Busayo of Africa: Building Future Innovation Capabilities Report

This report provides an analysis of Busayo, an African-based textile company, focusing on innovation management and future capabilities within the textile industry. It begins with an introduction and outlines the report's purpose and structure, followed by an examination of the future of the textile industry and Busayo's role within it. The report emphasizes the importance of developing innovative capabilities for Busayo to thrive beyond 2020, highlighting key requirements such as technological advancements, waste material utilization, and eco-friendly practices. It discusses the innovation funnel and its impact on product implementation, stressing the need for market research and quality testing. Furthermore, the report evaluates building future innovation capabilities using the PESTLE framework, considering political, economic, social, technological, legal, and environmental factors. The analysis concludes with insights on how Busayo can adapt to changing market conditions and maintain a competitive position through strategic innovation.

Managing Innovation in Business
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Executive Summary
This study will be focusing on the textile company Busayo of Africa and this report will be
proving a brief introduction and the purpose of the report and study at the first. Then the
future of the textile industry in relation to Busayo will be explained and how the organization
can develop its innovative capabilities. Moreover, the building of future capabilities will also
be emphasized. Lastly, a conclusion has also been provided.
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Table of Contents
Introduction................................................................................................................................4
Purpose of the Report & Structure.............................................................................................4
The Future of the Industry 2020 and Beyond............................................................................5
The Organisations Innovation Requirements 2020 and Beyond................................................7
Building the Future Innovation Capabilities for the Organisation.............................................9
Conclusion................................................................................................................................14
References................................................................................................................................15
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Introduction
Innovation can be defined as the process to interpret an idea or develop it to the betterment of
a service or good. Innovation must also create value and goodwill of the products for which
the customers will have the desire to achieve and pay for it. Innovation is a very important
aspect in the modern day market for a manager of an organization to use his abilities properly
as this creates many advantages in the business processes of an organization and thus can
invest in the success too. Innovation is such a change that the customers recognizes as new
and thus can make improvements to the expansion of the company by the implementation of
those new things.
The company Busayo NYC will be taken into consideration for this report. Busayo is an
African based textile company and this company offers a wide range of products. This
company operates over 18 locations in UK too.
Purpose of the Report & Structure
This study will be focusing on the relevance of the different evaluative methods to a range of
trade ideas, basis of information and suitable methodologies in recognizing drivers or
innovation within a business and its environments. It will also be analyzed and illustrated
how the company can successfully plan and prepare for innovation and the importance of
organizational knowledge shall be discussed. It will also be highlighted how a new product
can change in the development of an organization and how innovation helps to achieve the
success of the company.
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The Future of the Industry 2020 and Beyond
Managing innovation is mandatory for the company as it assists in the even flow and the
allocation of the innovation among the employees, the departments and the managers of the
company. This has a direct effect on to the performance of the concern and determines the
probable levels of change. Innovation management is accountable for the availability of right
information within the precise context to the right person and at the correct time to fulfil a
particular business purpose. Innovation management is a group of work that includes
practices to recognize, construct, present, allocate and facilitate adaptation of ideas and
practices. These activities help to develop the performance level of the companies, the
competitive advantages, innovations and sharing of information and effortless continuation of
the business operations (Nambisan et al., 2017).
Innovation in these recent years has been facilitating in the expansion of the companies and
managing innovation has been very important for every managers of the company to
implement and use in an accurate manner. The time has already arrived when the companies
will be depending more on the newer technologies than the employees of the company will
be accountable for the operations of the daily tasks and allocation of the works (Goffin and
Mitchell, 2016). The integral part of any company in the upcoming years will be the
generation of innovation, the accessing of innovation in the decision-making, embedding of
innovation in the company processes and goods and using innovation for the culture and
motivation of the employees.
Innovation management has become so important for every company to run its business and
survive in the market. In the upcoming years, innovation can help the companies to survive in
the market. However, it is likely that all the companies have different ideas for surviving in
the market and thus this will create a huge competition in the market. Moreover, the different
copyrighted policies will increase as more innovation and ideas will come to the market and
thus will bar the companies to copy the actions and deeds of the other companies (Westland,
2016). During the industry periods of 2020, the legal protection of every company will
increase and as innovation is hard to protect the companies will be taking the help of these
different protections to preserve these ideas. Many companies will not be able to continue
their business, mainly the companies that do not use innovative ideas for the operations of the
business. The companies that will be flourishing will have the advantage of lowered
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productivity and overhead costs, as innovation is one of such device that helps to reduce the
costs of a company. This will also help to increase the flexibility of the company and enable
it exploit the economies of scales.
Advancement of technology and ideas during the industry periods of 2020 will also lead to
innovative products and services and these are likely to meet the demands of the customers.
Moreover, there will also be an increase in the range of products that are offered to the
public. Any business that has only one product cannot survive in the market in the upcoming
future as a broader range of products is always needed as different customers have different
choices and they should be allowed to choose between the products (Bernardo, 2014).
During the industry periods of 2020, effective innovation is going to establish a unique
selling process for the different products that the companies are going to produce. Likewise,
impending superior quality recruits are habitually drawn to an industry with goodwill for
innovation. Innovative businesses have a character for being inspirational to the people who
work and educate them if needed.
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The Organisations Innovation Requirements 2020 and Beyond
The future of the textile industries in the period 2020 is very bright. The textile industries are
at its height and the demand of the textiles will be increasing in the nearer future. Almost
after 20 years from now, the companies will face many competitions and thus these
companies need to develop some new ideas that will facilitate the sales of the company.
Firstly, the development of the technology in the different departments of the company is
necessary. Technologies help to build up a faster operational flow and that too quite
efficiently. It also helps to reduce the tasks of the employees and thus a fast and efficient
workflow is introduced in the company. During the industry periods of 2020, the company
like the Busayo also needs to develop some technologies to survive in the market (Johnston
and Marshall, 2016). Some of such technologies include making fabric out of waste materials
such as used tealeaves and milk. New ways of dying clothes are being evolved in the market.
Dying with air and saving water during dying processes is one of such advancement. The
company must also use digital printing of the clothes with natural dyes. This will decrease in
the overall dying cost and be eco-friendly. It has also been observed in UK that most of the
people tend to buy those products that are eco-friendly and companies that are socially
responsible.
Newer trend have appeared in the market where the customers wants hand made products and
clothes that are dyed by hand. Machines do not have any flaws in the dying process but many
customers of UK have started to like products that are handmade as little flaws in the
handmade processes are suiting the recent fashion style. Smart tailoring is a process through
which the company can increase the sales of the products as well as decrease the prices of the
products (Zandoval Bonazzi and Ari Zilber, 2014).
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Innovation funnel
Figure 1: Innovation Funnel
(Source: Woolf, 2017)
The innovation funnel is used to explain the steps that occur in developing a procedure or a
commodity. This part of the study will be emphasising on the ways in which the innovation
funnel will affect the implementation of a product of Busayo into the market. To implement a
product into the market the company must first investigate the market conditions and the
demand of the consumers. A research must be held by the company in which the company
has to study the demands of the market and whether the product will be applicable after some
period of time (Mount and Martinez, 2014). Then the company must be taking steps to create
it. The company to check the quality of the product must conduct a large number of tests and
samples must be provided to some people and see whether the company is meeting the
demands of the customers and then the company must launch the product into the market. For
the distribution process, the company must take steps that these products reach the customers
hassle free, as these will reduce the costs of the company. Thus, the company, for the
betterment must also take some factors like choosing the right suppliers and the structure of
the organization.
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Building the Future Innovation Capabilities for the Organisation
Every organization to develop must be able to change their ideas and adapt to these
conditions as the market changes. The company Busayo also have to develop such ideas and
build future innovations capabilities to survive in the future and maintain a position in the
market. The textile industry started to grow after the industrial revolution and a mass
production of garments became a mainstream industry. Until the economic liberalization of
UK, this industry was a lot unorganized and thus these periods have led to a dramatic growth.
To judge the building of future innovation capabilities of the Busayo Company, the PESTLE
(political, economic, social, technical, legal and environmental) factors will be taken into
consideration (Dockalikova and Klozikova, 2014).
Political
Foreign investments for the textile industry was not authorised for many years but recently
the Government of the country has eliminated these restrictions after BREXIT and brought
down the import duties on capital equipment, which now offers foreign companies to invest
in the textile companies in UK (Drucker, 2014). UK has also provided with a huge
manufacturing platform for the different textile companies to flourish and carry its business
elsewhere. The company must make use of these factors and change the old policies to
develop and enhance the company operations.
Economical
There are a large number of factors that affect the development and the building of
innovation in a textile industry. Companies like Busayo are still developing and that means
that this company will have a huge scope of employments. Employments reduce the poverty
level of an area or a country and thus the company do not run short of human capital. After
the BREXIT, it has created an enormous prospective for employment in the subdivisions of
agricultural and industrial. Employment opportunity is formed as soon as cotton is cultivated.
Innovation takes place as the employees are happy with their pays and they can focus directly
on the efficiency of the work. Moreover, some factors as the national income, per capita
income, availability of natural resources, infrastructure, capital and employment affects the
innovation in a company.
Social
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To introduce innovation in the organization the manager and the people related to the
decision making of the company must take in factors such as the education and knowledge of
the employees, the customs and beliefs of the up city areas, and the cultural differences. The
textile industry of UK, to build the future of innovation must take the advancements of the
newer types of production. Availability of the raw materials and the natural resources will
help to build innovation in a company like Busayo.
Technological
The most important factor that will increase in the innovation of a company is the increasing
technologies of the textile industry. In a company like Busayo, as more technologies advance
inside the organization the people will have less work to do. Thus, the employees will have
an ample time to think about different changes in the industry, resolve those flaws, and
implement a new and better idea.
Legal
If there is a change in the legal structures of the company and the company is allowed to
implement different technologies and ideas to spread its business worldwide and that too after
incurring a very little expense, then the company will invest more time and money in the
innovation of the company and its products. The company will also be able to check on the
demand of the customers and build an innovative idea hassle free.
Environmental
Laws relating to eco-products and prevention of the environment will let the company to
introduce innovative products that are eco friendly and that satisfy the demand of the
customers. Moreover, the protection of the environment and safeguarding is the liability of
the textile industry. Pollution-free activities and recycling of manufacturing wastes has turned
out to be a commercial concern at the present periods (Breuer and Lüdeke-Freund, 2016).
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The Porter's five forces is such an analysis that helps the company to understand where the
company lies. It also provided an analysis of the things that should be done for the
introduction of a new product to the market (E. Dobbs, 2014). The porter’s five forces will
help to understand the strength of a current competitive position in relation to how innovation
capabilities can be build inside the organizations. The five forces consist of the bargaining
power of the buyers and the suppliers, threat of new entries and substitutes and rivalry among
competitors.
The bargaining power of buyer
The bargaining power of the buyers determines the innovation of the company like Busayo,
as the ability of the buyers to apply pressure on business activities by demanding a lessening
of price while maintaining the similar eminence of the product. This will help the company to
introduce such ways in which the company will be incurring less costs on production as well
as distribution. This is where the company have to know the demand of the customers. To
increase the sales of the product the company must change according to the market trends and
develop policies to bring those changes into the company.
The bargaining power of supplier
The suppliers of the company have the power to bargain when the industry relies on the few
suppliers or at the time when there is no substitute for the product that the supplier provides.
The bargaining power of the company is high the company finds different alternative sources
to get its raw materials. This helps to build innovation as more suppliers can be taken into
consideration for the raw materials of the company, and no extra price has to be paid for the
products provided (Brexendorf et al., 2015).
The threat of substitutes
As more and more of substitutes come to the market then the company feels a threat. The
profitability of the industry depends on the relative price of the substitutes and the company
can turn to an alternative product instead of using what this company provides. For example,
if the company Busayo provides African dresses, another company pops up with the same
products but a relatively lower price. Thus, many of the customers can shift to the other
company. This affects the innovations of the company, as the company has to grab the market
and dominate its competitors. Newer4 technologies and incurring less cost will provide goods
to the customers at low cost.
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The threat of new entry
The same happens at the time of a new company gaining a market position. The company
like Busayo will have to develop a new idea for the development of the product and services,
grab a position of the market, and dominate its competitors.
The rivalry among the competitors
When the competitor of the company is very aggressive and is providing attractive rates of
products while maintaining a good quality, a company like Busayo will have to change the
ideas and implement different innovative ideas to grab the existing position of the market and
introduce new products or services.
To look at the core capabilities of the company and to use strategic innovations then the
company will have to analyse through the SWOT method. This will show the strengths,
weaknesses, opportunities and the threats of the company in relation to the building up of
innovation of the company (Lichtenthaler, 2015).
Strengths:
 A good capital
 Advanced Technology
 Big customer foundation
 Trendy products
 Attractive Designs
 Easy to use
 Eco-friendly
Weaknesses:
 High Prices
 Less outlets
 Not responsive to global marketing
 Small range of products
Opportunities:
 Advancement of textile technology
 Use of eco-friendly raw materials
 Changing trends for the products that
this company provides
Threats:
 Huge costs of technologies
 Increasing costs of experienced
human labour
 Company have many substitutes
Stakeholder Management
For this study, the three stakeholders that are to be taken into consideration are the customers,
the government and the company itself. The internal stakeholders include the directors of the
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