(PDF) Innovation Management and Commercialisation (pdf)

INNOVATION AND COMMERCIALISATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of organization's current situation and activities........................................................3
Innovation, its importance and different sources of inventions .................................................4
Vision, leadership, culture shape innovation and commercialisation.........................................5
4p's of innovation and use of innovation funnel ........................................................................6
Frugal innovation and its use in organization.............................................................................8
Importance of commercial funnel and application of new product development processing.....9
Build innovation Business Case and ways of access the funding ............................................11
Different tools to develop, retain protect knowledge and intellectual property........................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Innovation is the activity of people and company to change environment of their
workplace. It means breaking routines and dominant ways to thinking, introducing new things
and behaviours, launching new standards. On the other hand, commercialisation is the
procedures of introducing production method into commerce making it available on the
market(Do and et.al., 2015). This study is based on Hennes & Mauritz (H&M). It is retail
company that deals in fast fashion of clothing for men, women, teenagers and children. Firm
introduce fashionable hand bags in new market. This assignment will explain overview of
organization's current situation and its key activities. It will also analysis innovation, it
importance and its different sources for new product development in market. It will explain 4 P's
of innovation and use of innovation funnel to shape innovation ideas to employees.
MAIN BODY
Overview of organization's current situation and activities
Hennes and Mauritz(H&M) is multinational clothing retail company which deals in fast
fashion clothing for men, women, teenagers and children. Firm and its associated organizations
operate in 62 countries, with over 4500 stores as on 2017. It is second largest global clothing
retailer organization. Now, they are introduced new product(hand bags) in new markets. So that,
they are developing innovation and commercialization for new product development. With the
help of invention, company increasing profits and generating revenues in the business as
compare to their competitors(Smart, 2018). Through innovation, company improve their
organizational culture, leadership, team work and build relationship with their workers in
workplace. Therefore, H&M develops invention in new and existing product and services
development across world.
In this context, they have to many collaborations with other fashion houses such as
Kenzo, Balmain, Alexander Wang etc. In addition to H&M brand, firm consists of five
individual brands with separate concepts such as ARKET, Fabric Scandinavien AB, Cheap
Monday, Monki, Weekday. In 2015, company announced that it will award million-euro annual
prize to advance recycling technology and techniques. H&M foundation is non-profits which
was established in order to implement positive changes and improving living standards such as
children education, clean water across worldwide and being environmentally aware.

Innovation, its importance and different sources of inventions
Innovation:
Innovation is process of thinking uncovering new ideas and ways. It can also pertain to
modify business model and adapting changes to achieve better products and services. Invention
refers to something different or new creating operators of company. It is an act to introduction of
new thoughts, devices or approaches(Collyer, 2017).
Importance of Innovation:
Innovation is important in the workplace, because it gives companies an edge in
penetrating markets faster and provides better connection to develop markets. It can also lead to
bigger possibilities especially in rich countries. It is essential for both employees and H&M.
For employees:
Creatine new ideas: With the help of innovation, employees are creating new ideas or
methods in relation to working effectively and efficiently in the H&M.
Increasing productivity: Innovation is essential for employees in the workplace. With
the help this, more increasing productivity in the organization(Dhewanto and Sohal, 2015).
For Organization:
Growth and development: Company needs to growth and development of their
business, so that they are developing different inventions for developing new product in the
market. Ultimately this helps in growth of business.
Organizational Culture: Every firm needs to improve culture of their workplace.
Therefore, H&M creates new ideas or thoughts for improving their culture of their organization.
Different sources of Innovation:
There are many sources of innovation that are utilized in new product development in the
markets. Such as follows:
Unexpected innovation: These innovations takes places unexpectedly. They can happen
by chance. There are long lists of unexpected innovation in human history(Zhang, Zhao and Xu,
2016). All the same, it is interesting thing to note is that many essential inventions are looking
for something, they stumble upon something else.

Incongruities: It describes inconsistencies between customers desires and business
believes customer wants. Incongruities can be important sources of innovation. It is basically
nature to try to fill incongruity see around them.
Market Structure: For innovation, an existing market structure also give increase to
chances. So that, H&M adopt innovation according existing market structure.
Demographics: Lifestyle of people is source of innovation. All people have lifestyle
need. Lifestyle needs are not small needs and their fulfilment. It is important requirements of
people. This is where innovators sometimes find major opportunities(Gundry, Ofstein and
Kickul, 2014).
Changing perception: Changing perception regarding things can also give birth to
invention. With the help of innovation, organization recognize customers needs and wants and
modification their product and services accordingly.
New Knowledge: Fresh knowledge is also sources on innovation. It is changing life
through new knowledge for innovation. Invention can be born out of passion or adventure or
even of hobby(Rangus and Slavec, 2017).
Necessity: Innovation is also birthed by necessity. Needs always set thinking of people.
Invention is based on bright ideas or thoughts. People are always thinking different for fulfilling
their needs.
Vision, leadership, culture shape innovation and commercialisation
Organization develop innovation for improving culture, leadership, team work and
achieving the vision of business.
Innovation vision:
With the help of innovation, H&M achieving their vision and goals. There are different
components are included in innovative vision. Such as follows:
Creating innovation vision: It is very difficult to changing in organized ideas in the
workplace. These elements are creating innovative environment(Tukker and et.al., 2017).
Key innovation changes objectives: It includes different elements such as innovative
organization, create executive vision, innovative mind set, change organizational culture, define
governance, tools, data of company.

Ideation in innovative organization: It covers ideation process from idea submission
through culling, vetting and decision making process.
Innovative leadership:
Leaders of H&M creating and developing many innovations for effective leading to their
subordinates in the workplace. There are many points are considered in innovative leadership
such as follows:
Pay attention: It is important to pay attention on subordinates by leaders of H&M. It is
about looking beyond surface of situation and identifying new patterns(Rangus and Slavec,
2017).
Personalize: For innovating thinking, personalizing is dual process one of scope of
knowledge and experiences, another understanding customers on personnel, human level.
Imaging: It includes typically insufficient for making sense of vast moments of
information and leaders looking to lead innovatively leverage this fact.
Collaborative inquiry: Innovation is team sport and not an epiphany from a single
person. H&M utilize steps in this such as researching and clarifying ideas, developing those
ideas and turning those ideas into concrete plans(Mowery and et.al., 2015).
Crafting: It is about synthesis, integration and possibility. Through, is called abductive
reasoning and able to make intuitive connections among mass of unrelated information.
Innovation culture:
Many of organizations establish culture of innovation that encourage employees to take
risks that lead to find products. Innovative culture is effects on behaviour of workers as well as
company. Through innovation, H&M adopt following behaviour that help to make leap. Such as:
Build collaboration: Innovation is a team sport. It requires excellent collaboration
between siloed business, functional units, across geographies and with external partners(Smart,
2018). This requires pulling capabilities from across company. Combining of inside resources
and outside organization, it is characteristic of successful innovation.
Emphasize speed and agility: Innovation happens best when people move quickly. It
requires blend of real time data collecting and smart decisions on whether to invest more now or
change course. Innovation is essential to develop similar approaches to quickly identify and
select ideas and then commercialize them through prototyping.

4p's of innovation and use of innovation funnel
4p's of innovation:
Innovation builds on theory that successful innovation is important about positive
changes, puts forwards four broad categories where such as change can take place. 4 P's of
innovation stands for product, process, position and paradigm inventions.
Products: In product innovation, introduce or improves product or service and changes
in offered to end users. With the help of innovation, H&M introduce new product(Handbags) in
the new market(Do and et.al., 2015).
Process: With the help of innovation, organization focuses on processes through which
products are created or delivered. Because, so many of goods used in relief setting are initially
developed for non-relief contexts.
Position: Innovation also focuses on re-positioning perception of introduce product or
process in particular context. These innovations refer to changes in how specific goods and
procedures is perceived symbolically and way of utilization(Collyer, 2017).
Paradigm: This innovation refers dominants paradigm of H&M or whole retail sector.
These innovations relate to mental models that about business or organization.
Use of Innovation Funnel(IF):
Innovation funnel begins with strategic thinking. The goal of innovation funnel is to
enhance overall value of the H&M. Another aim is to create strategic advantages in the
marketplace that adds value to objectives.
 With the help of innovation funnel, organization develop any of products and services in
marketplace.
 Development funnel provides graphic structure for thinking about generation and
screening of alternative development options(Innovation Funnel, 2016).
 It is combining subset of these into product concept. A various product and process ideas
enter funnel for investigation.
 There are three challenges involves in managing development funnel such as:
◦ To widen mouth of funnel
◦ To narrow funnel neck.
◦ To ensure that delivering of selected project.

Frugal innovation and its use in organization
Frugal innovation(FI):
Frugal innovation is procedure of decreasing complexity and costs of good and its
production. This refers to remove non essential features from durable products. With the help of
FI, designing products for such countries also call for an increase in durability and selling
products, reliance on unconventional distribution channels.
Use of Frugal innovation:
FI is the concept that impulse businesses to respond to limitations in resources whether
financial, material that turn these constraints into innovative thoughts and practical solutions. It
is necessary to organization growth and development(Mowery and et.al., 2015).
 It is useful for increasing demands for frugal products and services in developed
countries.
 It is helpful for creating opportunities, reducing costs of some forms of innovation in the
organization.
Illus
tration 1: Innovation Funnel
Source: (Innovation Funnel, 2016)

 Frugal innovation is beneficial for societies in terms of approaches health and social care,
business model, value chain of product and services in societies.
 It often implicated while any type of innovation can be at the origin of such reverse
transfer.
 It helps in simplify structures and empower employees to save time, gain agility,
companies must learn to flex their assets.
 With the help of FI, identify design thinking at product and services level, system
thinking at macro level.
 It is beneficial for determining new ways of products design and development, to deliver
low costs solution of leveraging modern technologies.
 Frugal innovation includes innovative business models for making solution accessible in
the organization.
Importance of commercial funnel and application of new product development processing
Importance of commercial Funnel:
It is also knows as sales funnel, purchase that is visual content of customer journey,
depicting sales process from awareness to action. Commercial funnel is important for H&M for
building healthy business relationship, engaging with people generates inquires, qualified leads,
opportunities revenue.
 It is essential for attracting new customers and turn into conversions.
 With the help of sales funnel, company finds massive opportunities to effectively and
efficiently changes strategy to see more conversions.
 Sales Funnel is important to create consistent, organized process for evaluating, ranking,
sorting and prioritizing sales leads(Dhewanto and Sohal, 2015).
 It also allows devoting time and resources to working with right sales leads.
 Sales funnel is important to have sales funnel with multiple points of contact over time.
 It is also referred as marketing or revenue funnel.

 It enlarges thoughts that every sale begins with huge number of possible customers and
ends with much small number of people who actually make purchase.
New Product Development Processing:
There are various steps includes in new product development process of H&M. Company
introduce new product(handbags) in the new market. Such as follows:
Idea Generation: In the first step, organization operator generates ideas to identify
customers needs and wants, current market trends for developing new product. With the help of
SWOT, internal sources, market research, operators are generating ideas for product
development.
Idea Screening: After generating ideas, operators are screening those thoughts. It
includes organization's strengths, weakness, customers wants, ongoing trends, affordability etc.
for developing new product(handbags) by H&M.
Concept development and testing: When idea is developed in every aspects to make it
presentable, it is known a concept. Operator are targeting some customer group to test concept.
This data helps company visualize product.
Business Strategy Analysis and Development: After testing, result helps business
incoming up with final concept to product development. It is time to analysis different business
strategies such as marketing mix, pricing strategies, costs etc(Akrani, G., 2012).
Product Development: If all strategies are authorized, product concept is transformed
into an actual tangible good. In this stage, all branding and other strategies are applied and tested.
Test marketing: Operators are testing customer feedback and reviews for making to
product. It is important for validating the entire concept and makes H&M ready to launch
product in market.
Commercialization: Operators of H&M utilizes marketing mix in this stage. This step
includes briefing various departments about duties and targets.
Review performance: Once all steps are properly done then operators are getting
reviews of product performance in the marketplace(Rangus and Slavec, 2017).

Build innovation Business Case and ways of access the funding
Build innovation case offers unique approach to handle one of the real problem areas
within innovation making case compelling. H&M introduce handbags in new markets. For that
they are acquiring funding from different ways. This assists in new product development and
business growth in retail sector. Such as follows:
Friends and family: For introducing new product, H&M owners are acquiring funds
from their friends and family members. They provide either equity or debt funding for business.
It is good sources be careful about selling part of their business to this group.
Angel Investor: They are typically rich individuals willing to invest in businesses. Angel
investors are forming investment groups to extended risk and to pool research. With the help of
local angels, company knows abut that for funds.
Illustration 2: New Product Development
Source: (New product Development, 2012)

Partners: It is sources of funding by taking on partners. These people may or may not
become an employee of the business. Strategic partners can benefits business by aligning
resources.
Venture Capital: These organizations are provided early stage funding, but they are
looking to make relatively large investments and take significant share on firms. They often
controlling interest( Zhang, Zhao and Xu, 2016).
Banks loans: H&M acquires funds from banks loans. Traditional banks make small
business loans. These are requiring track records and often want loans secured with assets. With
the help of this, company raise funds for introducing new product and their development in their
market.
Different tools to develop, retain protect knowledge and intellectual property
Intellectual Property(IP):
Intellectual Property is consists of all the pieces of business that thoughts of employees.
IP is original concept and ideas conceived of and developed by workers, advisors under contract.
This includes many types of protections available to IP such as patent, trade mark, copyright,
design rights. It is tool to develop, retain and protect knowledge for developing new product in
the market. The goal of IP law is to encourage creation of large variety of intellectual
products(Tukker and et.al., 2017).
PATENT: It is form of intellectual property. Patent gives its owner right to exclude other
from making, utilizing, selling and importing an innovation for limited time period. Patent rights
are given in exchange for an enabling public revealing of the innovation. In most of the
countries patent right fall under civil law and patent holder needs to action someone bounding in
order to enforce their rights. There are many types of patent such as design, plant and utility.
 It is an open document issued by government granting exclusive right to person,
predating modern patent system(Tukker and et.al., 2017).
 It refers to the right granted to anyone who is inventing something new, useful.
 A patent includes many claims, each of which defines particular property right. These
claim must meet relevant patent ability requirements.
 It includes novelty, usefulness and non obviousness.

 It is beneficial to provides incentives for economically efficient research and
development.
 Patents are intended to facilitate and encourage disclosure of innovation into public for
common good(Rangus and Slavec, 2017).
Copy Right: It is also form of intellectual property. Copyright is legal right, existing in
many countries that grants the creators of an original work exclusive right. This is usually only
for limited time. It can be granted by public law and are in that case considered territorial rights.
This means that copyrights granted by law of certain state.
Trade mark: It is also type of intellectual property. It is recognizable sign, design or
expression that identifies products and services of particular sources of other. Trademark is
located on package, label, voucher on product itself. Trademark identifies brand owner of
particular product and services. It can be used by other under licensing agreements(Collyer,
2017).
Design rights: Design rights are rights of looking of products. It is intellectual property
right that protects visual design of objects that are not purely utilitarian. It consists of creation of
shape, configuration of pattern or colour, combination of patterns( Rangus and Slavec, 2017). it
an application can file for single international deposit with national office in country party to
treaty.
CONCLUSION
This report has summarised that overview of Hennes & Mauritz (H&M), current situation
and its key activities. It can be concluded that market Structure, changing perception, new
knowledge, necessity etc. that are sources of innovation. It can be discussed that product,
process, position and paradigm that are types on innovation that shaping of innovative ideas. It
can be analysed that importance of sales funnel as commercial and application new product
development process for commercialisation of company. Furthermore, report completed that use
of intellectual property as tool to protect knowledge of copy right, patent, trade mark and design
right in organization.

REFERENCES
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Online
Innovation Funnel, 2016. [ONLINE]. Available through. :
<https://www.ifm.eng.cam.ac.uk/research/dstools/innovation-funnel/>.
Akrani, G., 2012. New product Development. [ONLINE]. Available through. : <http://kalyan-
city.blogspot.com/2012/02/stages-process-steps-of-new-product.html.