Innovation and Commercialisation - Burberry Assignment
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Innovation and Commercialisation
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Table of Contents INTRODUCTION..........................................................................................................................3 TASK 1............................................................................................................................................3 P1 : Innovation and its importance for the organisation in comparison to invention.................3 P2 : Explanation to how vision, leadership and culture of organisation can shape innovation. .4 TASK 2............................................................................................................................................5 P3 : P's of innovation and use of innovation funnel to examine and shape innovative idea.......5 P4 : Developments in frugal innovation in organisational context.............................................6 TASK 3............................................................................................................................................7 P5 : Importance of Commercial funnel and application of New product development.............7 P6 : Detailed Innovation Business case for the organisation......................................................8 TASK 3.........................................................................................................................................10 P7 : Tools that can be used by the company to develop, protect, retain knowledge and intellectual rights.......................................................................................................................10 CONCLUSION..............................................................................................................................10 REFERENCES................................................................................................................................1
INTRODUCTION Organisation modernise their activities and processes with the aim to get competitive advantage. For this they keep on innovating their products, processes, serves etc. By this the organisation means to implement better solutions so that they can meet up with the requirements and augmented needs of the customers. The businesses thus commercialize the new products, services or methods by making them available in the existing marketplace. An innovation is commercialisedbytheorganisationbygoingthroughvarioussteps.Forthisreportthe organisation that is taken into consideration is Burberry, which is a UK based luxury fashion retailer. In this report various innovation undertaken by Burberry and the impact of vision, leadership and culture on innovation is discussed. Also innovation funnel is used in the report to examine the innovation idea along with that commercial funnel, business case are prepared for commercialising the innovation. TASK 1 P1 : Innovation and its importance for the organisation in comparison to invention Overview of the organisation: Burberry is a British fashion house which offers ready to wear outwear, fashion accessories, fragrances etc. and have been operating worldwide. They are highly customer focused for which they destroy their unsold products in order to protect their brand and goods from being stolen. As this stolen goods can be sold at cheaper rates which can adversely affect the image of the company. Innovationis the process of replicating an idea or invention on the goods, services or processes, which will increase the benefits and value to the customers for which they pay. WhileInvention is introducing any idea, product or service for the first time. Difference between the two is given below: BasisInnovationInvention ConceptInnovation is implementing any idea at an economic cost. Invention is such an idea which is to be proven as feasible. Skills requiredForinnovation,marketingand strategic skills are required as it is concernedwithimplementationin For invention a set of scientific and technical skills are required.
existing strategies. Concerned withInnovationisconcernedwith aggregation of various activities and products. Inventionisspecifictowardsany product or service. Importance of innovation :Burberry is one such company that keep on introducing innovation in their business as it is very important for the organisation. Innovation helps the organisation to solve the problems easily, increases productivity, in taking competitive advantage. The Burberry brings innovation in their business by using Big Data and Artificial Intelligence which helps their employees to target their customers easily. This facilitates them to increase sales and satisfy their customer. Also their marketing initiatives such as Burberry Kisses, customisation in the trench coats, digital presence are all innovations that are implemented by Burberry helped them to boost their sales and to best their competitors(Datta, Ailawadi and Van Heerde, 2017). Sources of innovation :There are various sources that compels the organisation to adapt the innovation.Suchsourcesareunexpectedchanges,structureofthemarket,changesin demographics and in perception of the target market etc. which affects the choice of customers. To make their business effective the Burberry need to keep an eye on such sources that leads to innovation. P2 : Explanation to how vision, leadership and culture of organisation can shape innovation For the company to be successful it is important to set the vision on the basis of objectives they want to achieve. Managing employees is a difficult task when their is diversity in the organisation as it has influence on culture of the organisation and this can be well managed by the leaders. Innovation and commercialisation is such a process which involve the entire organisation thus it can be shaped by vision, leadership and culture. ļ·Vision: Vision are determined on the basis of goals of the organisation, this helps the individuals to set targets for them. Organisation integrates their operations to achieve the goals due to which the organisation need to introduce innovation. For e.g. employees who has to achieve their targets of sales determines various sources from where they can attract customers. Such as employees of marketing team of Burberry suggested content to be used while advertising which attracted a large number of customers(De Mooij, 2018.).
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ļ·Leadership :Leaders influences the people of the organisation to be target focussed by motivating and training the employees. Leaders encourages the participation of the people by taking their opinions and suggestions which shapes innovation. In Burberry, the innovation that shaped due to leadership is that their teams are unified by way of trainings and motivation, which helps them to give them an edge over other companies. ļ·Organisational culture: The culture in the organisation refers to the beliefs and the values that an organisation posses. Leaders in the organisation always tries to manage the control the culture to maintain peace and positivity among all the employees. Friendly and positive culture of Burberry motivated people in the organisation to satisfy the customers and gather data from them. Such data can be used by them to update the customers regarding their offers and make them feel special, which improves the level of satisfaction. This help an organisation to develop an environment of innovation as their vision are well defined which helps them to determine the individual targets. Also the employees are encouraged to participate in the organisation by giving their opinion which brings innovative ideas. This helps the organisation to achieve their goals(Dincer, 2017). TASK 2 P3 : P's of innovation and use of innovation funnel to examine and shape innovative idea The innovationmix is a model that helps to improve the process of innovation that the organisation wants to bring in. This create an understanding of where the organisation is and how can they innovate their product, process, position and paradigm. The 4 P's of innovation are : ļ·Paradigm: This is concerned with the change in the process of something that is done in the organisation or the mental modes. Such changes can be radical and it may not always be profitable for the organisation but they need to be implemented in such a manner that they can be made positive. ļ·Product: This is concerned with introducing the changes in the products and services that are provided by the company. The Burberry can bring innovation in the designs of the products that they offer also they can introduce new products on the basis of changing taste and preference of the customers.
ļ·Process: Innovation in process is considered with the alteration in the delivery and the procedure that is being followed by the company. The Burberry brings innovation in their process by going online and by offering deliveries to their customers(Micheli , 2012). ļ·Position: Position is concerned with placing the product in the market. The products so offered by the Burberry should be available at all the stores. As they are operating worldwide so they need to ensure availability of all their products at every geographical locations(Innovation Space 4Pās. 2018). Innovation Funnel to examine the idea: Innovation funnelis themechanismthathelpsindescribethestepsthatcanbe undertaken to develop a product or process by the organisation. Also this helps to analyse the viability of such innovation. By using this the business can develop the strategies to launch a product which will help them to increase their market share and even to satisfy their existing customers. Burberry can use this innovation funnel to meet the market needs by refining various ideas through the stages of innovation funnel. The informations are collected regarding the ideas, their screening are done and then the final option is selected. This helps the Burberry to identify the most suitable and viable idea of innovation. P4 : Developments in frugal innovation in organisational context Frugal innovation is a concept that helps to reduce the cost of the goods produced by reducing the complexity in the business which can be done by reducing the non essential features from the goods. As Burberry is into business of fashion, it is important for them to provide the products only as per the trends to maintain their customers base. Frugal innovation helps in minimising the cost by eliminating some products or features. Frugal innovation can be used by the Burberry which can be created with the use of processes such as circular and sharing economies where they need to communicate with all the departments regarding the innovation that can take place by allowing open innovation in their organisation. Further they can allow to take actions regarding suggested change and thus implement it(Mohannak and Samtani, 2014). This Frugal innovation will help the company in : ļ·Reducing the needs of the funds as the cost will be reduce wh9ich will reduce the debts of the company. ļ·Open innovation will allow them to adapt new technologies which will help them to make their business more innovative thus it help them to attract more customers.
Various principles on which the company has to focus upon are to find opportunity in adverse situation, keeping things simple which will help the employees to accept the innovation, to maximise the use of the resources that they have with them. All these principle will help the Burberry to make the implementation of innovation easy and effective. Role of Frugal innovation in organisation :The frugal innovation is essential for every business who are planning for innovation as they helps them to develop their products from initial stage which reduces their cost and improves the quality of the products. For Burberry it is important to maintain the quality of the products offered by them to maintain the strong brand image.For example: The woven fabric was invented by Burberry that was tough, waterproof and breathable. But it was so costly that affordability was at stake. In such a case the frugal innovation helps in reducing the cost by adapting the latest technology. With social media advertising which is comparatively economic, they can create awareness which will help them them save the cost of advertising from other sources. TASK 3 P5 : Importance of Commercial funnel and application of New product development Commercialisation of innovationis the process that helps to implement the viable idea or research on the product and production system, so that the manufacturers can attain their objectives of cost reduction without compromising the quality of the goods. Commercial Funnelis a process of purchasing the products by the customers which is lead by the companies . The steps of the commercial funnel varies in different sales model but the basic steps that are part of it are companies finds the customers, qualifies them and sell their products to them(Pellikka and Malinen,2014). Importanceofcommercialfunnel:Fortheemployeesoftheorganisation,to understand the importance of commercial funnels is crucial as : ļ·It will help the employees of the company to develop the marketing strategy by focus on the customers who are in the decision making section of the funnel. ļ·The understanding for the customers will be increased this will help them to increase their sales.
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ļ·As it is known to all the companies that no business model is perfect, this model will help them to get the feedbacks from the customers. Thus it will help the employees to modify the changes to get the desired results. New Product Development:This is the process which helps in introducing the new products in the marketplace. The Burberry for launching a new product in their product range need to undertake the process of product development which includes various stages : ļ·Idea Generation: In this step of product development various ideas are determined by themanagement and information regarding such ideas are gathered. Burberry will ask their employees to suggest various ideas for introducing a new product. As they are into fashion industry, on the basis of trend their employees can suggest a lot of ideas. ļ·Idea Screening: In this step the need to be analysed on the basis of information gathered in previous step. Burberry will analyse all the ideas and will select one which is viable and can be undertaken by the company. They will determine the specifications of the product identified in this stage which is wedding gowns. ļ·TestingConcepts: In this stage the research department of Burberry will develop the product on the basis of needs and wants of the customers and will provide it to some of their employees which is part of concept testing. They will suggest the features which should further be added to the products which will help them to attract more and more customers thus will increase their level of satisfaction. ļ·Analysing the need of product development: In this step of product development, all the strategies will be formulated by the marketing department of the Burberry regarding the prices, advertising of their wedding gowns. Also they will identify the target market in which they will initially launch their product(Stead and Hastings, 2018). ļ·Commercialisation: This is the last step of the process of product development where the Burberry will launch their product in the market with the aim to position their product i.e., wedding gowns which is entirely different then their existing product range. As the company went for the detailed analysis of each and every factor this will ensure success to the Burberry regarding the launch of this new product. P6 : Detailed Innovation Business case for the organisation Business case is a document that contains various methodologists approaches which can be used by the company to solve the issues faced by them. It helps the company to effectively
execute their activities without getting much affected by the prevailing situation. The business case for Burberry is given below : Executive Summary: As the Burberry is a fashion house so they decide to launch a new product in this segment but which is entirely different then their existing products. So they have decided to launch wedding gowns, as the brides prefers to wear branded outfits on their wedding which are little different then ordinary gowns. To introduce such product the company need to undergo various analysis such as SWOT, PESTLE etc. which will help them to identify their target market. Issues: Burberry is a renowned and a very old brand of this industry but they are facing stiff competition from the other emerging brands which has affected their revenues. The important issue is that they are losing their customer base when it comes to ethic segments. Solution: After they will launch wedding gowns their customer will have a variety of all type of clothings in their stores whether western wear or ethic. This will help the Burberry to keep their customer intact with them as they are providing them everything better and unique then their competitors. Why it is innovative: Burberry is famous for their innovation designs of their outfits, bags and shoes. Now when they are launch wedding gowns in their product range the designs of their products are so unique as their other products which will attract customers. Also they uses Artificial Intelligence and Big data to approach their customers, this will increase their market size in terms of attracting the customers(Walsh, 2012). Customer Research: When they are launching new product they need to do the market analysis to understand the taste and preference of the employees which will help the Burberry to design their gowns exactly as per their needs. Such research can be done by the company through surveys. Investment requirement: The fund requirement need to be analysed by the Burberry before they plan for innovation. For which they need to identified all the resources required by them such as procurement of the labour, raw material, cost of research etc. This will help them to procure the funds well in advance.
TASK 3 P7 : Tools that can be used by the company to develop, protect, retain knowledge and intellectual rights The intellectual rights are referred to as the legal protection that is being provided to the owners of the intellectual capitals. These rights are intended to protect the ideas which are generated by the companies(Xiao, Li and Liu,2016). The tools that can be used by the company to protect them, retain knowledge are given below : ļ·Copyrights: Copyrights are the rights or powers which has been provided to the creator for a creative work that aims to protect their original expression of an idea. These are provided for a specific time period after which they need to be renewed. The rights that are provided are to reproduce the work, to distribute their work, perform and display it publicly. ļ·Patents: Patent is a form of intellectual property right that gives the rights to the owner to excludes other from making, using, selling and implementing any invention for a limited period of time. The Burberry can use copyrights to protect them their innovations as they will going to design their wedding gowns with creativity which will ensure them that their competitors does not imitate their designs. CONCLUSION It is concluded from above report that innovation is important for every organisation to make them competitive and to improve their efficiency. This helps the company to expand their market share thus it increase their revenue. It is identifies in this report that business case helps the company to successfully introduce and implement the innovation in the organisation. It is also concluded from this report that various legal rights has been provided to protect the owners.
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REFERENCES Books and Journals Collaboration form, idea generation and implementation.Research Policy. 45(8). pp.1660-1671. Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?.Journal of Marketing.81(3). pp.1-20. De Mooij, M., 2018.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. Dincer, I.. 2017. Importance of research, innovation and commercialisation for technological success.International Journal of Research, Innovation and Commercialisation. 1(1). pp.8-22. Micheli, P. and et. al., 2012. New business models for public-sector innovation: Successful technological innovation for government. Research-Technology Management. 55(5). pp.51-57. Mohannak, K. and Samtani, L. A., 2014. A criteria based approach for evaluating innovation commercialisation. 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. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Walsh,P.R.,2012.InnovationNirvanaorInnovationWasteland?Identifying commercialization strategies for small and medium renewable energy enterprises. Technovation. 32(1). pp.32-42. Xiao, X., Li, Y. and Liu, Z., 2016. Graphene commercialization.Nature materials. 15(7). p.697. Online InnovationSpace4Pās.2018.[Online].Availablethrough: <https://innovationmanagementsite.files.wordpress.com/2015/09/innovation4ps.jpg>. 1