Heinz company, they use

incremental innovation by bringing some sort of change or new feature into their existing
products. For example they may bring a new flavour into the existing one.
Disruptive Innovation: This type of innovation is also known by Stealth Innovations. In this the
organisation brings up a new technology or a new process into the existing market. This style of
innovation is very much stealthy in nature and as it involves the introduction of new technology
or process it is very much expensive to the company. The features involves into that will be very
limited. Through the use of new technology, the old technology gets replace by new one. For
example the company Heinz has adopted a total new process or technology for producing the
products. The technology which is been adopted by the company is very new and they also helps
the organisation in performing the production activity with greater efficiency and effectively.
The new technology enables in organisation in mass production with lower cost.
Architectural innovations: The architectural innovation refers to an innovation into technology.
The current technology which is been used by the company is very much effective but further to
increase the efficiency the organisation tries to bring up more change into the existing
technology. Through this the organisation can bring more productivity with regard to their
production. As in case with Heinz, the company is pretty much satisfied with its current
technology for production, but for increasing the production more they will try to bring new
advancement into that technology just to make it more efficient.
Radical Innovation: In this type of technology, the organisation brings a whole new innovation
or creation of the product or service (Duncan and O'Neil, 2013). Through this the organisation
tries to shallow its market place and the number is customer targeted is very much huge. They
are considers as the first movers for the technology. For example, Heinz ketchup company is
very much old. When it introduced itself into the market place they created a niche market by
selling the pure tomato ketchup.
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
The organisational vision, leadership, culture and teamwork do helps an organisation in building
up the innovation in the following ways:
Organisational vision: Organisational vision refers to a neat and clear picture which the
owner of the business sees about the organisation in the future. It tells that where the
organisation wants to see itself. The strategies formed by the organisation helps it in ascertaining

the goals or vision which it has decided for itself. According to the goals the strategies are
formed and these need to get change in accordance with the technology prevailing or innovation
bringing into the market. The organisational vision must get integrated with innovations which
are taking place otherwise the organisation may get fail in ascertaining its vision.
Leadership: Leadership refers to a quality to influence others to follow a desired direction. The
leader has the capability to influence others. He also has a very good skill for motivation. A good
leader is also have the capabilities for self- motivation and of motivating others. In the context of
innovation, a true leader must analyse the need for bringing the innovation into the organisation.
He is the one who detects the needs and motivates the other employees also in accepting the fact
to bring the innovation into the work or process. Follow8ing are the types of leadership styles
which is been adopted by an organisation:
Top to down: In this type of leadership style the organisational goals and decision making power
is accommodated with the senior level people only. In this approach all the decision are made by
the senior level people and the flow of decision or any message is from top to bottom that means
the senior level people make the decisions by themselves and then they transfer the same to their
juniors. It is more of an autocratic environment where the contribution of power level
management people is nothing (Glushchenko, 2014). They just have to follow the orders to what
the have received from seniors.
Participative: In this type of leadership style the organisation engages the people of lower or
middle level management and then they made the decision. In this type of approach the seniors
members take the ideas and the opinions of other junior members and then they take the final
decision. This type of approach is very much democratic.
The company, Heinz adopts the participative approach for leadership as in this the
employees gives new and innovative ideas to organisation which actually can benefits them.
Culture: Culture refers to the way of living of any particular group of individuals. The
organisational culture refers to rules and regulation which the organisation has with regard to
working style into their systems or structures. The culture of the organisation should be such that
it adapts any new innovative and creative method or process into organisation. As in the case
with the company, Heinz, its culture is such that it openly adapts any innovative and creative
change into the organisation. It is very much open to innovations and they know that these
innovations brings ease into the working of employees and organisation. Also, the company

encourages the culture of diverse work force in which they hires the employees who belong to
different background or culture (Helen, 2016). Through this the organisation does get new ideas
and ways for performing the work.
Team work: Heinz encourages the cross functional team in which they bring together the people
of different functional areas together. This activity helps in bringing up new and innovative
ideas. Such ideas and opinions would helps the organisation very much. The cross functional
teamwork has the following advantages in any organisation:
More productivity: When the team member in a team belong to different functional area, they
would probably be master or would have command upon their skills. This would help the team in
increasing their productivity level. People belonging from different functional area will make the
team self reliance. They would be capable in performing different task or work by themselves
only.
Innovative ideas with collaborative culture: Through cross functional teams, the team member
belonging to different functional area having different experience with regard to work will get
collaborate. From this the team members would bring different ideas and the ways for
performing the task as per the experience they have with themselves. This will bring innovation
in the methods for their work and techniques they use. Hence, increasing the productivity for
work.
TASK 2
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas.
The 4 P's for innovative are as follows:
Product innovation: in this the innovation is brought up in the product which is been offered by
the company. As in the case with Heinz food company, they have brought up the innovation with
regard to their product offered. They bring innovation in regard with the flavours of ketchup
which is offered by the company. The types of crème and the like. The innovation into the
product enables the company in gaining the competitive advantage. They timely brought the new
product into the market place which also helps in retaining the customers with the company.

Process innovation: It is a type of innovation in which the organisation brings change in their
production method or in their method of delivery. The innovation in production method would
help the company in increase in the performance for production speed (Holloway, 2015).
Bringing innovation in production activity is also very much important as it helps the
organisation in increase into the phase for productivity with less or lower cost, more advance the
technology would be, more productivity it would bring into the organisation, that too with less
cost.
Position innovation: It is the innovations which are done by the organisation in bringing or
introducing the product into the market place. Positioning is a process in which the organisation
introduce the product which it is offering into the market or to the customers. The company,
Heinz, uses new and innovative method for introducing or positioning its product into the market
place or into the minds of customers. Such methods also are very much beneficial for the
company.
Paradigm innovation: In this type of innovation the organisation brings the innovation in which
they analyses and bring innovations into the methods or system of the organisation. It may refers
the organisation systems, structures, cultures, policies, rules, legal laws and so on.
Innovation Funnel: It is a process in which the ideas which get generated gets into the
screening. In this the ideas which generated are then tested for their feasibility and viability. The
process of innovation funnel is very much important as:
Gives the best: The ideas which get generated by the persons get filter out as they goes through
the process. The ideas which are not feasible or viable would screen out from the list and the best
one would get stay.
Helps in choosing the best for alternatives: This process helps the organisation in choosing the
bes from the available options or choices. The ideas which can get implemented properly would
get choose by the organisation. This process enables the organisation in choosing the best idea
from the available option.
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation: It refers to eliminating or reducing the feature of a product or saves its cost
for production. The feature which is reduced or removed by the organisation does not contribute
much into the product but only adds up into the over all cost for production. Every business

performs the frugal innovation in which can reduce the cost for the company. The frugal
innovation is being adopted by the Heinz company (Kang and et. al., 2013). There are various
key factors also which enables the company in simplifying the process for frugal innovation,
which are as follows:
Investigation: In this stage or step the organisation evaluate or investigate about the
innovative plan which is related to introducing a new product or offerings by the company.
Through investigation, the organisation would get to know about the area in which they need to
introduce the frugal innovation. It is the first step for planning for reducing the cost for the
production activity. The investigation process investigate about the areas where they can reduce
the cost by eliminating the features. As in the case with Heinz company, it can investigate about
their packaging style which can reduce their cost for packaging of products.
Development: After investigation the organisation can develop the plan in regard to bring
the required change into the product. For this the organisation makes a plan about how they
would be bringing and implementing the change. The plan would be according to the demand
and need of the market condition and situations (Martey, Al-Hassan and Kuwornu, 2012). As in
the case with Heinz, the company has develops a plan about how they can bring the frugal
innovations with their packaging style. The plan that the company would decide will be
according to the needs and demand of both the organisation and the market.
Shipping of the product: After the proper investigation and development of product, the
product gets finally distributed and transported to the ultimate customers or consumers. The
whole process get completed only when the organisation ships the product or offered item to the
customers. Similarly in Heinz, the process would get complete when the products will get
shipped and delivered to the ultimate customers.
For example: TATA Nano car is a car which has the price of 1 lakh rupees only. The major
motive to build up that car is to provide the benefits of car to middle class people also. The
company with their frugal innovations has reduce the extra features or elements and try to fit the
basic features of a car in nano so that they can make it worth for 1 lakh Rs. This is because of
frugal innovation only the TATA company is able to provide the auto mobile in such a low
price.

TASK 3
P5 Explain the importance of the commercial funnel and the application of New Product
Development (NPD) processing for commercialisation of innovation.
Commercial funnel is the process in which the company is found out by the customers, gets
qualifies from the customers and then the customers finally purchases the products. In
commercial funnel the organisation follows the following stages which are as follows:
Awareness: In this stage the organisation creates an awareness about the product and its
features into the targeted market place. As in case with Heinz, the company sets its awareness
about the new product into the market by stating the features and USP's to the customers (Mattila
and Lehtimaki, 2016).
Interest: In this stage, there some creation of interest about the product or services among
the customers and targeted market.
Decision: In this stage the organisation creates a decisions about the product. The
decision may be about whether the product is of their interest or use or not? Whether they will
satisfy the needs or demand? And etc.
Action: In this stage the customer take the actual action through buying the product or by
refusing it to buy. At this stage the customer purchases the product if they thinks that product is
very much useful to them. Or they refuse to purchase the product if they do not feel the worth.

New product development can be defined as production of a whole new product by the
organisation which has the whole new and unique features, characteristics, or any new product
which satisfies the needs and wants of the customers. Through that product the utility that the
customer should get must be equivalent to the price paid. The organisation through the
introduction of new product can retain their customers and positions into the market. The
development of New product goes under many stages which are as follows:
Idea generation: At this stage the organisation generates the idea for product
development springs up. It is the idea only which converts the idea into the mere reality.
Idea evaluation: The idea which is been generated, then get evaluated and analysed in
which they monitor if that idea is feasible enough to get executed or not. In this all the factors
which surrounds the idea get analysed and evaluated.
Development of concept: At this stage the idea which was generated gets develop into a
proper concept. In this concept get framed properly and then proper planning is done in relation
to make it as a reality (Nagamachi and Lokman, 2016). The product or the service for which the
idea was generated gets developed and then it gets finalised to market it for the introducing it
into the market place.
Marketing strategy: At this stage the organisation focuses upon making the strong
promotional activities so that they can successfully launch the product into the targeted market.
Business strategy: In this stage the organisation decides about the factors like cost, value
for sales, distribution channels, margin for profits, targeted groups and the so on.
Development: At this stage the product actually gets develop by the organisation.
Test marketing: Through test marketing the organisation launches the product to a
smaller group of people or market just to test about their new product. The organisation makes
any changes if they feel that a particular feature is not liked by the group.
Commercialisation: At this stage, the company launches or introduces the product to the
whole market.

P6 Build an Innovation Business Case for an organisation, including ways to access funding.
Executive summary: Heinz is a British multinational company is specialise in selling the
tomato ketchup, crème, and other food related product into the market place. The company has
innovate some new products in ketchup and crème. The organisation plans to introduce the
product into their targeted market.
Product: The organisation is finding out the new and innovative way for launching the
products into market places so that they can successfully gain their commercial funnel as per
they planned (Pellikka and Malinen, 2014).
Solution: The problem for ascertaining the right methods for marketing or introducing
the product into the targeted market can be solved by analysing the methods for marketing
approaching along with their level of affectivity into the market place.
Innovation: The organisation brings innovation in the ways for performing the
marketing. For performing the marketing activities, the organisation chooses to organise some
public events for the promotion purpose, they will also take the help of various advertising
activities like Television ads, newspaper ads, holders and etc. The organisation can also opt for
many other activities which can help the organisation in managing their marketing and
promotional activities. The innovative methods that the company, Heinz can use are as follows:
Public events: The company can organise a proper public event for the company in which they
can interact with the public by conducting various activities and games with them. In this way
the company can also builds up the good relation which the public and they also can promote
their new product.
Advertising method: The methods which are used by the organisation for its advertising
purpose should be very much innovative. They can go for a famous person or celebrity for
advertise their products or services render. This would increase in the customer base and brand
awareness among the targeted market.
Sources of finance: There are various sources of finance is available to the company
which are as follows:
Bank loan: Loan is a measure of cash acquired for a set timeframe inside a reimbursement plan.
The measure of reimbursement rely upon the size and span of a loan and the pace of intrigue. It
is given to address the issues of specialists, organizations or sole ownership. Today, Bank loan
has become significant piece of business.