Corporate Innovation: Strategies and Implementation for Hallenstein Glasson Holding Ltd

This report discusses the importance of innovation in sustaining an organization and provides potential future innovation for Hallenstein Glasson Holding Ltd. It covers the strategies for designing and implementing innovation, measuring innovation, and designing incentives to support innovation. The report also includes the rules of innovation and how to apply them to an organization. Additionally, it discusses the importance of innovation in small and medium enterprises.

Running Head: CORPORATE INNOVATION 0
corporate innovation
Student name
MARCH 6, 2019

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Contents
Introduction......................................................................................................................................2
What to innovate..............................................................................................................................3
How to innovate...............................................................................................................................3
Designing an innovation strategy....................................................................................................4
Structuring a company for innovation.............................................................................................5
Designing the process of innovation................................................................................................5
Measuring innovation......................................................................................................................5
Designing incentives to support innovation....................................................................................6
Learning innovation.........................................................................................................................6
Designing an innovation culture......................................................................................................6
Applying innovation rules to an organization.................................................................................7
Innovation in SMEs.........................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
For an organization to sustain in market needs a new idea, and creativity to indulged in
the business to offer the customer something new, and improved. It is essential for the company
to integrate innovation in the business through product, or process, or through a change in
various aspects of the business as per the changes in the external environment in order to
improve the customer service and retain existing customers (Ahlin, 2014).
For a better understanding of corporate innovation, a New Zealand based company,
“Hallenstein Glasson Holding Ltd” will be considered in the report further. The company is one
of the popular women’s and men’s clothing in Australia and New Zealand (hallensteinglasson,
2019). The fashion industry seems to be one of the most competitive industry, due to which
innovation in the organization seems to be more important to be integrated into the organization.
The report will include potential future innovation for the company.

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What to innovate
For Hallenstein Glasson Holding Ltd., the innovation has been considered important since
very long, according to an annual report of the company of 2018, indicates that the company has
considered the digitalization as one of the major innovation in the organization. The areas that
the company innovate are:
 Product innovation – this is one of the major aspects for the customers, the reason being
the product is the tangible asset that provides value to the customers. The innovation that
the company could bring would be customization. This will make customers the option to
customize the clothes according to their preference and ides. This will increase customer
engagement and increase customer satisfaction. There would no further issue of size,
color, and design, as the customers can provide their specific choice to the company
(Aksoy, 2018).
 Store service innovation – this would include the in-store experience, and designing of
the store as per the customer comfort and preference would be able to enhance the
customer experience and so do the satisfaction. The customer must feel important and
premium shopping experience in the store. This will help the organization to gain
competitive advantage through changing the business trends towards the service oriented.
The ambiance impacts highly to the customer in their experience, moreover the friendly
staff, use of technology in the store like in case of payment method and technique
according to change in technological environment, alignment of the products in more
customer friendly way (Amabile & Rigolizzo, 2015).
 Delivery service – according to the change in social trends and technological change, it is
recommended to the company to innovate and improve the delivery service. The
company can provide fast online delivery to the customers, and can also provide the
company to pick from the store. This means that the customer can order the product
online, and just need to pay for the order and collect from the store (Biemans, 2018)
How to innovate
The company can implement innovation through a change in process, and change in
organizational structure. For instance, for product innovation, the company may need additional

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resources, especially human resource. For this, the company may have a more agile supply chain,
to implement innovating in the product range (Ali & Hussain, 2016).
Similarly, in the case of innovation in service, the company needs to have a major change
in operations that is operations now include delivery of goods online and pick up from the store.
This requires the need for major change in the business model of the company.
For providing the customer with a good experience, the innovation can be implemented
through providing training and development to the employees, so as to make the experience of
customers more enjoyable and satisfying, at the store. This could include asking customers, after
sales services, like assessing the customer’s complaint proving them with the solution as early as
possible (Bruns, 2013).
Designing an innovation strategy
Designing innovation is broader aspect than just about generating new ideas. There are some
major factors, which would be included in the designing of the innovation
 Leadership – it plays a vital role in designing innovation, as they are responsible for
major changes in the company and taking the actual decision while providing direction to
the company. For instance, transformational leadership could work in this situation
 Experimentation tolerance – there is the need for empowering experimentation and
getting the employees away from their comfort zone
 Hiring creative personnel’s – there is a requirement of personnel that are more likely to
include creativity in the working process for successful innovation in an organization
 New product development process – in case of product innovation, designing the process
of product development is also included in designing innovation
 Organization – it includes designing organization aspects like culture to encourage
innovation
 Idea generation – this is to get the new and creative ideas from the employees through
activities like barnstorming
 Innovation results – designing also include planning the results that the company is
willing to have from innovation (Camison & Fores, 2016)

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Structuring a company for innovation
As already discussed, there is a need for personnel who encourage creativity in the
organization. The organizational structure is to be changed as per the requirement of the
innovation strategy of the company. This may include the transfer of people within the
organization as per their innovative capability or hiring more creative people (Dewald &
Osiyevskyy, 2015).
Designing the process of innovation
The steps for designing the process of innovation are
1. Strategic thinking – this includes knowing the goal and long term plan for innovation
2. Portfolio management – this includes managing innovation portfolio, for minimizing the
risk of unknown rewards or failure from innovation incorporates
3. Research – understanding the existing knowledge of product and market, and
understanding the requirement for innovation and gaps between existing work and
standards
4. Insights – this includes a thorough understanding of individuals, teams, innovation
process, and all other relevant aspects (Norman & Verganti, 2014)
5. Innovation development – this includes the idea generation, and development of the
innovation to be implemented
6. Market development – in case of project development, the market is to be developed
before implementing, which include brand identification and understand the sales growth
of the industry
7. Selling – this is the actual sale of the new product developed or implementation of
innovative process (Gilson, Lim, & Gilson, 2015)
Measuring innovation
The innovation can be measured through the various key performance indicators, for
instance, return on new product development, improved revenue due to innovation, the
accomplishment of the strategic objectives created during the planning stage.

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In the case of Hallenstein Glasson Holding Ltd, the innovation can be measured through
the improved in-store experience of eth customer which can be measured through feedback by
the customer. The innovation of product differentiation can be measured through ROI on the new
products developed. Moreover, the innovation through delivery service can be measured through
monitor the time taken to make the order available to the customer (Huggins & Thompson,
2015)
Designing incentives to support innovation
Employees need motivation for supporting innovation or any major change in the
organization. It is not possible for the company to implement innovation without getting support
from the human resource of the company. In case of Hallenstein Glasson Holding Ltd, the
experience of the customer are largely in hands of store staff for which the company must have
the incentive system to encourage staff to provide up to the mark quality service to the customers
(Libaers & Burkemper, 2015)
Learning innovation
Innovation can be learned through training and development or improvising the
technology used. For instance, the company can provide training and development program to
the employees for promoting innovation like brainstorming activities to make employees think
out of the box. Moreover, the training of the service quality improvement can be provided in case
of Hallenstein Glasson Holding Ltd (Loewenberger, 2013).
Innovation can include a major change in technological use or updating technology,
which is a result of the digital age, which may lead to major learning for the employees in an
organization. For example, in case of this organization, the tracking system, and fast delivery is
the part of the technological change in the delivery system, which leads to major learning and
implementation of new technology, leading to change in process and job roles.
Designing an innovation culture
Culture plays an important role when it comes to organisational behavior and how people
work in the organization. It is important for the authorities to change the organizational culture to
support innovation. This can be done through leadership to change the culture. This culture

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would make people authorize and free to communicate ideas regarding the product, service, or
process that the company can change or improved in a particular way to their superiors. The
employees would be free to share their thoughts, which could result in good idea generation.
(Kaur & Ma, 2015).
Applying innovation rules to an organization
In order to promote and encourage innovation in the organization. Some of the rules are to be
applied by the innovation managers in the company
 Innovation is not an isolated event – this rule indicates that only a single mind cannot be
responsible for effective innovation
 Innovation is a combination – this means that for innovation to be effective, needs a
combination of various aspects and factors, which cannot be accomplished with the
expertise of one field
 Asking a correct question – this reflects that the idea generation is depended over the
questions asked to the customers and other stakeholders. This is majorly for the research
department in the organization
 Diversity – this is having a diverse range of capabilities in the organization. The company
can hire the cross-cultural teams to promote innovation and get the ideas from a different
perspective
 Consider the dynamicity – this includes continuous analysis of the internal and external
environment. In case the company believes that the environment is dynamic, accordingly,
the company need to update, which will lead to innovation in the long run.
 Ideas are everywhere – generation of an idea from everywhere that is ideas from the
market, from customers, any process in the organization (Norman & Verganti, 2014)
 Agile management – it is important for people to learn from the failure, this includes
learning from failure, and this could introduce the organization to bring innovation in
order to improve the process
 Effective flow of communication – one of the major aspect in order to promote
innovating in the organization is effective communication. Majority of the time it
happens there are good ideas in the mind of employees, but they are unable to
communicate and share with their superiors. Through the rule of the free flow of

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communication in the organization, the company can gain opportunity from an idea
generated and provided by any employee (Motoyama, 2016).
Innovation in SMEs
The requirement of the innovation has been increased in case of small, and medium
enterprises, the major reason for the same would be to change in technology and introduction to
the digitalization across the globe. Moreover, globalization and international marketing have
increased competition in various industries, which has led to the requirement of innovation in
these enterprises. Moreover, it has been observed, that in many nations, the government is
supportive and encouraging innovation among the SME’s (Alves & Sousa, 2018).
Small and medium enterprises could introduce to innovation, which could be converting
the traditional business to e-commerce, or increase in product innovation, that is the development
of new product development for manufacturing firms in order to sustain in a competitive market

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Conclusion
From the report, it can be concluded that innovation, is getting new ideas that would be
helpful for the organization to improve their quality of service and product, or improve in
process of operation, that would result into reduction in cost or increase in the sale of the
company or increased customer satisfaction.
For Hallenstein Glasson Holding Ltd, men’s and women apparel brand. The area of
innovation for the company were store service, product innovation, and development, and
delivery service improvement. This could have been done through a change in process and
change in organizational structure. For designing and innovation strategy, some aspects were
identified like Leadership, Experimentation tolerance, Hiring creative personnel’s, New product
development process, Organization, Idea generation, and Innovation results.

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