Managing Innovation in Business

This report analyzes the management of innovation in business, using Burberry Group Plc as a case study. It examines the company's innovation history, its existing innovation performance and capabilities, and the broader retail industry trends in 2018. The report highlights key innovations like the invention of Gabardine fabric, online selling, store expansion, and the introduction of a new logo and monogram. It also discusses the impact of these innovations on Burberry's profitability and competitive advantage.

Managing Innovation in
Business

EXECUTIVE SUMMARY
This report will lay emphasis on managing innovation. Managing innovation simply means
making new changes in existing businesses. The innovations of Burberry group plc will be taken
in the report for better understanding of this topic. The report will cover a brief introduction of
the Burberry plc. The company was founded by Thomas Burberry in 1856. This report will
highlight the innovation history of Burberry. Also, it will discuss about capabilities of Burberry
and their existing innovation performance. The company is indulging in various innovation for
their growth. This report also highlights innovation of retail industry in the year 2018.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
About Burberry & its innovation history ...............................................................................4
Burberry existing innovation performance and capabilities ..................................................6
The industry in 2018...............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of innovations is to make changes in traditional management processes,
principles and practices. It is a management of activities that are needed to introduce something
new or innovating (Biemans,2018). In this report innovations of businesses will be explained by
taking Burberry group plc. Burberry is a British luxury fashion brand founded in 1856 by
Thomas Burberry. The company deals in clothing, fragrances, and other accessories. This report
will lay emphasis on innovation history of Burberry. Also, report will highlight existing
innovation and capabilities of the company. The report will discuss retail segment in which
Burberry deals in 2018.
MAIN BODY
About Burberry & its innovation history
Burberry group Plc
Burberry group Plc is a luxury fashion industry origin from British. Burberry's
headquarters is in London, England. The founder of Burberry group plc was Thomas Burberry in
1856. The company deals in fashion accessories, sunglasses, trench coats, cosmetics and
fragrances. Burberry is listed in London stock exchange (LSE). The company serves their
products worldwide (Bouncken, and Fredrich,2016). Hence, in 2015 ranked 73rd company in
inter brand's best global brands. Chairman of Burberry is Sir John peace and CEO is Marco
Gobbetti. Although, the company is attaining profitability and their annual revenue of 2018 was
2,732.8 million pound. The company has established themselves as Luxury and iconic brand of
Britain.
Innovation History
Burberry was founded by Thomas Burberry in 1856. Then, he invented Gabardine consists of
breathable, weatherproof, and hard wearing fabric in the year 1879. The company opens their
first store at 30 Haymarket, London in 1891 and in 1909, another at 8 Boulevard Malesherbes,
Paris. During The first and Second World War, company designs trench coat for the Armed force
of Britain (Cantwell,2017).
Then in 2000, Burberry opens stores at bond street, London for their exposure as a luxury and
iconic brand. In July 2002, The company listed in London Stock Exchange (LSE). In 2004 they
launched their website in US and UK in year 2006. In 2011, Burberry opened 5 stores in Saudi

Arabia by a joint venture. Company is dealing in luxury clothing of both men and women
(Planing,2015).
From 2012 company is engaging in Digitalisation their products and services and started selling
them online. Latest in 2018, Burberry launches a new logo and monogram with Peter Saville.
Company has introduced in various product lines like perfumes, cosmetics, sunglasses and other
accessories which they are selling physically as well as through websites.
Here Innovation History is summarised in Table for better understanding.
Year Innovation history
1856 Thomas Burberry founded the brand.
1879 Thomas Burberry invented weatherproof, breathable, and hard wearing fabric
called gabardine.
1891 Burberry opened first store at 30 Haymarket in London.
1909 Then, they open stores at 8 Boulevard Malesherbes in Paris.
1914 During the first world war, Burberry designed trench coats and served it to army.
1940 During the Second world war, The company supplied military apparel and trench
coats to the armed force of Britain (Biemans,2018).
2000 Burberry for exposing their brand status opens store at Bond street in London to
make aware people about global luxury and iconic brand.
2002 In July, Burberry was listed in London Stock Exchange (LSE) and raised their
capital through Initial public offering.
2004 Burberry launched their website in United States for the first time (Bouncken, and
Fredrich,2016).
2006 After that Website was launched in United Kingdom (UK) by Burberry group.
2011 Opens 5 stores in Saudi Arabia by joint venture with Fawaz Abdulaziz Alhokair &
Co.
2012 Burberry exposes their digitalisation with opening of 121 Regent street in London.

2018 Burberry launched monogram with Peter Saville and a new brand logo
(Cantwell,2017).
Burberry existing innovation performance and capabilities
1. Innovate by Gabardine
Burberry invented Gabardine a new range of fabric which has attributes of weatherproof,
breathable, and hard wearing fabric (Carayannis, Sindakis, and Walter, 2015). The sales of
Burberry improves after launch of Gabardine. The company mainly focuses on higher level
peoples of the society. Therefore, their customer belong to high society which help them to
outperform a luxury brand of Britain.
Innovation performance of Burberry
The range of fabric offered by the company is very rich in quality. The innovating increases
profitability and also their customer base increases by the quality they offer to their customer's.
The quality of products helps the customer to build trust in brand. They gain customer loyalty by
value the needs of customers and services offered by them.
Capabilities of Burberry
 The company is giving tough competitions to all rivalries like Armani, LVMH, Prada,
etc.
 Burberry innovates according to needs of their customer's (Dong, and Wu,2015).
 They are providing good quality product at reasonable price.
2. Innovate by Online selling
Figure 1 : Burberry logo
Source : (Burberry Logo, 2018)

The company develops their official website which provide access to shopping at their
convenience. The company has grown a lot by following trend of digitalisation. Companies sales
have been increasing because customers can now get access to not only on physical stores but
also through shopping through their website.
Innovation performance of Burberry
Burberry is attaining profit of almost 20% from Online selling. Customers prefer to buy online
because it saves their time (Kim, and Min,2015). The company also gaining loyalty from
customers which can be considered its strength. Official website of Burberry displays all the
products they offer with their attributes and price tag which gives proper details to buyers.
Capabilities of Burberry
 The supermarket are getting succeed by increase in their profitability.
 Same day delivery attracts customers attention.
 Burberry is giving tough competition to their competitors because of the sales target they
are achieving.
 The company make efforts to retain existing consumers like online product selling
through official website.
 Burberry's customer are loyal towards the brand.
3. Innovate by opening new stores
Burberry is now having 240 stores worldwide (Zott, and Amit,2015). The company continuously
opens stores in various countries like in UK, US and some parts of Saudi Arabia to serve their
products in different geographical area.
Innovation performance of Burberry
This exposure helps them to create awareness among natives of that country. Burberry is dealing
in retail and wholesale both. The company is now ranked 73rd in inter brand's best global brand
which improves the image of company (Carayannis, Sindakis, and Walter, 2015). The company
opens stores at different geographical area helps them to achieve wider acceptability. This
enhance Burberry to gain new customers. Burberry is now categorised as one of the luxury brand
of UK.
Capabilities of Burberry
 The Burberry group is able to draw attraction of many customers.
 Company is now having customers from different geographical boundaries.

 They understand need of customers and provide them products accordingly.
 They are gaining competitive advantage due to global distribution.
4. Innovate by introducing Trench coats
The company designs and provides trench coats to armed forces of Britain during first and
second world war. This offers customers that the company is engaging in social responsibilities
which improves its image.
Innovation performance of Burberry
The customers buy trench coats to follow the trend and this increases sales of Burberry. Trench
coat is made up of high quality fabric which is weatherproofed and breathable. By this quality of
coats company gains attention of customers. This lead the company towards achievement of
sales target and also this became fashion segment for so many years.
Capabilities of Burberry
 The company gains political support by providing trench coats to army of Britain which
helps them by preventing from legal hazards.
 This improves image of the company among customers that they are buying with the
company who is performing actively in social responsibilities.
5. Innovate by introducing Monogram and new logo
In 2018, Burberry group plc launched monogram with Peter Saville and a new logo which is an
innovation. Because the company gets a new look by changing their monogram and logo.
Innovation performance of Burberry
Innovation with the company logo and monogram helps company like Burberry to gain attention
from customers. Therefore, company is able to increase their sales which directly impacts
profitability of Burberry. It is a nature of human beings that they attract towards every new thing.
Therefore, by creating new logo Burberry is getting customers attraction and this helps
organisation to achieve goals.
Capabilities of Burberry
 By Innovating logo and monogram lead to increase interest of customers.
 Improves goodwill of company among customer.
 Burberry's flexibility and responsiveness are shown by making change in logo and
monogram.
 The company able to gain competitive advantage,

 The company is able to achieve short term sales target by gaining attraction from
consumers.
The industry in 2018
In 2018, the use of AI and chat box is increasing because of the customers who are sensitive with
their timing are wants immediate answers from the company (Biemans,2018). By using AI
techniques company is able to reply them immediately. This saves time and builds good
relationships between customers and retail stores.
To understand customers better, customer service is very useful. In 2018, retail sector industries
gain cross sell and experience opportunities when customer uses click and collect order. The
retail sector uses in store technologies that analyse orders, past purchases, shopping history for
the consumers and allows store workers to help them advise them accordingly.
Retailers in 2018 put their budgets so wisely that it cuts the cost of actual product. CTOs are
used to put light on cutting down the cost (Dong, and Wu,2015).
Wi-Fi availability in stores also attracts younger customers. This technique used by retail stores
to retain customers in 2018. This is simple and efficient technique to attract customers and retain
them.
There were an opportunity for retail industries to sell their products and avail services through
online selling. The retail stores like Burberry group plc make an official website through which
customers can have a look on products and also make purchases.
One day delivery is the efficient concept prevailing in 2018 (Prajogo,2016). The stores of retail
industries assure customers to make them deliver their goods in 24 hours. This attracts many
customers as the stores are gaining profit from this segment of selling that is online selling.
Some retail stores offer free store experience and trails to customer. This improves the shopping
experience of customers as they trail and then buy the suitable ones (Taran, Boer,and
Lindgren,2015). By this they succeed in retain customers and also gain customer satisfaction.
For innovation, retail industries creates many technologies and digital jobs in 2018. For the
development of Digital and technological department, the stores hires technicians for the
efficient working of the retail segment.

Retail industries for technology innovation of shoppers offer them best experience. This
technology allows shoppers to digital offers and redeem rewards. This attracts many customers
in the stores because digital technology is faster than the paper coupons.
Amazon drones are launched for making delivery to customers within 30 minutes. This
innovation helps to build sales as well as customers satisfaction.
Shutl is a London company who promises to deliver customer's products at their doors within 90
minutes. This innovation also helps retail stores to access door to door services (Foss, and
Saebi,2015).
A virtual room was set up in stores in 2018, in which shoppers can use touchscreen mirrors and
they would able to see colours availability or different patterns of clothing in mirror. This
technology bring customers try new clothing and this helps the retail industries to grow and
increase their profitability.
Billboards for shopping are also settled around different locations of London to attract customer
(Rayna, and Striukova, 2016). Also, the retailers launched hash tags from which customers may
able to see shopping list. This access customers interest and also save their time to visit physical
stores.
CONCLUSION
This report is all about innovation in business and their management. Management of
innovation prefer to use for the change a business organisation done for innovation. The report
was started with introduction of Burberry group plc which is a luxury and iconic brand of Britain
and it also highlighted their innovation history since 1856. The company is successfully dealing
in clothing and other accessories. Then comes Capabilities and existing performance of the
Burberry group. At last retail industry in which Burberry is dealing in the year 2018 was
covered.

REFERENCES
Books and Journals
Biemans, W. 2018. Managing innovation within networks. Routledge.
Bouncken, R.B. and Fredrich, V. 2016. Business model innovation in alliances:
Successful configurations. Journal of Business Research. 69(9). pp.3584-3590.
Cantwell, J. 2017. Innovation and international business. Industry and Innovation. 24(1).
pp.41-60.
Carayannis, E.G., Sindakis, S. and Walter, C. 2015. Business model innovation as lever
of organizational sustainability. The Journal of Technology Transfer. 40(1). pp.85-104.
Dong, J.Q. and Wu, W. 2015. Business value of social media technologies: Evidence
from online user innovation communities. The Journal of Strategic Information Systems. 24(2).
pp.113-127.
Foss, N.J. and Saebi, T. eds. 2015. Business model innovation: The organizational
dimension. OUP Oxford.
Johne, F.A. 2018. Industrial product innovation. Routledge.
Kim, S.K. and Min, S., 2015. Business model innovation performance: when does adding
a new business model benefit an incumbent?. Strategic Entrepreneurship Journal. 9(1). pp.34-
57.
Planing, P. 2015. Business model innovation in a circular economy reasons for non-
acceptance of circular business models. Open journal of business model innovation. 1(11).
Prajogo, D.I. 2016. The strategic fit between innovation strategies and business
environment in delivering business performance. International Journal of Production
Economics.171. pp.241-249.
Rayna, T. and Striukova, L. 2016. From rapid prototyping to home fabrication: How 3D
printing is changing business model innovation. Technological Forecasting and Social Change.
102. pp.214-224.
Taran, Y., Boer, H. and Lindgren, P. 2015. A business model innovation typology.
Decision Sciences.46(2). pp.301-331.
Zott, C. and Amit, R. 2015. Business model innovation: Toward a process perspective.
The Oxford handbook of creativity, innovation, and entrepreneurship, pp.395-405.

Online
Burberry Logo. 2018. [Online]. Available through: <https://aurora.dawn.com/news/1143208>.