Innovation and Commercialisation Report for Oven-fresh Bakery

This report delves into the critical aspects of innovation and commercialization, using Oven-fresh Bakery as a case study. It begins by defining innovation and its distinction from invention, emphasizing their significance for the bakery. The report then explores the 4Ps of innovation (Product, Process, Position, and Paradigm) and how they support capability and management. It examines strategies like the innovation funnel and frugal innovation that Oven-fresh Bakery can adopt to develop new ideas. The report also outlines the process of innovation, from conception to commercialization, including the development of a business case, accessing funding, and protecting intellectual property rights. Finally, it provides a critical evaluation of the entire innovation process, offering a comprehensive understanding of how Oven-fresh Bakery can enhance its product offerings and market position through strategic innovation.

Unit 8: Innovation & Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1 - Understanding Innovation.............................................................................................3
Background of the company and challenge being faced by company.........................................3
Differences between invention and innovation and their importance to Oven-fresh Bakery......4
How organisational vision and leadership can promote teamwork to develop an innovative
culture in the organisation for its commercial success................................................................5
4Ps of innovation and how this supports capability and management of innovation..................6
Approaches that Oven-fresh Bakery can take to develop innovative ideas.................................7
Process of innovation the Oven-fresh Bakery should go through to develop and embed new
and innovative products...............................................................................................................9
Section 2 – Developing innovation model.......................................................................................9
New ideas for new product development and ways to access funding........................................9
Innovation Business Case for Oven-fresh Bakery.....................................................................10
Importance of commercial funnel in the new product development process for its commercial
success.......................................................................................................................................11
How Oven-fresh Bakery can protect the intellectual property rights of a new product............12
Critical evaluation of the entire process,...................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation can be defined as creating new value and capturing value in a new way. Value
is something that creates difference between invention and innovation. In other words innovation
has been defined as something new for a business that is aimed at fulfilling customer required
specially those who remained untapped. Innovation is highly important for an organisation and
this is why several organisations are stressing on building innovative culture in organisation.
This report is aimed at discussing different elements of innovation and will discuss difference in
invention and innovation and later will discuss about 4P’s of innovation. Further report will
discuss about approaches of developing innovative ideas and process of innovation that
organisation requires to go through. In other section of the report company will involve scouting
new ideas for product development and ways to access funding. Later will also involve
developing innovation business case for Oven-fresh Bakery and will discuss importance of
commercial funnel in new product development. Later, report will also discuss about protection
of intellectual property rights and critical evaluation of entire process of innovation.
Section 1 - Understanding Innovation
Background of the company and challenge being faced by company
Oven-fresh Bakery is a bakery that was founded by Mr. Wilbur and was started 5 years
ago and was only providing one type of white bread. This means that product offering of Oven-
fresh Bakery was limited and nor company is facing pressure from different stakeholders to
diversify product line. Mainly problem and challenge of the company is centralised on
innovation. This means that company is facing pressure from health-conscious customers to
address their needs and this need has been visible through falling turnover of the business. Along
with this company is also facing pressure from retailers to expand product line of Oven-fresh
Bakery so that they can offer more products of company to Oven-fresh Bakery customers. This
means that company is facing challenges regarding increasing their product offerings and bring
innovation in company to offer more products to customers and also to address varied
requirements of the company. Oven-fresh Bakery also facing challenge in form of reducing
turnover and innovation is only possible and suitable solution for this challenge.

Differences between invention and innovation and their importance to Oven-fresh Bakery
Basis of
Difference
Invention Innovation
Definition
Creation of the product and process
for the first time.
Innovation can be defined as
improving and making a
significant contribution to an
existing product, service and
process (Haeussler and Assmus,
2020).
What is it Invention is creation of new product. This is adding value to something
that already exists.
Occurrences
It occurs when a new idea strikes a
inventor or scientist
This occurs when there is a
requirement for improving existing
product
Concept
development
This is concerned with identifying
idea and working on the theory of idea
This is concerned with practical
implementation of a new idea
This means that invention and innovation can be similar and can also be used
interchangeably but are significantly different from each other. Invention stops at creating for the
first time however innovation is not that (Liening, Geiger and Kriedel, 2018). Innovation starts
when invention stops and this is concerned with adding value in existing invention.
Importance of invention and innovation to Oven-fresh Bakery
Invention as well as innovation both is important for Oven-fresh Bakery because invention
involves creating something (product, service and process) for the first time. Oven-fresh Bakery
can develop products that are in category of products offered by bakery however as it already
provide white bread company can utilise this concept and enhance and modify existing product.
Invention will help Oven-fresh Bakery in creating a new image of the company as inventor and
will provide benefits like leader of creating and advantage associated with being first mover.

This involves advantages like advantage in pricing as a inventor Oven-fresh Bakery can earn
through its monopoly strategy in pricing (Johnsson, 2016). This will help Oven-fresh Bakery in
balancing its reduced turnover. Along with this invention will also help in strengthening
competitive position of the Oven-fresh Bakery in market.
Innovation is also important as innovation will help Oven-fresh Bakery in increasing its product
category by modifying and enhancing elements in existing product offerings.
This means that a challenge that Oven-fresh Bakery is facing it is very important for the
company to invent and innovate to strengthen its position in market.
How organisational vision and leadership can promote teamwork to develop an innovative
culture in the organisation for its commercial success
Innovative culture in the organisation is very important for the purpose of its commercial
success. In order to promote teamwork to develop an innovative culture it is very important have
right vision and leadership. Vision refers to what an organisation wants to achieve, for Oven-
fresh Bakery it is important to have a vision that requires element of innovation to achieve that
vision. Leadership is also crucial in promoting teamwork to develop innovative culture.
Innovation has become important for commercial success and this is why it is important that
organisation focus on innovation in its culture (Hojnik and Ruzzier, 2016). Innovative culture is
one in which employees of the organisation has significant focus on innovation. This is
concerned with products, services as well as processes of the organisation and innovation
involves improving existing processes and products. Along with vision, leadership is also
important in developing an innovative culture. Leadership is an act and practice of influencing
people and their actions and through effective and suitable leadership, Mr Wilbur can create
innovative organisational culture.
Concerned with developing innovative culture of the organisation Transformational leadership
style is highly suitable and effective. Transformational leadership style is based on four elements
that are-
Intellectual stimulation- This is concerned with encouraging creativity and innovation among
followers and in business organisation this involves encouraging employees to work creatively
and challenging status quo.

Idealised influence- This element of transformational leadership style is about serving employees
as role model. This means that leaders rather than motivating by words, motivate employees by
their acts.
Inspirational motivation- Inspirational motivation involves motivating employees through vision
of the organisation (Zuraik and Kelly, 2019). It is important for innovative culture, vision of the
organisation is clear to every individual in organisation and is appealing so employees strive to
achieve the vision.
Individualised consideration- Individualised consideration of leader involves identifying
strengths and weaknesses of individuals and offering support to encourage them. This requires
leaders to keep line of communication open and encouraging employees to share their ideas.
4Ps of innovation and how this supports capability and management of innovation
Product
Product refers to offering of the company and this is first P in four P’s of innovation. Through
this element organisation consider whether they can create a new and innovative product to offer
it customers. This element of innovation is highly focused by organisations as most of the
organisations often work to provide innovative products to the customer (Akgun and et.al.,
2017). Company is facing challenges concerned with Limited product offering Oven-fresh
Bakery required to focus on its product development and innovation.
Process
This is another element of innovation mix. Process can be defined as a procedure through which
organisation creates value and in other words process is something through which organisation
create product. While considering process innovation company required to improving it existing
process and add new elements in existing process through which it can create better value. This
innovation is aimed being faster and more efficient and sometimes also to reduce cost involved
in creation of product.
Position
Position refers to market segment which is currently targeted by a company. Innovation in
position involves targeting new market segment with the product that has not been market being

targeted or in other words is completely new product for the new target market. This requires
company to identify market where their products or any similar product does not already exist.
Paradigm
Paradigm is also known as business model. Paradigm innovation includes changes to where how
and why product is used and how things are done (Bali and et.al., 2016). Innovation in paradigm
involves developing new business model and principles and values of a business.
Concerned with supporting capability and management of innovation 4 Ps of innovation can play
a very important role. This means in order to bring innovation it is important to identify required
capability and management of innovation also takes place on the basis of which kind of
innovation is adopted by organization. This means that paradigm innovation will require
effective management of change within organization to ensure that organizational people can
work in a changed organizational paradigm.
For Oven-fresh Bakery product innovation is most appropriate because challenge of company is
associated with Limited product offerings. Product innovation will increase product line of
company.
Approaches that Oven-fresh Bakery can take to develop innovative ideas
There are different approaches that Oven-fresh Bakery can consider to develop
innovation ideas. These approaches involves-
Innovation funnel
Innovation funnel can be defined as mechanism that enables continuous stream of ideas
that can considered for viability (Yun, 2017). This is a tool that companies can utilise to help
them in innovation.

Figure 1 Innovation Funnel
This is first stage of innovation also known as wide mouth company increases its knowledge and
information. In this stage Oven-fresh Bakery will collect information and ideas and will
encourage employees to share their ideas. With higher ideas company can develop more
products. Information can be collected from competitors, research, existing partners and other
sources through which organisation collects its information.
Second step involves matching ideas with objectives in order to identify their relation (Anzola-
Román and et.al., 2019). This also helps in determination of idea to be adopted by the company
and them developing idea by accurate allocation of resources and developing processes.
Last stage of this funnel is deliver products or shipping products in which organisation’s ideas
are developed and then they are delivered in order to realise objectives.
In this Oven-fresh Bakery will require to collect ideas and then develops products and for
Oven-fresh Bakery this is a very important to adopt this approach of innovation.
Frugal Innovation
Frugal innovation is concerned with process of reducing the complexity and cost of goods and its
production. This mainly involves removal of nonessential features of a durable product in order
to develop it in emerging economies. In other words, frugal innovation is concerned with
developing products with limited resources and also ensuring quality and affordability to masses
(Albert, 2019). This means that products that are developed by Oven-fresh Bakery can be used
for longer period of time and also does not have any nonessential element. For example- Oven-

fresh Bakery creates breads that can be used for longer period of time, however as breads and
bakery products does not involve any nonessential element Oven-fresh Bakery requires to focus
on durability of the product.
Process of innovation the Oven-fresh Bakery should go through to develop and embed new and
innovative products
Process of innovation that Oven-fresh Bakery should consider for developing new and
innovative product is as follows-
Conception- This is first step and involves requirement analysis, identifying why company
requires innovation. Further this step involves idea generation, in which organisation collects
different types of ideas (Garud and et.al., 2016). Later this step involves evaluation of idea, this
involves evaluating idea in order to identify whether idea is suitable for the purpose of the
company. Later this involves planning of the project in which organisation develops planning
about development of product.
Implementation- This is second step of innovation in which Oven-fresh Bakery will require
developing products (Garud and et.al., 2016). Oven-fresh Bakery will need to work on planning
that is done in previous step and this is followed by implementation of plan and creation of the
products.
Marketing- This is last step in which innovative product is commercialised by Oven-fresh
Bakery. This involves test marketing and success of test marketing leads to marketing of the
products (Hojnik and Ruzzier, 2016). This involves product launch and market penetration
through promotions. Success of overall innovation process is mainly dependent on success of
this step.
Section 2 – Developing innovation model
New ideas for new product development and ways to access funding
There are several ideas that Oven-fresh Bakery, this is because Oven-fresh Bakery can
produce several products that come under the category of bakery products. This involves breads,
cookies, desserts, snack cakes, and other sweet products like doughnuts and different types of

rolls and other products. Because of increasing pressure from health conscious customers, Oven-
fresh Bakery can innovate these products differently by containing their taste and ensuring that
are suitable for health consciousness customers (Schemmann and et.al., 2016). This involves
reducing sugar or making sugar free products and also reducing elements like gluten and other
non-healthy elements considering health conscious customers.
Ways to access funding
Bank loan- This is one of the simplest way to access funding for the business. This is also a
suitable way for an established business. Oven-fresh Bakery can utilise this way to access
funding. This is also suitable for operational capital and also for long term growth plans of the
company.
Angel investors- These are affluent inventors who pool research and resources and provide
capital for the business start-ups (Arthur and Gallagher, 2018). They provide capital in exchange
of ownership or in form of convertible debt.
Bootstrapping- This is another important way of funding, bootstrapping involves using own
capital and funds for the purpose of investment and funding in organisation.
Innovation Business Case for Oven-fresh Bakery
Several possible new ideas were identified in previous heading. Among these ideas
creating gluten free cookies is one of the most suitable ideas for Oven-fresh Bakery. This will
fulfil requirements of health-conscious people and also will increase product line of Oven-fresh
Bakery. Oven-fresh Bakery can create gluten free cookies in different variants.
Matching goals to resource and capabilities- Because Oven-fresh Bakery is a established
business and it has all material and resources to fulfil requirements for creating Gluten free
cookies (Cao and et.al., 2020). This will help in fulfilling goals of Oven-fresh Bakery that
involves increasing product line of the company. Through this one innovation and developing it
in different variants company will be able to increase its product line.
Assessment of risk involved- Concerned with risk, major risk involved is success of product in
its target market. This means that even after research when product fails to impress and attract
customers, it will cause huge loss of resources and efforts to Oven-fresh Bakery. Risk is also

involved in operational activities, this involves failure of operational processes, accidents related
to process or machinery involved in creating gluten free cookies. This means that there are
different types of risks involved and in order to avoid this Oven-fresh Bakery requires ensuring
effectiveness of processes.
Value analysis applying frugal innovation- Frugal innovation involves removing nonessential
features from the products. In order to make product durable and suitable for health conscious
customers, gluten has been removed from cookies (Shandilya and et.al., 2020). In order to ensure
success of product and improving market value test marketing can be done by Oven-fresh
Bakery to get initial inputs and also improving this for broad market.
Importance of commercial funnel in the new product development process for its commercial
success
Commercial funnel is very important for the new product development process and for
commercial success of the product. Commercial funnel refers to a process in which organisation
attracts customers from target market to buy products of the company. New product development
considering this process can help in commercial success of product. Commercial funnel
involves-
Awareness- This is first step in which prospective customers learn about existence of the
product and service. This also involves awareness of the problem that they can solve with
product (Venermo, Rantala and Holopainen, 2020). This means that this process involves
awareness of customers regarding existence of gluten free cookies of Oven-fresh Bakery.
Interest- This is second stage of the process in which potential customers express their interest
for the product being offered to them. Customers start following Oven-fresh Bakery and its
updates on different channels.
Decision- This is another stage in which customers make decision that they want to buy products
of Oven-fresh Bakery in order to fulfil their objective and solve their problem. This means that
when customers get to know about existence of gluten free cookies, in this stage they will look
for variants available and what product that they are willing to buy.

Action- This is stage in which customers buy products of the company and become customers
from potential customers. This is the objective that organisation have in which it seeks to convert
its potential customers to customers.
Retention- This is concerned with retention of customers with Oven-fresh Bakery. This requires
elements like effective services and customer satisfaction (Paschen, Wilson and Ferreira, 2020).
By providing quality product at affordable price Oven-fresh Bakery can ensure customer
retention.
How Oven-fresh Bakery can protect the intellectual property rights of a new product
Intellectual property rights refer to legal rights that are given to inventor operator of a
product or service for a certain period of period of time. These are exclusive rights that remain
with inventor for certain time to ensure that new product or service created by them are
completely utilised by them. In order to utilise intellectual property of creator or inventor
individual or organisation requires buying intellectual property rights. As Oven-fresh Bakery has
created a new product they also require intellectual property rights so thatthey only can produce
and sale their newly created product exclusively. This will provide them opportunity to get
benefits of first mover. In order to protect the intellectual property rights of new product Oven-
fresh Bakery needs to get patent for their new product.
Patent- patent is a right that is granted to an inventor by government that permits
inventororcreator of new product to exclude others from making selling and using invention for a
certain period of time. Oven-fresh Bakery needs to get patent for the method of create in gluten
free cookies and this will allowed them to exclude others to copy their method and creating
gluten free cookies for a certain period of time (Brem, Nylund and Hitchen, 2017). Because
product created by Oven-fresh Bakery comes under category of edible product company will
require to get a food patent. Food patent is a type of patent that comes under category of utility
patent.Food patent under this category allows patent for food and recipe in other words method
of creating food products.
Critical evaluation of the entire process,
Concerned with process of creating innovationforOven-fresh Bakery company has selected
product innovation because challenge that company is facing is limited product offerings of