Innovation and Commercialization

This report explores the impacts of innovation and its importance in relation to employees of H&M group. It discusses the 4P's of innovation, the use of innovation funnel, developments in frugal innovation, and the importance of the commercial funnel and process of NPW. It also highlights the role of organization vision, leadership, culture, and teamwork in shaping innovation and commercialization.

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Innovation and it's importance to organization with difference between invention and
innovation....................................................................................................................................1
P2. Organisation vision, leadership, culture and teamwork can shape innovation and
commercialization........................................................................................................................3
P3 4P's of innovation and use of innovation funnel. ...................................................................4
P4 Developments in frugal innovation........................................................................................6
P5 Importance of commercial funnel along with process of NPW.............................................7
P6 ways to have development of funding by building an innovation business case for H&M
group............................................................................................................................................9
P7 Evaluating tools regarding the development of intellectual property within H&M group..11
CONCLUSION.............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Companies in this modern era are focussing at greater level with terms of innovation and
commercialization. The company are making it their privacy concern that is needed to be
important part of development and growth strategy. In this report, the aim is to have highlighted
on impacts of innovation and its importance in relation to its employees of H&M group. H&M
group or Hennes & Mauritz is one of the oldest retailer also known as discounted retailer
providing products at affordable prices since founded in Sweden. The company is growing as the
one of the most recognizable brands in the fashion industry. The company is having the
innovation of fibre purposely recognizes orange fibre which is repurposes leftovers from citrus
fruit production to create a silk-like, biodegradable fibre with fantastic sturdiness, shine and
drape. The report will gather the information regarding 4Ps innovation, commercial funnel,
innovation funnel, frugal innovation along with the required tools for developing and retaining
intellectual property of employees within H&M group or Hennes & Mauritz. The information
will be established with relational to employees. To shape innovation and commercialization
within the firm which is embedded over the next 12 months successfully.
LO1
P1. Innovation and it's importance to organization with difference between invention and
innovation
INNOVATION INVENTION
Innovation is the procedure which
transform an idea or creativity into product
and services and gives values to customers
to fulfil their new requirement in business.
For example flourishing products and
services like H & M clothing company etc.
While invention refers beginning of
new product or creates extempore way
to obtain exiting product in business so
that runs into new requirement of
customers. For example goods design,
business framework etc.
Innovation plays vital role in H&M
company. For example customer needs and
requirement always change, and they want
unique product with change, where
Innovation helps in fast changing status
While invention also plays crucial role
in clothing company because it assists
to create new technique or services.
Through new techniques or services
company enables to accomplish further
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like retail company. H&M is clothing retail
company which introduces innovation in
retail to improve in cloth fashion and their
services, so customer meets their new
requirement in company. Through
innovation H&M enables to take
competitive advantages and product
customization in business market. thus, it
supports to improve services for
customers.
process like implementation so that
company meets new experience and
easily elevates their product in
economical market in high range.
Invention is important because it
introduces new platform in business.
Through this invention company can
take competitive advantage if it's
successful. Thus, invention is crucial in
global market.
Innovation leads commercial success in
retail company by introducing new product
services to customers, so-that customer
gets satisfaction with product and services.
Such kind satisfaction supports to raise
economical scale and retain customer in
company.
While invention creates way or product
for company without verification it
runs. It leads commercial value for
company. It is most important because
without creation innovation ain't
possible. It gives source to encourage
customer with dynamic product and
unique services,
It transforms ideas or creativity into action
and establishes in company. Through this
action company takes profitability in
company. It gives assurity. It doesn't need
any protection during establishing.
While it's just a physical formation of
new concept. It doesn't provide
verification , it runs. It needs protection
or patent, so that another doesn't steal
company ideas.
Innovation is totally dependent on
invention and creativity because without
invention innovation doesn't possible.
Without creation invention doesn't
possible so creation is important for
invention.
Innovation can't possible alone in retail
marker, it needs number of employees and
sources to implement.
Invention can possible alone because it
just idea which creates by innovative
person or human being.
Innovation gives value to business which Invention gives values to customer
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occurs by accomplishing customer
requirement through their product and
services and elevates GDP rate of
company.
preference which comes by visiting
market and listening customer view
regarding company's product and
services.
P2. Organisation vision, leadership, culture and teamwork can shape innovation and
commercialization
Diversity is play vital role for innovation by meeting various viewpoints and enhance
scale of ideas or creativity. Leadership assists to give vision in organization while culture permits
expressing different point's of view. Effective team transform the creativity into services and
goods. Through such kind supports company enables to sustain in market.
Organization vision: organization vision is important for company because it provides a
objective of company. Vision creates ideas for innovation so company enables to achieve goals
of company. Through innovation business growth is possible. Vision of H&M company is to
modification towards shape and renewable fashion company. To accomplishes goal of company
H&M invents some strategy and implements in business. Through new strategy H&M enables to
sell their clothes in wide scale. For example H&M company provides some software apps to
customers, so they easily can purchase clothes according to their preferences on affordable
prices. Thus, company covers large segments of customers and raise economical scale of
company.
Leadership: Leaders of the H&M is responsible to set up teams and lead them to achieve
objective and change performance by effective leadership. Leaderships style is obligated for
motivating employees at workplace. H&M company leader applies democratic leaderships to
motivate employees, so they give innovative ideas for product development and services, so
company enables to take competitive advantage in business market. this style can help H&M
leaders to carry innovation in the team. In Democratic leadership style leaders treat employees
like there family member. Leadership invites employees in decision-making. Leader gets
different innovative idea which leads to innovation and can achieve business objective in less
time. It increases involvement of the employees in work, and they give their best performance
toward the organization so company meets their vision which previously decided by
organization. This leadership style assists leaders to bring innovative ideas and suggestion from
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their employees. This style also supports employees to provide friendly atmosphere, so
employees can direct communicate if they trap any problem.
Culture: H&M company provides different culture at workplace so company enables to get
different ideas according to their culture. It promotes ethics at workplace. That leads
transparency in employee's for their work and behave. Different types of cultures at workplace
introduces different types of invention or creation which assists to achieve goals of company.
Teamwork: Teamwork plays viral role in H&M company. Teamwork activity is arranged by
management of the company. If employees of the organization works in team then it leads
completion of task in minimum time. Teamwork assist employees to get each other and leads
understanding between employees regrading their cultural behaviour. This can resolve the
conflicts in the organization and all the employees can work together. Teamwork also involve
employees and different group of H&M company. they can achieve common goals of the
company. Teamwork permits employees to take high duty for the decision-making also
encourage them to make relation with their work process. This can improve the moral in
employees for their work. Thus, they can gain more authority to accomplishes task. Teamwork
leads commercialization in company by completing task of company.
P3 4P's of innovation and use of innovation funnel.
Innovation is required for smooth working of company innovation helps them to develop
business at extreme level. Innovation required to attract customers towards the company.
Innovation helps them towards attaining goals of business. Innovation helps to increase sales as
well as develop new market for a company(Clayton, Feldman and Lowe, 2018. ). Innovation
help company to effective use of resources for employees in an organization. Help to train
employees to achieve goals of business. Innovation requires designing a plan for a business.
Innovation means a idea of new product or strategies for existing technologies. H&M needs to
develop new technologies or ideas to develop their business at a leading level.
4P'S of innovation
Product
H&M is a leading business in providing fashion products. H&M need to expand business
and policies for development of their business. Product needs to developed by use of new
technology that help them to develop their business at high level. Fashion is changing day by day
and company need to bring innovation on their clothing products so that they are able to satisfy
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their customers. Products are main part of a business that require interacting customers
effectively with the organization.
Process
Process helps H&M to understand the technology in resources they are using for
development of product. It help organization to expand their business with effective use of
available resources that help them to achieve their objectives & goals. Process helps them to
know the changes required for overall expansion of organization and helps business to attain
their goals & objectives.
Position
Position helps H&M to understand the changes required by bringing innovation with
proper analysis of wants and desires of customers that help them to fulfil objectives and goals of
organization. Position shows the market where company is going to introduce product that helps
them to accomplish vision and mission of business. Position is required for overall development
of organization.
Paradigm
It is an analysis of overall working of the firm for achievement of goals & objectives of
company that help them to achieve their goals. Paradigm helps H&M to redefine their products
& services and to develop their business at an leading level and develop objectives of business. It
any innovation or changes are required then company needs to make those changes by bringing
innovation.
Innovation funnel
Innovation funnel help business to generate different type ideas and create one plan for
development of business. Funnel helps business to identify qualified people that help
organization to achieve objectives. Funnel means creation of idea that innovate business to
achieve their objectives. Innovation can be built up from anywhere from the employees as well
as customers of the organization.
Develop innovation funnel
H&M needs to create a innovation funnel. Company uses funnel first step to develop a
product that help to achieve organizations objectives. Goals is defined that help to satisfy
customers.
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Mouth of funnel
In first step organization tries to prepare as many ideas possible. H&M needs to gather
information to develop ideas. Large number of ideas help them to develop quality in their work.
Market research about the innovation or technologies used by their competitors.
Narrowing the funnel
H&M prepare idea for development of their business. Then after preparing idea company
needs to know the idea is capable to achieve goals of business.
Narrowed part of funnel
Then company ensures that the idea or a plan is able to influence their customers towards
success of their organization.
P4 Developments in frugal innovation
Frugal innovations are used by business to reduce cost and wastage of products as well as
use the resources that are available to organization. Frugal innovation helps business to develop
without incurring any extra cost. Frugal innovation helps H&M company to develop the growth
of their business.
Design thinking
Frugal innovation helps H&M to develop an effective design that help them to prepare
product effectively and at low price to get attention of customers.
System thinking
System thinking helps business at a bigger level(Jongbloed, 2015. ). Helps company to
think at an extreme level and develop a product able to stand in a market for a long time.
Develop new ways
Frugal helps business to minimize the cost of products it helps them to develop new ways
to design their products. Designs are prepared that are able to incur less amount. Products are
designed according to requirements of customers.
Leveraging technologies
Companies needs to develop new technologies for smooth working of business that help
them to incur less cost of production. Technologies helps them to develop new technologies and
trends in a business.
Innovative solutions for business
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Frugal helps business to develop an innovative solution for their business. Frugal helps
business to think effectively and develop an effective use of resources.
Make something people want
H&M needs to prepare products that company wants. By analysing the requirements of
the customers and what they want from company. Bring innovation according to the requirement
and develop policies according to the customer wants.
It is not about cheap
Frugal innovation doesn't means to provide cheap products. It helps business to think
innovatively and introduce new methods for development of the business.
Focus on value
H&M needs to focus on providing value to their customers(Miller and French, 2016.). By
avoiding waste for the company. Develop new policies that help firm to prepare new products &
services.
Simplify
Help company to simplify their working by reducing cost of product and develop new
strategies for business.
LO3
P5 Importance of commercial funnel along with process of NPW..
Innovation is required for development of organization. Innovation is done to increase the
sales of a business all over the market and helps business(Nissen, Evald and Clarke, 2015. ). To
attract the customers and develop new strategies for business.
Helps to pick marketing strategy
Funnel help H&M to select a marketing strategy that help them to expand business as
well as to earn profit. Business prepare innovation in a product or services that helps them to
prepare marketing strategy as innovation in a products bring with the help of analysing the
customers as well as clients of business.
Help to know how to relate to customers
Commercial funnel helps company to develop business at an dominant level and for that
they have to communicate with their customers effectively. Communication is required to
increase sales of business.
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Generate sales
Commercial funnel helps H&M to generate more sales in a business. Marketing strategy
help company to know customers and helps them to generate profit for their business. Sales
funnel helps company to attain goals & objectives.
Help in improvements
Innovation in a product helps business to improve their working. Innovation helps
achieve goals of their business. Improve innovation to develop company at a extreme level and
help them to accomplish objectives of business.
New product development
Idea generation
whenever company wants to produce new products. The idea is required to develop a
new product and idea generation is a first step for expansion of business at an leading level. Idea
is required to analyse the working of a business.
Idea screening
After preparing an idea for development of business. Company need to analyse
effectiveness of idea that help them to develop business. Company compares idea to the product
& services of their organization. Screening require to develop any changes required in a product.
Business needs to prepare plans for effectiveness of the organization.
Concept testing
When a new innovation or a product introduced in a market the business need to analyse
the concept and efficiency of concept to engage number of customers with product.
Business analysis
Plan is prepare then company need to analyse the working of plan in a business. Business
need to analyse efficiency of product. Firm analysis helps them to develop business at a
dominant level.
Product development
After the analysis of business H&M prepare plan for promotion of company.
Business analysis help them to gain attention of customers. According to analysis product is
developed for business.
Test marketing
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Marketing of product is required for development of company at an extreme level and
help business. Marketing helps them to attract large number of individual with their product.
Market is analysed to prepare marketing strategy for the business(Olefirenko and Shevliuga,
2017.). The tools or techniques available in a market for promotion of a business.
Review market performance
Market performance is required to analyse the working of a business. Market
performance shows the effectiveness of product to influence their customers. It is a last step of a
new product development to analyse the efficiency of product to engage customers and abilirty
to compete with the products of the competitors.
P6 ways to have development of funding by building an innovation business case for H&M
group.
H&M being a MNC use to provide fashion products clothing for both men and women
and children. Company is developed all over the globe and have large number of products and
services offered by them to their customers. They also provide their services online. The
company have the portfolio brand which have offers to practician in having capability to have
run over the business more effectively & efficiently. The firm is being identified as famous
organization for their particular innovation. The company has the worth saying which providence
to back office support which makes it possible to gain competitive advantage. As being the
innovation in regulate term practice give an expected growth in business in terms of there
financial profitably. The company have consideration over innovative ideas in terms of existing
business strategies to gain financial profitability of business. The H&M group is having the
implementation of hybrid approaches so that business owner's ans the other customers have win
win situation. As per the () the company used to offer the quality of products which has
compassionate of effective workforce along with developed talented teams. The company has
the main aim to provide the best quality at the discounted rates. . However, the introduction of
orange fibre which is repurposes leftovers from citrus fruit production to create a silk-like,
biodegradable fibre with fantastic sturdiness, shine and drape. This will make the company to
move to wards for of healthy clothing or retail market which will bring diversification of
products. Company will provide the sense of benefits to company in terms of profitability.
The company provides the retail products at discount and had been identified as open of the
oldest discount retailer. The organization have the back office support that along brings multiple
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level of competitive advantage. However, this strategy will help inn participating major social
responsibility by providing the orgasmic fabric products. The company is having the innovation
of fibre purposely recognizes orange fibre which is repurposes leftovers from citrus fruit
production to create a silk-like, biodegradable fibre with fantastic sturdiness, shine and drape.
Foe this development company has to focus on the innovative ideas and their increased
workforce engagement and intercalation. The company has to provide innovative product
development training to the employees so that there can be better performance over back office
effectively. The company has to pay focus on the resources for funding development. It is more
possible for having aforementioned organization which is bringing certain level of innovation in
working regular practices. The company should encourage individual to have the greater level of
opportunity for development of company. It turns out to beneficial as to explore better ideas in
business innovation strategies. By having this money development, the company innovation in
one of the business development strategies which helps in raising profit margarines for particular
level of investments. As the company want to have the launch of innovation product, they can
use the one of the best promotional tools for market promotion that is adverting. The term's
advertisement refers to paid promotion for proper communication's of product. This will help in
creating awareness between customer and get attracted to the product.
Estimated total expenses of the company
Type of expenses Cost
Manufacturing expenses $5000
Raw material expenses $4000
Labour expenses $4500
Management expenses $3000
Marketing expenses $1500
Total $18000
Name of the
product
Price of the
product
Quantity of the
product
Revenue from single type of
product
SKIRTS $ 22 250 $5500
JEANS $ 25 200 $5000
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SWIMWEAR $ 30 200 $6000
casuals $35 200 $7000
Accessories $ 15 400 $6000
Total revenue $29500
Therefore, profit of company may be – (Total Revenue – Total Expenses)
= ($29500 - $18000)
= $ 115000
Customers
Both men, women, teen are customers of H&M and helps to to develop business at a
wider scale with the help of innovative ideas and policies of growth perspective of business.
Marketing strategy
Company needs to use online marketing for development of products at a large scale.
Effective marketing over online platforms helps to develop business at a wider scale.
Competitors
Large number of competitors are available in a market. Because large number of
companies are providing products and services related to fashion.
Risk
With level of high risk in company cant have the ability to cope around major
technologies along with changes in to develop business at a wider scale. The more level of risk
make major level of reduction in probability.
P7 Evaluating tools regarding the development of intellectual property within H&M group.
In orders to have retention over the development of knowledge & intellectual proper the
company have the requirement to establish them at legal context (Aithal and Aithal, 2016. ). The
company should stay alter in relation to rightist development which is essential as per legal
manners. In H&M group the company has marked up tools for developing, retaining the of
knowledge & intellectual proper company has to require the use of following-
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Patent- patent will help company by having prevention over there specific inventions. This will
improvement to the existing information the patents will help the company to have the proper
identification make over the development of company innovate products.
Trademarks as the organization, trademark as the sources of recognition which is being marked
among potential customer. These have the inclusion over words, names, symbols. Mor in order
of image formats which is being to products or connections with services or goods. On further
extent it will help in having identification of brand and product within same industry by potential
customers.
Copyrights have application is to have marked up the product to have protection of expression
expression of ideas. Form the above discussion, the company has to about all over tools with is
beneficial for H&M group. At per instance, patents is applied to workforce the firem has to stay
a level of protected form the level of innovative services. The company is having the innovation
of fibre purposely recognizes orange fibre which is repurposes leftovers from citrus fruit
production to create a silk-like, biodegradable fibre with fantastic sturdiness, shine and drape.
For this development company has to focus on the innovative ideas and their increased
workforce engagement and intercalation (Isaksen and Jakobsen, 2017).
The manger of the company is having the expectancy over designing services through the legal
patents. However, the establishment of patents, trademarks and the copyright will make the
organization to have hefty better use over protection of IP. Similarly, in case of patent and
trademark there is need for establishment of data base to make a good design over determining t
the4 level of patented or trademark at the consideration of invention along with name and
symbol. However, the gained information regrading patent & trademark attorney along with
review. Further, this will help the firm to generate awareness regarding legal terms among
companies working in same industry. H&M group. By having this money development, the
company innovation in one of the business development strategies which helps in raising profit
margarines for particular level of investments.
CONCLUSION
From the above repost it can be concluded as the Companies are greater level with terms of
innovation and commercialization. The company is growing as the one of the most recognizable
brands in the fashion industry. The company is having the innovation of fibre purposely
recognizes orange fibre which is repurposes leftovers from citrus fruit production to create a silk-
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like, biodegradable fibre with fantastic sturdiness, shine and drape. The company is being
effective is terms of providing enough quality of services within greater context. More than this
company has been majorly recognized for more level of innovation. This will helps in major
level of influence of high level of future goals in more respective manner. This will also help in
gaining appropriated level of information regarding patent & trademark attorney along with
review. On the further level this helps company in more level of statementing awareness
regarding major level of compositors I industry. This also helps in gaining more level of
competitive advantage and analysis major level of competitors which is helping directly or
indirectly in level of probability of firm. The company has to provide innovative product
development training to the employees so that there can be better performance over back office
effectively.
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