Analysis of Virgin Group's Success

This assignment delves into the key factors behind the remarkable success of Virgin Group. It examines the role of innovative business strategies, effective leadership styles championed by Richard Branson, and the importance of fostering a strong team culture within the organization. The analysis draws upon relevant academic literature and real-world examples from Virgin's diverse portfolio of businesses.

UNIT 8. INNOVATION AND COMMERCIALISATION
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Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
LO1. Explaining the context for innovation and determining the difference between invention
and innovation............................................................................................................................4
P1. Explaining innovation and its importance to employees.....................................................4
P2. Explaining to the employees how organisational vision, leadership, culture and teamwork
can shape innovation and commercialization............................................................................5
Task 2.........................................................................................................................................6
LO2. Explaining the different types of innovation to employees..............................................6
P3. Explaining the 4Ps of innovation and the use of the innovation funnel to examine and
shape innovative ideas to employees of Infectious Media.........................................................6
P4. Explaining how the organisation can develop frugal innovation.........................................7
Task 3.........................................................................................................................................9
LO3. Discussing the process required commercializing innovation..........................................9
P5. Explaining the importance of the commercial funnel and the application of New Product
Development processing for commercialisation to employees..................................................9
P6. Building an Innovation Business Case including ways to access funding........................10
Task 4.......................................................................................................................................12
LO4. Evaluating the range of methods for protecting ideas and understanding their
advantages and disadvantages..................................................................................................12
P7. Evaluating the different tools that can be used to develop, retain and protect knowledge
and intellectual property...........................................................................................................12
Conclusion................................................................................................................................13
Reference List:.........................................................................................................................14
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Introduction
A company’s vision should always be focused on innovation and commercialisation.
Innovation is a method to develop a new application of the existing product. This innovation
can include the older application with new methodologies in the new device. Innovation will
be possible only when there is a proper scientific research, technical verification, market
survey, and study of the product. Along with this, analysis of the process, manufacturing and
marketing to an extent are also carried out to support the application of the innovation.
Commercialisation refers to the profit making from the innovation through the sale
and the use of the product. If there are more innovation and invention, then the
commercialisation by the firms can gain a high competitive advantage in the market. In this
assignment, Infectious Media, a small SME in the UK, is taken to understand the concept of
innovation and commercialisation. It is a programmatic agency operating system, where it
provides flexible access and customisation, which requires successful delivery of the given
data. The company connects the data to the Impression desk to unlock the audiences and
insights. This data platform allows combining with second and third party data from tangible
segments. Rigorous application of new methodologies helps to improve the result.
Figure 1: Logo of Infectious Media
(Source: Infectiousmedia.com, 2016)
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Task 1
LO1. Explaining the context for innovation and determining the difference between
invention and innovation
P1. Explaining innovation and its importance to employees
Innovation refers to something new or a change that is made to the existing product,
idea or field. In the business sector, it means the implementation of the new ideas, creating
some dynamic product on the current services. Innovation is a catalyst for growth in the
marketplace, opines Urbancová (2013, p.57). It can also mean changing the business cycle to
deliver better products and services. Successful innovations should be inbuilt part of a
business strategy because the culture of innovation leads to innovative thinking. Innovation
also increases likeliness in the business which will have better productivity and performance.
The useful ideas of innovation are the result of creativity, which is a prerequisite for
innovation. Creativity provides some new ideas for the improvement in quality and
innovation puts these ideas into action. One major importance of innovation is that it creates a
competitive advantage in the market. In today’s fast advancing global economy it is crucial to
have the best ideas and capabilities around the world. Consumers often see the innovation as
it adds value to the company or product (Zakic, Jovanovic and Stamatovic, 2008). Another
importance of innovation is to establish the best method of business. Every organisation has
some unique properties, sector specific issues and business objectives. It is necessary to
analyse specific needs and process to complement the business goals. For example,
considering the hospitality sector, an organization operating in this sector would require the
employees to be efficient in customer service skills. It will also have specific need of
adopting novel ways of satisfying the customers through its service delivery methods.
Therefore, the business goals can only be complemented once these needs are analysed.
In 2001, Apple had invented an iPod, which has a lot of capacity to hold songs in the
smallest physical space (Apple (United Kingdom), 2016). Virgin group in the UK, which has
a huge number of departments, has invented a lot of product and services (Virgin, 2016).
Invention means creation or the introduction of the process for the first time whereas
innovation means improvement or making a significant contribution to an existing product.
The only invention is not the process to commercialise in the market; innovation is also
required for giving the best options to the customers. If the customers get monotonous
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products for a long time, the market value might fall. Apple and Virgin are inventing new
products but these same products have to be modified and innovated with ideas or process so
that people get attracted towards the product.
P2. Explaining to the employees how organisational vision, leadership, culture and
teamwork can shape innovation and commercialization
Organisational Culture refers to the values that exist in an organisation for a long
time, the belief and the faith of the staff which influence their work, attitude and behaviour.
The administrator always adjusts their leadership behaviour in order to accomplish the
mission and target of the organisation. It is essential to understand the relationship between
organisational cultures, leadership behaviour and job satisfaction of the employees. Culture is
socially learned and it is transmitted by the members. It also provides the rules for the
behaviour of the company. When a strong and unified behaviour is developed in the
organisation then the company emerges to be strong, observes Okpara (2007, p.12).
Leadership has to be rational and external, accepted leadership includes the emotional
personality and quality of the leader. The organisation should have specific goals, acceptance
of rules and regulation set by the leader and the employees should follow those so that it can
become a strong organisation (Michan and Rodger, 2000, p.203). Along with this, team work
is mandatory because it helps the staffs to be familiar with other and learn how to work
together. If the members of a team are well known to each other than a strong group can be
build up. A team group works well when they become accustomed to each other then they
can produce brainstorming ideas. Challenges come in the workplace so if the team supports
each other then they can handle the pressure more efficiently. Therefore, for a perfect
organisation all the characters are very essential to emerging as a successful organisation.
The products of Apple that have been developed by the company and their
commercialisation have changed the lives of many people. Steve Jobs even introduced the
diverse set of industries including computing, publishing, movies, music and mobile
telephony. This was possible because of his organisational behaviour; he had visions to
invent many new industries. The great leadership quality and had an idea how to run the
industry by working in a team. The Apple industry had a unified behaviour, culture and
value; as a result, they are successful to emerge as a branded company. Another big group is
the Virgin Media. It has several products which like Virgin phone, mobile, television, and
broadband connection and lots more (Virgin, 2016). Virgin group started with a small venture
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and now it has expanded a lot. The model used to come from the senior department but the
team members of that company unified together with an aim to establish the companies
ventures a successful one.
Task 2
LO2. Explaining the different types of innovation to employees
P3. Explaining the 4Ps of innovation and the use of the innovation funnel to examine
and shape innovative ideas to employees of Infectious Media
The model of 4Ps of innovation has been developed by John Besant and Joe Tidd,
which provides a powerful tool for analysis. The 4Ps are Product, Process, Position and
Paradigm Innovation (Alvaro Gómez and José Luis, 2011, p.22). Product innovation means
the improvement of the product. For example, Apple has invented iPod first, which had the
capacity to store thousand songs only but later on they developed the iPod where it can store
a large number of songs with small space.
Innovation is focused on the Process through which the product is delivered. Initially,
some of the products were developed from the non-relief contexts, but now the products are
delivered by natural focus because humanitarian innovation is being considered. If the
innovation process is improved, then the efficiency and effectiveness of the organisation
increases subsequently. For example, the rate of change in the technology of Virgin Media
has increased other processes as well; new scientific testing is being done and nuclear
innovation has taken place. This has happened only because there was a change in the
process.
Position Innovation refers to changes of a specific product or services which has
perceived symbolically and how they are used. It also indicates the change in the specific
product or process as perceived in a representable manner. For example, Apple has started its
business in London by developing the product continuously; it has not just spread its business
in London, but also to the rest of the world changing the lifestyle of the people (Apple, 2016).
Paradigm Innovation relates to the mental model of organisation or what is the
business about. It also redefines the dominant paradigms of the entire organisation. For
example, Virgin Media first started its venture with simple publishing but now keeping that
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backbone of the company it has launched many departments like television, phone, mobile,
broadband connection.
The aim of any product is to take the idea from the concept and take it to the reality
which will meet the market need in an economical and manufacture-able form. The
development process starts with the variety of inputs and then gradually selects among them
creating some developmental projects that can be completed with a quick introduction of time
and launch in the market (Zakic et al. 2008, p.19). The development is based on the present
generation. Different variety of product and services enter through this funnel for the
investigating process but only a fraction becomes a part of the total project. The funnel
involves three different tasks. The organisation should expand the knowledge and gather
information, next the ideas should be screened thoroughly and lastly, the selected projects
should be delivered on time along with approval. Infectious Media can also get success if it
follows the innovation funnel minutely. Apple and Virgin media have also achieved success
through this process.
Figure 2: 4Ps of Innovation
(Source : Sohmen, 2013, p.8)
P4. Explaining how the organisation can develop frugal innovation
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4Ps of
Innovation
Product
innovation
Process
Innovation
Position
Innovation
Paradigm
Innovation

Frugal innovation means the process of reducing the complexity, the cost of the goods
and its production. It usually removes all the non-essential features in order to sell in the
developing countries such as China, Bangladesh, Kenya, Egypt, India etc. Designing the
products for these countries might increase the durability when selling the products to various
distributors in the market. The process of frugal innovation is concerned with discovery of
new business models for redesigning the products. It is also about reconfiguring value chains
so that the product can be made affordable. This focuses its attention towards those groups of
customers who face affordability constraints. Through frugal innovation, the organizations
are able to address these constraints of customers in way that is sustainable as well as
scalable.
Globalisation and increase in the income of the people drive the frugal innovation. It
becomes very useful in developing and developed countries. Frugal innovation is minimising
the use of resources for development, production and delivery. Successful frugal innovations
are not only done in low cost but also outperform the alternative. Frugal innovations have an
explicitly social mission, points out Yachmeneva (2014, p.54). Infectious Media works as an
international programmatic agency and has established as a successful medium of interacting
with many global brands and delivering the best media campaigns leading to the ascent of
both sides. If they increase their business partners more globally then new brands will be
engaged. Infectious Media basically assists in media campaigns for launch some marketing
sites where advertising is successfully done attracting customers to drive the sale
(Infectiousmedia.com, 2016). The marketing application can help the customer with the
relevant data so that it becomes easier for the customer to shop more accurately. This will be
at low cost and it will helpful in spreading the business.
Virgin Media is one of the successful companies in frugal innovation (Harvey, 2014).
Virgin media initially started with simple publication but later it had many departments. One
of the departments is Virgin Broadband department. Over time it has engaged many
customers and their demand was too high. Therefore, to increase their supply the company
followed frugal innovation. The company improvised the broadband product by launching
some innovative plans. It introduced a package where service of television, broadband and
phone was included together. The customer had to recharge for the internet and they would
get the phone and television connection for free. More offers can be given keeping the cost
effectiveness in consideration, like one-month subscription of movies for free. The
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introduction of such plans will prove beneficial for the company, as well as improve the
prospects of the company.
Task 3
LO3. Discussing the process required commercializing innovation
P5. Explaining the importance of the commercial funnel and the application of New
Product Development processing for commercialisation to employees
Commercial Funnel or purchasing funnel is a customer focused marketing which
illustrates the theoretical customer journey to the purchase of the product or services. A
commercial funnel makes the customer aware of the existing product or services, as stated by
Sohmen (2013, p.9). Once the customer is aware of the product they actively express the
interest for the products. If the customer gets mesmerised by the product, then they take the
action to buy the product. It can be explained as follows. When the customer becomes aware
about the product, he begins depicting interest in it. This is followed by the phase of
evaluation where the customer evaluates various options available with him. He also
evaluates the product with respect to various aspects such as it quality, durability, price,
features etc. this is followed by the commitment towards the product and it is bought by the
customer.
Similarly, if Infectious Media develops the marketing activities with attractive and
innovative ideas for the customer it will attract and engage many people. Infectious Media
should expand itself to many clients so that customers would be aware of the wide range of
product where they might express the interest. If the customer is interested, then they will
have the desire to buy the product. Infectious Media will highlight the attractive offers where
the customers will take the action to buy the product.
New Product Development is a crucial process for the survival of the organisation,
remarks Zaccaro et al. (2002, p.458). The environment of the organisation should be very
dynamic and competitive. To withstand with the market competition the company has to
continuously update their product according to the market trends. Apple and Virgin Media
continuously go on updating their product with new applications. They modify their products
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either updating the software or introducing new plans. Infectious Media must introduce some
new products or e-marketing sites in order to survive in the market competition. This can be
achieved by idea generation. This is the initial stage where the company sources for ideas for
the new product. The sources can be technically based also. This stage is very crucial as the
ideas generated will lead to the product development.
The generation of the idea is followed by the screening of the product. After the
screening process, a few feasible ideas for the large pool are generated. Product development
entails the design and then the manufacturing of the product. Development facilitates the
prototype and the market testing. Depending upon the results the owner of the company will
decide whether to launch a large scale or a small-scale production. If the product is screen
very well the owner takes the risk and launches the large-scale production and
commercialization (Morgeson et al. 2009, p.28). The business will launch a campaign for its
new product. The market research conducted during its conception will influence the location
and timing of the product launch. Therefore Infectious Media should follow all these
processes to survive in the competitive market.
Figure 3: Commercial Funnel
(Source : Fapohunda, 2013, p.6)
P6. Building an Innovation Business Case including ways to access funding
Infectious Media is one of the most successful programmatic agency companies that
have emerged through times. The company's business can increase efficiency in their
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productivity or enable the business to extend the range of quality of the existing product and
services. It can develop entirely new products and services because it may come across many
new customers where it can meet rapidly changing customers. Infectious Media has some
existing products and services to which it can add value to differentiate from the competitors
(Infectiousmedia.com, 2016). Infectious Media can launch some product which is creative in
its own way. These ideas may come from the inside of business, from the employees or
managers; it can come from the suppliers, customer media reports and market research. To
put forward this business innovation it will require funding. There are a number of ways of
funding like loans or equity finance (Fapohunda, 2013, p.4). The external funding may
require the high-quality business plan that describes the business in the detailed forecast. The
company may turn to the bank for the line of credit or loans depending on the borrowing
needs. The industry can also apply to the government program. This will only cover the part
of the company project but the organisation has to retain the control of the shares.
Task 4
LO4. Evaluating the range of methods for protecting ideas and understanding their
advantages and disadvantages
P7. Evaluating the different tools that can be used to develop, retain and protect
knowledge and intellectual property
Infectious Media’s privacy policy is to safeguard the privacy of the company. The
company is the active member of the Internet Advertising Bureau and adheres to EDDA
principles (Infectiousmedia.com, 2016). The company does the best to make sure that the
policies and practices reflect industries best practice. One of the policies is Cookies and Web
Beacons. This policy deals with how to use the cookies and web beacons. Internet
Advertising is another private policy. The internet basically works on the advertising. It is
one of the ways to generate income. The job role of the company is to display advertising and
it is known as behavioural advertising.
However, at times the organisation acts as a data controller for advertisers. In this
case, the advertisers will provide the older data and the company will correlate that data in
order to display the relevant advertising. Sometimes this data is the personal data which is
technically possible to identify the individual by associating the information. The company is
firmly in favour on advertising to children, but the company does not cast any child below 12
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years of age (Infectiousmedia.com, 2016). Sharing information with other clients is strictly
prohibited. The company stores the information about every employee in their database and it
is regularly checked by this company. If an employee tries to transfer information, then the
employee is caught in their tracker and is terminated immediately. None of the workers is
allowed to have any personal information with them. Neither the company will sell or rent
any information to the third-party client. The information is purely confidential. The
company will not even disclose any information of the employees to their own clients until
and unless it is ordered by some legally authorised authority such as the police or court.
Infectious Media is very strict in their rules and private policy in safeguarding their company
(Infectiousmedia.com, 2016).
Conclusion
Creation of innovative idea is very vital for company’s survival. The best strategy of
promoting the innovation in an organisation is to encourage the activities and strategies that
remove the barriers and transform the culture from the resistant to resourceful, which rewards
the innovators. If any organisation is not open to innovation, then it will be a great problem
for the company. So, each and every organisation should be open to the innovation then only
the commercialisation will take. Various types of new ideas will come up; the workers would
gain interest in the new idea, and start working enthusiastically. The customers also get tired
of using the same product over and over again, so to change the taste and preference of the
customer it is essential. The customer must implement the new ideas, some new technologies
and attractive material which can create a desire among the customer. If the desire is created
among the customer, then they will show interest in the product. The customers will also scan
the product and then an urge will be created inside them to buy the product. Finally, customer
attraction will lead to commercialisation.
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