Innovation and Commercialisation: A Study of Aston Martin

Desklib provides past papers and solved assignments for students. This report analyzes Aston Martin's innovation and commercialisation strategies.

Innovation and Commercialisation
1

Table of Contents
Introduction................................................................................................................. 3
LO1............................................................................................................................. 4
LO2............................................................................................................................. 7
LO3........................................................................................................................... 10
LO4........................................................................................................................... 14
Conclusion................................................................................................................ 15
Reference List...........................................................................................................16
2

Introduction
Innovation is the most important aspect for an organisation. A company’s success is
wholly dependent on the innovation aspect because an organisation has to modify
the traditional methods to make their products upgraded and advanced compared to
the other similar products in the market. The company has to come up with new
techniques that will be helpful both for the organisation to make products faster and
deliver the products to the customer in more rapid way. Similarly, the customers also
gets benefitted by buying those upgraded products because in their busy life they
need a commodity that can make their life sorted and decrease complexities. The
Company has a responsibility to make products that can make their production
processes fast so that they can produce a huge number of quantities consuming less
time.. The extra products that are stored in warehouses help the most to satisfy the
huge demand of the market. It is also important for the company to have their own
objectives that is unmatched with others and makes them distinctive from other
competitors in the market.
The company that has been chosen for conducting the following study is Aston
Martin, UK. The company is a very renowned cone in the market. The company is
popular both nationally and internationally and customers are fond of using their
cars. The company has a huge customer base and they enjoy the customer loyalty,
the customers hardly tend to change their brands they are mainly look forward to the
new launches of Aston Martin. In the study, a brief on the comparative study of
innovation and invention will be showcased and the marketing mix for innovation will
be discussed. Funnel frugal innovation and business case and NPD in context to
Aston Martin will also be discussed.
3

LO1
P1 Explain innovation and determine its importance to organisations in
comparison with invention.
A detail comparison of innovation and invention has been shown in this study. This
is a very broad line between the meaning of innovation and invention. Companies
sometimes come up with both innovations in the production process and bring
certain invention that is patent to them that makes them different from other
competitors in the market. The company also makes sure that the competitors, to
ensure that they give labels or keep the inventions confidential amongst them, do not
copy their inventions.
Innovation- This implies in modifying the traditional methods and bringing certain
change that can cater in helping the company’s production process. The company
must bring the changes, which are completely novel, and nobody else rather the
competitors have not come up with such novelty (Witell et al., 2016). This also
makes the customers who are loyal towards the company wait eagerly for the new
launches that the company are coming up with (Meissner and Kotsemir, 2016) This
also helps the company in keeping a hold in the markets every individual seek new
innovations frequently. Customers in recent times are fonder of commodities that are
technologically advanced. Aston martin is a company that produces high-end cars
yet they try their best to minimize the cost and provide affordable cars with best
luxurious features (Muthukrishna and Henrich, 2016).
Invention- This is the scope for the company to understand the latest trend that is
being loved by the customers and incorporating them in their production process to
make the customers attract towards their products and earn good revenue.
Whatever the inventions that the company are coming up with has to be their patent
if the invention of the company gets leaked then the competitors can incorporate
them and give customers same facilities in their products with comparatively less
prices. Invention also examines the skills of the employees of the organisation. The
employees must aver the skills to analyse the new trend and examine them how to
incorporate them in the products of the companies and should know the processes
to make the products attractive with new designs that are not available in the market
and make the customers buy them by enhancing the designs and the technologies
incorporated in them. Aston Martin is a company that hires employees who have
proper knowledge about automobile and incorporate the new techniques in the
products. The employees must have the capabilities to bring out new invention that
is patent in the automobile industry and make the company distinctive from other
companies.
A basic difference between invention and innovation has been propagated in the
following table:
Point of Comparison Invention Innovation
Concepts The concept of invention is
to bring new ideas,
information and
techniques in the market
The concept of innovation
implies that the company
is not blindly following the
traditional methods but
4

that is unmatched from the
traditional concepts.
has incorporated their own
techniques rather
modifying the traditional
methods that will cater the
production process to be
faster.
Meaning The company brings new
concepts that are new in
the industry. This also
means that the
competitors have not been
able to come up with
inventions of that sort
(Resnick et al., 2016).
This means that the
companies are modifying
the traditional techniques
in their way tha6 can be
beneficial for their
organisation. Every
company can implement
their own version of
innovation in the traditional
methods in accordance to
their requirements.
Factors The factors mainly focuses
that the company’s able to
bring new advancements
in the products to attract
more customers.
The factors mainly focus
to bring innovations to
make the market more
competitive and attract
more customers than
other companies.
Skills Required The workers that are
associated with the
organisation have to have
skills to come up with
novel methods and
techniques in the industry.
The employees of the
organisation must know
the process to transform
the traditional methods
incorporating their own
innovations in them.
Table 1: Comparison between innovation and invention
(Source: Created by the learner)
P2 Explain how organisational vision, leadership, culture and teamwork can
shape innovation and commercialisation.
The automobile industry already has a lot of competition yet a number of new
competitors are entering the industry. So the companies that are already existing in
the industry has to keep their production process high and come up with some or the
other innovation and incorporate them in their products in order to maintain their
position in the market and not lose the huge customer base they have. The new
entrants in the industry also has to do a wide study of the industry and understand its
competitors and take preparations of new inventions and innovation that are
unmatched in the industry in order to survive in the hard core competitive market.
Organisation’s Vision and management: The Company’s vision is to improve itself
with the changing environment in order to maintain their existence in the competitive
market. Aston Martin is one of the companies that produce high-end cars in the
automobile industry, yet that company is making new ideas and concepts that are
patent to the company and provide its customers with the best technological
advancements in their products in minimal price. Excluding the part of innovation and
5

invention in the products, the company must also monitor proper working of all the
segments in the organisation. Disturbance in any section of the organisation that can
be in manufacturing, designing, assembling etc can make the company slow and
face difficulties in launching products.
Team and significance of cooperation: The importance of teamwork is required
for all the employees to understand. If any sections of the organisation like
manufacturing, designing, assembling has a barrier in the communication process
that can negatively affect the company. The employees of the organisation must look
forward in helping each other an assist each other in the areas they are facing
difficulties. The spirit of cohesiveness must be strong in the company. This will also
help in developing the company as a whole. Effective and efficient teamwork is the
key to success of an organisation.
Organisational society and arrangement: The organisation must have planned
structure and all the section must have a good coordination amongst them this make
the company very sorted and fewer chances of miscommunications. The company
must upkeep a positive and encouraging culture in the environment. The company
must encourage and motivate their employees for the progress of the company has
well as making them more efficient. The employees also, must be obedient towards
the rules and decorum of the company. A sorted and planned environment and
structure of an organisation can help it to become successful.
Hence, it is seen that Aston martin has a similar pattern to make their organisation
stand out from others. They are implementing these techniques and processes to
make their production process faster and satisfy their customers.
6

LO2
P3 explain the 4Ps of innovation and explain the use of the innovation funnel
to examine and shape innovative ideas
One of the most important business tools is considered 4Ps of innovation in the
company. This also helps the company to understand where the company can place
its product in what type of markets. This also helps the company to do an elaborative
study of the market and understand what products had to be produced to satisfy the
needs of its customers. A detail study has been explained in the study down below:
Elements Analysis
Product To exist in the competitive market of
automobile industry the company must
develop their products and services and
make their products more valuable
(Chaubey and Sahoo, 2018).
Process The company has to come up with new
processes and technique that can help
them in making their production process
faster and can supply many products in
the market to increase their customer
base.
Paradigm The company must have the power to
understand and select the right technique
and process to implement in their
production. Choosing the wrong
technique can make the company suffer
and decrease in the quantity of
production and revenue margin (Dadzie
et al., 2017).
Position The company must know which position
of the market can get them good revenue
and make the company earn a good
image in the industry (Lee and Schmidt,
2017). The company must place its
products where they have customers
who genuinely want to buy the products
and have demand for the cars.
Table 2: 4Ps of innovation
(Source: Created by the learner)
Hence, the importance of 4Ps has clearly been stated in the above table and the
company has to implement them in their production process to make their company
more effective in the market (Cowen and Shenton, 2017). The company has a wide
scope of by maximising the revenue generation by the implementation of the
following theories (Festa et al., 2016). The customers also have high expectations
from the company and they look forward to the new launches that the company is
7

giving with new modified specifications in the products different from others in the
market. The company by incorporating the following theories will be benefitted for
satisfying the needs of the consumer and giving them less scope for switching the
brands.
The importance of innovation funnel is also essential for the company to under and
implements them in their production. This helps the heads of the company to
understand how the business is performing in the market and analyse the response
of the customers (Kleinknecht, 2016). The company also finds it easier to examine
the work of the employees how much contribution they are giving in the company
and how effective their input is making the product acquire good position in the
market. The importance of the innovation funnel has been explained below:
Study of the market
The company must search for other techniques and methods in the market and
implement them in their production process to satisfy the customers. This will also
help the company to be counted amongst the most innovative and modern
companies of the recent times (Wagner, 2016). The customer has a probability of
changing their preferences and requirements very frequently so the company has to
keep a record and do the market survey after every short interval of time. This
makes the company increase their revenue generation largely.
Commodities and Service growth
The company can incorporate the new methods and develop their market with the
new launches of updated and modified products. The company will also get an
opportunity to expand their businesses other countries and come up with new
projects to have versatility within the company (Williams and Williams, 2017). This
will help the customers to have more keen in the company.
Liberation of inventive products
After completing the process in developing the production process and the products,
the final work of the company is to make the commodities available to the market so
that the customers can access them. Until the customers are not reaching or
responding towards the products, the company will be unable to generate the
revenue and that at the end will not be productive for the company.
8

P4 Explain developments in frugal innovation and provide examples of how it
is used in an organisational context.
Frugal innovation is needed in the organisation; in this context, it has been discussed
in the detailed way that frugal innovation is needed in order to grow the productivity
value in the organisations. Frugal innovation helps to the company’s profit in a great
way. It somehow reduces the complication while deciding the price strategies in an
organisation. It helps to maintain a proper price segment as per their product and
there way of operating. It also helps to study the business plans of the company and
helps to evaluate the profit margin in a long run. This also helps in making an
innovative decision in order to make the company’s profit by evaluating the
recourses of the company. This helps the company in making better product and
helps to give the better services to their customers. This innovation also helps in
evaluating the company’s work force that somehow helps the organisations in a
profitable way (Winterhalter et al., 2017).
The technologies development also should be measure in this innovation. This also
helps in the developing the employees attitudes and the skills. Frugal innovations
also helps the company in earning more profit in an efficient way and it also evaluate
that how they can reach the maximum number of the people in a easy way. This
helps the company in order to gain the good image and helps to make the innovation
in order to grow their sales. This innovation helps the company in the following ways
they are as follows-
 This helps to make the product and helps to make the better decision plan in
order to develop their products in a superior way.
 Implementation of new and upgraded technology in order to the development
of the product, the embedded new technological services helps the industry to
run in a advance way. This helps to the customer’s satisfaction within the
company that helps in maintaining the good image of the company.
 While doing the innovation the company may face many issues and problems,
they have to measure carefully the changes and they should accept the
changes in order to grow the company’s product profit.
9

LO3
P5 Explain the importance of the commercial funnel and the application of new
product development (NPD) processing for commercialisation of innovation.
Importance of commercial funnel
In this section, it has been detailed discussed about the commercial funnels and their
important in order to grow the company’s profit that helps in development of the
organisational image and helps in creating the better decision-making process. That
helps to make the products as per their customer’s needs. This needs and feedback
has to be carefully maintained in order to make the company’s profit.
Essential of commercial funnel
The commercial funnel is essential in order to grow the product value in the specific
market. This helps in making the appropriate decision in an efficient way that
somehow helps the company in order to grow the product availability, gaining huge
consumer attraction in a short of the time and helps to grow the company’s profit.
Figure 1: Commercial Funnel
(Source: Wang. and Mao 2018)
This commercial funnel also know as AIDA that includes the basis factors to be
maintain in order to grow the company’s profit
 Awareness- This helps to evaluate and aware about the product that is
needed by the customers.
 Interest- This helps to make the product and services in a unique way by
which it can grow the customers interest towards the product in order to grow
the business
10

 Decision- It is the decision that the company should make in order to grow
their product sales. It is the decision making process in order to make an
appropriate decision in the company that can increase their target audiences
in an efficient way.
 Action- it can also say the outcome of the company. It can be measure only
after the customers’ feedback. That totally depends on the consumer if they
avail the services or by buying the product.
Application of NPD
In order to developing, the product in an innovative way in the same market zone
implications of NPD is required. There are eight stages of NPD are to be follow and
discussed in a detailed way (Ernst et al., 2017) –
 Idea generation- This segment helps to generate the new and the innovative
ideas in order to grow the product sales and productivity value and that helps
to give the customer satisfaction in a better way. Aston Martin helps to bring
up the new ideas that satisfy the customers in an efficient way (Wooten and
Ulrich, 2017).
 Idea evaluation- In this segment, the ideas evaluation is necessary in order
to grow the company’s profit. Efficient ideas should be embed in order to grow
the company’s sales margin. Aston Martin comes up with new ideas in order
to enhance the better driving concept Ideas and that satisfy the consumer
needs in a efficient way (Eling et al., 2015).
 Concept Definition- This stage include the concept designing of that product,
that includes the technical features and specifications that are required by the
customers in that price segments. Aston Martin brings up the new designs
and concepts with the new ideas and specification that helps to grab the
audiences in a innovative way.
 Strategic analysis- Aston Martin helps to build up the innovative strategy
plans in order to grab the market in an efficient way. The company builds the
premium strategy plain in the specified market (Grant, 2016).
 Concept Development- It is the main important and crucial stage in order to
develop the sales ratio of the company. The company should evaluate the
launched product how they are accepted in the market in terms of
performance, usability, quality and quantity in that given price sections
(Gaouar et al., 2015).
 Market Testing- They should focus on the market and they see if the
products are highly accepted by the market or not. The Aston Martin helps to
evaluate the product and specification by measuring the consumer feedback
and helps in resolving the issues. That helps in developing the brand image
towards the mind of the consumers.
 Commercialisation- It helps in building the good price strategy in a detailed
market segment of the new product. The company has to make decision in
order to make the good price strategy as Aston Martin focuses on the
premium segments of the price that they can offer to their defined target
audiences.
 Product Launch- The Company has to carefully evaluate the proper channel
in order to promote their new product. The company use the promotional
media, and make the business strategies so that they can inject their product
11

in the minds of the customers. Aston Martin used to make a promotional
advertisement that somehow reflects the premium class of the cars.
P6 Build an innovation business case for an organisation, including ways to
access funding
Business Case
In order to grow the business in a innovative way the organisations has to embed
some ideas of accessing the fund. The company has to follow some access of the
funds they are as follows-
Background of the company
Aston Martin UK, focus on the sports luxury car their main vision is to provide the
luxury cars in a premium price segments. Lionel Martin and Robert Bamford found it
in 1913, and its main headquarter situated in London. It has the main aim to provide
the premium and the luxury cars to their customers (Aston Martin. 2019).
Mission Statement
Aston Martin UK aims to build and provide the premium cars to their customers in
premium price strategies. Their main objectives are to grow their stocks in the
market in a worldwide base that includes employees, customers, suppliers and
others.
Product Description
Aston Martin used to provide the superior and the luxury cars to their customers.
They offer the premium cars quality to their customers as per the basis of the
customer’s needs in the premium price segments. They focus on the development of
the sports cars segments that have huge Bhp and torques that they used to embed
in their product. They also use the premium quality material in their cars such as
seats and the premium quality of body with the attractive colours and design. Their
main focus in to carry their good will in the specified market and gain the higher
customers preferences in the market. They use the latest technologies to their cars
that include the navigation system, cameras and embed new sensors to their cars.
Targeting Customers
Their main target audiences are the premium customers who are willing to grab a
sports car in their price strategies. They price strategies are higher as compare to
the other segments of automobile. Their main aims to grab the customers in their
premium price strategy.
Pricing
There pricing strategies are much higher than the other automobile industries in the
market but it is somehow affordable in the segments of the luxury cars.
Analysis of Competitor
12