Innovation and Commercialisation in Marks and Spencer

This report discusses the importance of innovation and commercialisation in Marks and Spencer. It provides an overview of the company and its business situation. It explores different concepts and sources of innovation, such as vision, culture, leadership, and teamwork. The report also examines the role of 4Ps of innovation, frugal innovation, and innovation funnel in bringing about innovation in M&S. It suggests innovative ideas for the company and critiques the significance of the commercial funnel and the application of NPD processing in commercialising these ideas.

INNOVATION AND
COMMERCIALISATION

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Company overview......................................................................................................................3
Business situation and Importance of innovation for Marks and Spencer...................................4
Different concepts or sources in shaping innovation & commercialisation................................4
TASK 2............................................................................................................................................6
Role of 4Ps of innovation, frugal innovation and innovation funnel in bringing about
innovation in M&S......................................................................................................................6
Innovative ideas for Marks and Spencer......................................................................................8
TASK 3............................................................................................................................................8
Critique significance of commercial funnel and application of NPD processing for in
commercialising innovate idea....................................................................................................8
Different source of funding available for M&S and suggest the most workable funding option
....................................................................................................................................................10
Measures use to identify the overall effectiveness of innovation business case........................11
TASK 4..........................................................................................................................................12
Critically evaluate different tools that M&S can use to develop, protect and retain their
knowledge & intellectual property ............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation and commercialization are the key elements of business success and long term
growth. The present report is based on M&S company, operating their business across UK with
skilled labour. This study explains the business situation, areas for innovation and its importance
for company. This report defines different source in shaping innovation and commercialization,
role of 4ps of innovation, funnel and frugal innovation in context of organization. Furthermore,
this study justified importance of commercial funnel, application of NPD and different source of
funding available for firm. In additional to this, this report include various tools used to develop,
protect and retain intellectual property and knowledge.
TASK 1
Company overview
Marks and Spencer is well-known brand in the world loved by million of people, it is one
of the biggest British food and retail clothing firms. Company was founded by Michael Marks
and Thomas Spencer in 1884, they offer high quality fashion, stylish home ware and award-
winning food. Currently they have 959 outlets across UK, including 615 that only sell food
goods. M&S aim is to serve as common store that provide for middle to lower and upper class
people, they try to manufacture quality goods such as Home décor, food and clothing whilst
offering excellent service. Firm put their main emphasis on quality including stocking size
measuring system, they expand business into Canada and after some time they had started forty-
seven stores across nation, it defines its success and business growth within retail sector.
Organization have 30 stores, its outlet division provide Products with majority of them
discounting at least 30 percent from original selling price. Marks and Spencer is very popular for
their clothes and other products as well as corporate social responsibilities, the objective of
business is to build sustainable organization through profitable growth, consistent and to make
assure that management act accountable in meeting consumer responsibility to shareholders and
broad stakeholders.
In 1904, firm opened their first shop in covered arcade in Leeds, they became a public
company in 1926. They also open number of their stores at out-of-town locations since trend to
build shopping centres away from town centres become famous in 1980s. In order to increase
traffic and gain attention of consumers, M&S offer online services, they create websites where
people place their order and get the products according to needs or demand at home or in office.

Along with this, firm also offer financial services to people, they provide car, home and life
insurance services.
Business situation and Importance of innovation for Marks and Spencer
M&S facing difficult situation within business, they criticized for having less food
packaging that could be recycled than any of their competitors. Standards plastic shopping bags
will take 100 year to decompose in land fill, in United Kingdom more than 13 billion bags are
problem every year to shoppers. It means that each individual receives roughly 220 bags each
year, only one in 200 will be recycled. UK's government put high pressure on retailer such as
M&S to introduce plastic bags, which is beneficial for environmental sustainability and helps to
prevent from land pollution. The concern of local and national authority towards sustainability is
increasing more and more, it put pressure on firms to redesigned their packaging of products by
considering the well-being for environment, which is very important. Plastic bags had various
negative impacts on environment it increases risk of flooding.
After analysing the above business situation, environmental sustainability is one of the
area in which company had to make some innovation for further organizational growth. They
had to take action against this situation which make them able to sustain within international
market for longer period and allow increasing profitability rather than its rival.
Innovation is important in context of M&S instead of invention, it is considered as
process of translating an idea into products and services that will create value for which
consumers will pay (Garrett and et.al., 2017). It is creation, implementation and development of
new goods or services with aim of improving effectiveness, efficiency and competitive
advantages. It is very essential for Marks & Spencer as it helps to overcome above business
situation and improve their procedures, increase efficiency, build strong brand image within
market place and most importantly improved services to market. Innovation is cost effective
method, it saves money and efforts of management while invention required hard work for which
management had to restructure the whole things at the being to the end.
Different concepts or sources in shaping innovation & commercialisation
Organization vision, culture, leadership and team work are the different source that help
in shaping innovation and commercialization in M&S.

Creating of new ideas is the main motive of innovation, invention help to create this
innovation and to decode these new thinking. Commercialisation is the procedure of aggregate to
all invention and innovation, communication and marketing to consumers (Kim, 2016).
M&S vision is to become most sustainable major retailer in the world, it helps to shape
innovation in effective manner. By following the vision of company, management take action
accordingly, they consider all the areas where innovation is important. Organization decided to
produce recycle shopping bags and provide paper packaging to its consumers that contribute in
environmental sustainability.
Firm introduce their Plan A in which they set out 100 commitments, they launched plan
with 100 new, existing and revised commitments as well. Through this plan, management work
with their suppliers and consumers to combat climate, use paper bags, reduce waste, trade
ethically. Leadership plays vital role in shaping innovation, it is one of the best method of
directing and organization M&S plan according to its vision. Leaders with effective leadership
style will be able to guide its workers how they can produce recycle packaging bags that save
environment from being polluted. There are different types of leadership's democratic,
participative and autocratic, autocratic is the best for firm. With this leadership, leaders take and
control over all decisions, they motivate and direct employees to make innovation in existing
packaging systems.
Along with this, team work also contribute in shaping innovation, by working together,
people within M&S build strong group who are able to produce recycle shopping bags instead of
plastic. Organizational culture play role in context of same, management consider the needs of
staff, they make adjustment according to their preferences and provide flexible work structure
that motivate workers and drive them towards innovation.
Organizational vision, autocratic leadership and culture also help in shaping
commercialisation, M&S had team who are capable to performs entire required work to paper
packaging. Leaders inspire existing and new staff members to act according to M&S plan for
sustainability, team work help to formulate procedure of company commercialization as they are
able to accomplish task on desirable time period (Koivisto and et.al., 2016).

TASK 2
Role of 4Ps of innovation, frugal innovation and innovation funnel in bringing about innovation
in M&S
Innovation is to deals with procedure by which company creates new ideas, services and
products. It will be implemented and developed within Marks and Spencer by following 4Ps of
innovation. Following 4 ps play vital role in bringing innovation in company, as it help business
to sustain within market for longer and keep them sustainable (Ubaid and et.al., 2019).
Paradigm-
It is one of the most essential components of innovation that help to produce new goods
chain within M&S. This is effective and appropriate planned procedure by which production
management think for making recycled shopping bags.
Product-
Goods within company is the main component on which future goals of company are
dependent. It helps to increase profit margin and generate sales of services or products rather
than before. M&S produce recycle shopping bags, this is effective and innovative idea that save
environment effectively.
Process-
In term of innovation, process refer to development of procedure for making it efficient
and cheaper for consumers. In case of M&S, process innovation can be referred to producing
new product or service that tends to work with sustainable. The experienced team of company
are dedicated to help business to thrive well in the future.
Position-
Position innovation in context of M&S deal with promotional activities that company
performed to develop their existence in competitive environment. It deals with advertisement and
marketing of company through television and billboards advertisement, this makes organization
to inform more target consumers about the innovative ideas within less time.
4Ps of innovation will help firm to understand where they are and how they can innovate
to improve their goods, process and other elements. But on the other hand, simplicity of this
concept makes it only jumping off point as it lacks guidance for future phase that have to be
taken while operating business internationally.
Innovation funnel-

In additional to above discussion, impact led by innovation funnel is another aid being
used to implement and develop innovation for environment sustainability. Innovation funnel is
constitute certain phase that help M&S in developing recycle shopping bags through appropriate
process. It plays most important role in bringing innovation or producing recycle shopping bags,
this is the best method that help firm to make innovation within existing marketplace.
In case of M&S, innovation funnel covers 3 steps that are as follows-
 The first phase, aim to gather as many ideas as possible in context of specific concept.
 Second step, includes procedure of screening in order to assure about new idea which is
recycled shopping bags that help to sustain sustainable environment.
 Last phase of innovation funnel, in regard to company is that it deals with fact of selected
concept to deliver its objective set by M&S.
Frugal innovation-
Frugal innovation play effective role instead of innovation funnel, it is considered as
procedure of reducing complexity and cots of products and its production (Franken and et.al.,
2020). It focuses on role of company in brining abut competitive procedure and systematic
change between wider incumbents in their drive to meet changing consumers needs. Along with
this, redesigning goods to serve users and discovering new businesses model is the main
elements of frugal innovation. It helps M&S to reduce cost of making unessential things. On the
other hand, funnel innovation had disadvantage in lack of traditional resources, dependence on
voluntary activity and lack of political power.

Innovative ideas for Marks and Spencer
Recycle shopping bags is one of the best and innovative ideas for M&S which is quite
beneficial for them as it helps to increase its presence in CSR. Recycle bags are multi use and
made of recycled fabric that helps to reduce land and water pollution and make environment save
for longer. This innovative ideas is good for company as it helps to overcome above business
situation and keep environment clean. Though they seem light and small, plastic bags have much
wider environmental footprint that cannot imagine, by producing recycle shopping bags M&S
will be able to make high contribution in CSR. Impact of plastic on environment will be
devastating, plastic bags can take 1,000 years to break down and that's assuming they even make
it into landfill instead of winding up in water. So to reduce the overall impact of plastic bags and
build strong position within market, Marks and Spencer will make recycle shopping bags. By
using reusable bags over plastic can save money of company in several areas including their
financial budget.
Making recycle shopping bags is the best idea for company as it can be used hundreds of
times which makes bags environmentally friendly in long run. Recycle or reusable bags are
strong and will be used many years worth of purchasing trips. By implementing this new idea
within business, M&S can gain more attention of consumers and make positive image in market.
TASK 3
Critique significance of commercial funnel and application of NPD processing for in
commercialising innovate idea
Commercial funnel are accountable to visually represent consumers journey there by
depicting their sales procedures, which begin from awareness to action. It means listing more
about potential people and considering the needs of sustainability then making innovation so that
M&S will achieve higher points of their usual and sustain business for longer. Commercial
funnel is important in commercializing new ideas that is producing recycle shopping bags. Its
helps to demonstrate the journey of target market towards purchase of services and products. It is
essential for producing recycle shopping bags which creates funnel like structure, from lost of
new and innovate ideas too few concepts.
3 phases of commercial funnel-
Awareness-

This stage define process of marketing goods by M&S, in order to generate awareness
among target market about innovative product, firm need to make the best advertisement plan
which help to gain attention of consumers towards using recycle shopping bags.
Interest-
In second phase, people will increase their interest towards new idea and M&S move
them beyond purchasing limits. It happens when company make some strategies like discount
offer. It is quite beneficial in context of innovative ideas mentioned above.
Decision-
While applying strategies, M&S will drive and motivate consumers to use recycle
shopping bags and increase awareness about their benefits that helps customers to take decisions
for the same.
New product development for commercialization of innovative idea-
NPD refer to launch of new products or services within current or new market, it is
important for innovative ideas as it help to increase profitability and productivity of M&S rather
than before. By following the different stages company gain more profit.
Idea generation-
In this stage, M&S and its management think about what need to be done in regard to
innovative idea.
Screening-
Administration and high authority check the feasibility of innovative ideas and then select
the best one from list of many.
Concept development-
After passing above two stages, it's time to implement idea, it will be taken
underdeveloped consist with formulation of final budgetary.
Development of business strategy-
M&S will plan for strategy development that helps to turn idea into final action which is
beneficial for company.
Product development-
In this stage, recycle bags is completely produced for consumers that help in business
sustainability.
Marketing test-

Production management, provide recycle bags for marketing test in which management
identify popularity of this new product into existing market.
Commercialization-
After passing all above stages, M&S make idea for introducing goods into target
consumers via using marketing tools.
Introduction-
Finally, Company successful present their innovative idea in front of consumers with its
benefits.
In simple words, it can be said that all the above stages is very important in
commercialization of innovative ideas for M&S.
Different source of funding available for M&S and suggest the most workable funding option
Banks loans-
It is one of the best source of funding that M&S can use to achieve their business
objective and innovate new ideas. Organization management will get access to bank for taking
loan for commercial purpose (Prasad and et.al., 2017). Banks are financial service provider, they
provide financial helps required by firm, but it takes a long time to be legal. Bank loan is the
amount of money borrowed for set time period within an agreed repayment schedule. M&S can
use bank loan as suitable and appropriate part of their financial structure.
Friend and family-
Family, acquaintances and friends are all potential sources of business funding, when
they support innovative ideas of business, they can give M&S cash toward its start-up costs as a
gift.
Venture capitalists-
It is private equity investor that caters capital to firms exhibiting high growth potential in
exchange for equity stake. This will be funding start up ventures and helping small organizations
that wish to expand its business, along with supporting large companies, but do not give access
to equities markets (Hadley and et.al., 2017).
Venture capitalist is the best source of funding for M&S, they must consider this method
while innovating new idea or producing new products for consumers. Venture capitalist offer
organization with an opportunity to innovate new idea or concept. However, in this source,
investors themselves are ready to take risk and invest money as they believe in firm's long term

success or growth. Therefore, venture capitalist is beneficial for Marks and Spencer with high
initial cost as well as wider operating history.
Measures use to identify the overall effectiveness of innovation business case
Innovative business case-
Executive summary-
M&S plan for making innovate product or services that help to increase its profit margin
and sustain business for longer.
Company background-
M&S provide clothing and food products across UK and operate their business all over
the world.
Mission-
The mission of company is to sustain in retail market for long by offering quality
products.
Vision-
M& vision it to produce innovative products or service that will be beneficial in context
of business and support in environmental sustainability.
Satisfaction of innovation-
The design and features of goods is innovative that will satisfy the needs of government
& consumers and make environment safe.
Opportunity in market for New product-
The customers how like to make environment clean are more likely to use innovative
product.
Competitive edge-
Recycle bags is totally different from other shopping bags, it will be used for long time
and easily recycled without making any harm to nature.
Market opportunity-
It sizing forecast for specific goods, possibilities of success and growth is higher with
innovative ideas.
Target market-
All the local and residential people are the target market of M&S.
Marketing strategy-

M&S use digital marketing tools in order to gain attention of consumers and generate
awareness about the benefit of recycle shopping bags.
Need-
Marks and Spencer introduce new shopping bags because they want to overcome
business situation and keep sustainable.
Market research-
Firm management conduct market research for gathering more data about government
and consumers concern towards environmental sustainability.
Investment cost needed-
To make recycle shopping bags M&S will require £600 along with overall cost of
important activities.
Expected benefits-
Offering recycle bags is quite beneficial for M&S as it help to contribute in
environmental sustainability process that build positive brand image and increase reputation of
business rather than past few years.
Budget-
Particulars Amount (£)
Salaries of workers 300
Collecting essential resources 70
Conduct Market research 300
Marketing 300
Selling 250
Total 960
TASK 4
Critically evaluate different tools that M&S can use to develop, protect and retain their
knowledge & intellectual property
Patent-
In case of innovation, Patent is property right of inventor, it helps to protect intellectual
property for longer. M&S can use this tool to retain their property from others effectively
(Barjolle, 2016).
Advantage-
The major advantage of this type of property right is that it stops other companies or
person from copying similar goods and services without getting access of founder.

Disadvantage-
Draw back of this tool is that this discloses all innovation of organization publicly as for
obtaining patent firm needs to tell all innovation at market.
Copy right-
M&S can protect its knowledge by using copyright as another effective tool by using data
protection policy.
Advantage-
It gives creator of piece of intellectual property, sole right to reproduce and produce their
work.
Disadvantage-
On the other hand, copy rights advantages is also their primary disadvantage, they do not
permits M&S to openly allows others to use their work and to distribute it, even when they are
not doing it for profitability.
By defining innovation goals and identify required innovation abilities for future, it is
easy to measure the effectiveness of innovative business case.
Techniques to test, iterate and improve innovative business case-
 Testing cater most effective measure of innovative business case because without testing
of gathered ideas, selected and screening ideas innovation process it not possible.
 Iteration act is refinery procedure more goods process will gets iterate more it gets
enhanced, it means company keep going in same manner to achieve their higher gain
from every cycle.
CONCLUSION
From above analysis, it has been concluded that M&S offer and develop recycle shopping
bags in order to build their strong position in market relate to sustainability. Company has been
used venture capitalist as source of funding that help to achieve their objective and support them
while implementing innovative idea. By using trade mark and other tools M&S protect its
business knowledge and intellectual property.

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