Innovation and Commercialisation Assignment - Clarks Shoes

INNOVATION
AND
COMMERCIALISA-
TION

Table of Contents
INTRODUCTION...........................................................................................................................1
Concept of innovation and its importance. Also differentiate between innovation and
invention.................................................................................................................................1
Analyse the different source of innovation and how an organization shaped their vision,
leadership, culture and teamwork...........................................................................................2
Examine the 4p's of innovation and shape innovative ideas in context of an organization.. .3
Describe the development of frugal innovation along with its role.......................................4
Critically evaluate the innovation development and measured for respective organization.. 5
Overview of the industry and its competition........................................................................5
Importance of commercial funnel and application of new product development for innovation.
................................................................................................................................................6
Evaluate the tools that can use to develop, retain, knowledge protection and intellectual
property...................................................................................................................................7
Critically evaluate the nature of innovation and development...............................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation refers as a path of visualising and executing of ideas into manufacturing of
goods and service providing that makes some value. This factor plays an important role in an
organization for the growth and development as well as facilitates the competitive advantages.
Whereas, commercialization refers as a procedure of converting knowledge and inventing ideas
into larger capital for individuals and organizations for the purpose of earning maximum profit
through the proper investment in the R&D activities for target market. To study the innovation
and commercialisation, Clarks Shoes is chosen which was founded in 1825 by brothers Cyrus
and James Clark in Street, England. It is a British-based international shoe manufacturer and
retailer company and deals in footwear. Under this report discussed about the innovation and its
importances, invention, role of innovation funnel, frugal innovation, P's of innovation,
commercial funnel, application of new product development, tools for protecting intellectual
property.
Concept of innovation and its importance. Also differentiate between innovation and invention.
Innovation refers to a new idea, creative thought as well as innovative imagination in the
form of methods and device. It considered as a practical application of better resolution that meet
the needs and requirements of existing market (Axinte and Ivanus, 2014).
Importance of innovation: There are many changes that are taking place in business
environment for making long-term relations. Through the innovation process a company Clarks
Shoes is able to achieve the targets it will helps to increase the market shares along with the
customer base as well as rise in the company's sales and profits. Importance of innovation can be
described below:
Problems are solved easily: Come up with the creative solution to solve certain problems
of Clarks Shoes such as changing patterns of shopping and consumption, online shopping etc.
innovation plays crucial significance.
Increase productivity: In order to work smarter, creative thinking is necessary that helps
in becoming more productive as well as increase the productivity. Although, creative thinking
results in innovative ideas that makes productive plans for the company.
Compete with their competitors: Innovative thinking, creative design of products as well
as better connection with the customers helps Clarks Shoes to beat their competitors. In addition
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preparation and application of appropriate theories of marketing needed to future growth and
success of business (Cunha, 2015).
Difference between innovation and inventions:
Basis Innovation Invention
Definition Innovation is considered as a new and
creative solutions that are required to
meet the new requirements within the
marketplace.
Invention is defined as an
introduction of novel products,
concept, device as well as procedures
that comes first time in the market.
Requirements It requires technical knowledge, market
awareness, competencies as well as
funds.
It requires idea, knowledge,
competencies as well as financial aid
to introduce new products.
Example In shoe manufacturer and retailer
company, innovation is related to the 3-D
scanning and printing, image recognition
as well as drone delivery etc.
Invented shoe making machines are
termed as an invention in the shoe
manufacturing industry.
Analyse the different source of innovation and how an organization shaped their vision,
leadership, culture and teamwork.
Sources of innovation assists to innovative things in an effective and efficient manner
(Dincer, 2017). There are several sources of innovation such as demand of the customer,
competitor's strategies, change in the market structures etc. The manager of Clarks Shoes is
responsible to choose the best source of innovation among them. These sources can be described
as follows:
Changing perceptions: The demand and perception of the consumer should be highly
examined that can create new opportunities for the innovation. Changing in the taste, preferences
as well as buying behaviour are considered as the source of innovation. Nowadays they
demanded more comfortable shoes and online presence which provide a chance of innovations.
Change in market: In the market various opportunities are present to develop which
occur due to the fastest growth in the needs that don't match with the traditional products or
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requirements. So, the Clarks Shoes needs to innovate for fulfilling and satisfying the market
needs.
Competitors strategies and policies: To take a competitive advantage there is need to
find gaps of missing information in how customers should fully utilise the products. Clarks
Shoes requires to properly studied the competitor’s approaches and practices to make them better
and increase their own productivity (Hemphill, 2014).
Unexpected occurrence: When the actual performance does not match with the standard
tasks then it occurs unpredicted success or failure in the working of an individual. After that the
management of the company innovates their existing products in order to shape it according to
the requirements of market.
For the effective innovation Clarks Shoes shape their vision, leaderships, culture as well
as teamwork within the company environment. Organizational vision is a fundamental driving
force which can encouraged innovation and commercialisation at a great extent. Foster Clark is
committed to the relatedness pursuance of sustainable growth. This will be achieved through the
leadership, innovation, strategic investment as well as by becoming the global brand of choice
(Mazzarol, 2013). So, the company needs to follow their vision and communicate with workers
so they able to know the reasons behind the innovations. Moreover, leadership is important for
promoting the innovations awareness within the organization. Leadership helps in providing the
opportunities to team members, create supportive and constructive environment as well as
encouraging and rewarding them which helps in boosting innovation process.
When an organization is willing to support their employees to present thoughts and
opinion in the development of innovative surroundings. Clarks Shoes facilitates incentives,
motivations, resources, assistance, rewards, training etc. to encourage them. Along with this
teamwork is most important because it is a possibility that interact with other members of team
could generate innovative ideas that can be influenced the individual’s creativity level.
Examine the 4p's of innovation and shape innovative ideas in context of an organization.
Innovation is a very complex in nature because of the changes has to be made in the
existing process (4 P's of Innovation. 2018). It should be effective if the owner of Clarks Shoes
planned the changes or the development in an appropriate manner such as proper understanding
about what has to be done, the specific area of improvement etc. There are 4 p's innovation
which can be described as:
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 Product innovation: It includes the alteration in products and services which is provided
by the company. Within the context of Clarks Shoes, product innovation can be
concerned with either improvement in existing products or totally replaced that with the
new one. Process innovation: This involves the manufacturing process of products and services as
well as supplying. There are several processes that are used to show the uniqueness in the
products and services as well as alteration in the production process. This will help in
reducing the cost and time along with facilitates better services. Position innovation: It does not impact on the products functions and structure but it
effects the means of product regards with the consumer and target marketplace. This is
related to the re-positioning of the products in front of the users as well as redefine the
business to attain the goals of company.
 Paradigm innovation: It is related to the mental concept that specify the way the business
do their operational activity. This is most important to make changes in plans so policies
can be formulated in an effective and efficient manner as well as for taking a corrective
action.
Use of innovation funnel: It is very important approach that can be used by the Clarks Shoes
to initiate innovative process. These funnel is used in collecting several opinions and ideas of the
marketers and research and development department that are gathered from the market
conditions and consumer’s behaviour (MINICĂ and MUNTEAN, 2012). After considering the
funnel factors which are collected through the market research, Clarks introduced innovative
strategy of Trigenic along with the simplicity principle same as the iconic desert boot to take a
competitive advantages of marketplace. Clarks introduced Trigenic as a new innovation with the
same principle of simplicity as their iconic desert boot. This kind of innovation takes place after
considering the all factors of funnel and come up with this strategy to introduce innovative
footwear to the marketplace.
Describe the development of frugal innovation along with its role.
Frugal innovation is a process of reducing the complexity and extra cost of products as
well as its production. Frugal innovation helps to use all resources in an appropriate and effective
manner to reduce the wastages (Pellikkaand Malinen, 2014). It is very essential for the market
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research and select most suitable option which are in favour of Clarks Shoes and most
approachable.
Role of frugal innovation:
Finding opportunity in adversity: It is the main and first step of frugal innovation in
which issues are properly redefine by their employees and treated them as an opportunity for an
organization. In the context of Clarks Shoes, manager needs to be identified issues first then
communicate with their employees to solve them and perform their operational functions in an
appropriate manner.
Do more with less: This includes the proper utilization of available resources in an
effective and efficient manner. It plays an important role in the Clarks Shoes operational
performance that helps in minimising the cost and time and ultimately use of resources in an
appropriate manner by minimising the wastage of resources.
Think and act flexibly: Management of Clarks Shoes effects when the company have a
flexible working environment that helps in positive thinking and acting in process of operational
functions more effectively. This will assist to motivate and encouraged their employees to
perform better. Positive and flexible culture of business increases the production as well as
profits of the company and helps in taking competitive advantages (Robertson, 2014).
Keep it simple: It is considered as a simplicity in the decision making and problem
solving for smooth functioning of an organization. Clarks Shoes can use the simple resolution
process for solving the conflicts, issues and problems of their workforce it will gives motivation
among employees. Simplification in all activities facilitates the optimum solutions within the
time for improving their effectiveness and company's profitability as well as competitive
positions.
Include the margin: Frugal innovation plan of action is important and useful for margin
purpose. Every businesses wants profit and strong customer base. Both things should be
achieving by Clarks Shoes by providing better quality of products at a reasonable price.
Critically evaluate the innovation development and measured for respective organization.
Innovation funnel is a broad concept which can be applied in the business organization
after analysing the market conditions. The 4p's of innovation is essential to plan and develop the
changes that are related to the product, process, position and paradigm. This will help in
increasing the profitability as well as productivity of an organization. Along with this frugal
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innovation plays crucial role in introducing an innovative ideas and thoughts that can helps in
fulfilling the market requirements (Smith, and et. al., 2014). With the help of this innovation the
company's manager is able to analyse the all alternatives and choose one of the best among all.
PART B
Overview of the industry and its competition.
Overview of the industry: The UK footwear category increasingly shared the static
ranking at the top of three categories. Sales of men's, women's and children's footwear grew
strongly in 2018 by leading companies Nike, Clarks and Adidas. The footwear manufacturing
industry of UK is expected to grow over the five years and has been facilitated by an
arrangement of government policies that targeting innovation. Forecasting growth by 13.7% to
reach £9.5bn in 2022. The growing impacts on fashion in men's footwear that encourages more
purchases. The market of UK footwear 2017-2022 shows the comprehensive insights about
market analysis, major trends, competitors as well as consumer attitudes.
Competition: The footwear industry is mature that consists a strong player in the market
such as Nike, Reebok and Puma. These deals in the highly specialised shoes segments through
driving forces of performance like running, sports etc. In the market competition is mostly non-
price especially legendary players like Nike and Adidas. They compete for customer’s
perceptions and marketing aspects such as campaigns, branding, market share as well as brand
ambassadors.
Importance of commercial funnel and application of new product development for innovation.
Every organisation needs to implement these both factors in their business as these will
help them to attain higher profit and success in the marketplace.
Commercial funnel: It is a broad concept which is used by the organisations to
determine success and failure of the process of innovation funnel. This term is mostly used by
the manufacturing or retail department so that they will be able to identify about the sales volume
of their organisation (Turner, 2016). The main focus of Commercial Funnel is on transforming
the individuals to the group which will help the business in marketing their product easily.
New product development: This concept has been introduced in the marketplace in
order to launch a new product with higher quality and standards. It is essential for the Clarks
Shoes to consider this concept while launching a new product as it will help them to analyse the
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current market situation and customer so that they can offer that product which enables them to
get higher success and growth in the business. In order to bring the new product in the market
organisation must consider several phases which are as follow:
 Idea Generation: it is the first and foremost step of plan that requires to generate ideas
and then take actions in better and effective way. There are several ideas which are
considered by Clarks to innovate new products after implementing strategies. This the
most important step which refers that while launching a product manager must focus on
the product requirement in the marketplace by collecting the proper information about the
market and customers.
 Idea evaluation- This stage involves the evaluation of all ideas which have been formed
in the first stage as it will assist the business in selecting the most appropriate idea which
enables the business to enhance their productivity and profitability in the limited period
of time.
 Concept development: This step focus on the implementation of all ideas effectively so
that the business activities can be carried out appropriately. The main focus of this
concept is on development of the decision making process.
 Development of strategy: In order to get the success and growth the business manager
need to formulate effective strategies for their business by involving the subordinates.
This will enable them to formulate efficacious strategies so that development of the
product can be done successfully.
 Examine business condition: This stage depicts that the advantage associated with new
product should be investigated by the senior experts so that the profitability and
competition can be determined. Also, they should analyse that how the product is alluring
the customers.
 Item improvement: In this stage, the manager of Clarks Shoes must focus on analysing
the impact of the product on the customers so that the requires changes can be
implemented by the business.
 Test advertising: This progression includes the improvement of the example item which
is being produce to test whether the item will work in the commercial centre or not and
what all are the issues which is emerging. This progression likewise includes taking input
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from the clients with respect to the items so the organization can take remedial measures
to dispense with the errors.
Evaluate the tools that can use to develop, retain, knowledge protection and intellectual property.
Several tools are available in the market which are in use to defend and display right of
ownership (Waisundara, 2013). Intellectual property right is used for property that are innovated,
so other players cannot exercise it without owner's approval. There are numerous instruments
which are described below:
Patent- It is impressive with use of techniques that shows ownership of the proprietors.
In this tool, owner can choose precise party to use that with charge of some specific amount.
This can be used with alteration in strategies and policies. There is the requisite of several
policies through with which it is effective to change them.
Trade mark- These are symbols, character, colour, alphabet, etc. that are certified under
intellectual rights. Through this trade mark brand can be acknowledged by society and hence
there is growth in goodwill of the company. Clarks have 800 registered and renewed status as a
trade mark under private limited company.
Critically evaluate the nature of innovation and development.
Patent and trade mark are very important elements for reducing the possibilities of
limitability by the other competitors of the Clarks Shoes. This will help in implementing the
innovative alterations in an effective and efficient manner (Smith and et. al., 2014). These tools
are used in an organization to secure the brand or protect from the copied by the rivals. This will
help in innovating the things in unique way as well as grow and success in an effective manner
that results in building the positive and good image in the market. There is use of plan of actions
that are effective for development and in today's era alteration is one of the important factor
which discussion about requisite resources.
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CONCLUSION
It has been concluded from the above report that it is very helpful in learning about the
invention and innovation as well as understand the difference between both of them. Market is
rapidly changing according to the modern scenario so, the innovative and effective changes are
required to be implemented in operational functions. The 4p's of innovation is essential to plan
and develop the changes to increasing the profitability as well as productivity of an organization.
Frugal innovation helps the enterprise in taking appropriate actions after analysing all factors.
Patent and trade mark are used in an organization to secure the brand or protect the products so
that competitors will not be able to copy them.
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REFERENCES
Books and Journals
Axinte, M. S. and Ivanus, G., 2014. THE ROLE OF SMES IN THE EUROPEAN INITIATIVE:
EUROPE 2020-THE EUROPE OF INNOVATION. Economic and Social
Development: Book of Proceedings. p.588.
Cunha, R. C. C., 2015. Gênese e dinâmica da cadeia produtiva da soja no sul do Maranhão.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Hemphill, T. A., 2014. Patent assertion entities: do they impede innovation and technology
commercialisation?. Technology Analysis & Strategic Management. 26(7). pp.717-731.
Mazzarol, T., 2013. The role of social capital, strategic networking and word of mouth
communication in the commercialisation of innovation. In Strategy and Communication
for Innovation (pp. 173-193). Springer, Berlin, Heidelberg.
MINICĂ, M. and MUNTEAN, L. G., 2012. MICROECONOMICS APPLIED IN THE DESIGN
OF A EUROPEAN BUSINESS MODEL. Annals of Eftimie Murgu University Resita,
Fascicle II, Economic Studies.
Pellikka, J. T. and Malinen, P., 2014. Business models in the commercialization processes of
innovation among small high-technology firms. International Journal of Innovation and
Technology Management. 11(02). p.1450007.
Robertson, S. L., 2014. Corporatisation, competitiveness, commercialisation: new logics in the
globalising of UK higher education. In The Internationalisation of Higher Education
(pp. 31-44). Routledge.
Smith, H. L., and et. al., 2014. Entrepreneurial academics and regional innovation systems: the
case of spin-offs from London's universities. Environment and Planning C: Government
and Policy. 32(2). pp.341-359.
Turner, A., 2016. Design-led Innovation for Learning and Assessment in Food Education. Pdf.
Waisundara, V., 2013. Lessons from our ancestors: traditional medicinal remedies and dietary
practices for diabetes.
Online
4 P's of Innovation. 2018. [Online]. Available Through: <https://appliedinnovation.com.au/blog-
post/general/the-big-p-in-our-4p-innovation-process>.
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