Managing Innovation in Business Cw2

This report discusses the future of the cosmetic industry, innovation requirements, and building future innovation capabilities for Rimmel. It covers the importance of stakeholder and knowledge management, culture, and leadership in promoting innovation. The report also highlights emerging issues in the industry and the impact of technology, customer trends, environmental innovation, and social media marketing. The Lewin's change management model is also discussed to overcome possible resistance to change. Course code and college/university not mentioned.

Managing Innovation
in Business

Executive summary:
The following report is able to effectively highlight the various factors that pay a crucial
role in promoting innovation for the chosen organisation. In addition to this, it also outline
factors that are emerging in the environment that require innovation to be solved. The report also
provide vital information relative to innovation process and its effectiveness for the organisation.
Moreover, the report helps in understanding the importance of stakeholder and knowledge
management for developing future capabilities relative to innovation along with the impact of
appropriate culture as well as leadership in order to promote innovation.

Table of Contents
INTRODUCTION...........................................................................................................................4
Purpose of the report and structure..................................................................................................4
MAINBODY....................................................................................................................................4
The future of the industry 2021 and beyond...............................................................................4
The organisation innovation requirements 2021 and beyond.....................................................6
Building future innovation capabilities for the organisation.......................................................8
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business innovation refers to an organization's overall process which includes
introduction of new ideas, products and services along with structured workflow and
methodologies. Innovation is business is crucial as it improves existing processes and help to
solve organisational issue. For the following report Rimmel is taken into consideration which is a
British cosmetic brand which was established in the year 1834, London, UK.
Purpose of the report and structure
This report will include future of the industry as well as innovation required in 2021 and
beyond. In addition tot his the report will focus on building future innovation capabilities for the
chosen organisation.
Brief outline of key findings from coursework 1:
The analysis of coursework 1 was able to highlight that Rimmel has focused on product
innovation through the introduction of their organic lipstick. Moreover, innovation can be seen in
their indirect distribution. The coursework 1 was also able to outline how various external
environment interacted with the organisation and can have both positive as well as negative
impact on its operations. Furthermore, the use of Porter's five force model allowed to evaluate
competitiveness in the market along with SWOT framework to determining overall internal
environment. The coursework 1 was able to highlight essential resources of the organisation
along with vale chain analysis.
MAINBODY
The future of the industry 2021 and beyond.
Business innovation allows an organisation to implement new process along with
products and service with the primary goal of enhancing their bottom line. This can involve
launching new innovative products and service in the market which can result in higher revenue
and solve existing business problems. In context to Rimmel, innovation is a key factor in order to
adapt with dynamic market trends and ensure to stay competitive in market. Innovation will also
allow the organisation to attract as well as retain loyal customers and generate high level of
profitability (Bø Lyng and Brun., 2020). There are various key possible factors that are driving
the innovation in cosmetic industry and need to be considered relative to future. Given below are
few drives of innovation in context to Rimmel:

Technological innovation:
The concept of advance technology is a key driver for Rimmel as it will allow them to
develop new products in effective manner while reducing cost. This will provide the ability to
offer products to customers at lower prices and grab larger market share.
Customer trend:
The changing tread of customers has been focuses on using cosmetic products with no
chemical additives. This is advantageous for Rimmel as their innovative organic products can
cater to the changing trend and ensure to attract loyal customer base in an optimal way.
Environmental innovation:
The role of environment has been a crucial driver for innovation as it is forcing various
cosmetic organisation to stop production of products that harm the environment. This driver of
innovation is in favour of Rimmel due to their existing like of organic products. In addition tot
his environment innovation allows the organisation to build positive brand image relative to
customers (George and Schillebeeckx. eds., 2018).
Social media marketing:
The trend in marking has been altered which has forced organisation to pay emphasis on
online marketing in order to attract larger customer base. The marketing at Rimmel will have to
focuses on enhancing their online presence in order to have effective marketing which in not
only essential for current situation but for the future as well.
Emerging issues in cosmetic industry:
There are various issues that are existing within cosmetic industry which can be solved
through implementation of innovative ideas as well as products and service. Given below are
various issues within cosmetic industry that Rimmel solve through innovation:
Market shift:
The overall cosmetic market has shifted in recent times and have been more forces upon
online sales. This can have a negative impact on the sales of organisational outlets. In context to
Rimmel, it can solve this issues through utilization of technological innovation and focuses on
developing online stores in order to attract large customers base and generate high profitability.
Customer awareness:
The customers within the cosmetic industry have become aware of the ingredients used in
the production of cosmetic products and have altered their trend towards products products with

organic ingredients (Van Looy., 2019). In context to Rimmel, the organisation has a line of
organic product which will allow the business to negate this emerging issue in the industry with
relative ease.
Sustainability:
The factor of sustainability has been an issue for the cosmetic industry as production of
products require sourcing of material that are harmful relative tot he environment. In context to
Rimmel, development of organist products through sustainable technique will allow to promote
innovation which will be beneficial in current situation as well as in the future.
The organisation innovation requirements 2021 and beyond.
The identification of factors that promote business innovation is crucial in order to
develop new products and services which will ensure high level of profitability as well as
customer satisfaction. Although its is also vital for an organisation to identify how it is going to
respond to the factors and instil innovation in order to be successful in future. In context to
Rimmel, there are various factors that are promoting not only the organisation but the cosmetic
industry to instil and accept innovation. The implementation of innovative ideas will ensure high
level of growth as well as profitability for the organisation. In order to understand the
implementation of innovation Pentathlon framework along with Simple model of innovation are
utilized and elaborated below in context to Rimmel:
Pentathlon framework:
This framework focuses on identifying five key elements in order to enhance
performances. This framework allows an organisation to work upon the idea of innovation and
ensure that it is successful in its implementation. In context to Rimmel, this framework will be
the key to successful innovation and eliminate the changes of failure (Chesbrough., 2017)
(Chandler., 2020). Given below are the five elements of the framework:
Idea:
This element of the framework included creativity and ideation along with the R&D
process. It consists of understanding process related to creativity and tool required for
assistance. Moreover, it included traits and characterised of people along with creating new
products and its characteristics. In context to Rimmel, the organisation is able to effective
understand the changing trend of customers and developed organic products. This innovative

idea is supported by the business strategy of product differentiation which allow the business to
have competitive advantage in the market and be innovative.
Prioritizing:
This element focuses on prioritizing as well as selecting essential aspects such as strategy
relative to innovations. It also included understanding competitive differentiation along with
capabilities required to implement innovation (Clegg, Pitsis and Mount., 2021). In context to
Rimmel, the organisation has to prioritize the innovation aspect of developing new products and
utilizing technology as primary components for effective achievement of innovation. The
prioritization of these elements is crucial as it will be the base of promoting innovation within the
organisation.
Project management:
The following element of the framework pays emphasis on effective management of the
project involving innovation in order to ensure its success in implementation. This elements
allows managing of essential elements required for innovation. In context to Rimmel. The
various resources of the organisation such as its financial and human resources are effective in
managing changes related to innovation. This can provide high level of performance to the
organisation and ensure success of innovation.
Innovation strategy:
This element is concerned with developing innovation strategy in order to guide and
influence idea selection along with implementation. In context to Rimmel, the organisation been
in the market for a substantial amount of time which has provided them with experience as well
as effective understanding of their target audience. This will allow the organisation to develop
optimal innovation strategy that will assist the implementation of innovative ideas.
Enterprise culture:
This element if focused upon people and the organisation that can effectively manage
strain relative to taking on risk and business imperative to minimise failure of products and
services (Rendtorff., 2021). In context to Rimmel, the organisation has a well established work
force along with aligned business operations that will allow them to effectively implement
innovative ideas for their products. This will allow in ensuring that the organisation is able to
gain competitive advantage in market relative to future.

Building future innovation capabilities for the organisation.
It is vital for an organisation to develop and enhance its capabilities in order to promote
future innovation. This ensures that the organisation is able to adapt to changes and develop
suitable strategies that are aligned with innovation. In addition to this, it allow to have effective
understanding of experiences and gain vital information that is necessary to introduce innovation
within an organisation. In context to Rimmel, structured building of capabilities is essential for
future innovation as it will allow the organisation to develop innovate strategies than will provide
assistance to the business in future. Given below are various future innovative capabilities for
Rimmel:
Engagement with stakeholders:
The engagement with stakeholder is essential for an organisation in order promote future
innovation capabilities. It allows an organisation to ensure that their stakeholder are aligned with
their innovation strategy which will provide high level of performance as well as satisfaction
(Grasser, Loufrani-Fedida and Oiry. eds., 2021). In context to Rimmel, the engagement with its
various stakeholder will allow the organisation to instil innovation for the future and build
structured relations what are essential for growth. Given below are various stakeholders of the
organisation:
Suppliers:
The positive relations with suppliers allow the organisation to promote innovation within
their products as they are able to acquire raw material that is necessary for innovation such as
organic good. This enables the business to innovates its existing and new products.
Customers:
The customers have a massive impact on the future innovation of Rimmel as the
changing trends and customer behaviour force the organisation to instil future innovation relative
to products. The innovation of organic products will allow the organisation to establish a positive
relation with their customers.
Employees:
The employee's of Rimmel are essential to instil future innovation within the organisation
they will help in development and production of innovative products for the organisation and
will ensure that organisation is able to maintain high level of performance along with
productivity.

Community:
The organisation has to implement future innovative in order to ensure that Is is able to
adapt dynamic changes of community relative to their preference and trends. This allows the
organisation to develop specific innovative products that are optimal in developing vital relations
with the community.
Knowledge management:
The concept of knowledge management is vital for future development of innovation at
Rimmel as it allows for the creation and maintenance of competitive advantage through effective
utilization of knowledge as well as collaboration practices. The knowledge management will
allow the organisation to develop structures innovation program which can be complex due to
the changing needs of customers along with extensive pressure from rapid technological changes
(Buenechea-Elberdin, Sáenz and Kianto., 2018). In addition to this, the knowledge management
in future innovation is vital as it is a resource that can be utilized in order to reduce complexity in
the innovation process and overall managing of other resources. Moreover, innovation is highly
dependent of availability of knowledge and therefore the complexity created by the saturated
reach of knowledge has to be recognized and managed. The high level of knowledge and its
effective management allows for the development of innovative products.
The overall application of knowledge management is highly beneficial for Rimmel as it
will improve their innovation process and effectively integrates both internal as well as external
knowledge to the organisation.
Change management issues and strategies for overcoming possible resistance to change:
The concept of innovation promotes change within an organisation which can have both
positive and negative impact within the organisation and its functions. Although innovation
allows an organisation to enhance its performance as well as productivity through development
of new products and service, it can negatively impact the organisation through resistance form
employee's. In context to Rimmel, the innovation will allow improvement of their overall
business functions but can raise the issues such as increase cost of change relative to innovation
along with internal resistance. In addition to this, change innovation can also lead to selection of
wrong choice of innovation strategy. In order to negate the neagtive impact of change the
organisation can use change management models that will ensure effective implementation of

change. Given below is Lewin's change management model which will help in implementing
changes relative to innovation:
Lewin's change management model:
This change management model was developed by Kurt Lewin and involves three steps
that are unfreezing, change and refreezing. The model helps in change process and develops the
perception that change is required in order to innovate and achieve desired level of organisation
objectives. Given below are the three steps of the model in context to Rimmel:
Unfreezing:
This step of the model is concerned with the behaviour of individuals in the organisation
relative to natural resistance to change. The objective of unfreezing stage is to develop an
awareness regarding how the status quo or current level of acceptance that can hinder
organization in achieving innovation. In context to Rimmel, this stage will allow the organisation
to introduce the innovative changes related to implementation of new technology in development
of their products (Boonstra., 2021). This can cause resistance from employee's as there will be
alterations in procedure to produce products.
Change:
This stage of the model is focused upon implementing changes necessary for promotion
of innovation within the organisation. During this stage individuals of the organisation will learn
the new behaviour, processes and ways to think relative to innovation. In context to Rimmel, at
this stage the organisation will be able to effective introduce changes and enhance their overall
performance. In addition to this, the organisation will be able to effectively manage their
workforce and align them towards acceptance of innovation in order to grow and be successful in
market.
Refreezing:
This is the final stage of the model and involves the acceptance of the changes of
innovations within the organisation. It allows to effectively change organizational processes,
goals along with structure to be aligned with innovation. In context to Rimmel, at this stage of
the model the organisation will have the ability to ensure that he change for innovation is being
accepted by their organisation. This will allow in the development of future innovation aspect
that will provide business with improved profitability along with being competitive in market.
Organisational culture:

The specific culture of an organisation plays a key role in ensuring that innovations is
promoted within the business. This is vital for a business as it helps in attain high levels of
growth as well as success. In context to Rimmel, it is crucial for the organisation to focuses on
developing and altering its organisational culture towards a suitable innovative culture that will
promote creativity and innovation. In order to instil innovation within the organisation its is
necessary for the business to adopt innovation organisational cultures as it helps in fostering
innovation and allows the business to have the ability to make rapid decisions and improved
internal process (Meredith., 2017). This will be highly beneficial for Rimmel as they will be able
to adopt a proactive approach to the changing trends in the market and develop optimal as well
as innovate products for their customers. In addition to this, it will allow the organisation to
enhance the overall satisfaction of their customers resulting in higher profitability.
The change in organisational culture will allow the organisation to have differentiation
factors which will allow the to gain competitive advantage in the market. Moreover, it will
enable the organisation to accept future changes as well which can proved high level of
productivity and help in establishing a higher level of productivity.
Leadership:
Leadership is an essential part in promoting and implementing innovation. The leadership
of the organisation ensure that innovation is introduced in order to gain advantage in the future
and to enhance the current operations of the business. In context to Rimmel, there are various
leadership that the organisation can adopt in order to promote innovation that is essential for
future capabilities. Some of the leadership styles are mentioned below:
Authoritarian leadership:
This type of leadership style impose expectation and define overall outcomes from
employee's. These leaders are able to proving team members with clear guidelines (Addis and
Rurale. eds., 2020) In context to Rimmel, this leadership style can help in implementing
innovative changes in an effective manner and reduce the changes of resistance for employee's.
Participative leadership:
This leadership style is focused on democratic theory and allows the employee's to be
involved in the decision making process of the organisation. In context to Rimmel, this
leadership style style can help the organisation to involve employee's in decision making process

which can help in promoting innovative as well as creative ideas in order to solve complex
problems.
Delegation leadership:
This type of leadership pays emphasis on delegating duties and roles among employee's
in order to ensure motivation of employee's as well as improve their responsibility skills. In
context to Rimmel, this style of leadership will allow in motivating the employee's to be creative
and develop innovative technique in order to enhance their overall productivity.
Transactional leadership:
This style of leadership is concerned with establishing a transaction system of exchange
such as rewards for the employee's. This allows the leaders to improve the performance as well
as productivity of team members (Rangone., 2020). In context to Rimmel, this style of leadership
will allow the organisation to understand their employee's and appreciate them through rewards
when their accept changes relative to innovation. This will provide assistance in promoting
innovation and increasing productivity.
CONCLUSION
From the above report it can be concluded that, it is essential for an organisation to
identify various factors that can have both positive as well as negative impact relative to
innovation in order to develop suitable strategy. In addition to this, its is concluded that an
organisation should utilize innovation framework models in order to ensure that its innovation
process is effective as well as efficient in its overall implementation. Moreover, the organisation
has to focus on understanding their relationship with their stake holders as well as have optimal
knowledge management to ensure change for future. Furthermore, the organisation should have
suitable organisational culture as well as effective leadership.

REFERENCES
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Financial Transformation, 52. pp.112-121.
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